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Producer Services
                   and Relations

                   How does PSR work?
                   Xavier Huchet




© Fairtrade 2012
Contents

                   3.      PSR Mission and Goal
                   4.      PSR Structure
                   5.      PSR Services
                   6.      Partnerships




© Fairtrade 2012   Producer Services and Relations   2
PSR Mission




                   PSR is the leading service provider for Fairtrade
                       producers, empowering them and their
                     organizations to strengthen their capacity to
                    comply with Fairtrade standards, benefit from
                      growing market opportunities and achieve
                             sustainable development.




© Fairtrade 2012    Producer Services and Relations                    3
PSR Goal

                                           Target groups : farmers & workers


                                           Support to:
                                             Get certified

                                                Stay certified

                                                Maximise benefits of Fairtrade




© Fairtrade 2012   Producer Services and Relations                          4
Producer Services & Relations Structure

                                                   PSR Director



                                         Assistant


                            Head of Liaison
Projects & Partnerships                              Head of Region       Head of Region        Head of Region
                              &Service
       Manager                                           Asia              Latin America         Africa & ME
                             Development

                                                                   SE &                                  North Africa &
                                                                                  Central America
                                                               Pacific Islands                            Middle East


                                                                South Asia        South America I          East Africa


                                                                 Sri Lanka,        South America
                                                                Pakistan &                                West Africa
Decentralization model:                                                                 II
                                                                Central Asia
•Decentralised regional representation
(RC, LO)
                                                                                                        Southern Africa
•Ghana office                                                                       Caribbean
                                                                                                        & Indian Ocean
•India office
•Kenya office
•Others (Colombia, Brazil, Indonesia)


 © Fairtrade 2012            Producer Services and Relations
Producer facing services are delivered through a
                    decentralised network of Liaison Officers in
                                 around 60 countries

Field support

                                                     Number of LO's

                      50

                      40

                      30
                                                                             47
                      20
                                                            24        27
                      10                        17
                                  9
                       0
                               2005          2006         2007    2008     2010




© Fairtrade 2012      Producer Services and Relations                             6
PSR Reach                                                   Certified       Applicant
by Region                                 Liaison           Producer        Producer
                                          Officers          Organizations   Organizations



                   Asia                            10              204            43

                   Africa&
                   Middle East                     21              340            78



                   Latin America                   17              567            157



© Fairtrade 2012          Producer Services and Relations
2008 Strategic     ...Producer support becoming a more integral part
Review -
Partnerships       of the Fairtrade system so that producers are
                   helped to enter and stay in the system. Stronger
                   partnerships with technical service providers will
                   increase the capacity of Fairtrade Certified
                   Producers to transform the lives of their
                   members...




© Fairtrade 2012   Producer Services and Relations                  8
Fairtrade Producer Service Long Term vision as of 2011




 Fairtrade producers
 should be able to
                                                                Fairtrade
 chose from a variety                                           producers
 of service providers
 based on location,
                                   Institutional
 capacity, cost and                development                                         Knowledge
 expertise                                                                            partnerships
                                   partnerships
                                                          Business       Producer
                                                        development    development
                                                        partnerships   partnerships



© Fairtrade 2012      Producer Services and Relations                                    9
FAIRTRADE PRODUCER SERVICES: MATRIX FOR ROLES & RESPONSIBILITIES TO END-2012
                      KEY                        PSR                           PSR & PN’S                PN’S & PARTNERS

                      SERVICES TO PRODUCERS                                         SERVICES TO SYSTEM
           CERTIFICATION ADVISORY SERVICES                                  PRODUCT AND TRADE-RELATED SERVICES
                          (60% PSR)                                                              (25% PSR)
•Introduce new producer groups to Fairtrade system and                  •Supply-side information on producer groups and
standards requirements                                                  production capacity
•Prepare producers for audit. Review compliance issues and              •Supporting Fairtrade licensees’ sourcing and
actions required                                                        development plans
•Help strengthen organisations (e.g. gender & labour rights, use        •Identifying needs for standards revisions including
of premium, environmental planning & business administration)           minimum price and premium (in future model = need for
•Involving producers in continual improvement of Fairtrade              review of economic mechanism toolbox)
system (feedback system, roll-out of New Standards                      •Facilitating producer input into reviews of standards
Framework)
•Emergency response (natural disasters, PR incidents, contract
defaults)

