Fair Trade Organization.

Fair Trade Organization.

People who aware with the ethic  trade  surely is worried about  un fair trade. Their worry is more and more and happened in all of the world. SERRV is social movement in USA is the firstly noted in the fair trade concept. In 1940 they trade to answer the poverty problem in the South, especially Puerto Rico.  The movement forced for fair trade larger in all the world. So fair trade become the world movement. 

There are some organizations who includes in WFTO ( World Fair Trade Organization) , years ago it called with IFAT, the abbreviation of International Federation Alternative Trading which its member is more than 350 business organization that is spreads in 70 countries.

WFTO has five regional networks, four of them are legally constituted: COFTA in Africa, WFTO Asia, IFAT-LA in Latin America and WFTO Europe, North America and the Pacific Rim are informally organized as a region.. Apikri and 6 others fair trade organization in Indonesia become members of WFTO. Some fair trade organizations in FLO (Fair Trade Labelling Organization, or EFTA in Europe.

In Asia , the organization name is WFTO Asia, in Indonesia the organization name is FFTI ( Forum Fair Trade Indonesia ), di Bangladesh is ECOTA , in Australia and New Zealand is FTANZ. And others organization in all part of the world along with the stronger of fair trade in the world trade.

In Europe, WFTO members are consist of  95 organization : some member are fair trade organization, some fair trade networks, and others are support organization. The mostly sales generated from food that spreads in fair trade shops, supermarkets and other outlets. Not more that 10% from handicraft, with the main outlets totally almost 3000 fair trade shops.

In Indonesia,Forum Fair Trade Indonesia (FTTI) is the umbrella organization for fair trade organizations located in Indonesia. There are ten organization become members of FFTI . The organizations from Bali, Lombok, Yogyakarta, Jakarta, Buton. FFTI Secretariat is in Bali , its also has the shop that sell member products.

Fair Trade

Fair trade is closed with ethic business. Some state that fair trade is ethic and continuity trading or business which is closed with spiritual value. World Fair Trade Organization defines that fair Trade is a trade relation which is done by two way communication , openness and appreciation that find wider equity in international trade. It leads to sustainable development through providing better trading conditions to, and ensuring the rights of, disadvantaged producers and labor mainly in the South

Fair Trade organizations use a clear persistence for Fair Trade as the main principal with their mission. Fair Trade organizations is backed by consumers that are actively in supporting producers, awareness increasing and in campaigning for modifications in the policies and exercise of conventional international trade. They could be known by the WFTO logo

Fair Trade is not only the simply trading: it proves that greater justice in world trade may be possible. It highlights the necessity for difference in the policies and exercise of conventional trade and shows how a successful business also can put people first.

If there is fair trade certainly there is unfair trade. Un fair trade usually did by mainstream that mainly done in all of the world. Because mostly tend do un fair trade. The main reason is they just think about profit,
The simple thing example of unfair trade is formalin food, chemical colour of handicraft. The business owner don’t care about the impact of using or eating that products. The most important thing is just getting a lot of profit.

The other is can be seen from the low wage or under the minimum regional wage. This just because the owner of business would like to get a lot profits
The more things is using the wood for handicraft with out think about replanting. So it makes flooding, land slide everywhere. Again and again the victims are ordinary people.

fair trade buyers
Most of Apikri buyers are fair trade who run the 10 fair trade principles in their business. They located in America, Asia, Australia and Europe . Apikri has 3 fair trade buyers in America ( USA ) , 5 fair trade buyers in Asia ( Japan, China), 1 fair trade buyer in Australia, 6 fair trade buyers in Europe. All the buyers mentioned mostly give continue order for Apikri.

They work with Apikri because Apikri surely implement fair trade value in running the business. Every two year Apikri do self assessment . The self assessment done by Apikri with the involvement of producers representative, staff representative, board representative As they are Apikri stakeholder. The result of self assessment sent to Fair Trade Organization Global . WFTO Global review the result, if it is appropriate then publishing the certificate of Fair Trade for Apikri. The Certificate will be valid for 2 years.

Some of fair trade buyers who cooperated with Apikri also do assessment by visiting organization. Sometimes they gave information before visit , but sometimes they visit without notice . Buyers asked to Apikri about the implementation of fair trade in organization and also producers . One or two producers assessed by visit and interview. The result of assessment inform to Apikri , usually with some improvement for the next. Fair trade buyers make sure that the products that they bought form fair trade organization run under fair trade value.

Basically fair trade buyers not only purely doing business with the supplier , in this case with Apikri but they think about the support for them. When there is disaster happened in the location of organization they consider to support for recovery business of producers . They also support for some trainings needed by producers, production tools needed and others. Buyers always give 50% for advanced payment to organization for production process that really help producers to make the product order.

