Reading Fair TradeTown Initiative

overview | paper poem

what is fair trade?

Fair Trade is a partnership between producers and consumers which ensures producers receive good working conditions and fair prices.

Fair Trade principles include:

	paying fair prices to the producers which reflect the true cost of production – world market prices often do not cover even the cost of the raw materials
	supporting produce organisations in their social development projects – many provide health and education facilities
	promoting the empowerment of women
	advising on product development to increase access to markets
	encouraging environmental responsibility
	committing to long term relationships to provide stability and security
	campaigning to highlight the unequal system of world trade
For further information see the leaflets below:
	What is fair trade?
	What is a fair price?

With regards to coffee production as shown below fair trade coffee follows the world market price of coffee slightly above, but significantly when the world price collapses there is a ceiling below which the price paid to coffee producers do not fall. It must not fall below the cost of production. This can ensure that these farmers do not go out of business during hard times.

Robusta coffee 1986-2002 - comparison of fairtrade price with London International Financial Futures and Options Exchange (Liffee) price. Minimum Fairtrade price for unwashed Robustas = 106 cents/lb

In Nicaragua (2001) millions of landless coffee workers were thrown of the plantations losing both jobs and homes. They made roadside camps depending only on handouts which were totally inadequate. Within the week this photo was taken one old women and 2 children had died of hunger.