Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Fairtrade Labelling Organisations (FLO) International - Standards, Implementation and main Challenges


Published on

Presentation given by Gelkha Buitrago (FLOl) at the 5th Brussels Development Briefing - Brussels, 16 April 2008

Published in: Business, Technology
  • Be the first to comment

Fairtrade Labelling Organisations (FLO) International - Standards, Implementation and main Challenges

  1. 2. Fairtrade Labelling Organisations (FLO) International Standards, Implementation and main Challenges Gelkha Buitrago, April 16th, 2008
  2. 3. <ul><ul><li>About Fairtrade Labelling </li></ul></ul><ul><ul><li>Overview Fairtrade Standards </li></ul></ul><ul><ul><li>Main challenges for the implementation of standards </li></ul></ul>Outline
  3. 4. 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
  4. 5. About Fairtrade Labelling –FTL- <ul><li>1950‘s: the Fair Trade – a grass roots- movement starts </li></ul><ul><li>1987: first Fairtrade label „Max Havelaar“ is launched in the Netherlands </li></ul><ul><li>Other Labelling Initiatives follow across Europe and North America </li></ul><ul><li>1997 , Fairtrade Labelling Organizations (FLO) International is created </li></ul>Old Fairtrade logos
  5. 6. About Fairtrade Labelling –FTL- <ul><li>2002: Launch of the International FAIRTRADE Certification Mark </li></ul>
  6. 7. Facts and figures – one decade after <ul><li>Number of producer organizations tripled reaching 730 certified producers in more than 60 countries in 2007 </li></ul><ul><li>Sales have enjoyed and average of growth 40% per year - Certified retail value: app. 2 Bill. Euro </li></ul><ul><li>This expansion has brought benefits to more than 1.4 Million producers worldwide </li></ul><ul><li>Producers are not only beneficiaries, they also share ownership of the Fairtrade Labelling system </li></ul>
  7. 8. Today: hundreds of Fairtrade products available!
  8. 9. Main characteristics of Fairtrade Labelling <ul><li>FTL primary focus are small producers </li></ul><ul><li>Not only about standard setting, producer support, consumer awareness and advocacy are central parts of the system </li></ul><ul><li>Multi-stake holder organization at all levels </li></ul><ul><ul><li>Producers and Labelling initiatives are the members </li></ul></ul><ul><ul><li>Board </li></ul></ul><ul><ul><li>Standards Committee </li></ul></ul>
  9. 10. 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
  10. 11. I. Focus on trade as a development tool! Fairtrade Standards - key features <ul><li>Addressing the three pillars of sustainability: </li></ul><ul><ul><ul><li>Social (promoting democratic and transparent organizations) </li></ul></ul></ul><ul><ul><ul><li>Economic (addressing prices and premiums) </li></ul></ul></ul><ul><ul><ul><li>Environmental (encouraging the protection of the environment) </li></ul></ul></ul><ul><li>Minimum versus progress requirements </li></ul><ul><li>Standards for producers and traders </li></ul>
  11. 12. Generic Fairtrade Standards for Producer Organisations <ul><li>Social Development </li></ul><ul><ul><li>Development Potential, Majority of members are Small Farmers, Democracy, Participation, Non-Discrimination, </li></ul></ul><ul><li>Economic Development </li></ul><ul><ul><li>Fairtrade Premium, Export Ability, Economic Strengthening </li></ul></ul><ul><li>Environmental Development </li></ul><ul><ul><li>Environmental managment, Agrochemicals, Waste, Soil and Water, Fire and GMO </li></ul></ul><ul><li>Labour Conditions </li></ul><ul><ul><li>Child Labour, Freedom of Association & Collective Bargaining, Conditions of Employment, Occupational Health & Safety </li></ul></ul>
  12. 13. Generic Fairtrade Standards for Hired Labour <ul><li>Social Development </li></ul><ul><ul><li>Development Potential and Capacity Building, Freedom from Discrimination, Freedom of Labour, Freedom of Association and Collective Bargaining, Conditions of Employment and Occupational H&S </li></ul></ul><ul><li>Economic Development </li></ul><ul><ul><li>Premium Use </li></ul></ul><ul><li>Environmental Development </li></ul><ul><ul><li>Environmental Management, Agrochemicals, Waste, Soil and Water, Fire and GMO </li></ul></ul>
  13. 14. Fairtrade Standards for Traders <ul><li>Long term relationships with producers </li></ul><ul><li>Payment of minimum price </li></ul><ul><li>Payment of premium </li></ul><ul><li>Provide pre-financing if required by the producer </li></ul>
  14. 15. II. Involving producers Fairtrade Standards - key features <ul><li>The standards are developed in consultation with producers </li></ul><ul><li>Decision-making of standards involves producers </li></ul><ul><li>Following the ISEAL code of good practices for the development of standards </li></ul>
  15. 16. 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
  16. 17. Main challenges and how FLO is addressing them <ul><li>Involvement of producers at all levels within the organization </li></ul><ul><li>North / South </li></ul><ul><li>Producer Certification Fund </li></ul><ul><li>Fairtrade Standards addresses economic issues </li></ul>2. Costs of certification <ul><li>Producer Business Unit –PBU- provides support to producers to understand/comply with the Fairtrade Standards and maintain certification </li></ul><ul><li>Compliance with the standards </li></ul>
  17. 18. Main challenges and how FLO is addressing them <ul><li>ISEAL membership, working with member to reduce overlapping </li></ul><ul><li>Work with organic certification bodies to reduce costs for organic & Fairtrade producers </li></ul><ul><li>Proliferation of certification schemes </li></ul><ul><li>Labelling Initiatives raising awareness and opening markets </li></ul><ul><li>PBU helps to identify producers and market oportunites </li></ul><ul><li>Maintain (increase) market access to FT producers </li></ul>
  18. 19. <ul><li>Thank You </li></ul><ul><li>More information on </li></ul>