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Jeff
For years the Fair Trade movement, and consumers, have grappled with issues around labels, certification systems, and credibility. This summer such debate is heating up, especially in Europe, where most international certification organizations are based. The following recent developments evidence mounting attention, concern and opportunities related to label issues:
Equal Exchange, the largest Fair Trade organization in N. America, recently switched its label and certification system to IMO’s Fair for Life from FLO/TransFair USA’s Fair Trade Certified. Equal says that one reason is to submit its own company to the comparable scrutiny of producer organizations. That provides customers with an extra level of information and confidence about the final seller as well.
Ecocert, based in Europe like FLO and IMO, launched a new certification and label that the organization describes as Fair Trade, solidarity and responsibility. FTRN has not yet confirmed that other Fair Trade Organizations recognize the new label, Ecocert ESR, as Fair Trade. In Belgium, one company, Ethiquable, has launched its first Ecocert ESR certified products: potato crisps from Peru, as well as a chocolate bar from Ecuador. Further details in Trade for Development Centre article.
Earlier this year, the World Fair Trade Organization certified its first member to pilot WFTO’s new certification system for handicrafts, called SFTMS, and use the interim label “Certified Fair Trade.” Details at WFTO.
During much of 2010, TransFair USA has been developing a pilot apparel certification, to benefit cotton farmers and sewing workers. The Fair Trade Certified label would be available for the first time on apparel. Details at TransFair USA.
FLO has begun a year-long process revamping its framework for Fair Trade Certified standards. Expert comment is now being welcomed at FLO.
In France, the world’s first government authority on Fair Trade has been established. The official agency, the National Fair Trade Commission (CNCE), lends legal and statutory support to Fair Trade. It appears to recognize at least 3 Fair Trade identification systems: FLO; Ecocert; Artisans du Monde. Further details in Trade for Development Centre article.
On June 10-11 in the Netherlands, key organizations debated the future role of eco-labels, the evolution of organic and Fair Trade certification, carbon & water footprints, ethical sourcing, sustainable packaging, retailer strategies and ethical consumer behavior. Details at Sustainable Foods Summit.
At Fair Trade Futures, expected to be the largest Fair Trade conference in N. American history, one of the key debates is titled “Is Certification Compatible with Fair Trade?” Other workshops and debates are likely to focus on labels and certifications as well during the September 10-12 conference outside Boston. Details at Fair Trade Futures.
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Jeff
 by Burton Bollag
The most recent data show that the sale of Fair Trade Certified products continued growing strongly last year—an expansion that has been slowed but by no means halted by the current economic recession. This both heartens Fair Trade advocates and suggests future growth in the amounts and range of products that consumers are willing to pay more for in the name of social justice.
While the limits to that expansion are hard to predict, several indices–sales data, an international survey of consumer opinions, and the recent large-scale involvement of major corporate retailers—suggest the phenomenon has considerably further to go before exhausting its potential for growth.
In 2008, $1.1 billion of Fair Trade products were sold in the United States. That compares to considerably less than $100 million in 1996, the year TransFair USA was founded as the only independent certifier of Fair Trade products sold in the country.
Despite the onset of the deepest economic recession in two generations, US sales in 2008 grew by 10 percent over the previous year. This should “put to rest any thought that Fair Trade Certified is a boom-time luxury,” said Paul Rice, TransFair’s chief executive, in a written statement. Sales are expected to expand further this year.
Globally, the sale of Fair Trade products grew 22 percent in 2008 to $4.3 billion.
In April the results of the first international survey of consumers’ attitudes on the subject were released. The survey, commissioned by Fairtrade Labelling Organizations International (FLO), the organization that coordinates labelling at an international level from its headquarters in Bonn, Germany, questioned 1,000 randomly selected consumers in each of 15 rich countries.
Opinions in the US and the other countries were remarkably similar. Over half of those questioned said they have rewarded companies for being social responsible. 57 percent of Americans (and 60 percent of all respondents from all 15 countries) said they were willing to pay at least five percent more for Fair Trade Certified products.
Yet the reduced growth of Fair Trade sales in the United States in 2008—the 10 percent hike was smaller than in previous years—shows the movement is vulnerable to larger economic trends. Shopping in the produce section of a Safeway supermarket in Washington DC one recent afternoon, Carolyn Stouamire, a 52-year old financial assistant, reflected the ambivalence that many people may feel. She said she knew about Fair Trade, and could accept slightly higher prices for bananas or other products if the premium goes to community development projects for small farmers growing the food.
But she added, “with the economy going the way it is, it’s hard to pay more.”
Still, merchants have felt a strong enough demand among their customers that more and more major retailers are adopting or expanding Fair Trade lines. “The entire spectrum of retail stores … are charging ahead to try to offer Fair Trade products,” says Michael E. Conroy, an economist and senior Fair Trade organizer.
“Both Whole Foods and Walmart are pressuring TransFair USA to expand the range of products with Fair Trade certification,” says Conroy. He adds that FLO recently responded by relaxing its rules to allow TransFair USA to set temporary standards for new products.
