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Fairtrade MSLS Final Presentation
- 1. Fairtrade What it has to offer and how we can use it October 26, 2009 Lea Thuot, Charlotte Barrow, Stefan Alvemo, TilmanSplisteser, Spud Marshall
- 2. Alternative approach to conventional trade that provides social and economic development opportunities and benefits to: Producers, Suppliers & Consumers
- 3. History of Fairtrade FLO & FLO-CERT 2002 1997 2004 1988 2008
- 5. Trade Unions
- 7. Housing
- 10. Fairtrade Principles System Global trade market between developing and developed world
- 11. Fairtrade Principles Success Transparency and non-discrimination Empower marginalized producers Social rights and security Democratic input
- 12. Fairtrade Principles Success Strategic Promote entrepreneurship and economic development Minimum price and/or a financial premium Pre-financing
- 13. Fairtrade Principles Success Strategic Improvements and investment in social development Progress Requirements Fairtrade Premium
- 14. Fairtrade Principles Success Environmentally sound agricultural practices
- 15. Fairtrade Overarching Principle: sustainable social, economic, and environmental development of producers and their organizations
- 16. Fairtrade and the FSSD System – Success – Strategic – Action – Tools
- 17. Fairtrade and the FSSD System – Success – Strategic – Action – Tools Not defined None
- 18. Fairtrade and the FSSD System – Success – Strategic – Action – Tools “A world in which justice and sustainable development are at the heart of trade structures and practices so that everyone, through their work, can maintain a decent and dignified livelihood and develop their full human potential.” - A Charter of Fair Trade Principles (January 2009)
- 19. Fairtrade and the FSSD System – Success – Strategic – Action – Tools Stakeholder Engagement Right Direction, Flexible & Backcasting Rural Producers Progress Requirements Return on Investment Precautionary Principle Economic Growth Minimum Price Guarantee
- 22. Hired Labor
- 23. Contract ProductionGeneric Trade Standards
- 24. Fairtrade and the FSSD System – Success – Strategic – Action – Tools Fairtrade Certification Mark Fairtrade Labeling Organizations Int. (FLO) FLO - CERT
- 25. Who Uses It?
- 27. Hired labor companiesRice, India Shea Butter, Burkina Faso Cotton, Mali
- 31. example – Fairtrade Towns
- 32. National
- 38. Recommends environmental standards
- 39. Priority of social development
- 40. Secondary focus on SP 1, 2 and 3
- 41. Used in conjunction with an environmentally-focused certification
- 43. Fairtrade Towns A Fairtrade Town is any community in which people and organizations use their everyday choices to increase sales of Fairtrade products and bring about positive change for farmers and workers in developing countries. 600+ Fairtrade Towns – mostly found in the UK
- 44. Fairtrade Towns The core Five Goals are: Local council passes a resolution supporting Fairtrade, and agrees to serve Fairtrade products (for example, in meetings, offices and canteens). A range of Fairtrade products are available locally (targets vary from country to country) Schools, workplaces, places of worship and community organizations support Fairtrade and use Fairtrade products whenever possible Media coverage and events raise awareness and understanding of Fairtrade across the community. A Fairtrade steering group representing different sectors is formed to co-ordinate action around the goals and develop them over the years.
- 45. Fairtrade vs. Fair Trade Fair Trade is a movement working to a make trade practice and policy fairer. There are different organizations (World Fair Trade Organization, European Fair Trade Organization, Fair Trade Advocacy Office) working to promote fair trade practice and policy, through product certification, advocacy, campaigning and educational work. Fairtrade describes the labeling system controlled by Fairtrade Labeling Organizations (FLO) International and national partners in different countries.
- 46. How Big is Fairtrade? End of 2007: 632 Fairtrade certified producer organizations in 58 producing countries, representing 1.5 million farmers and workers. An estimated 7.5 million people - farmers, workers and their families - directly benefit from Fairtrade. Sales of Fairtrade certified products have grown on average by 40% per year over the last five years and reached approximately 2.3 billion Euro in 2007. There are 18 product categories, including Fairtrade certified cotton, nuts, wine, fruit, tea, chocolate, fresh fruit and sports balls.
- 47. Prohibitive Costs of Certification “…recognizing that some groups do face severe hardship, FLO has a Producer Certification Fund for producers’ organizations that need help to pay certification fees…can receive up to 75% of the certification fee. During 2007 74,000 euros (US$99,000) was granted from the fund.”
- 48. Economic Crisis Impacts “Fairtrade sales have continued to grow in our biggest markets. For example, in the UK sales grew by 55% in the period April to June 2008, as compared to the same time last year.” “The Henley Centre’s research…shows that consumers place ‘stop buying fair trade and environmentally sound products’ at the bottom of a list of actions that they might take in tightening economic environment.”
