Multi-stakeholder Approach to Advance Fair Trade Objectives

Key Issues Facing Fair Trade SUCCESS!! @ Farmer, Consumer, Trade and Development debate New demands- So now need to….
Better understanding of impacts:
Limited information.
Basic need to understand costs and benefits of implementing program
Addressing increasing complexity/demand of market access: Confront changing market dynamics ( inter alia )
Supplychain concentration ( esp. retail-level );
Shifting end-markets (China, India, Regional and Biofuels);
Removal of support services;
Scale requirements threat to smallholder ;
Food security concerns

Need multi-stakeholder approach to:
address complexity of issues;
leverage resources/expertise;
unify message
Growth means increased financial service needs:
Often beyond capacity of FT traders/buyers.
Strong unified messages:
At the policy-level and consumer.
Be reference for good practices.
Needs continued:

Addressing Specific FT issues:
Need strong unified message
Set example/promote accountability (ISEAL code of good practice for Standard setting)
External communica-tions
Transaction costs often too high
Beyond the means of FT traders/buyers
Finance
Challenge to meet increasing/changing certification and technical assistance demands
Leverage expertise/knowledge to address generic support needs (enterprise building).
Concentration of supply: Focus TNC support on developing regions/coops
Capacity Building
Empower producers to plan
Identify how to maximize benefits and reduce costs
Inform minimum price calculations
Impact Assessment Issues Area

Key Areas: What is the Sustainable Commodity Initiative? A multi-stakeholder platform to promote sustainability in commodity sectors for pro-poor development. Focus- Voluntary; Market-based standards approaches Partnering with FairTrade Movement Support Services (Capacity Building) External communication (Policy/Consumer) Access to affordable Finance Impact Assessment Sustainable Production and Trade (Smallholder focus)

Impact Assessment: Committee on Sustainability Assessment (COSA) Goal : Create tools for measuring the impacts of implementing sustainability practices and programs at the field level. Based on cost/benefit analysis. Empower producer and other stakeholders through provision of information (credible data)

Capacity Building: Sustainable Commodity Assistance Network (SCAN) Goal: Increase smallholder access to sustainable markets by creating sustainable enterprises ( via global cooperation ). Drivers : Lack of support-services (technical assistance) at smallholder/producer level; Limiting their access to sustainable markets (and ability to stay in markets generally) Partners identified need to leverage resources to address common training issues

SCAN Partners: Funder (Dutch) HIVOS Standard-setter Utz Certified Research/Technicalsupport (French) CIRAD Support services (Dutch) SNV Standard setter Rainforest Alliance Technical support TWIN Trading Umbrella Org for Standard setters ISEAL Research/Technical support (UK) CABI International Support-services Commodity Support Network Standard-setter FairTrade (FLO/through producer orgs) Standard-setter- Organic IFOAM Type Organization

Process: National Implementation Platform Linked to International: Needs assessment and Coordinated, Customized Support Key Areas Identified for Support (Generic Support Approach): Good Agricultural Practices/Sustainable Practices Organizational Development Financial Literacy/Risk Management Traceability/Quality Management Systems Market Information (access/use)

Smallholder Access to Affordable Finance: Goal: Increase smallholder Small and Medium Enterprises access to affordable finance through creation of a trade association of financial service providers. Drivers : Trade finance critical for SMEs entering sustainability programs Need for more efficiency and coordination to lower transaction costs Steering Committee: Rabobank; Root Capitol; Cordaid; Forest Trade; IISD support: Citigroup, Cordaid

FAST Projects:
Consolidated Information Access Portal
Financial Literacy Training Toolbox
Harmonization of application process
Mechanism for Sharing Due Diligence
Harmonization of impact assessment process
Guarantee Facility for Social Lending

Policy Linkages/ External communications: Trade Standards Practitioners Network ISEAL (Affiliate member) Information sharing Working with ICO (coffee) and ICCO (cocoa) International Commodity Bodies Global Initiative on Commodities CFC/ UNDP/UNCTAD/ACP Group to: Raise awareness on commodities role Unify multi-stakeholder strategy SCI- Leading Civil Society Consultation: “ Chatelaine Consensus”

Thank you! Contact Information:
Christopher Wunderlich- Coordinator
Sustainable Commodity Initiative
[email_address]
Jason Potts- Coordinator- SCI
[email_address]
Ulrich Hoffman- UNCTAD
[email_address]
SCI: ww.iisd.org/markets/
FAST: www.fast-international.org

Multi-stakeholder Approach to Advance Fair Trade Objectives

by Euforic Services on Apr 17, 2008

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Multi-stakeholder Approach to Advance Fair Trade Objectives — Presentation Transcript