Companies often like to paint their adoption of Fair Trade products as a sign of corporate social responsibility. But Susan Koehler, Senior Manager of corporate communications at Sam’s Club, the membership-only retail warehouse club of Walmart, adds that carrying Fair Trade products before competitors do can bring a marketing advantage. The move is “an opportunity for us to be different in the market place.”
Sam’s Club began carrying Fair Trade coffee in 2006, two years before Walmart did. Sam’s Club officials explain their earlier adoption of the item by the fact that the better-educated, more affluent customers they cater to tend to be more interested in Fair Trade.
Since starting with coffee, Sam’s Club has expanded it selection of Fair Trade products to about a dozen items including bananas and wine—a wider selection than is yet available at Walmart. Sam’s Club officials say they expect to expand both the volume and selection further, but add they have no way of knowing how far that expansion will go.
Shawn Baldwin, Sam’s Club vice president of fresh merchandising, says that some of his colleagues predict customer demand for the Fair Trade line may go the way of demand for organically-produced foods. Five years ago, he says, demand for organic items was growing strongly. But “now it is slowing down.”
Many Fair Trade products are also certified Organic, and could therefore satisfy demand for both lines. Still, says Baldwin, demand can be fickle. “I guess the tide could go up and down, depending of what customers ask for.”
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Jeff
 by Jeff Goldman
There has been active debate for years about how to set minimum prices for Fair Trade Certified products, such as coffee, the dominant FT commodity. A recent article in Time magazine’s October 5 issue, titled “What Price for Good Coffee? Fair Trade practices were created to help small farmers. But they may have hit their limits”, is the latest example of high profile concern.
The current worldwide Fair Trade Certified price of nonorganic coffee, as set by the Fairtrade Labelling Organization (FLO), is $1.35/lb., or 9 cents higher than the minimum price for the past few years. The current price is about 10% higher than the global market price.
Farmer advocates have urged FLO to raise prices to cover costs of production, or to a level that enables farmers to escape subsistence. The latter price would be around $2, according to researcher Christopher Bacon.
FLO and TransFair USA counter that a higher price would serve much fewer farmers, perhaps tens of thousands instead of millions as demand decreased. The labeling initiatives prefer to increase market share for more farmers rather than the returns for each farmer. Consumers, especially in an economic downturn, would be hesitant to pay even more for Fair Trade Certified products.
So, what minimum price strategies seem best to you for the short- and long-term for advancing Fair Trade Certified’s benefits to vulnerable farmers?
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Jeff
Humankind Fair Trade opened its doors to provide customers a new location to buy Fair Trade pottery, baskets, lighting, wall art, garden art, textiles, and a small selection of furniture. The merchandise for the California shop is purchased through a variety of distributors. The store is located on Monterey Street and it is operated by the nonprofit organization Ten Thousand Villages. If you are in the area check it out and support this new Fair Trade endeavor. See the full story.
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Jeff
Fairtrade Labeling Organization, and Alliance for Responsible Mining, are reported to be finalizing the first standards for Fair Trade Certified gold. These partners are creating a distinctly different certification system than one being developed for socially responsible gems and precious metals by the Responsible Jewelry Council. The latter system is not calling itself Fair Trade, rather socially responsible. See full article.
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Jeff
 by Zarah Patriana
31 Days, 31 Ways
Looking at the calendar, it dawned on me that Fair Trade Month is less than a month away. In case you didn’t know, October is designated Fair Trade Month and it is all about
[S]preading the word. It’s about letting your friends, family and coworkers know what a big difference Fair Trade makes in the lives of small farmers and farm workers throughout the world.
Fair Trade Month is hosted by TransFairUSA to promote awareness and sales of Fair Trade Certified products. This year, the goal is to reach even more people than before. The running theme is 31 Days, 31 Ways, 3100 Followers and 31000 Fans. Each day, there will be 31 different Fair Trade facts features, along with 31 ways to spread Fair Trade in your community - both local and online!
Jet on over to the Fair Trade Month website where you can find out about events going on in your city, or register your own event. You can even post photos, share videos and interact with Fair Traders across the country. Oh, sweet interactivity on the internets. The future is now. But once you’re done perusing the site, get out into your community and start planning an event. I know my Bay Area Fair Trade Coalition-San Francisco Chapter has already got our wheels turning on the big month - Reverse Trick-or-Treating anyone?
Let the countdown begin…
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Jeff
by Jeff Goldman
 For the most part, one Fair Trade product label is prominent in N. America, the one licensed by TransFair USA. Anytime we simplify complex issues into one brief message, lots of information gets lost in translation. In Fair Trade, the lost information includes the extent of a company’s commitment to Fair Trade. For example, Equal Exchange sells close to 100% of its products as FT, whereas Dunkin’ Donuts something less than 5%. Other lost information includes what exact standards of FT are practiced in producing the labeled good. For example, members of the Fair Trade Federation are required to be open to public accountability, whereas those using the Fair Trade Certified label are not. Would consumers care enough to get this kind of information from a product or company label or mark?
