Agriculture Reference
In-Depth Information
that the costs have to be paid even though there is no guarantee that organic
certification will be achieved. A first-time certification will typically incur the
following costs among others: advice on the preparatory steps needed before
an inspection, probably requiring a site visit by an experienced certification
advisor; preparation entailing the collating of records from producers (and,
indeed, further up the value chain) on the methods used and/or costs incurred
in production; an inspection visit from a recognized certification agency; the
establishment and implementation of a monitoring and record-keeping system
to measure compliance; and repeat inspection costs. It is rare that a company
or producer attains certification on the first attempt, and a second inspection is
often necessary. Certification is also often an annual process requiring re-
certification every year.
Fair trade certification
Fair trade is a global trading system that promotes workers' rights, protects the
environment and sustains the ability of local producers to meet community
needs. Essentially, it embeds social and environmental responsibility principles
into economic trade chains for improved equitability and sustainability. It aims
to secure a better deal for producers in the developing world through setting
stable product prices that cover both their production costs and a premium that
their organization can reinvest either in the business or social and environmental
schemes in the wider community. The primary objective of fair trade is to
develop access to niche markets in developed countries for producers in
developing countries, who tend to be marginalized by conventional trading
structures. The fair trade system has been established to give small-scale rural
producers in developing countries the opportunity to be supported to the point
where they can sustainably and equitably engage Western markets. This enables
them to reach appropriate quality and quantity standards, as well as ensuring a
fair price for their products.
The goals of fair trade are:
1. To improve the livelihoods and well-being of producers by improving market
access, strengthening producer organizations, paying a better price and providing
continuity in the trading relationship.
2. To promote development opportunities for disadvantaged producers,
especially women and indigenous people, and to protect children from
exploitation in the production process.
3. To raise awareness among consumers of the negative effects on producers
of international trade so that they exercise their purchasing power positively.
4. To set an example of partnership through dialogue, transparency and respect.
5. To campaign for changes in the rules and practice of international trade.
6. To protect human rights by promoting social justice, sound environmental
practices and economic security.
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