The global market for vanilla has been tumultuous since the devastating hurricane that hit Madagascar in 2000. This relatively small island was responsible for producing 50 percent of the world vanilla market. Its cyclone and proceeding political turmoil of 2002 sent cured vanilla prices soaring to $300 per kg, up from $20 per kg. As a result, many companies switched to synthetic vanilla flavor. So when production finally came back to full capacity around 2004, prices plummeted, leaving many vanilla farmers in debt. Fair Trade Vanilla was introduced to the US in 2006 as a means of social responsibility and a way to level fluctuating market prices.
Fair Trade Standards
Fair Trade is a social movement and a market based approach towards helping producers reach sustainability. By advocating a higher payment to growers of goods, they help workers gain self-sufficiency and give them a higher stake in the products. There are two fair trade standards, for small farms and hired labor situations:
* In small farming situations, there must be democratic decision making among the workers. All producers must have a say in how Fair Trade Premiums are invested.
* In hired labor situations, workers must be paid what is regionally referred to as decent wages, and all health and safety standards must be met. Child labor is prohibited.
* Fair Trade also encourages environmentally friendly, sustainable production. Organic farming is held to strict pesticide standards, which reduces chemical runoff, helps biodiversity and community health.