Some people would argue that it gets too confusing, in an already crowded market of socially responsible labels. Others would argue that any group of labels would still leave out other important information. Another group would say that there are just too many ways to measure the benefits of Fair Trade to neatly identify high, medium and lower standards. Any gold standard, and regular standard, would have lots of different definitions.
So, how do we balance the benefits of distinguishing between good, better and best with the desire for efficiency, simplicity and practicality of Fair Trade choices and labels?
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Jeff
 by Tex Dworkin
“Attention Wholesalers: How to Get Retail Buyers on Your Side”
Buyers are the gatekeepers who determine whether your products end up on retail shelves. So you want to do all you can to win them over and develop a mutually beneficial, long term business relationship. Here are some tips to increase your chances for success:
1. Leave pop-ins for Seinfeld. For those who are familiar with the TV show Seinfeld, you know that Jerry’s friends are always popping by uninvited. Retail buyers are busy folks; before showing up with a bag full of samples and stopping buyers in their work tracks, do your homework to make sure they are open to pop-ins. Otherwise you risk starting off on the wrong foot. Some have designated times allotted for vendor visits. Taking the time to find this out will win you points in the game of selling.
2. Regular Check-ins can be helpful. As a buyer, I didn’t mind getting calls or emails from wholesalers checking in to see how my stock was doing. In fact, I appreciated periodic check-ins, and they often turned into new sales for wholesale vendors I worked with.
The folks at Ganesh Himal (http://www.ganeshhimaltrading.com/) have done a great job with this; when I was a Fair Trade Online Store buyer (http://www.globalexchangestore.org/), I would get occasional calls from them just checking in to see if I needed anything. Sometimes they were on my list of orders to place, I just hadn’t gotten around to it. So being able to rattle off a quick order over the phone helped me scratch another item off my to-do list, and gained Ganesh Himal a new order and my gratitude.
3. Always ask if this is a good time: If you do decide to call a buyer, start the conversation off with “is this a good time for you to talk.” If they say no, ask them when a good time would be for you to contact them.
4. Email overload: One of my biggest pet peeves as a buyer was receiving unsolicited emails from potential vendors, with huge product image files attached that clogged my inbox. It was a nuisance that immediately set me off. So avoid emailing large files unless buyers specifically request them. It’s never a good idea to inconvenience someone you’re trying to sell to.
5. Make it easy for buyers to buy from you. Make sure to list pricing in the buyer’s currency. Requiring buyers to figure out the exchange rate to determine what your wholesale prices are is an avoidable inconvenient extra step for buyers. Your goal is to make it easy for them to buy from you.
6. Don’t just talk the talk, walk the walk. This probably goes without saying, but if you make an appointment with a buyer, do not be late; if you say you’re going to call at a certain time, then do so; if you say you’re going to send something, then send it right away. This will help buyers see you as a professional, dependable wholesaler and help build trust between you.
7. Ask buyers what their preferences are. You’re not a mind reader. What appeals to one buyer may not appeal to another. So consider asking buyers questions like:
- How and when do you prefer to be contacted?
- Do you prefer receiving photo images via email, CD, or some other method?
- Would a sample of our product(s) help your buying decision?
- What types of products are you actively seeking to add to your product line?
- When do you do your buying and when is the best time to contact you about our new product offerings.
8. Keep track of retail buyer preferences.
Most importantly, once you’ve gathered vital buyer information, enter notes about their preferences into your database and follow up accordingly.
For example, if a buyer agrees to be contacted twice per year via phone to check on stock levels, insert that into your calendar and set up an auto reminder. When the day arrives, you’re “calling to follow up as requested.” It’s about being organized so your buyers don’t have to be. Most buyers will be impressed by your professionalism and you’ll end up a step closer to developing a valuable new business relationship.
The bottom line:
Do what you can to make it easy for buyers to buy from you, and watch your sales grow!
I’d love to hear from other retail buyers about this…What advice can you share with wholesalers? Do you have any pet peeves when it comes to working with wholesale vendors? What are some of the things your favorite vendors have done to win you over?
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Jeff
As the cost of producing bananas rises, many farmers in Dominica are turning away from Fair Trade as they are failing to earn high enough profits. Last year, there were over six hundred farmers selling Fair Trade bananas, but now that number has decreased to three hundred and fifty farmers. Many feel the drop in farmers is the result of the global market and not the fault of the National Fairtrade Organization. The farmers are in need of greater support and assistance to reduce costs and increase prices. See the full story in Dominica News Online.
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Jeff
This week, a new branch of Global Gifts opened its doors in Bloomington, Indiana. The grand opening celebration is soon to follow on September 11th and 12th (10 am to 8 pm). Festivities will include free fair trade coffee and chocolate samples, live music and a 10% discount on all merchandise. Volunteers were a major component to building this store and will continue to be essential, since the store will be mostly staffed by volunteers. Global Gifts is not only a store to find a variety of Fair Trade goods, but will also host events to explain the Fair Trade philosophy, including an artisan from Kenya who will demonstrate her artistic techniques and discuss how she has benefitted from fair trade practices in October. More details in full story.
Global Gifts at www.globalgiftsindy.com/
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