Fairtrade Labelling Organisations FLO International

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(No Transcript)
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• Fairtrade Labelling Organisations (FLO)
  International

Standards, Monitoring and Certification System
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Table of Contents

• History of Fairtrade Labelling
• How does the system work? Three parts of the same
  system
• FLO e.V setting Fairtrade Standards
• FLO-CERT certifying against Fairtrade Standards

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How did it all start?

• 1950s the Fair Trade movement starts
• 1987 first Fairtrade label Max Havelaar is
  launched in the Netherlands. At the time, the
  label was only available for coffee.
• Other Labelling Initiatives follow across Europe
  and North America
• 1997, Fairtrade Labelling Organizations (FLO)
  International is created

Old Fairtrade logos
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Why was FLO International created?

• The 14 National Labelling Initiatives, which
• were at that time operating independently in
  their respective markets created FLO with the
  mission to
• to set International Fairtrade Standards, to
  support, inspect and certify producers
• to harmonize the Fairtrade message across the
  movement

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2002 Launch of the International FAIRTRADE
Certification Mark
Most Labelling Initiatives (LIs) are now using
the International Fairtrade Certification Mark.
The Labelling Initiatives in Canada, Switzerland
and the USA are still using their own logos.
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Creation of FLO-CERT GmbH

• On September 2003, FLO International transformed
  its former certification department into a
  separate legal entity FLO-Cert GmbH (Ltd.) in
  order to
• make Fairtrade certification operations more
  transparent
• to fully comply with ISO 65 (the worldwide
  quality standard for certification organisations)

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Current FLOs Structure
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How does it work?
Three parts of the same system

• FLO International e.V
• FLO-CERT GmbH
• National Labelling Initiatives (in 21 countries)

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FLO International e.V

• It is a publicly recognized non-profit
  multi-stakeholder associations that unites 20
  Labelling Initiatives in 21 countries and
  Producer Networks representing Fairtrade
  Certified Producer Organizations in Central and
  South America, Africa and Asia. 
• To develop and review Fairtrade Standards
• To assist producers in gaining and maintaining
  certification in order to capitalize on market
  opportunities.

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FLO-CERT GmbH

• FLO-CERT GmbH is a limited company, responsible
  for the inspection and certification of producers
  organizations and traders against the Fairtrade
  Standards.
• Website www.flo-cert.net

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National Labelling Initiatives

• License companies to sell products bearing the
  Fairtrade Certification Mark (called licensees)
• Promote Fairtrade in their country
• The Fairtrade transactions of licensees are
  audited by either the Labelling Initiative or
  FLO-CERT (in France, Spain and Germany)

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What happens in countries with no National
Labelling Initiative?

• FLO will license companies directly to speed up
  the process and be more efficient
• Local groups can promote Fairtrade!

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Three parts of the same system!
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• FAIRTRADE STANDARDS
• Focusing on development

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Fairtrade Standards (I)

• Focus on development
• Social
• Economic
• Environmental
• Minimum Requirements
• All producer organisations must meet them to
  become Fairtrade certified
• Progress requirements
• Producers must demonstrate improvements over time

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Fairtrade Standards (II)

• 1) Generic standards
• Small farmers organisations
• Hired labour
• Trade (under elaboration)
• Minimum requirements / Progress requirements
• 2) Product specific standards
• Additional requirements
• FT Minimum Price and Premium

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Fairtrade Standards guarantee a price that covers
the cost of sustainable production
Without Fairtrade, we wouldnt exist as banana
producers. The amount we receive for a box of
conventional bananas does not cover our
production expenses
Valentín Ruíz Delgado, Banana Farmer, Peru
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Fairtrade Standards guarantee a price that covers
the cost of sustainable production
In 2001 and 2002, during the world coffee
crises, our situation was desperate. We received
between 20 - 25 dollars per quintal. Many of the
Ecuadorian coffee producers left. We did not have
any other choice but to abandon the coffee
culture. Our cooperative became Fairtrade
Certified in 2003. We are currently selling 80
of our total coffee production under Fairtrade
terms. For our Fairtrade organic coffee we are
receiving 139 US the quintal and 119 US the
quintal for our conventional Fairtrade coffee.
But more important than the higher prices is the
stability that Fairtrade brings. We are not as
vulnerable to market volatility as we used to
be.
Valentín Chinchay, Coffee Farmer, Ecuador
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Fairtrade Standards guarantee a Fairtrade Premium
I am a member of the Joint Body which decides
how to use the Fairtrade Premium. We have used it
to help get electricity for all workers houses
my children can now study at night. Loans allow
workers to start small businesses such as rearing
cattle for their milk and growing vegetables to
sell to local traders.
Jyoli Rai, tea plucker Putharjhosa Tea Estate,
India
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Fairtrade Standards promote enviromental
sustainability
Now that we farm with natural pesticides and
fertilisers the soil quality has improved. The
soil repays us by giving us a greater yield from
our land. Jethanda Patel, Cotton Farmer, India
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Fairtrade Standards promote long term business
relationships
Fairtrade brought us stability. We, producers,
are not totally depend to the law of supply and
demand. We know that we will paid at least US69
the quintal. This guarantee makes it possible to
plan long term, to invest, to develop technical
support, in one word, to develop our business.
Felipe Cancari, Cocoa Producer, Bolivia
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Fairtrade Standards (III)

• Product Specific Standards
• Bananas (HL), Cocoa, Coffee, Dried Fruit, Fresh
  Fruit (HL), Fruit Juices (HL), Honey, Nuts and
  oil seeds, Quinoa, Rice, Herbs and spices, Sugar,
  Tea (HL), Wine grapes (HL), Cotton, Flowers (HL),
  Sportsballs (HL)
• (HL applicable for hired labour situations too)

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Setting Fairtrade Standards

• Fairtrade Standards are approved by the FLO
  Standards Committee all FLO stakeholders
• Set in accordance to the requirements of the
  ISEAL Code of Good Practice in standards setting
• Consultation with a variety of stakeholders
  producers, traders, external experts, inspectors,
  certification staff etc.

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• FLO-CERT Certification
• Checking that Fairtrade Standards are being met

www.flo-cert.net
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Producer Certification

• FLO-CERT ensures that producers comply with the
  Fairtrade Standards and that producers invest the
  benefits received through Fairtrade in their
  development.
• 54 independent inspectors
• Multi-stakeholder Certification Committee

A FLO-CERT inspector checking accounts in a tea
estate in Sri Lanka
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Trade Certification

• Monitors traders compliance with Fairtrade
  Standards.
• Ensuring the Fairtrade Minimum Price and Premium
  has been paid.
• 18 inspectors conduct trade certification,
  supported by staff at FLO-CERT headquarters.
• Independent Certification Committee
• Fairtrade licensees (companies that have licensee
  contracts to use the Fairtrade Mark) are also
  subjected to trade certification (sometimes also
  done by the Labelling Initiatives)

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The Fairtrade Certification Mark

• For a product to carry the Fairtrade
  Certification Mark, it must come from FLO-CERT
  inspected and certified producer organizations.
• The supply chain is also monitored by FLO-CERT to
  ensure the integrity of certified products.
• Only authorized licensees can use the Fairtrade
  Certification Mark on their products.

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• Thank you for you attention!

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