- 49. Fairtrade Certification Mark Producers have been inspected and certified by FLO-CERT Trade chain adhere to Fairtrade Standards They are granted from FLO-CERT Certification They are allowed to use Fairtrade Certification Mark for consumer final products
- 50. Applying for Certification Apply -> is the applicant eligible for certification? Organization sends application form FLO-CERT sends application documents Audit -> compliance criteria are checked certification fees are paid FLO-CERT auditor visits production sides and offices Evaluation -> organization suggest measures to correct the non conformities audit report to FLO-CERT farmer suggest measures Certification -> Certification of Conformity to the organization Compliance Criteria in 3 Certification Cycles during the following 3 years Process can take from 4 days to 6 weeks
- 52. Democratic decision making by farmers’ or workers’ organizations
- 53. Examples:
- 54. Education and healthcare
- 55. Farm improvements to increase yield and quality
- 56. Processing facilities to increase income
- 58. Cocoa
- 59. Coffee
- 60. Cotton
- 61. Flowers
- 62. Fresh fruit
- 63. Honey
- 64. Juices
- 65. Rice
- 66. Herbs and spices
- 67. Sports balls
- 68. Sugar
- 69. Tea
- 71. The Initial Certification Fee is charged once (per product) and is related to the Initial Inspection and Certification carried
- 74. Follow Up Inspection Fee
Notes de l'éditeur
- Now that Charlotte has explained some of the principles which Fairtrade relies on
- Now that Charlotte has explained some of the principles which Fairtrade relies on, let’s look at the direct contributions that Fairtrade makes to the FSSD framework.(click)In the System level, the FSSD defines the boundaries of our system as society within the ecosphere
- In the System level, the FSSD defines the boundaries of our system as society within the ecosphere. Fairtrade itself doesn’t actually make any direct mention to this system definition, but rather narrows the scope of the system to the trade market between the rich and poor as Charlotte previously mentioned.(click)The success level of the FSSD outlines the four sustainability principles which are combined
- The success level of the FSSD outlines the four sustainability principles which are combined with the organization’s vision. Fairtrade’s success statement focuses on justice and sustainable development through trade that provides decent and dignified livelihoods among poorer populations. As we will point out through the remainder of this presentation, Fairtrade focuses primarily at bringing trade equity to rural producers and continually refer back to this vision statement.(click)At the strategic level, some of the focus areas that the FSSD introduces are stakeholder engagement
- At the strategic level, some of the focus areas that the FSSD introduces are stakeholder engagement, the right direction, a flexible platform, good return on investment, the precautionary principle, and the approach of backcasting. Fairtrade actually makes a contribution to all of these areas.(click)One of the important strategic elements of Fairtrade is that they actively involve stakeholders who rarely have their voice heard, such as rural producers.(click) Additionally, Fairtrade uses Progress Requirements in their work. Progress requirements, as we just heard, encourage producers to continuously improve upon their practices over time. Requirements such as these help ensure that a decision is in the right direction and a flexible platform for producers. It does this by envisioning a successful point for the producer and then providing realistic ways to reach that point, just like we do with backcasting.(click)Another important strategic element is that Fairtrade ensures that producers receive a fair price for their goods through a minimum price guarantee. This provides a good return on investment for the producer. But most importantly, Fairtrade works at addressing a fundamental problem with our current trading market. The current global economy is built on the idea that faster economic growth, the healthier our economy and society. Although this may be true for certain populations, others are placed in situations preventing them from developing economically, often being taken advantage of by middlemen in the trading system. While it’s difficult to scientifically quantify, we can see the potential harm happening to rural communities around the world. (click)So Fairtrade addresses this dynamic by providing marginalized populations with real solutions to economic growth.(click) The next level of the FSSD is actions, and Fairtrade makes significant contributions to this level
- The next level of the FSSD is actions, and Fairtrade makes significant contributions to this level. The main action of Fairtrade is the implementation of standards for both producers and suppliers. Fairtrade splits these standards into three categories:• Generic Producer Standards,• Product Specific Standards, and• Generic Trade StandardsNow each of these have specific criteria for various groups to properly meet the needs of any given situation. (click) To properly administer and perform these actions, Fairtrade has created some tools,
- To properly administer and perform these actions, Fairtrade has created some tools, which makes up the fifth level. These tools, which Lea talked about earlier, include:• Fair Trade Certification Mark• Fair Trade Labeling Organizations International (FLO)• FLO-CERT