Title: FAIRTRADE with the small producers, their products and plantationworkers from the low developped cou
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2- FAIRTRADE with the small producers, their
products and plantation-workers from the (low
developped) countries of the south
3What is FAIRTRADE ?
- It is an alternative business model for the small
poducers in the south - It is a NON PROFIT movement and part of an
international organisation Fairtrade Labelling
Organizations FLO, with17 national
initiatives. - FAIRTRADE awards a quality-seal for fairtrade.
This international label guarantees production
and trade without exploitation of man and nature - 1) production and trade with respect towards
human beings and the environment - 2) set of social and ecological minimum
standards - 3) future for almost a million families in 43
LDCs (low developped countries)
4Fairtrade an advantage for all, who participate
- The small producers gain through fair
trade-relations. - The importers and selling companies and shops
gain through high quality products with a social
label. - The consumers gain through high quality, too,
...through environmental compatibility and
guaranteed origin of the products. - Fairtrade is a simple and effective opportunity
for ALL, to contribute to the fight against
poverty in the (low developed) countries of the
south.
5The partners in the south
- Small producers - organized and joined together
in small cooperatives (coffee, cacao, sugar,
honey... and recently rice). - Wageworkers on smaller plantages and in the
manufactering process (tea, oranges, bananas...)
6FAIRTRADE Standards for the small producers
- Direct market access and direct trade
(elimination of intermediaries) - Fair minimum-prices (clearly above the world
market level) - Premiums for social projects and improvements of
the infra-structure - Premiums (extra charge) for switching to organic
- Long term trade relations
- Pre-financing (up to 60)
- Controlled origin
- Ecological standards (natur, environment... )
7FAIRTRADE standards for wage-workers
- Fair wages
- Securing basic social rights (accomodation,
fundamental medical supply, ... ) - Fair working conditions
- Protective labour legislation
- Premium (bonus) for the improvement of the social
situation (for example building of schools,
medical supply...) - Right for trade-union-support
8FAIRTRADE protects the environment
- Principle of sustainibility
- Preference of small-scale-farming to preserve
small-area-structures - Reduction of chemical fertilizers and
pest-control - Protection of the waters and of the tropical
rain-forest - Promotion of diversified farming
- Programs for waste-reduction (for example
plastic-foils in the banana-production) - Higher prices for bio-certified products in
order to promote biological cultivation
9FAIRTRADE product - groups
- Coffee, tea, chocolate, cacao, honey,
orange-juice, bananas, bonbons, sugar, rice,
fruit-juice (mango...) and (as the first non-food
product) footballs. - available in supermarkets, drugstores,
bio-shops, grocery stores...
10Producers (small-farming-families)
- The producers, too, have obligations in the
FAIRTRADE-system - The small-farming-families bind themselves,
- to become members in a cooperative with
democratic structure - to practice a sustainable form of farming
- to have a careful approach to the nature
11Producers working men and women in smaller
plantages and in the manufactoring process
- Obligations
- Right of co-determination on the use of the
social-premium (social-bonus) - Reasonable wages for the workers
- Observing the national and international
protective labour legislation - Sustainable economizing
- Measures for environmental protection and
waste-reduction
12FAIRTRADE - international cooperation
- (Holding)organization FLO International
(Fairtrade Labelling Organizations
International) - Tasks
- Development of product-standards
- Care for and contact to the (small) producers
- Control of keeping and observing the
FAIRTRADE-standards
13FAIRTRADE - the positive globalization
14FAIRTRADE guarantees
- Complete control by international networking of
FLO with - producers
- Fairtrade-organizations
- importers
- Licencees (companies)
15Control
- of the producers
- by FLO and local consultans/inspectors (sales,
keeping the standards, use of the purpose-bound
economical and social-premiums - of the importers
- by strict contracts with FLO International
- by regular reports of their purchases to FLO
- of the licencees
- by strict contracts with the national
label-initiatives (FAIRTRADE) - by quarterly reports of their purchases to
FAIRTRADE - by passing on of the reports to FLO
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17Why FAIRTRADE?
- prices on world markets are low and unstable
-
- earnings (and world-market-prices) do not meet
living costs of the small producers - coffee is worldwide the mostly traded agrarian
commodity - millions of small farmer-families and
plantation-workers live under extreme poverty
and... - ...FAIRTRADE is one of the best instruments to
combat poverty - FAIRTRADE is not a gift for the small producers,
but a fair deal for their products - FAIRTRADE is promotion of sustainable development
18FAIRTRADE-labelled bananas...
