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How is Fair Trade Different?

The goal of the traditional business model known as "free trade" is to maximize profit for shareholders. In a supply chain, the goal of a business may be at odds with both suppliers and consumers. As a result, in developing nations, farmers who are already living marginally are driven out of work by unfair business practices. In some cases, child laborers are forced to work long hours under harsh or dangerous conditions. In the 1990s both Nike and Wal-Mart faced scandals when it was discovered some of their products were made by children in sweatshops.

Social consumerism (also known as ethical purchasing or ethical consumerism) is not a new phenomenon. In America, in the early 1800s, the Free Produce Society fought slavery through an economic boycott of slave-made goods. At the same time in Britain, the Rochdale Pioneers started the first consumer-based cooperative and opened the first co-op shop. Consumers want to know that their purchases are ethical, and that they make a difference in the world.

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How does Fair Trade Help?

Fair Trade helps farmers and communities in many ways. Fair Trade guarantees fair minimum prices for producers. It encourages sustainable, organic farming practices. And Fair Trade returns a premium to the farming community itself, via farming cooperatives, for improvements.

The ten principles of Fair Trade, as described by the World Fair Trade Organization, are:

  1. Creating opportunities for economically disadvantaged producers
  2. Transparency and accountability
  3. Fair trading practices
  4. Payment of a fair price
  5. Ensuring no child labor and forced labor
  6. Commitment to non-discrimination, gender equity and freedom of association
  7. Ensuring good working conditions
  8. Providing capacity building
  9. Promoting fair trade
  10. Respect for the environment (maximize use of local, sustainable raw materials)
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What is Organic Food?

Organic foods are food products that are certified by the USDA to meet the regulations of the National Organic Program. The NOP logo assures consumers that the organic foods they purchase are consistent with federal standards. Farmers and food producers who don't meet the USDA's standards may not use the logo.

Diet and Health

Diet and nutrition are closely linked to health. Poor nutrition can lead to chronic health problems due to vitamin deficiency. A healthy diet is important for lowering health risks like heart disease, diabetes, obesity and cancer.

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