Trade Aid Auckland Essay Competition Winners
First Prize: Oxana Repina
Rutherford College, Auckland Year Ten
Fair trade, as described by the World Fair Trade Organization (wfto.com), “is a trading
partnership, based on dialogue, transparency and respect, that seeks greater equity in
international trade”. Fair trade organizations work with poor farmers and producers in third
world countries to help them get proper rewards for their labours. Because of a guaranteed
minimum fair price, the farmers are able to cover costs of production and still be able to have
money left over to re-invest in their farms as well as their education, health and nutrition.
Because it is sustainable, fair trade is an important way of helping the 3 billion people currently
living in poverty (Global Issues, globalissues.org/article/26/ poverty-facts-and-stats). It is also
easy, and important, to support fair trade here in New Zealand – simply by buying products
from organizations such as Trade Aid or those that are otherwise marked as ‘fair trade’ – in
order to support the less fortunate people living in third world countries.
Fair trade is one of the most important and sustainable factors when dealing with the issue of
poverty reduction in poor countries or regions such as Africa and Asia. Because fair trade is
not charity, but is simply paying a farmer or worker the same amount for their goods and
services as they would receive if they were here in New Zealand – a proper price for their
labour – it is sustainable; the money is not a one off donation but a realistic way of farmers
having the means to support themselves. Paying farmers a fair amount for their work can
encourage them to produce better goods and further invest in their farms and equipment,
leading to higher quality produce, more income and therefore money to spend on other
necessities such as enough food, proper health care and a good education. For example, in
Guatemala coffee growers were paid nearly double normal market price (1000 quetzales in
comparison to 640) for good quality organic coffee through a fair trade partnership (Trade Aid,
tradeaid.org.nz/index.php/page/21/title/FAQs). As well as this, it has been estimated that if
poorer countries (in Africa, Asia and South America) “were to each increase their share of
world exports by one percent, the resulting gains in income could lift 128 million people out of
poverty” (Make Trade Fair, Oxfam, maketrade fair.com/ assets/english/report_english.pdf).
Overall, fair trade significantly contributes to preventing poverty as its causes are targeted in a
way that can be maintained, and it allows further problems/potential causes such as hunger,
disease and poor education to be stopped by giving farmers the means to improve the quality
of their life, the life of their families and the whole community.
Many of the benefits of fair trade are related back to how it works. The principles of fair trade
are maintained by fair trade organizations, which include World Fair Trade Organization and
Trade Aid, who work as importers and distributers of goods from poorer overseas countries.
These organizations work overseas to form “long term meaningful relationships to provide
significant
benefit
to
[their]
producers”
(Trade
Aid,
tradeaid.org.nz/News/Media/Trade%20Aid%20info.pdf). Put simply, famers and producers are
offered a minimum ‘fair price’ on their produce, which is calculated based on production costs
and quality. This is usually significantly higher than what would otherwise be offered at regular
markets (for coffee, for example, often around 10-15% higher, however sometimes as much
as three times normal market price) (Trade Aid, tradeaid.org.nz/index.php/page/21 /title/FAQs).
As well as this, the producers are often paid more than this minimum for higher quality or
sustainability of a product, and the fair trade organization also often works with the workers
and local community to help develop better production, business and marketing techniques
and knowledge and ensure a higher overall return for the community, allowing for extra
schools, hospitals, etc to be built (Trade Aid; tradeaid.org.nz/index.php/pi_pageid /95). There
are also strict rules and prohibitions regarding issues such as child labour and environmental
damage, meaning that fair trade products are more sustainable and have better working
conditions than potentially others (Global Exchange, globalexchange.org/fairtrade/faq). Overall,
this means that fair trade, through the guarantee of a minimum fair price for products and the
close relationship with the producers, ensures maximum benefit and community gain as well
as good working conditions and environmental sustainability.
