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Fairtrade MSLS Final Presentation


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Powerpoint file for Fairtrade presentation in the MSLS 2010 program at BTH.

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Fairtrade MSLS Final Presentation

  1. 1. Fairtrade<br />What it has to offer and how we can use it<br />October 26, 2009<br />Lea Thuot, Charlotte Barrow, <br />Stefan Alvemo, TilmanSplisteser, Spud Marshall<br />
  2. 2. Alternative approach to conventional trade that provides social and economic development opportunities and benefits to:<br />Producers, Suppliers & Consumers<br />
  3. 3. History of Fairtrade<br />FLO & FLO-CERT<br />2002<br />1997<br />2004<br />1988<br />2008<br />
  4. 4. A Story About Fairtrade…<br />Fairtrade Worker<br />Miguel<br />STANDARDS<br /><ul><li>Wages
  5. 5. Trade Unions
  6. 6. Health & Safety
  7. 7. Housing
  8. 8. Terms of trade
  9. 9. Farming & production practices</li></li></ul><li>Principles & Frameworks<br />FSSD<br />System – Success – Strategic – Action - Tools<br />Fairtrade<br />System – Success – Strategic<br />
  10. 10. Fairtrade Principles<br />System<br />Global trade market between developing and developed world<br />
  11. 11. Fairtrade Principles<br />Success<br />Transparency and <br />non-discrimination<br />Empower marginalized producers<br />Social rights and security<br />Democratic input<br />
  12. 12. Fairtrade Principles<br />Success Strategic<br />Promote entrepreneurship and economic development<br />Minimum price and/or a financial premium<br />Pre-financing<br />
  13. 13. Fairtrade Principles<br />Success Strategic<br /> Improvements and investment in social development<br />Progress Requirements<br />Fairtrade Premium<br />
  14. 14. Fairtrade Principles<br />Success<br /> Environmentally sound agricultural practices<br />
  15. 15. Fairtrade Overarching Principle:<br />sustainable social, economic, and environmental development of <br />producers and their organizations<br />
  16. 16. Fairtrade and the FSSD<br />System – Success – Strategic – Action – Tools<br />
  17. 17. Fairtrade and the FSSD<br />System – Success – Strategic – Action – Tools<br />Not defined<br />None<br />
  18. 18. Fairtrade and the FSSD<br />System – Success – Strategic – Action – Tools<br />“A world in which justice and sustainable development are at the heart of trade structures and practices so that everyone, through their work, can maintain a decent and dignified livelihood and develop their full human potential.”<br /> - A Charter of Fair Trade Principles (January 2009) <br />
  19. 19. Fairtrade and the FSSD<br />System – Success – Strategic – Action – Tools<br />Stakeholder Engagement <br />Right Direction, Flexible & Backcasting<br />Rural Producers<br />Progress Requirements<br />Return on Investment<br />Precautionary Principle<br />Economic Growth<br />Minimum Price Guarantee<br />
  20. 20. Fairtrade and the FSSD<br />System – Success – Strategic – Action – Tools<br />Product Specific Standards<br /><ul><li> Small Farmer Organization
  21. 21. Hired Labor</li></ul>Generic Producer Standards<br /><ul><li> Small Farmer Organization
  22. 22. Hired Labor
  23. 23. Contract Production</li></ul>Generic Trade Standards<br />
  24. 24. Fairtrade and the FSSD<br />System – Success – Strategic – Action – Tools<br />Fairtrade Certification Mark<br />Fairtrade Labeling Organizations Int. (FLO)<br />FLO - CERT<br />
  25. 25. Who Uses It?<br />
  26. 26. Who Uses It?<br />Rural Producers<br /><ul><li> Small producer organizations
  27. 27. Hired labor companies</li></ul>Rice, India<br />Shea Butter, Burkina Faso<br />Cotton, Mali<br />
  28. 28. Who Uses It?<br />Wealthy Suppliers<br /><ul><li> Small businesses, churches, schools, workplaces
  29. 29. Multi-national companies
  30. 30. example - Starbucks</li></li></ul><li>Who Uses It?<br />Governments<br /><ul><li> Municipal
  31. 31. example – Fairtrade Towns
  32. 32. National
  33. 33. example – UK Government</li></li></ul><li>Who Uses It?<br />Fairtrade Applicability with Various Groups<br />★★★Strongly Applicable<br />★★ Applicable<br />★ Mildly Applicable<br />
  34. 34. Blind Spots & Potential Consequences<br /> Main focus on sustainability principle 4:<br /><ul><li> Less agrochemicals and no GMOs</li></ul>Inefficiency, harvesting of larger farmland (SP 2,3)<br /><ul><li> Lack of quantifiable and measurable rules </li></ul>Vague progress assessment <br />SP 2<br />SP 1<br />SP 3<br />SP 4<br />
  35. 35. Blind Spots & Potential Consequences<br /><ul><li> Minimum price and Premium </li></ul> Produce more of the same, increased supply (SP 4)<br /><ul><li> Inspection and certification fees</li></ul> Decreased financial viability (SP 4)<br /><ul><li> Little attention to habitat preservation (SP 3)
  36. 36. Transportation is generally disregarded (SP 1,2)</li></li></ul><li>Advice for Using Fairtrade<br />
  37. 37. Advice for Using Fairtrade<br />Awareness of intentions and limitations of Fairtrade:<br /><ul><li> Not an environmental certification
  38. 38. Recommends environmental standards
  39. 39. Priority of social development
