Fairtrade

WHAT IS FAIRTRADE?

Fairtrade is a tool for development which ensures disadvantaged farmers and workers in developing countries to get a better deal.

It establishes a minimum price that a buyer of Fairtrade products has to pay to a Producer Organisation for their product. It is not a fixed price, but should be seen as the lowest possible starting point for price negotiations between producer and purchaser. It is set at a level which ensures that Producer Organizations receive a price which covers the cost of sustainable production for their product. This means it also acts as a safety net for farmers at times when world markets fall below a sustainable level. However, when the market price is higher than the Fairtrade minimum, the buyer must pay the market price.

Apart from the minimum price, Fair Trade also ensures a premium, a sum of money paid on top of the agreed Fairtrade price for investment in social, environmental or economic development projects, decided upon democratically by producers within the farmers’ organization or by workers on a plantation – in our case, the Fairtrade Premium Commitee (FPC).

Premium Benefits

The Fairtrade Premium Committee (FPC) has over the years implemented projects in the area of Health, Education, Alternative Livelihood Training etc that have brought real benefits to the plantation workers and their families.

Health

 

ACTIVITY

YEAR

TARGET GROUP

1

AIDS Education and Campaign

2010

Workers and the Communities

2

Hepatitis B screening and Vaccination

2010

Workers

3

Adoption of Maternity ward of Obom Clinic(the only clinic within 15km radius

2012 – Date

Obom and its Sorroundings

4

Health Support for Workers and their Families needing medical treatment that is not covered by National Health Insurance Scheme

2013 - Date

Workers and their Families

 

 Education

 

ACTIVITY

YEAR

TARGET GROUP

1

Payment for admission fees for workers children who entered into senior High Schools

2010

Workers and their Families

2

Reading clinic for primary schools in the communities

2011

Workers families and the communities

3

Approval to provide full scholarship to workers children

2012 - Date

 

Workers Families

4

Approval to support workers and workers’ children who are in tertiary institutions.

2013-Date

Workers and their families

 

 

Alternative Livelihood Skills Development

Workers are supported to pursue vocational trade such as mobile phone and computer repairing, driving, hairdressing, vulcanizing etc.This workers are benefiting from this module since 2012.

Training       

FPC members and are provided with annual training to build their capacity to enable them manage the premium funds efficiently.

This training has been effective since 2009 and it has trained the Committee Members in the areas of project assessment, risk analysis, project implementation etc.

 Canteen Subsidy

Workers were provided with one subsidized meal a day. Premium money absorbed 30% of the cost of the food.

Year:                 2010-2014

Target Group:   General Workers