Mr Emile Nadeau: White paper on Coop2Coop Trade

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Mr Emile Nadeau, OCDC, US, at the International Co-operative Alliance Global Conference in Cape Town, November 2013.

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Mr Emile Nadeau: White paper on Coop2Coop Trade

  1. 1. Coop to Coop Trade Linking Smallholder Producers in Developing Countries with Consumer Co-ops in Developed Countries Prepared by E.G. Nadeau for the U.S. Overseas Cooperative Development Council
  2. 2. Purpose • Conduct overview of co-op to co-op trade focusing on food products from co-ops of small-scale producers • Draw lessons, make recommendations for growing trade • Help develop objectives for Blueprint for the Cooperative Decade
  3. 3. Research • Interviews with approximately 40 people knowledgeable in international co-op trade • Documentary & Internet research
  4. 4. Three Chapters 1. Overview of international co-op to co-op food trade 2. Five international trade case studies 3. Recommendations for future co-op to co-op trade
  5. 5. Major Findings Small holder farmers • 450 million smallholder farmers cultivate < 2 hectares • < 10% linked to export value chains Average annual income < $600 •
  6. 6. Major Findings Retail food co-ops • 80+ million food coop members in developed countries • $150 billion in sales, less than 1% from products imported from small farmer co-ops
  7. 7. Major Findings Retail food co-ops • • U.K.’s The Co-operative Group very involved, especially with fair-tradecertified products Co-op Italia committed to fair-trade products under Solidal Coop brand
  8. 8. Major Findings Retail food co-ops • • • Some U.S. co-op to co-op trade with fairtrade emphasis Similar experience in Canada Limited involvement by food co-ops in other developed nations
  9. 9. Major Findings Retail food co-ops • Significant interest in co-op to co-op trade from consumer co-op leaders, members
  10. 10. Major Findings Fair trade • Certification goal: provide fair return • 2011 fair-trade sales worldwide: $7 billion • Standards issues may reduce trust in label
  11. 11. Major Findings Producer co-ops • Unaware of product marketing through consumer co-ops • Key goals: decent, stable prices, trusted channels
  12. 12. Major Findings Co-op development organizations • Small number provide assistance to smallholder ag co-ops • Even smaller number promote, assist with co-op to co-op trade
  13. 13. 5 Case Studies The Co-operative Group • Beyond Fair Trade program helps build capacity of producer co-ops in fair-trade supply chain
  14. 14. 5 Case Studies Coop Trading • Owned by consumer co-ops in Denmark, Finland, Norway • Sources environmentally friendly, fair-trade products
  15. 15. 5 Case Studies Smallholder project • Grows non-GMO soybeans in Mozambique • Initiated by Norwegian ag co-op, Norwegian government
  16. 16. 5 Case Studies ‘Tower of labels’ • Challenges of messages for food co-op members NCBA/CLUSA • Long-term projects in Indonesia & East Timor to promote smallholder product exports
  17. 17. 3 Recommendations #1 • 2014-2020 ICA campaign to significantly increase co-op to co-op trade
  18. 18. 3 Recommendations #2 • Establishment of cooperative development resource center by ICA, co-op development organizations
  19. 19. 3 Recommendations #3 • Develop strategies, measurable objectives for co-op to co-op trade in Blueprint for a Cooperative Decade
  20. 20. Conclusion Excellent potential for international co-op community to dramatically increase co-op to co-op trade by 2020

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