Fairtrade Labelling Organisations (FLO) International - Standards, Implementation and main Challenges

Fairtrade Labelling Organisations (FLO) International Standards, Implementation and main Challenges Gelkha Buitrago, April 16th, 2008

About Fairtrade Labelling
Overview Fairtrade Standards
Main challenges for the implementation of standards
Outline

About Fairtrade Labelling –FTL- Mission : To connect consumers and disadvantaged producers through a label that guarantees fairer conditions, thus providing more capacity for disadvantaged producers to combat poverty by themselves, strenghten their position and take more contro over their future How : Using trade ( market access ) to strenghten the development and empowerment of the producer organizations Vision: A world in which all producers can enjoy secure and sustainable livelihoods, fulfil their potential and decide on their future

About Fairtrade Labelling –FTL-
1950‘s: the Fair Trade – a grass roots- movement starts
1987: first Fairtrade label „Max Havelaar“ is launched in the Netherlands
Other Labelling Initiatives follow across Europe and North America
1997 , Fairtrade Labelling Organizations (FLO) International is created
Old Fairtrade logos

About Fairtrade Labelling –FTL-
2002: Launch of the International FAIRTRADE Certification Mark

Facts and figures – one decade after
Number of producer organizations tripled reaching 730 certified producers in more than 60 countries in 2007
Sales have enjoyed and average of growth 40% per year - Certified retail value: app. 2 Bill. Euro
This expansion has brought benefits to more than 1.4 Million producers worldwide
Producers are not only beneficiaries, they also share ownership of the Fairtrade Labelling system

Today: hundreds of Fairtrade products available!

Main characteristics of Fairtrade Labelling
FTL primary focus are small producers
Not only about standard setting, producer support, consumer awareness and advocacy are central parts of the system
Multi-stake holder organization at all levels
Producers and Labelling initiatives are the members
Board
Standards Committee

FLO´s Governance structure FLO International Producer Business Unit Standards Unit Finances and Central Services Unit Board of Directors Local Liaison Officers in the producer countries Annual General Assembly 5 Labelling Initiatives 4 Producers 2 traders 2 independen experts Producer Network Assembly Labelling Initiatives Assembly

I. Focus on trade as a development tool! Fairtrade Standards - key features
Addressing the three pillars of sustainability:
Social (promoting democratic and transparent organizations)
Economic (addressing prices and premiums)
Environmental (encouraging the protection of the environment)
Minimum versus progress requirements
Standards for producers and traders

Generic Fairtrade Standards for Producer Organisations
Social Development
Development Potential, Majority of members are Small Farmers, Democracy, Participation, Non-Discrimination,
Economic Development
Fairtrade Premium, Export Ability, Economic Strengthening
Environmental Development
Environmental managment, Agrochemicals, Waste, Soil and Water, Fire and GMO
Labour Conditions
Child Labour, Freedom of Association & Collective Bargaining, Conditions of Employment, Occupational Health & Safety

Generic Fairtrade Standards for Hired Labour
Social Development
Development Potential and Capacity Building, Freedom from Discrimination, Freedom of Labour, Freedom of Association and Collective Bargaining, Conditions of Employment and Occupational H&S
Economic Development
Premium Use
Environmental Development
Environmental Management, Agrochemicals, Waste, Soil and Water, Fire and GMO

Fairtrade Standards for Traders
Long term relationships with producers
Payment of minimum price
Payment of premium
Provide pre-financing if required by the producer

II. Involving producers Fairtrade Standards - key features
The standards are developed in consultation with producers
Decision-making of standards involves producers
Following the ISEAL code of good practices for the development of standards

List of product specific standards Small Farmer Bananas, Cocoa, Coffee, Dried Fruit, Fresh Fruit, & Fresh Vegetables, Herb Spices, Honey, Nut & Oil Seeds, Quinoa, Rice, Cane Sugar, Tea, Wine Grapes Non- food: Seed cotton Hired Labour Bananas, Fresh Fruit, & Fresh Vegetables, Fruit Juices, Tea, Wine Grapes Non- food: Flowers, sportballs

Main challenges and how FLO is addressing them
Involvement of producers at all levels within the organization
North / South
Producer Certification Fund
Fairtrade Standards addresses economic issues
2. Costs of certification
Producer Business Unit –PBU- provides support to producers to understand/comply with the Fairtrade Standards and maintain certification
Compliance with the standards

Main challenges and how FLO is addressing them
ISEAL membership, working with member to reduce overlapping
Work with organic certification bodies to reduce costs for organic & Fairtrade producers
Proliferation of certification schemes
Labelling Initiatives raising awareness and opening markets
PBU helps to identify producers and market oportunites
Maintain (increase) market access to FT producers

Thank You
More information on www.fairtrade.net

Fairtrade Labelling Organisations (FLO) International - Standards, Implementation and main Challenges

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