           BUSINESS & DEVELOPMENT SERVICES                                   SERVICES FOR OTHER SYSTEM FUNCTIONS
                            (10% PSR)                                                            (5% PSR)
•Direct producer services relating to B&D aspects of New                •Maintaining risk register and response plans by country/
Standards Framework, e.g.                                               product sector
—Cost management and pricing                                            •Providing fast information response to critical issues,
—Cashflow management and sources of finance                             e.g. negative publicity
—Contract negotiation                                                   •Supporting contacts between producers and key
—Productivity & quality                                                 influencers in media, government, business by
—Accessing and using market information to add value                    maintaining producer information and providing logistical
•Generic services related to Fairtrade standards and                    support
compliance (e.g. child labour)                                          •Supporting impact assessment work including collection
•System-wide projects aimed at strengthening Fairtrade’s                of data
relevance to sustainability agenda (climate change, resource            •Strategic development of producer services
   © Fairtrade 2012             How to Work with PSR RelationsMembers
                                 Producer Services and 2011, FI
restraints, productivity and livelihoods)                                                                                     10
PSR Role in        Since 2011, PSR focus is on identifying and
Partnerships       developing partnerships for Business and
                   Development Services including:

                   • Enhancement of business skills, such as
                   contract negotiation, pricing, productivity    and
                   product quality
                   • Large scale compliance related projects,
                   such as Child Labour
                   • Large scale Fairtrade priority related
                   projects, such as Conflict Affected      Areas



© Fairtrade 2012   Producer Services and Relations               11
Current examples...

The SNV-FLO Partnership brings together two leaders in market-
based economic and social development. Together we work in 11
African countries in a range of products on:


    • Exchange of knowledge and information
    • Provision of Fairtrade liaison services
    • Supporting the establishment of new producer
    networks and maintenance of existing networks
    • Capacity development of producer groups
    • Access to markets, finance and technology by
    producer groups




© Fairtrade 2012      Producer Services and Relations   12
Current examples...


    In Argentina we have a joint project with Fundación Fortalecer
    to promote sustainable producing systems through Fairtrade
    markets. Together we plan to support producers of particularly
    raisins and olive oil by:

•          Supporting small producer organizations in the implementation of Fairtrade
           practices so that they can comply with the minimum conditions to get Fairtrade
           certification.

•          Facilitating access of small producer organizations to the information of markets
           interested in Fairtrade products.




© Fairtrade 2012            Producer Services and Relations                          13
LAOS:
Introduction to Producer Services and Relations
                Fairtrade
 © Fairtrade 2012
INDONESIA:
Explaining coffee FMP and Relations
                Producer Services
 © Fairtrade 2012
TANZANIA:
Joint Body trainingServices and Relations farm
               Producer at flower
 © Fairtrade 2012                                16
BURKINA FASO:
Fresh and driedProducer Services and Relations
                Fairtrade mangoes
  © Fairtrade 2012                               17
Cotton, SENEGAL:
Cotton farmersProducer Services and Relations labelled product
© Fairtrade 2012see their final                                  18
THANK YOU!
ANY QUESTIONS?

© Fairtrade 2012   Producer Services and Relations   19
© Fairtrade 2012   Producer Services and Relations   20

