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20 11 A recap of Seminar Part 1

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Information about 20 11 A recap of Seminar Part 1
Education

Published on January 23, 2008

Author: Virginia

Source: authorstream.com

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“Tapping the Potential of Fair Trade in Hong Kong” Recap of Part-1 Discussion Highlights, Questions , Issues & Concerns Raised :  “Tapping the Potential of Fair Trade in Hong Kong” Recap of Part-1 Discussion Highlights, Questions , Issues & Concerns Raised Slide2:  DISCUSSION HIGHLIGHTS: 1. Basics of Fair Trade (Ms. Claribel David) Fair Trade as an alternative model that addresses failures of conventional trade;\ Fairtrade defined Brief history: 1940s in America  1950s in Europe  1967 in Netherlands: 1st importing organization; Worldshop was opened  1970s: FT certificn & labeling  1980s labeled products began to sell  other countries began national labeling initiatives Key players: producers, importing organizations, worldshops, commercial partners, and the consumers; national labeling initiatives Slide3:  DISCUSSION HIGHLIGHTS: 2. Basics of Fair Trade (Ms. Claribel David) Fair Trade market today: NRV: $1.5-B (2005); benefited 1-M workers Key Fair Trade principles: - Creation of opportunities for disadvantaged producers - Transparency and accountability - Capacity building - Payment of a fair price - Safe and healthy working conditions - Environmental sustainability - Promoting “fair trading” Slide4:  DISCUSSION HIGHLIGHTS: 1. Basics of Fair Trade (Ms. Claribel David) Challenges to Fair Trade Ensuring that benefits of fair trade accrue to the disadvantaged producer Maintaining the credibility and integrity of the fairtrade certification and labeling system Increasing market share and developing new markets SCFCU (Sidama Coffee Farmers Cooperative Union) – Why was it Established:  SCFCU (Sidama Coffee Farmers Cooperative Union) – Why was it Established increase farmers' share of profits take advantage of economies of scale & maximize the efficiency of member coops stabilize local market & open international markets stay at competitive edge of coffee market & protect coops/farmers from illegal actors of domestic market promote and reward quality coffee production DISCUSSION HIGHLIGHTS: 2. How Fair Trade Benefited Coffee Farmers (Mr. Ashenafi Argaw) Major Duties of the Cooperative:  Major Duties of the Cooperative Assist in strengthening producer/buyer linkages Directly export members’ coffee Provision of warehouse service Promotion of high quality coffee production and processing Training and education Provision of saving and credit services DISCUSSION HIGHLIGHTS: 4. How Fair Trade Benefited Coffee Farmers (Mr. Ashenafi Argaw) Impact of Fairtrade:  Impact of Fairtrade Better flow of cash income from coffee Sustainable coffee farming Sustainable Production of good quality of coffee Better bargaining power among coffee producers DISCUSSION HIGHLIGHTS: 2. How Fair Trade Benefited Coffee Farmers (Mr. Ashenafi Argaw) Impact of fair-trade:  Impact of fair-trade Better school enrolment ratio Better employment opportunities Protected environment Better health condition DISCUSSION HIGHLIGHTS: 2. How Fair Trade Benefited Coffee Farmers (Mr. Ashenafi Argaw) Slide9:  Has Sidama FCU considered adding value to its coffee (like selling roasted coffee instead of green beans) ?  difficult: life of roasted coffee: 6 months while green beans maintains quality up to 1 & a half yrs Does coffee cooperatives have direct link to consumers?  No, the direct link is with the exporters and consumers How is the minimum price set for coffee?  This was set by the FLO (Fairtrade Labeling Organization)  took data from different countries and fit them into a model (production costs, including labor cost + social/environmental cost + fair margin )  minimum price: P1.26  when there is a major change in economic condition, price is reviewed by FLO for adjustments QUESTIONS & CLARIFICATIONS: 2. How Fair Trade Benefited Coffee Farmers (Mr. Ashenafi Argaw) Slide10:  Factors that allowed higher market share in Ethiopia:  directly working with farmers’ association and helping them build capacities, thus trust for farmers increased; strong support by national institutions and NGOs in promoting and increasing markets for Fair Trade Are there other barriers to farmers’ entry to the Fair Trade Market? – FLO could not certify all cooperatives unless there is real demand; at present, market is still so small QUESTIONS & CLARIFICATIONS: 2. How Fair Trade Benefited Coffee Farmers (Mr. Ashenafi Argaw) Slide11:  DISCUSSION HIGHLIGHTS: 3. How Trade Aid Operates as a Fair Trade Organization (Mr. Geoff White) Used IFAT standards as a minimum operating level and tried to work at a level above it Set up success indicators for IFAT standards and used them for measuring progress; used them as the basis for their social accounts Conducted social audit every two years Established strong partnership with its producers  acknowledge the difficulties such as inability to meet deadlines because of intermittent power supply, lack of access to internet and communications, transportation problems (isolated) Established loyal markets who believed in the social cause Slide12:  DISCUSSION HIGHLIGHTS: 3. How Trade Aid Operates as a Fair Trade Organization (Mr. Geoff White) “Fair Price Calculator”  powerful tool being developed by the World of Good (a US fair trade organization), which compares the price for an individual item (non-food) with the country of origin’s minimum wages, average wage and other macroeconomic factors This tool is expected to set up the price that will ensure that producer is receiving a fair return for their work Slide13:  Questions and Clarifications : 3. How Trade Aid Operates as a Fair Trade Organization (Mr. Geoff White) How will Trade Aid be evaluated with respect to its adherence to the IFAT standards?  