Fairtrade Essay

1334 Words Sep 10th, 2015 6 Pages
Fairtrade: A form of sustainability marketing
Fair trade developed rapidly and the movement is especially popular in the UK, although fair trade was not predicted such a potential future in 1980s. Paull(2011, p.317) reports there are 500 Fairtrade towns, 118 universities, over 6,000 churches, and over 4,000 UK schools registered in the Fairtrade Schools Scheme. Over 1.2 million farmers and workers in more than 60 countries participated in Fair Trade. In this essay it is proposed that fair trade is a form of sustainability marketing. It will first consider there are many similar key facets between fair trade and sustainability marketing. It will then go on to describe that both fair trade minimum price and fair trade premium promote
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Belz and Peattie(2010, p.4)claim importers agree to pay producers at least a minimum price for their goods, even if the market price is lower. When the market price is higher than the fair trade minimum price, producers will receive the current market price or the price negotiated on the contract signing. The fair trade minimum price is one of the benefits of fair trade. It guarantees producers in developing countries sufficient quality of living. For example, farmers are able to invest in the future of their businesses and their children are able to complete schooling. Thus, fair trade with fair trade minimum price enable the poorer countries to sustainably develop.

Fair trade premium which is an extra payment for exporting organization over the market price promotes economic and social sustainability growth in poorer countries. Talweg(2011, p.7) believes that the residual after extra costs spend in producing and marketing must be spent on ‘social projects’ for social and economic development in the producing communities, rather than being given to farmers as extra payment. In general, fair trade premium is a communal fund for the producers to use, and they are usually used for improvements in health, education or other social facilities. As an example of Neal’s Yard Remedies(Lynn, 2015), the company pays a 10% premium to Samburu women who collect organic frankincense for them, and workers used this to pay fees for

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