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5 psr xh

  • 1. Producer Services and Relations How does PSR work? Xavier Huchet © Fairtrade 2012
  • 2. Contents 3. PSR Mission and Goal 4. PSR Structure 5. PSR Services 6. Partnerships © Fairtrade 2012 Producer Services and Relations 2
  • 3. PSR Mission PSR is the leading service provider for Fairtrade producers, empowering them and their organizations to strengthen their capacity to comply with Fairtrade standards, benefit from growing market opportunities and achieve sustainable development. © Fairtrade 2012 Producer Services and Relations 3
  • 4. PSR Goal Target groups : farmers & workers Support to: Get certified Stay certified Maximise benefits of Fairtrade © Fairtrade 2012 Producer Services and Relations 4
  • 5. Producer Services & Relations Structure PSR Director Assistant Head of Liaison Projects & Partnerships Head of Region Head of Region Head of Region &Service Manager Asia Latin America Africa & ME Development SE & North Africa & Central America Pacific Islands Middle East South Asia South America I East Africa Sri Lanka, South America Pakistan & West Africa Decentralization model: II Central Asia •Decentralised regional representation (RC, LO) Southern Africa •Ghana office Caribbean & Indian Ocean •India office •Kenya office •Others (Colombia, Brazil, Indonesia) © Fairtrade 2012 Producer Services and Relations
  • 6. Producer facing services are delivered through a decentralised network of Liaison Officers in around 60 countries Field support Number of LO's 50 40 30 47 20 24 27 10 17 9 0 2005 2006 2007 2008 2010 © Fairtrade 2012 Producer Services and Relations 6
  • 7. PSR Reach Certified Applicant by Region Liaison Producer Producer Officers Organizations Organizations Asia 10 204 43 Africa& Middle East 21 340 78 Latin America 17 567 157 © Fairtrade 2012 Producer Services and Relations
  • 8. 2008 Strategic ...Producer support becoming a more integral part Review - Partnerships of the Fairtrade system so that producers are helped to enter and stay in the system. Stronger partnerships with technical service providers will increase the capacity of Fairtrade Certified Producers to transform the lives of their members... © Fairtrade 2012 Producer Services and Relations 8
  • 9. Fairtrade Producer Service Long Term vision as of 2011 Fairtrade producers should be able to Fairtrade chose from a variety producers of service providers based on location, Institutional capacity, cost and development Knowledge expertise partnerships partnerships Business Producer development development partnerships partnerships © Fairtrade 2012 Producer Services and Relations 9
  • 10. FAIRTRADE PRODUCER SERVICES: MATRIX FOR ROLES & RESPONSIBILITIES TO END-2012 KEY PSR PSR & PN’S PN’S & PARTNERS SERVICES TO PRODUCERS SERVICES TO SYSTEM CERTIFICATION ADVISORY SERVICES PRODUCT AND TRADE-RELATED SERVICES (60% PSR) (25% PSR) •Introduce new producer groups to Fairtrade system and •Supply-side information on producer groups and standards requirements production capacity •Prepare producers for audit. Review compliance issues and •Supporting Fairtrade licensees’ sourcing and actions required development plans •Help strengthen organisations (e.g. gender & labour rights, use •Identifying needs for standards revisions including of premium, environmental planning & business administration) minimum price and premium (in future model = need for •Involving producers in continual improvement of Fairtrade review of economic mechanism toolbox) system (feedback system, roll-out of New Standards •Facilitating producer input into reviews of standards Framework) •Emergency response (natural disasters, PR incidents, contract defaults) BUSINESS & DEVELOPMENT SERVICES SERVICES FOR OTHER SYSTEM FUNCTIONS (10% PSR) (5% PSR) •Direct producer services relating to B&D aspects of New •Maintaining risk register and response plans by country/ Standards Framework, e.g. product sector —Cost management and pricing •Providing fast information response to critical issues, —Cashflow management and sources of finance e.g. negative publicity —Contract negotiation •Supporting contacts between producers and key —Productivity & quality influencers in media, government, business by —Accessing and using market information to add value maintaining producer information and providing logistical •Generic services related to Fairtrade standards and support compliance (e.g. child labour) •Supporting impact assessment work including collection •System-wide projects aimed at strengthening Fairtrade’s of data relevance to sustainability agenda (climate change, resource •Strategic development of producer services © Fairtrade 2012 How to Work with PSR RelationsMembers Producer Services and 2011, FI restraints, productivity and livelihoods) 10
  • 11. PSR Role in Since 2011, PSR focus is on identifying and Partnerships developing partnerships for Business and Development Services including: • Enhancement of business skills, such as contract negotiation, pricing, productivity and product quality • Large scale compliance related projects, such as Child Labour • Large scale Fairtrade priority related projects, such as Conflict Affected Areas © Fairtrade 2012 Producer Services and Relations 11
  • 12. Current examples... The SNV-FLO Partnership brings together two leaders in market- based economic and social development. Together we work in 11 African countries in a range of products on: • Exchange of knowledge and information • Provision of Fairtrade liaison services • Supporting the establishment of new producer networks and maintenance of existing networks • Capacity development of producer groups • Access to markets, finance and technology by producer groups © Fairtrade 2012 Producer Services and Relations 12
  • 13. Current examples... In Argentina we have a joint project with Fundación Fortalecer to promote sustainable producing systems through Fairtrade markets. Together we plan to support producers of particularly raisins and olive oil by: • Supporting small producer organizations in the implementation of Fairtrade practices so that they can comply with the minimum conditions to get Fairtrade certification. • Facilitating access of small producer organizations to the information of markets interested in Fairtrade products. © Fairtrade 2012 Producer Services and Relations 13
  • 14. LAOS: Introduction to Producer Services and Relations Fairtrade © Fairtrade 2012
  • 15. INDONESIA: Explaining coffee FMP and Relations Producer Services © Fairtrade 2012
  • 16. TANZANIA: Joint Body trainingServices and Relations farm Producer at flower © Fairtrade 2012 16
  • 17. BURKINA FASO: Fresh and driedProducer Services and Relations Fairtrade mangoes © Fairtrade 2012 17
  • 18. Cotton, SENEGAL: Cotton farmersProducer Services and Relations labelled product © Fairtrade 2012see their final 18
  • 19. THANK YOU! ANY QUESTIONS? © Fairtrade 2012 Producer Services and Relations 19
  • 20. © Fairtrade 2012 Producer Services and Relations 20

Editor's Notes

  1. Information Days FLO September 2010 Producer Services and Relations
  2. Information Days FLO September 2010 Producer Services and Relations
  3. Information Days FLO September 2010 Producer Services and Relations