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

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

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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 www.fairtrade.net </li></ul>

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