In New Zealand, and in most developed countries around the world, it is quite simple to
support fair trade. By buying products that are marketed as being ‘fair trade’, which are
available at many standard stores as well as specifically fair trade retailers run by fair trade
organizations, everyone can help to reduce poverty in third world countries. Fair trade
products, because of the bigger incentive for farmers to make better quality products due to
the higher income prices, are also environmentally sustainable, good quality and often organic.
However, buying imported products does not necessarily mean ‘undermining’ our own New
Zealand economy; instead, most fair trade goods sold here are those that come from produce
that is not actually made or grown in New Zealand. The main ones include coffee and cocoa
as well as bananas and tea (Fairtrade.org; fairtrade.org.nz/media/media-releases/kiwiconsumers-step-support-developing-country-farmers-fairtrade-sales-exceed-4). As well as this,
fair trade products are not necessarily more expensive than other products either. For example,
“a 100-bag packet of Scarborough Fair (fair-trade labelled) black tea is only 76c more
expensive than a packet of Pams (non-fair-trade labelled) black tea of the same size. A 200g
packet of Robert Harris'Fairtrade-labelled Ethiopian coffee costs no more the same brand'
s
non-Fairtrade
offerings
of
the
same
weight,
at
$6.99
each”
(NZ
Herald,
nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10662504). This is due to the
close relationship of the fair trade importers and the actual producers, which reduces the
expense of having ‘middlemen’ or extra intermediate service people who take a share of the
final selling price and leave less to go to the original source or the producers (Trade Aid,
tradeaid.org.nz/ index.php/page/21/title/FAQs). Put simply, by buying fair trade products, you
are helping to reduce poverty without undermining New Zealand’s own economy or having to
pay a significantly higher price.
In conclusion, fair trade, through the principal of offering a fair minimum price for the goods of
producers in poor countries, is a way of reducing world-wide poverty as well as its relating
issues. It can be supported both by New Zealanders and other people all around the world.
Fair trade is one of the most sustainable ways of helping people who are less fortunate than
us in poorer countries – and it is only fair that everyone should help and support it.
Second Prize: Aimee Atchison
St Dominic’s College Auckland, Year Nine
People all around the world suffer from poverty every day. Around 2.8 billion people live on
less than $2 a day due to world trade. Powerful countries set the rules of trade and practically
steal produce from poor areas of the world leaving rich countries richer and sending poor
countries deep into poverty. Fair trade organisations are trying to help producers in developing
countries by buying their products for what they are worth and giving the producers back the
profits so that they can further develop their work places and earn a better pay.
Fair trade is a trading partnership that aims for justice for all when it comes to international
trade. Often producers in developing countries are faced with unfair competition from other
countries that are stronger, wealthier and have more to give.
[www.fairtrade.net/what_is_fairtrade.html]Poorer, less developed countries do not have as
much to give as these richer countries, and unfortunately this often means that people will
choose to get the products they need from other countries or pay a lower price for the goods.
[http://en.wikipedia.org/wiki/Fair_trade#Definition]Fair trade organisations offer a trading
partnership that the producers and the buyer can both benefit from. Fair trade leaves everyone
without winners or losers as both sides of the trade get a fair deal.
Developing countries find it difficult to maintain constant production for international trade.
Trade Aid, New Zealand’s oldest and largest fair trade organisation, pays at least 50% of the
total cost of the product they are purchasing in advance. Producers are therefore more able to
maintain product development and prepare for their next order. Many other fair trade
organisations have similar features like this in place to keep producers up and running,
preparing them for future trade. If it were not for the help of Trade Aid and other fair trade
organisations then many businesses across developing countries would not be able to
produce items as well and as often as they can now. Given time they would be quickly falling
down a landslide into almost irreversible poverty, making it harder to help themselves out of
their already awful situation.
With fair trade producers receive a price that covers the full cost of the production allowing
workers to be paid a wage so that they can afford the things they need. This includes covering
things that we, as New Zealanders, take for granted such as food, shelter, education and
health care. You must be thinking that to enable businesses in areas of poverty to give wages
that a family can live on, must mean that buyers will pay more. However, that is not
necessarily the case. Buyers will most often not be paying any extra as fair trade organisations
buy directly from the source without the ‘middle men’ who normally make the profit. If there
were no such thing as fair trade, producers would not make any profit and continue to find it
difficult to keep their families well.