Principle One: Creating Opportunities for Economically Disadvantaged Producers
Fair Trade Organization consider to decrease the poverty and helping to increase the economy life of small producers including family business, association or group

Principle Two: Transparency and Accountability
Fair Trade Organization makes transparency in management and trading relation to stakeholders. The organization uses the participatory ways to involves staff, members and producers in the decision making process.

Principle Three: Fair Trading Practices
Fair Trade Organization run the trading with the consideration for social, economic and environmental for the welfare of small producers. The organization doesn’t make the maximize at their cost. Supplier meet the order contract and sending products on time with the standards products as in the requirement. Fair Trade meet the pre-payment of at least 50% from the total order. Fair trade buyer has a discuss with suppliers before canceling or rejecting orders. If orders are cancelled with no wrong in the side of producers or suppliers, so adequate compensation made . Suppliers and producers has a discuss with buyers if there is a problem of shipment, and make sure of compensation if quantities not the same number with the invoiced . The organization keep the long term relationships ‘based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade.

Principle Four:   Payment of a Fair Price
Fair Trade Organization think about the fair price. A fair price is the thing that agreed by all sides through discussion and participation decision which gives profit to the producers. At the other sides, products can be sold in the market. Fair price should be profitable and marketable. Fair price also means that the wage received by workers involved not under the Minimum Regional Wage. It also considers equal wage for equal work both for women and men.

Principle Five:  Ensuring no Child Labor and Forced Labor
Fair Trade Organization makes surely that there is no child worker and forced worker in production process. Organizations that purchase Fair Trade products both directly or through intermediaries makes surely that no forced labor works in production process The children who involved in the production process including just for learning is always monitored and not have the bad impact for the children's health, safety, educational requirements and need for play.

Principle Six:  Commitment to Non Discrimination, Gender Equity and Freedom of Association
Fair Trade Organization does not make a discriminate in recruitment, salary, access to training, promotion, retirement based on race, caste, national origin, religion, disability, gender, union membership, political affiliation, HIV/Aids status or age. The organization gives opportunities for women and men to increase their skills and actively promotes women for job vacancies and for leadership positions in the organization. The organization considers the health importance and safety needs of pregnant women and breast-feeding mothers. The organization gives the freedom for employees to set up and participating trade unions

Principle Seven:  Ensuring Good Working Conditions
Fair Trade Organization surely gives a safe and healthy environment for employees and / or members in the working place . The working times , and conditions for employees meet the rule made by national and local laws and ILO conventions.
Fair Trade Organizations think about the health and safety conditions in the producer groups made the products bought by them.

Principle Eight:  Providing Capacity Building
Fair Trade Organization think to develop specific programs and trainings to employee and helping producers to improve their knowledge and skill of management, marketing, production quality, product design , finance and others knowledge and skill needed..

Principle Nine:  Promoting Fair Trade
Fair Trade organization increases the fair trade awareness of fair trade for employee, producers and also promoting fair trade for local country scope and international. The organization inform to the customers about itself, the marketed products, the producers who make the products

Principle Ten: Respect for the Environment
Fair Trade Organizations used the raw materials from the sustainably sources, purchasing locally when it is in the possibility. Organization also use appropriate production technologies that reduce energy consumption and try to find the possibility to use renewable energy technologies that minimize greenhouse gas emissions. Organization also try to minimize the negative impact of the waste on the environment.
The implementation of each fair trade principle in Apikri describes shortly in the Newsletter of Apikri which describes Apikri activities

Fair Trade Products

A Wide variety of fair trade products should be made under the 10 of fair trade criteria. The trading organization and producers should implement the mentioned 10 fair trade principle such us : Creating Opportunities for Economically Disadvantaged Producers, Transparency and Accountability, : Fair Trading Practices, Payment of a Fair Price, Ensuring no Child Labor and Forced Labor, Commitment to Non Discrimination, Gender Equity and Freedom of Association, Providing Capacity Building , Promoting Fair Trade, Respect for the Environment.

The products are safely environment, no chemical stuff, no lead and pass the international certification. For Apikri products usually tested as the buyer of fair trade requirement before the products shipped to buyer. The test such us the following:
1. Flammmability , for the USA market this test mainly for the fashion items for example scarf
2. The jewellery items should be lead free, cadmium, nickel For USA market just lead test but for France should tested for lead, cadmium, and nickel
3. The fashion accessories items should use the safe color/ non chemical.
4. The toys products should be free for chemical colouring and also for household for eating . It must be surely safe color and finishing.
5. The silver jewellery should meet the content 925.
Apikri also certified with Timber Legality Certification , Certificate number :LVLK 003/MUTU/LK-122 for the wood items processed by Apikri producers.