How Fair Trade Started

Fair Trade began 50 years ago in Africa and Europe. It started with
small-scale farmers working in conjunction with international aid
organizations from industrialized countries. The farmers and
workers in Africa were struggling with a combination of low market
prices for their produce and a high dependency on unscrupulous
intermediaries. It entrenched their families and local economies in a
cycle of poverty. Together with aid organizations the producers laid
the foundation for a trading system that ensured a fair price for
their produce and a direct road to European markets.

A New Evolution

From the aid organizations evolved a new type of non-profit
business structure known as alternative trade organizations or
ATOs. Most were run by volunteers. They set up what were known
as World Shops in Europe and North America. Parallel to the ATOs,
a new group of entrepreneurs also arose and created for-profit
companies that were driven by the principles of Fair Trade. This
latter type of company was and is particularly common in Canada.

Fair Trade Certification

In the late 1980s an international system of Fair Trade Certification
and labelling was introduced. It was an opportune time to establish
a set of standards and labelling as there was a growing consumer
demand for Fair Trade products. There was also growing
commercial interest. Consumers needed a guarantee that their
purchases were truly benefiting the producers and workers. The
Fair Trade Certified logo is managed by TransFair Canada, a
non-profit organization that provides third-party Certification of the
products.

Companies or organizations wanting to trade, import, produce or
sell Fair Trade Certified products sign a contract with TransFair
Canada and must follow stringent business rules and terms for use
of the logo.

The Certification and labelling system has helped increase the scale
and scope of products available, bringing Fair Trade Certified
products beyond the World Shops into the mainstream grocery
stores. There are now 19 national Fair Trade Labelling Initiatives
that work under the international umbrella of Fairtrade Labelling
Organizations International (FLO). Today, there are close to a
million farmers in 44 developing countries working within and
benefiting from the sale of Fair Trade Certified products.

Today and Tomorrow

The first 50 years of Fair Trade have been filled with many
successes. Hundreds of thousands of farmers and workers have
gained a greater economic stability as a result and their
communities have benefited from important infrastructures paid for
by the Fair Trade Certified premiums.

Globally, there are dozens of Fair Trade Certified products, such as
coffee, tea, rice, bananas, mangoes, cocoa, sugar, honey, fruit
juices and sports balls. They can be found in stores, small and
large, across Europe, Japan and North America. Other fresh fruit,
wines, nuts, oils and non-food products will soon be added to the
list of Fair Trade Certified products.

While much progress has been made in recent years, many of the
same conditions of trade found 50 years ago still exist. There is still
a long way to go. However, it may be a quick ride. There is a
momentous push coming from the grassroots consumer level to
move Fair Trade into the mainstream. Churches, communities,
schools, businesses and consumer groups are taking up the cause
with energy. The topic of Fair Trade is now reaching the corridors of
political and business power. Large grocery stores chains are
getting involved. Some multinational companies are beginning to
offer Fair Trade Certified products. Fair Trade is being promoted by
consumer groups not just as a nice alternative, but the way to do
business for the future of global trade.
Fair Trade Certified
Below is a summary of the history of
the Fair Trade movement from the
website of our Fair Trade certifying
body. To go directly to the website of
tour fair trade certifying body click on
the logo to the right.
Newfound Grounds