Ireland is a growing market for fair trade items, which enjoy "steady sales" in major supermarket chains, writes Colm Ward.
A Buddhist monastery might seem an unlikely birthplace for a business idea. But it was while meditating in Nepal that Ms Mandy Brown was inspired to become a fair trade entrepreneur.
Already a successful business- woman, she was disillusioned with the business world in which money was God. So she packed her bags and went to Nepal.
The Nepalese people she met were poor by Western standards, but "they acted like they were the richest people in the world".
She was appalled by the poor working conditions she saw, with people paid a pittance for the goods they produced. In many cases, local artisans working with traditional methods were being taken advantage of by middle -men, who bought the goods they produced at low prices then sold them to larger corporations with significant mark-ups.
She established Dakini, a company specialising in a range of fabrics, stationery and other gifts handcrafted by native artisans in Nepal and Thailand, most of whom are women. Dakini's products are made using "traditional skills, locally sourced materials but innovative designs", says Ms Brown. The products are shipped to Ireland and sold in Dakini's two shops in Dublin and Galway and other stockists around Ireland.
By cutting out the middle-man, Dakini ensures that small producers got a fair price for their goods. She claims that, in real terms, this means they get at least 50 per cent more for their products than would otherwise be the case.
Profits are also re-invested to help the local economy by supporting projects such as the building of a sanitation facility.
An important element of Dakini's business philosophy is that the products should be marketed on their quality rather then relying solely on the "right-on" factor associated with its work in Nepal.
The business has grown steadily since its foundation in 1996 with £10,000 (€12,700) in savings. This year, turnover is expected to be €300,000 to €400,000. But Ms Thomson believes Dakini's success is best evidenced by the fact that it employs 12 people on its production team in Nepal, in addition to the many local groups that supply its products.
The success of businesses such as Dakini reflects a growing market in Ireland for fair trade items, with many large chains, including Dunnes Stores, Superquinn and SuperValu, stocking several products, such as coffee, tea, fruit juices, chocolate and bananas, produced under fair trade standards. There have been "steady sales" of these products, particularly bananas and coffee, according to a Superquinn spokeswoman.
All these products carry the Fairtrade mark, a label indicating they were produced according to fair trade standards.
"The Fairtrade mark is an independent guarantee, supported by all the main overseas development agencies and ICTU, that Third World producers receive a fairer price for their goods," says Mr Peter Gaynor, co-ordinator of Fairtrade Mark Ireland.
Fairtrade Mark Ireland is a member of Fairtrade Labelling Organisations (FLO) International, a group with responsibility for monitoring producers to ensure that they comply with fair trade standards and have a commitment to social and environmental improvement. According to these standards, producers are entitled to:
a price that covers the cost of production;
a bonus on top of the basic price to help with community development;
partial payment in advance to prevent small producers from getting into debt; and
long-term contracts and relationships to ensure proper planning and sustainable development.
The fair trade standards also establish conditions for workers in factories and plantations, including the right to decent wages, good housing, health and safety standards, the right to join trade unions and prevention of child labour.
One of the highest-profile fair trade products is coffee. According to Mr Gaynor, the prices paid to coffee producers have fallen by 70 per cent since 1997, dropping as low as $0.45. Under fair trade terms, producers are currently paid a minimum of $1.26 per pound, over double the market price. Up to 25 million people worldwide depend on the coffee industry, most of whom live in the developing world, according to Mr Colin Roche, campaigns and advocacy officer with Oxfam Ireland. An Oxfam report claims 600,000 people in Central America have lost their jobs in recent years due to price fall.
An Oxfam campaign to encourage consumers to buy fair trade coffee has had a "positive response from people, especially producer governments", says Mr Roche. But there is still "huge room for action to ensure a proper livelihood for everyone in the South". Last week, Fairtrade Mark Ireland introduced a similar campaign to encourage consumers to buy fair trade chocolate. Chocaid.com, which is made with organic cocoa from small producers in the Dominican Republic, is the first Irish chocolate bar to carry the Fairtrade mark.
The growth of the range of fair trade products in shops shows that people in Ireland are becoming more aware of the issues. But Mr Gaynor believes this awareness is only in its infancy, with many retailers still suspicious of stocking such products. "Retailers need to be persuaded that consumers are interested and will buy these products," he says.
"Ireland has the highest level of charitable donations in Europe but, in awareness of trade and fair trade issues, we have lagged behind."
Although some fair trade products may be slightly more expensive than conventional varieties, the people involved are quick to point out that this is not charity.
It is about producing goods to the "highest ethical standards", says Ms Brown. "These people don't want charity. They want their dignity."
Related links: www.maketradefair.com; www.oxfam.ie; www.fair-mark.org; and www.dakini.ie