Not only do they create this trading relationship in which they give an advanced payment, they
also support the producers so that they will increase the production and quality of their
products. Fair Trade is not only about buying from places of poverty and paying a fair price, it
is about helping these businesses to grow and become independent. “We seek to change
people’s lives for the better. Our form of trade helps to enrich, empower and transform
disadvantaged producers’ lives around the world moving them into a state of dependency to
one of self-reliance.” This was quoted from Trade Aid’s website [http://www.tradeaid.org.nz] as
an example of there goal for disadvantaged producers. It is about improving the lives of
workers, supporting them and improving their living conditions. It is about helping the
businesses to improve their products so they can earn more for them. Fair trade organisation,
Trade Aid, do this by helping the producers with design ideas, workshops, and even funding
them so they can provide skills trainings for their workers or infrastructure that they need to
become stronger businesses in international trade. Without the commitment and support
provided by these fair trade organisations businesses would not be able to begin to run to their
fullest potential.
Fair trade organisations work alongside those who really need assistance. Help is given to the
world’s most disadvantaged people and through fair trade many lives are transformed. Fair
trade organisations don’t just go around helping anyone in poverty though. The places that
they help have to be willing to work their way out of poverty and develop independence. They
would also be considered if they had the potential to bring about change for the whole
community, not just themselves. This is a fair and effective way to bring people out of poverty
and to help them help themselves.
We, as average New Zealanders, can contribute to reducing poverty and helping people
worldwide. Whether you volunteer to work in shops, warehouses, committees, or educate
people in your area, it all helps. Each time you buy an item from a fair trade organisation, it
helps. All of the excess profit is given to those who made the item to begin with, helping to
make a reduction in poverty. Even just telling a group of friends about it is contributing to
creating a world where trade is fair and poverty is minimised.
Through fair trade the world can become a place where most people will not have to worry
about poverty. From the help provided by the volunteers who work for fair trade organisations,
whether it be in shops, committees or educating others, many areas of the world are already
seeing a better quality of living. By paying a fair price, giving back profits and supporting
businesses so that they can improve the quality of their stock, fair trade organisations are
doing everything they can to help and it’s working. Without their constant encouragement and
funds the people in places of need would not be able to improve their situations and help
themselves. By continuing the work they do today and helping those in need, fair trade
organisations are transforming many lives. A world without poverty is not possible without fair
trade but with help and support of the workers our world could be a completely different place.
Third Prize: Tiffany Stephens
Selwyn College, Auckland.
So you'
re in Countdown looking at coffee. You scan your eyes over the jars looking for the
best deals and pick the one you think is suitable. Sounds normal right? It'
s what everyone
does. But wait a minute, have you ever thought about the farmer who grew the coffee beans in
that jar? Whether or not he got enough money for his crops to feed his family and buy supplies
for his farm? If not, how would he survive without tumbling into poverty? Trade, be it fair or
unfair, has a huge impact on poverty and affects not only one particular farmer growing one
particular crop, but whole communities of people around the world providing all kinds of
products.
The coffee beans in that jar in Countdown most likely came from a smallholder growing his
crops on less than 10 hectares of land. Around 70 per cent of the world'
s coffee is grown by
them and 10 million farmers depend on the crop as their primary source of income. Many of
these farmers survive on less than $2 a day, normally living in remote areas and endure rising
ever-rising input costs, little access in invest in production, and inconsistent weather
conditions.* It doesn'
t help that coffee is also a high-maintenance plant that often doesn'
t fetch
very much money. The price of coffee is constantly varying on the international market making
coffee-growing a very risky business as coffee-growers struggle to predict what they'
ll get in
the next season.
