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The fair-trade system is inefficient at transferring coffee consumers’ goodwill to producers. Direct trade is probably more efficient and sustainable than fair trade. Artificially stimulating more coffee production keeps coffee growers poor, because overproduction makes the prices fall on the world markets.
The Fair Trade Federation does not certify individual products, but instead evaluates an entire business. The FTO Mark, launched in 2004 by World Fair Trade Organization, and identifies registered fair trade organizations. UTZ Certified is a coffee certification program that has sometimes been dubbed "Fairtrade lite". [17]
Fair trade, by this definition, is a trading partnership based on dialogue, transparency and respect, that seeks greater equity in international trade. Fair trade organizations, backed by consumers, support producers, raise awareness and campaign for changes in the rules and practice of conventional international trade. [3]
Fairtrade International was established in 1997. It set private standards relating to labour, cooperative organisation, and the governance of the Fairtrade benefits. The organisation was divided in January 2004 into two independent organisations: [5]
The Fair Trade Certified Mark is the North American equivalent of the International Fairtrade Certification Mark used in Europe, Africa, Asia, Australia and New Zealand. For a product to carry either Certification Marks, it must come from Fair Trade USA inspected and certified producer organizations.
Founded in 1998 by the Institute for Agricultural Trade Policy (IATP), [3] Fair Trade USA is an independent, nonprofit organization that sets standards, [4] certifies, and labels products that promote sustainable livelihoods for farmers and workers and protect the environment.
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Fairtrade Town is a status awarded by a recognized Fairtrade certification body (i.e. The Fairtrade Foundation in the UK, TransFair Canada in Canada etc.) describing an area which is committed to the promotion of Fairtrade certified goods.