there is a committee in IFAT that reviews whether an organization follows the standards; Trade Aid conducts external review for its performance according to the standards Factors towards successful producer-importer partnership: Common goal of improving people’s lives Sharing of benefits/ profits Ability to compromise and adjust to difficulties in the production process Slide14:  Questions and Clarifications : 4. Discussion of the FLO standards, Monitoring and Certification System TWO main types fairtrade standards for producers Smallholder producer organizations Example: farmer cooperatives Hired labor situations Example: Plantations Slide15:  Questions and Clarifications : 5. Small Group Discussion/ Plenary Presentation “What are the 2 biggest challenges of Fair Trade and how can these be addressed?” Groups – Mainland China Taiwan and Singapore Hongkong Slide16:  Questions and Clarifications : 5. Small Group Discussion/ Plenary Presentation WORKSHOP OUTPUTS: Summary of Challenges Identified: Concept of Fair Trade (in Hong Kong, Mainland China, Taiwan and Singapore) is very new, thus, there is a need for more enhanced education and advocacy campaigns Going into the Fair Trade Business may entail high operational costs (particularly in the setting-up stage) Slide17:  Questions and Clarifications : 5. Small Group Discussion/ Plenary Presentation WORKSHOP OUTPUTS: Summary of Challenges Identified: 3. Ensuring quality and addressing skepticism on certification: In mainland China, the public has been skeptical about any certification  question the quality of the product (some certifications do not guarantee product quality and thus, difficult for the public to appreciate) Slide18:  Questions and Clarifications : 5. Small Group Discussion/ Plenary Presentation WORKSHOP OUTPUTS: Summary of Challenges Identified: 4. Still very low demand for Fair Trade; need to increase consumer awareness (understand the difference between FT and non-FT products) 5. Need to enhance capacity and skills in branding (i.e. many people will go for brand; need to increase appreciation for social branding) Slide19:  Questions and Clarifications : 5. Small Group Discussion/ Plenary Presentation WORKSHOP OUTPUTS: Summary of Recommendations: Conduct more education and advocacy campaigns (that would allow consumers to understand and appreciate the diff between FT and non-FT products; involve NGOs and academe (students & teachers) Conduct educational visits: (i.e. going to Fair Trade farms and non-Fair Trade farms; interview with beneficiaries) Slide20:  Questions and Clarifications : 5. Small Group Discussion/ Plenary Presentation WORKSHOP OUTPUTS: Summary of Recommendations: 3. Seek other possible funding support to conduct a big national advocacy campaign to promote Fair Trade 4. Develop a strategy to change the mindset (i.e. main land China) on the conventional trading system and to address skepticism in certification and labeling Slide21:  Questions and Clarifications : 5. Small Group Discussion/ Plenary Presentation WORKSHOP OUTPUTS: Summary of Recommendations: 5. Conduct capacity building activities on “branding” and increasing product demand 6. Introduce fair trade as a permanent concept and not just a trend - KAP 7. Know more about “bulk buying” as a means to reduce operational cost Slide22:  Questions and Clarifications : 5. Small Group Discussion/ Plenary Presentation WORKSHOP OUTPUTS: Summary of Recommendations: 8. Utilize current Fair Trade practitioners as models and share success stories as a way to campaign for Fair Trade Slide23:  End of Recap Slide24:  DISCUSSION HIGHLIGHTS: 2. Participants Expectations: TO HAVE A CLEAR DEFINITION OF “FAIRTRADE”/ KNOW MORE ABOUT FAIRTRADE TO UNDERSTAND THE OPERATIONAL PROCEDURES FOR FAIRTRADE/ HOW BUSINESS GO ABOUT TE FAIRTRADE PROCESS TO UNDERSTAND WHAT ARE THE CALLENGES OF PROMOTING FAIRTRADE IN HK; HOWTO MAKE IT AVAILABLE IN THE MARKET OF HK TO KNOW HOW ARE THE MINIMUM PRICE ARE SET FOR FAIRTRADE PRODUCTS (I.E. COFFEE) TO UNDERSTAND THE LABELING PROCESS Slide25:  DISCUSSION HIGHLIGHTS: 2. Participants Expectations: TO KNOW IF “COMPETITION” EXISTS WITHIN THE FAIRTRADE MARKET? / TO UNDERSTAND HOW TO CREATE CONSUMER DEMAND FOR FAIRTRADE WHAT SPECIFIC ROLES CAN NGOS TAKE IN THE FAIRTRADE PROCESS WHAT IS “FAIR” PRICE? HOW DO WE EXACTLY SET IT IN THE FAIRTRADE MARKET?  WHAT IS “FAIR” TO PRODUCERS, TO DISTRIBUTORS?, TO TRADERS?, AND TO CONSUMERS? Slide26:  Definition of Fair Trade – a trading partnership which seeks greater equity in North-South trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, disadvantaged producers in the South. supports producers in: - raising awareness - campaigning for changes in the rules and practice of international trade The Basics of Fair Trade

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