- come from small-farmers-cooperatives and
plantages in - Columbia
- Costa Rica
- Dominican Republic
- Ecuador (world-leading-banana-exporter)
- Ghana
- Windward Islands
19Participation in the FAIRTRADE-system
- Standards for the admission in the
FAIRTRADE-producer-register - Political indipendance and democratic structure
- Small-family-farming-cooperatives
- Participation of the members on all important
decisions - Support of educational measures
- Support of sustainable cultivation methods
- Report of all transactions concerning the fair
trade
20FAIRTRADE-prices, shown at the example of coffee
- worldmarket-price 2/2004 ca. 76 US-cents/Ib
- (lb engl. Pound 0,46kg)
- FAIRTRADE-minimum-price 121 US-cents/lb
- (or 121 US-dollar/sack 100 lb 46kg)
- additional
- Social and ecological premium/bonus 5
US-cents/Ib - Extra charge for BIO-products 15 US-cents/lb
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22FAIRTRADE a broad public platform
- The 29 member-organisations of FAIRTRADE-Austria
come from the following social fields - Aid to developing countries
- Church
- Social aid and policy-organisations
(Caritas, CARE Austria, UNICEF) - Environment- protectors
(WWF, ... ) - Education
(Austrian university students union, ...)
23FAIRTRADE productsSo fair so good!
- Non-polluting, mostly with BIO-certificate
- High quality through careful cultivation
- Certificate of origin
- Pleasure and fairness at the same time
- An important contribution to a fairer world and
to environmental protection - Available in more than 2000 shops (in Austria)
Tendency growing!
24How can I support FAIRTRADE?
- In the private sphere
- Using FAIRTRADE-products regularly at home
- Convincing friends and relatives
- Giving away FAIRTRADE-products
- In the school/university
- Information-work (reports, info-, tasting-
selling-stalls at school/university-events...) - FAIRTRADE-products in the school/university-cafete
ria - FAIRTRADE-coffee, -tea, -orangejuice in the
teachers room
25alternative trading FAIRTRADE Pionieers
- alternative import-organisations like EZA 3.
Welt GmbH, one world-trade, CONA
(cooperation between Nicaragua and Austria) ... - world-shops specialist stores of the fair
trade - Sale of south-products as coffee, tea, cacao,
spices and handicraft-products, too - Exists in Austria since 25 years
26The quality-sealing Fair Trade with
commercial partners, too.
- Sealing-initiatives FAIRTRADE, TransFair, Max
Havelaar, Fairtrade Foundation ... - ... with a common holding-association, the FLO
International (situated in Bonn, Germany) - Sealed products coffee, tea, cacao, honey,
chocolate, sugar, orangejuice, bananas, rice. - Objective availability in as many shops as
possible for the daily shopping - Exists since more than ten years in Austria
(foundation 1993)
27Contact-information (Austria)
FAIRTRADE Austria Wohllebengasse 12-14, 1040
ViennaTel. 01/533 09 56 Fax DW
11office_at_fairtrade.at www.fairtrade.at
28Guarantees a better deal for producers
29Why Fairtrade labelling?
- Many small farmers become more and more
indipendant on middlemen. - They are given the freedom to join a union.
- A viable trade alternative is created for them.
- We dont need any charity, we are not beggars.
If we are paid a reasonable price for our coffee,
then we can do without charity - Isaias Martinez, UCIRI, Mexico
30The core tasks of FLO (founded in 1997, seated in
Bonn, Germany)
- Guaranteeing the standards indipendant
inspectors, trade auditing system... - Business faciliation finding market niches and
joint strategies together with producers, traders
and retailers to enhance fairtrades impact in
commercial markets. - Promoting producer support - strengthen their
organization and production
31Credible, universal, enabling development
- FLO is one of the biggest international
certification bodies it regularly inspects and
certifies about 300 producer-organizations in 36
countries, embracing around 800.000 families of
farmers and workers.
32The impact of FAIRTRADE
- The most important contribution of the
Fairtrade Labelling System is in my eyes that our
dignity as a human being is recovered. We are
no longer a plaything of the anonymous economic
power that keeps us down. -
- Isaias Martinez, UCIHI, Mexico
33FAIRTRADE checked and certified
(FLO-standards)
- Two sets of producer standards one for small
farmers (organized in cooperatives) and one for
workers on plantations and in factories. - Development to increase the environmental
sustainability of their activities and to invest
into the development of the organisations and
their producers/ workers. - Trading standards for the traders pay a price to
the producers, that covers sustainable living
production and a premium for development. - Product-specific standards for each product
minimum quality, price, processing requirements
and so on...
34FAIRTRADE office Vienna
- Does not sell products of the fair trade
therefore it controlls without economic
self-interest - Is responsible for the social-quality-seal and
for public relation - The FAIRTRADE-office is financed by
- Licence-receivings
- EU-subsidies
- Donation-money
35FAIRTRADE - (and other) Coffee - example 1How
much money stays at the producer? (small
farmer/plantation worker)
- Lavazza Oro (not sealed and not BIO) - ORGANICO
(fairtrade-sealed coffee) both 100 Arabica... - Traditional trade 7 or less - ORGANICO 25
of the consumer-price - 75 are for transport and
roasting... - The fairtrade-price includes
- A fixed minimum price
- A social premium/bonus and
- (if possible presently 70) a BIO-premium/bonus
36FAIRTRADE Coffee - example 2
- If 10 families in Austria (or Slovakia) consume
and buy FAIRTRADE-coffee regularly, 1 whole
coffee-farmer-family in Latin America can live by
it.
