Fair Trade Cotton and the new Little Beetle ONE
Cotton finally joins the Fair Trade list along with rice, coffee and chocolate!
If you are familiar with the fair trade movement, the argument for cotton is similar to that of its predecessors. Rich cotton producing countries like the US dump their excess cheap cotton on developing countries who would otherwise be able to produce and sell their own. This imbalance creates unfair trade.
Subsidies
Cotton prices have faced a long-term decline which is no doubt due in part to advances in production technology as well as competition from modern synthetic fabrics. However, the most recent and tragic factor in the depression of prices is due to domestic cotton subsidies granted by wealthy cotton producing countries. In the US (the #2 producer in the world and #1 exporter), cotton production has reached all time highs resulting in 24% higher production over the previous decade. At the same time, US domestic need for cotton has fallen. Traditionally subsidies are used to support farmers during bad times or to support the need from domestic mills. But in the US, neither of these things are factors.
In 2002-2003, nearly 60% of US produced cotton was exported. Or to put it more aptly, this cotton was “dumped” on the global scene. The next year this number rose to 76%. In the face of falling prices and decreased domestic demand, US cotton farmers produce and export more cotton solely by the fortune of goverment subsidies. This number is even more staggering when you consider that US cotton farmers recieve as much in cotton subsidies as they do from their total cotton crop. And again, the top tier farmers recieve the majority of the subsidies. It is not the the small farm being held afloat.
(Many of the statistics in this blog post are from “Redressing a Global Imbalance: The Case for Fairtrade Certified Cotton”, Fairtrade Foundation Briefing Paper, November 2005) http://www.fairtrade.org.uk/downloads/pdf/cotton_briefing.pdf
The Unfair Side
On the other side of the equation, the picture is often grim. Just consider how West Africa farmers on average were paid around 30% of the world price in comparison to US farmers who received 70% higher than the world price owing to cotton subsidies. In short, farmers in Asia, Africa and Latin America are struggling to survive.
Coldplay front man Chris Martin, a prominent voice in the Fair Trade movement, makes the poignant point “How on earth could anybody stand in a field with these people and say that it’s the right thing to do to dump their excess produce cheaply on a third world country? It’s beyond me. But the truth is, the people responsible haven’t talked to the farmers in the areas affected.” (”Chris Martin in Ghana” www.maketradefair.com)
Fairtrade
The Fairtrade movement was created in order to “improve the situation of small farmers at the sharp end of injustice in the global trading system.” (”Redressing a Global Imbalance: The Case for Certified Cotton”, op. cit.)
Fair Trade - a proper definition
“Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalised producers and workers - especially in the South. Fair Trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.
The essence of Fair Trade is:
- deliberately working with marginalised producers in order to help them move from a position of vulnerability to security and economic self-sufficiency
- to empower producers and workers as stakeholders in their own organizations
- actively to play a wider role in the global arena to achieve greater equity in international trade.”
[as agreed upon by “FINE” (the collaboration of FLO, IFAT, NEWS and EFTA) 2001]
Fairtrade Certification and What it Does
Fairtrade certification guarantees a minimum (fair) price. If the market price is higher than the fairtrade price, then the farmers will get the higher price. In addition to the minimum price, farmers receive a premium for social and environmental projects. These can be used for long term improvments and to better their organizations. But more simply, “fair trade prices mean that farmers can feed their families and that their children can go to school instead of working in the fields.” (Transfair USA)
Fairtrade certification of cotton is aimed at the farmer who is at the beginning of the supply chain. But licensing requires a registered transparent supply chain meeting recognized standards. As there are other workers along this chain, fairtrade hopes that in the future they can pass the benefits of fairtrade certification up the supply chain.
The Fairtrade mark is the only independent guarantee to consumers that farmers in developing countries get a fair deal for their products. The international mark is by FLO. This may become the standard label in the future. In the US, the certification is Fair Trade Certified TM by Transfair USA.
What it Wishes Can be Done
“The benefits of Fiar Trade reach a significant number of producers, but it is unrealistic to expect Fair Trade to reach all those who are in need of its benefits. The ideal solution is for international trade rules to be changed and decent prices to be paid, which is something that many Fair Trade organizations are campaigning for. In the meantime, Fair Trade acts as an important stepping stone for the thousands of producers. Additionally, in supporting Fair Trade, we are displaying our dislike of current trade rules. This will ultimately help to put the pressure on the international financial institutions that have the power to change the rules, and will show the manufactureres of conventional brands that their customers do consider ethical issues.” (”Student’s Guide to Fair Trade”, United Students for Fair Trade)
As Fairtrade is just “one approach to improving the lives of cotton producing communities of the global South,” Fairtrade is also a member of the Trade Justice Movement (TJM) “which comapigns to put poverty reduction and sustainable development at the heart of international trade negotiotions … [and] demands that rich country governments commit to eliminating unilaterally all agricultural export subsidies by 2010 and ensuring that none of their agricultural exports, including cotton, are dumped on the markets of developing countries.” (”Questions and Answers about certified cotton”, no.13)
What we are doing … the new Little Beetle ONE
So, now is the time to be forthright about our other ‘new’ product. We will soon be proudly launching an organic cotton diaper named the Little Beetle ONE made with certified fairtrade organic cotton velour. It is not a one size diaper. The word ‘ONE’ denotes one fabric, one world, organic, fair trade.
Making the extra jump to fairtrade certification takes a substantial investment upfront and advanced planning in order to purchase the crop for the upcoming runs. The diaper will launch ahead of fairtrade certification. But the more diapers we sell, the closer we will get to ensuring certification for all our future orders (which will, no doubt, come quickly on the heels of our first run).
Look for Little Beetle ONE in mid-April!