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Official definition as agreed by FINE, an informal umbrella of the four main Fair Trade networks - FLO-I, IFAT, NEWS! and EFTA, in December 2001. Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers - especially in the South. Fair Trade organisations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.
Fairtrade is used to describe the certification and labelling system governed by FLO designed to allow consumers to identify goods produced under agreed labour and environmental standards.
Fair Trade is used to refer to the Fair Trade movement as a whole and can be used to describe both labelled and unlabelled goods and the work of Alternative Trade Organizations (ATOs), Fair Trade federations and networks such as IFAT, NEWS, EFTA etc. The term fair trade is a broader term often used to describe one or many of the above, but can also occasionally be used to refer to trade justice issues. In such cases, it can be as broad as to describe general fairness in trade, such as tariffs, subsidies, worker rights and other issues (source: FAQ fairtrade.net).
Fair Trade certification requires that production adhere to a set of strict social conditions, where registration is permitted only to democratically-organized producer associations or plantations with independent democratic unions who must uphold basic ILO (International Labor Organization) conventions. In addition to paying a set premium above world market price and have a guaranteed minimum price should the market price collapse, Fair Trade importers must provide up to 60% of the expected harvest value. To date, these NGO-based standards have no parallel or protection in national legislation. source: Fair Trade resource Network
The value chain describes the full range of activities which are required to bring a product or service from conception, through the different phases of production, delivery to final consumers, and final disposal after use.
[source: A handbook for value chain research (2001) Prepared for the IDRC by R. Kaplinsky & M. Morris]
A supply chain is a set of linkages between actors where there are no binding or sought-after formal or informal relationships, except when the goods, services and financial agreements are actually transacted. A supply chain that does have such relationships is called an integrated supply chain, or value chain.
Standards are a means of defining and regulating product quality by specifying the characteristics which a product or the process of making it must have. This regards intrinsic as well as ethical attributes. Business linkages in value chains have to observe product safety standards, as well as product quality standards and ecological and social standards wherever applicable. Once standards have been formulated and agreed upon, they still have to be implemented - and the compliance with standards verified. Operators fulfilling standards receive a certificate.
[source: ValueLinks manual: the methodology of value chain promotion. (2007) GTZ ]
Sustainable procurement is the process in which organisations buy supplies or services by taking into account: (1) the best value for money considerations such as, price, quality, availability, functionality, etc.; (2) environmental aspects ("green procurement": the effects on the environment that the product and/or service has over its whole lifecycle, from the cradle to the crave); (3) The entire Life Cycle of products; (4) social aspects: effects on issues such as poverty eradication, international equity in the distribution of resources, labour conditions, human rights. [Source: http://www.sustainableprocurement.net/home2.html]
A unique and identifiable symbol, association, name or trademark which serves to differentiate competing products or services. Both a physical and emotional trigger to create a relationship between consumers and the product/service http://www.allaboutbranding.com/
means any written, printed or graphic matter that is present on the label, accompanies the food, or is displayed near the food, including that for the purpose of promoting its sale or disposal. source: Codex Alimentarius - Organically Produced Foods. http://www.fao.org/docrep/005/y2772e/y2772e00.HTM
The process of designing a brand, including names, logo’s and identity, creating brand awareness and a positive brand image and attitude. This can be achieved through a variety of ways, including advertising, packaging and product design.
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