37FAIRTRADE bananas
- no poisons for conservation and riping of the
bananas (only lemon-acid) - With buying 1 kg of FAIRTRADE-bananas you can
afford 1 child in ECUADOR to visit school for a
whole day.
38Otto Tausig, a famous actor in Austria
- A donkey, who buys expensive, what he could get
cheaper. Who buys cheap at the cost of people,
who live in misery, is a swine.
39FAIRTRADE ...
- ... is worldwide the greatest independent
authority for certifying conforming to social
criterions - Products with the FAIRTRADE-quality-seal are
available in 19 industrialized countries in
Europe, Northamerica, Australia and Asia.
FAIRTRADE cooperates with over 375 certified
producer-organizations and is supporting thus
more than 800.000 families in over 45 so-called
develloping countries.
40FLO the independant controlling-agency...
- ... is responsible for
- The certification of the producer-organisations
- The control of the keeping of the
FAIRTRADE-criterions - The licencation of importers and traders
- The small-farmers-cooperatives and the
plantage-workers, which produce conforming to
FAIRTRADE-criterions, are registered in a
produzer-register. - ONLY licensed importers and alternative-traders
buy from FAIRTRADE-producergroups, who are listed
in the FLO-producer-register and they buy at
FAIRTRADE-conditions (f.i. a fixed price and on
demand pre-financing
41FAIRTRADE Austria...
- ... controlls the companies, which sell products
with the FAIRTRADE-quality-seal (wholesalers,
retailers, alternative-traders...) in Austria
(mainly world-stores and supermarkets). - The licence-takers report quarterly their
sale-conclusions at fair conditions with the
licenced importers. - These data are equalized with the informations,
that FLO Cert gets from their partner-organization
s (licenced importers.
42FAIRTRADE bananas in Austria
- Since market-introduction in february 2002
- 2,9 million kg of Bio-Bananas have been eaten in
Austria. - The market-share in Austria is 2,1 (10/2003)
- Important partners of FAIRTRADE-Austria are
- SPAR
- BILLA
- MERKUR
- ADEG
43More about FAIRTRADE-bananas
- The EU imports ca. 40 of all worldwide-exportet
bananas and is therefore the greatest
sales-market for bananas. - In Austria the banana is one of the most-eaten
fresh-fruits. - The austrian per/head consumption of bananas is
with 11 kg the highest in Europe.
44Social Standards in the Banana-Trade
- The Banana-Trade is divided under few combines ,
which have the market and the prices under their
control. - Often unjust wages, high use of pesticides and
poor working-conditions the every day life of
plantage-workers. - For the fair trade with bananas FAIRTRADE (FLO)
and the (small) producers are establishing
minimum-prices.
45FAIRTRADE-banana-price (spring 2003)
- Fixed (minimum)price, which has to cover at least
the production-costs and is set in relation to
the worldmarketprice -
- 5,25 US-dollar per box (18,14 kg/40 pound)
- Biocultivation-bonus 2,-- US-dollar
-
- Social-extra-premium (the use of it is determined
by the workers- and small producers-committees in
their own responsibility education, clean water,
health, medical treatment, infrastructure and so
on...) - 1,75 US-dollar
- 9,-- US-dollar
46BANANAS The steps from the producer to the
consumer
- Producer delivers the bananas conforming to
certain quality-criterions (size, colour,
packing...) - Shipping from Latin America FOB Machala or
Puerto Bolívar/Ecuador (150.000 300.000
banana-boxes on a cooling-ship temperature
exactly 13,2 celsius) - Arriving in Europe CIF/FOT Hamburg
- Transport to the Ripening Company - the bananas
reach it green (1) and leave it yellow (4-5)
ready for the supermarkets) - Transport to the wholesalers and retailers
(BILLA, MERKUR, SPAR, ADEG) with (6) on the
colour-scale the bananas are best!
47More about the banana-price
- As the price for FAIRTRADE-bananas is depending
very much from the production-conditions in the
producer-countries, there are different
national-minimum-prices (who should cover the
living-costs) in the FAIRTRADE-system. - Countries of (BANANA) origin are
- Columbia
- Costa Rica
- Dominican Republic
- Ecuador (with an export-share of 33
world-leader) - Ghana (more famous for cacao)
- Windward Islands
48From the Andes to the Alps
- 500 years ago the BANANA came to the New World on
slave-ships from West-Africa. - Today the BANANA is the most popular fresh-food
in the world. - Per year around 67 million tons of BANANAS are
produced. - With a per-head-consumption of 10,8 kg Austria is
leading in Europe.
49The cooperative El Guabo in the provinceEl Oro
in ECUADOR
- Founded in 1997
- 105 members (small-farmer-families), who manage
450 ha of land - El Guabo fulfills the criterions of FAIRTRADE
and is more and more shifting to biological
farming.
50What FAIRTRADE offers El Guablo and its small
farming producers
- The FAIRTRADE-seal guarantees for the producers
- fair minimum-prices
- direct market-access
- pre-financing (if wished)
- establishing long-term-business-relations (in
order to become independant from exploitation by
the ruling market-structures) - for the plantation-workers it guarantees just
wages, fair working-conditions and keeping social
minimum-standards