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Industry Transformation

Humane working conditions

Humane working conditions

Fair trade describes a controlled trade by which the producer receives a minimum price for their product which is defined by a fair-trade organisation.

The goal is to enable the producer a higher and more reliable income than in the normal trade even though the market price is lower.

The amount of a fair price is a topic that is discussed for a long time in business ethics. Therefore, this form of trade tries to establish long-lasting relationships between the trader and the producer. Moreover, international as well as environmental and social standards should be kept in the production which are provided by organisations.

In 2015, more than 1.5 million farmers took part in fair-trade programs, the parent organisation Fairtrade-International says.

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Transparent supply chains

The strongest-selling product with a vague future is coffee.

With an amount of 32% coffee is still the strongest-selling product of fair-trade. Every 20th cup of coffee which is being drunk in Germany, comes from fair-trade.

Sweet fruit, bitter reality: the banana

Regarding sales, bananas continue being on the first place in fair-trade. With an amount of about 95,000 tons they represented the biggest part in the product category ‘south fruits’. As a result, fair-trade bananas achieved a market share of about 14% in Germany.

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Transparent supply chains

Fair wages

Fair wages

The critical situation of the coffee farmers worldwide shows how long the way to fair-trade structures is. Due to low prices in the world market more than half of the coffee farmers can’t cover their production costs in the conventional trade. More and more producers quit coffee growing and see no alternative than migration.

Due to the survey ‘coffee: a successful story covers the crisis‘ the added value for roasters and trader in Germany has increased by 139% in the last 20 years whereas it has been decreased by 10% in the production countries. This injustice can’t be solved only by informed consumers and their consumption behaviour.

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Sustainable economic growth

The concept of sustainable development defines “development that safeguards the quality of life of the present generation and offers future generations the choice to shape their lives”. (Brundtland Report).

This model of sustainable development should determine international and national policy and action at regional level, in cities and municipalities.

Economic, ecological and social aspects are to be given equal consideration. The development and environmental needs of present and future generations are to be met in a fair way through a newly defined global partnership.

The Millennium Development Goals adopted in 2000 also focus on the concept of sustainable development. A worldwide development partnership is to contribute to the eradication of poverty and to improvements in the areas of education, health, gender equality and ecological sustainability

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Sustainable economic growth

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