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

Overview Fairtrade Standards

Main challenges for the implementation of standards

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

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

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

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

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

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

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

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

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

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

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

Involvement of producers at all levels within the organization

North / South

Producer Certification Fund

Fairtrade Standards addresses economic issues

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

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

Thank You

More information on www.fairtrade.net