The Fair Trade organization has come to Papua New Guinea and doing very well. This organization looks at a lot of cash crops such cocoa, copra, coffee, sugar cane, etc. Fair Trade has certified few coffee and cocoa companies and co-operative societies of Papua New Guinea. They meet certain requirement and standards which Fair Trade has set. Fair Trade independently audit organizations and verify their conformity with the Fair-trade Standards. Their certification process ensures that economic, social and environmental standards are met in the production of (agricultural) products and is aimed at both producers and traders. It also ensures that producers receive a Fair-trade Minimum Price and Premium.
Why fair-trade certification?
The following are some reasons for their certifications. (1) They ensure credibility of Fair trade labeling towards Customers; (2) Credibility is one of the big selling points of Fair trade (3) Manage Risks for Producers and Traders 3 (i) Reputational Risk: Co-Branding (ii) Market Risk: Reliable Framework. According to the meeting in Madang in July 2011 a triangle was shown how the Fair Trade certificate is earned. At the top (Apex) of the triangle is the Certification, the left hand-side is development and the right-hand side is the secure supply. This secures the certification. Many organizations which are certified are enjoying the premium prices for the Fair Trade. A big player is a cocoa cooperative in Wewak, East Sepik Province.
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