Presentation held at the Sustainable Foods Summit 2012, Amsterdam. In the year of the cooperatives, this presentation highlights the role cooepratives play in the Fairtrade system.

1. Cooperatives and Sustainable Foods
Sustainable Foods Summit, Hans-Willem van der Waal, 8th June 2012

2. Fairtrade and Cooperatives
A cooperative is ‘an autonomous association of persons united voluntarily to
meet their common economic, social and cultural needs and aspirations
through a jointly-owned and democratically controlled enterprise.’ (Int’l
Cooperative Alliance)
Fair Trade is, fundamentally, a response to the failure of conventional trade
to deliver sustainable livelihoods and development opportunities to people in
the poorest countries of the world; this is evidenced by the two billion of our
fellow citizens who, despite working extremely hard, survive on less than $2
per day. (Fairtrade Charter).
"Cooperatives are a reminder to the international community that it is
possible to pursue both economic viability and social responsibility. "
United Nations Secretary-General Ban Ki-moon – Int’l Year of Cooperatives
Fair Trade and Cooperatives are not synonymous, but overlap in common
objectives of both economic and social objectives.

3. Fair Trade Core Principles
• Market access for marginalised producers
• Sustainable and equitable trading relationships
• Capacity building & empowerment
• Consumer awareness raising & advocacy
• Decent Working Conditions as defined in ILO Conventions
• Environmental sustainability
• Monitoring and evaluation of impact

4. Fairtrade, Cooperatives and Inclusive
Business
Fairtrade is mostly associated with small farmers who receive a guaranteed
price for their product. A sustainable business relationship gives them access
to markets and allows them to invest in their production and maintain a
decent standard of living. A social premium adds to the social development of
their communities.
In some commodities, small farmers are dominant, such as coffee and cocoa.
70% of coffee production is produced by small farmers. 90 % of the world
cocoa production is produced by farmers working 25 ha or less. Cooperatives
help to defend the common interests of these small farmers and market their
product jointly. They have a better bargaining position versus traders and
corporate buyers. Fair trade strengthens their organizations, and helps them
to invest in increasing productivity and professionalism.

5. Cooperatives in Fresh Fruit Business
Bananas and fresh fruit are mainly produced in plantations, a small part is
produced by small farmers. The Fairtrade concept was extended to
plantations, so that farm workers can enjoy better wages and labour
conditions. So a Fairtrade banana is not necessarily a cooperative or small
farmer banana.
Fresh fruit producer cooperatives, such as Fairtrade certified cooperatives in
Peru and Ecuador, face challenges. Corporate social responsibility policies of
retailers favour “inclusive business” and small farmers, but the practice is
more difficult: assuring uniform quality, food safety management systems
(GlobalGAP) and low cost price (productivity) give large plantations with
strong central management an advantage.
Leaders of fresh fruit cooperatives face the challenge to professionalise their
organizations, providing incentives to their members towards quality,
uniformity and cost efficiency.

6. Social Benefits of Fair Trade Coops
Fair Trade cooperatives realize important economic and social benefits for
their members. Thanks to the Fairtrade social premium, they can build village
clinics, schools, pharmacies, and give bursaries to students.
Increasingly, farmer cooperatives invest the Fairtrade premium in
imrpovements of their farms and packing stations. In this way they increase
their competitiveness, quality and reliability, allowing them to operate
effectively in demanding international supply chains.
The minimum garantueed price for sustainable production helps likewise to
promote a long-term vision on investment and sustainability.

7. References
J.W.H. van der Waal (2010); Exporting Bananas for Improved
Livelihoods and Social Development: Experiences and Challenges
from Latin America Acta Horticulturae 879, December, 2010.
J.W.H. van der Waal & A. Zongo (2011); Developing a Fresh
Mango Value Chain with West-African Smallholder Mango
Growers to Improve Rural Livelihoods. Acta Horticulturae 895,
May 13, 2011
J.W.H van der Waal & R. Moss (2011); Just Green Bananas:
Towards Full Sustainability of the Export Banana Trade. Paper
presented at ISHS/ProMusa International Symposium, Salvador,
Brazil, October 12, 2011. Forthcoming in Acta Horticulturae.