Notes:

We’re approaching the end of the history section of Fair Trade 101.  We’re going to be looking at the history of Fair Trade labels for the next couple lessons.  After that, we’re going to shift our focus and look at some of the modern factors that are relevant to the Fair Trade movement.  

I’d like to thank everyone who has been following along with the course so far and I’d like to welcome the new people we’ve been picking up.  It’s nice to know that you’re getting some value out of the class.  Like always, feel free to comment below or on our twitter and facebook pages.

Max Havelaar:

In the late 1980s the biggest limiting factor on the Fair Trade movement was that you had to shop at special stores if you wanted Fair Trade goods.  These stores were a great start, but they were limited in scope and couldn’t provide enough sales to make a significant difference with regards to coffee farmer poverty.  If the Fair Trade movement were to have a bigger impact, Fair Trade proponents needed to increase the market size of Fair Trade goods.

The natural solution for increasing Fair Trade sales was to make Fair Trade goods more accessible.  This could be done by offering the products in supermarkets across the globe.  The problem these suppliers faced was that they wanted to offer their products in a way that maintained consumer confidence.  They needed a way to prove that Fair Trade labeled goods were really Fair Trade products.

The first Fair Trade label was launched on November 15th 1988.  The label was called Max Havelaar, named after the protagonist of the book with the same name.  In the book, Max Havelaar rallies against the colonial powers whose actions are leading to abject poverty for coffee farmers.  As a Fair Trade label, Max Havelaar provided a framework for certifying Fair Trade products and displaying that to consumers.

Takeaway:

The Fair Trade movement, faced with the difficulties of expanding operations beyond world shops and specialty stores, created the first Fair Trade label.  This label gave consumers the confidence to buy Fair Trade labeled products outside of the specialty stores.  For the first time, Fair Trade products were available in supermarkets across the world.

Discussion Question:

Who benefited most from having Fair Trade products in supermarkets?

Additional Readings:

http://www.maxhavelaar.ch/en/ - Best resource for finding out more about Max Havelaar the Fair Trade label.

http://www.gutenberg.org/ebooks/11024 - Read the full Max Havelaar book online