Fair trade awards improve lives and communities.
When we started producing oils and buying raw materials from farmers, we realized that the true power of fair trade lies in the economic and social development of communities and farmland. To date, our projects, as a whole, have invested over $2.5 million in fair trade premiums, benefiting more than 20,000 people, directly or indirectly.
How it works: Fair trade producers charge their customers (Dr. Bronner's and other independent buyers) a 10% premium on the cost of raw materials (such as coconut harvesting) and associated labor. This premium then goes into a fair trade fund managed by a committee of farmers, factory employees, and, to a lesser extent, a team of company managers. The committees' role is to assess the progress of each project, review budgets, and select new project proposals submitted by both the committee and the community in which it is located.
Initially, our fair trade partners invested a large portion of their awards in plant composting and the development of agricultural techniques. However, as the annual budget increased – the projects currently generate $350,000 in fair trade awards per year – the committees began to focus on other areas: medical equipment and facilities, drinking water wells, sanitation, mosquito nets to prevent the spread of malaria, education, improved worker housing, improved electricity supply, bridge and other infrastructure construction, as well as environmental preservation.
Dr. A. Bronner's, recognizing the positive impact of fair trade projects, in collaboration with third-party entities, decided to fund a range of projects beyond those that benefited from the fair trade award. In total, more than $220,000 was raised and invested (in addition to the fair trade award), offering local communities and farmlands more opportunities to create and implement change.
The principles that guide the practice of fair trade.
Fair Prices: Paying farmers fairly – and maintaining price stability – in order to cover production costs and guarantee a profit, while protecting suppliers from the volatility of the global market.
Good Labor Practices: Safe working conditions, fair wages, and social benefits in our factories. There is an environment of respect, opportunities for personal growth are created, gender equality is promoted, and forced labor and child labor are not permitted.
Training: To teach farmers organic farming practices, composting methods, how to improve crop profitability, and how to control pests in an integrated way.
Fair Trade Fund: Pay a 10% premium to finance the development of community-based projects, selected and managed by fair trade committees made up of community members and company representatives.
Environmental Sustainability: Implement crop diversity and organic farming (without synthetic pesticides), as well as soil-related measures (use of cover crops, use of composting) to promote fertile soil capable of producing crops.