  40. 40. Secondary focus on SP 1, 2 and 3
  41. 41. Used in conjunction with an </li></ul>environmentally-focused certification <br />
  42. 42.
  43. 43. Fairtrade Towns<br />A Fairtrade Town is any community in which people and organizations use their everyday choices to increase sales of Fairtrade products and bring about positive change for farmers and workers in developing countries.<br />600+ Fairtrade Towns – mostly found in the UK<br />
  44. 44. Fairtrade Towns<br />The core Five Goals are:<br />Local council passes a resolution supporting Fairtrade, and agrees to serve Fairtrade products (for example, in meetings, offices and canteens).<br />A range of Fairtrade products are available locally (targets vary from country to country)<br />Schools, workplaces, places of worship and community organizations support Fairtrade and use Fairtrade products whenever possible<br />Media coverage and events raise awareness and understanding of Fairtrade across the community.<br />A Fairtrade steering group representing different sectors is formed to co-ordinate action around the goals and develop them over the years.<br />
  45. 45. Fairtrade vs. Fair Trade<br />Fair Trade is a movement working to a make trade practice and policy fairer. There are different organizations (World Fair Trade Organization, European Fair Trade Organization, Fair Trade Advocacy Office) working to promote fair trade practice and policy, through product certification, advocacy, campaigning and educational work.<br />Fairtrade describes the labeling system controlled by Fairtrade Labeling Organizations (FLO) International and national partners in different countries. <br />
  46. 46. How Big is Fairtrade?<br />End of 2007: 632 Fairtrade certified producer organizations in 58 producing countries, representing 1.5 million farmers and workers. <br />An estimated 7.5 million people - farmers, workers and their families - directly benefit from Fairtrade. <br />Sales of Fairtrade certified products have grown on average by 40% per year over the last five years and reached approximately 2.3 billion Euro in 2007.<br />There are 18 product categories, including Fairtrade certified cotton, nuts, wine, fruit, tea, chocolate, fresh fruit and sports balls. <br />
  47. 47. Prohibitive Costs of Certification<br />“…recognizing that some groups do face severe hardship, FLO has a Producer Certification Fund for producers’ organizations that need help to pay certification fees…can receive up to 75% of the certification fee. During 2007 74,000 euros (US$99,000) was granted from the fund.”<br />
  48. 48. Economic Crisis Impacts<br />“Fairtrade sales have continued to grow in our biggest markets. For example, in the UK sales grew by 55% in the period April to June 2008, as compared to the same time last year.”<br />“The Henley Centre’s research…shows that consumers place ‘stop buying fair trade and environmentally sound products’ at the bottom of a list of actions that they might take in tightening economic environment.”<br />
  49. 49. Fairtrade Certification Mark<br />Producers have been inspected and certified by FLO-CERT<br />Trade chain adhere to Fairtrade Standards<br />They are granted from FLO-CERT Certification<br />They are allowed to use Fairtrade Certification Mark for consumer final products<br />
  50. 50. Applying for Certification<br />Apply -&gt; is the applicant eligible for certification?<br />Organization sends application form<br />FLO-CERT sends application documents<br />Audit -&gt; compliance criteria are checked<br />certification fees are paid<br />FLO-CERT auditor visits production sides and offices<br />Evaluation -&gt; organization suggest measures to correct the non conformities<br />audit report to FLO-CERT<br />farmer suggest measures<br />Certification -&gt; Certification of Conformity to the organization<br />Compliance Criteria in 3 Certification Cycles during the following 3 years<br />Process can take from 4 days to 6 weeks<br />
  51. 51. Fairtrade Premium<br /><ul><li> Additional income
  52. 52. Democratic decision making by farmers’ or workers’ organizations
  53. 53. Examples:
  54. 54. Education and healthcare
  55. 55. Farm improvements to increase yield and quality
  56. 56. Processing facilities to increase income
  57. 57. Communal projects benefit broader community</li></li></ul><li>Fairtrade Products<br /><ul><li> Bananas
  58. 58. Cocoa
  59. 59. Coffee
  60. 60. Cotton
  61. 61. Flowers
  62. 62. Fresh fruit
  63. 63. Honey
  64. 64. Juices
  65. 65. Rice
  66. 66. Herbs and spices
  67. 67. Sports balls
  68. 68. Sugar
  69. 69. Tea
  70. 70. Wine </li></li></ul><li>Fairtrade Fees<br />Producer Certification Initial Fees - Small Farmers<br /><ul><li>Application Fee (flat): €500
  71. 71. The Initial Certification Fee is charged once (per product) and is related to the Initial Inspection and Certification carried
  72. 72. out by FLO-CERT: The amount depends on the kind of organisation and charges are based on a daily rate of €400</li></ul>Other Fees:<br /><ul><li>Additional Product Fee
  73. 73. Process Installation Fee
  74. 74. Follow Up Inspection Fee</li>