Another example of a product that falls victim to unfair trade would be tea. Like coffee, tea is
subjected to unstable weather conditions, rising input costs and often low prices on the
market. Unlike coffee however, tea is usually grown on plantations. Although labour and pay
conditions are usually overseen by the government, historically much tea work is considered
lower-class labour and is paid at minimal levels**. This issue is well recognised in many teaproducing countries like India and Sri Lanka. Because of their small income, tea workers living
on tea estates often rely on the estates'owners to provide basic needs such as healthcare,
access to water and primary education for their children. These needs are often unfulfilled due
to poor profitability over the past 30 years which let to cutting costs. This leaves very few
options for tea workers and their families but to continue their vulnerable and reliant
existence.^
Luckily, there is hope for the farmers, workers and producers who fall victim to unfair trade.
Organisations dedicated to make trade fair like the World Fair Trade Organisation, Trade Aid
and Fairtrade give new opportunities to the disadvantaged farmers, workers and producers
struggling to provide for their families and plan their future. Take Trade Aid: Trade Aid was set
up 1973 by Vi and Richard Cottrell and ten other like-minded members of the organisation.
This was the start of what was to become the Trade Aid Movement- a group of people with a
vision to create a more just world^^. Fairtrade is also quite similar. In 1988 they launched their
first label: Max Havelaar (named after a fictional Dutch character who opposed the exploitation
of coffee pickers in Dutch colonies)#.The Fairtrade Labelling Organisations International (FLO)
was set up in 1997 in Bonn, Germany to incorporate all the labelling initiatives under one
umbrella1.
Trading fairly is crucial to bringing people out of poverty. Half of the world'
s population - that'
s
2.8 billion people - live in poverty. In conventional trade, the poorest, weakest producers are
ripped off by rich countries grabbing all the profits for themselves after paying a minimal price
to the producers of the goods they are selling or the producers of the raw materials they are
importing. More than 99 per cent of world trade is conducted by the west and poor countries,
representing only 0.4 per cent of the world'
s trade, are powerless against them. The rules and
agreements set out for world trading are made in such a way that the interests of the west are
protected while disregarding the needs of the poorer countries. Cheap products are dumped
on these poor countries and high taxes are charged on imported goods so they can only afford
to export raw materials like cocoa and cotton. These raw materials are then converted into
products of higher value, are sold by the rich countries who keep all the profits for themselves.
Unlike the greediness of these rich countries and their large corporations, Trade Aid and Fair
Trade both pay a price that covers the producer'
s production costs and covers basic needs like
food, shelter, healthcare and education.
Fairtrade products have been very successful in New Zealand and had a 24 per cent increase
in retail sales last year to $45.5 million. Coffee dominated the top of the best-selling list
earning $25.3 million, up from $18 million in 2010. Chocolate was the second best seller with
sales of $17.1 million and bananas came third with sales of $2.4 million2. These figures show
that New Zealanders care about the growers of these Fairtrade products and even in times of
economic downturn, spend more to help those in developing countries.
So when you'
re in Countdown looking at coffee, think about these people. Think about these
farmers and producers and think about how they deserve proper pay for their products. Make
an ethical choice and opt for Fairtrade and Trade Aid products. Although you might have to
spend an extra dollar or two, all the money you spend will go towards making more
opportunities and brighter futures for people who need them. You'
re happy, they'
re happy,
everyone'
s happy. It'
s a win-win. So let'
s make a choice for the better and create a more just
world!
References
*
http://www.fairtrade.org.uk/producers/coffee/coffee_prices_background_and_update_jan_2011
.aspx
**
http://www.fairtrade.net/tea.html
^
http://www.fairtrade.net/tea.html
^^
http://www.tradeaid.org.nz/index.php/page/44/label/Our+History
^^^
http://www.fairtrade.net/history_of_fairtrade.html
1.
http://www.fairtrade.net/history_of_fairtrade.html
http://www.tradeaid.org.nz/index.php/pi_pageid/96
2.
http://www.stuff.co.nz/business/industries/6838044/Fairtrade-products-triumph