CREATING A VIABLE TRADE ALTERNATIVE

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FLO International

• Guaranteeing
• a better deal for producers

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Presenting a viable trade alternative

• FT labelled products represent
• For producers
• A fairer deal in a globalised market
• An effective tool for autonomous development
  through trade
• For consumers
• An informed choice in (mainstream) shopping
  behaviour
• Consumers responsibility

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FLO International

• Functions

1. Guaranteeing the standards 2. Business
facilitation 3. Producer support
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Fairtrade Standards

• Producer standards
• Democracy, Participation of members / workers and
  Transparency
• Non Discrimination
• Economic strengthening of organisation
• Environmental Protection
• Freedom of Association
• Conditions of Employment, Health and Safety

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Fairtrade Standards

• Trading standards
• Fairtrade Minimum Price
• Premium to invest in social, economic or
  environmental projects
• Pre-financing
• Medium/long term commitment
• Transparency in the whole trade chain

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FLO Certification Unit

• Autonomous unit within FLO International
• Follows ISO standards for certification units
• Functions

• Producers inspection
• conformity to FT standards
• FT benefits are used for social and economic
  development
• Certification
• Trade auditing
• to cross check reported sales and reported
  purchases

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Business facilitation

• Enhance FTs impact in commercial markets
• matching supply and demand in volume and quality
• anticipate and react on market trends
• work with cross border operating companies
• Improve producers response to the market
• Providing information on quality requirements
• Providing information on trends and traders
• Relation management

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Promoting producers support

• Support producers to strengthen their position
• commercial performance
• quality produce
• institutional building
• Link between producers and support
• identify needs for support with producers and CU
• identify donors and technical expertise
• bringing together the right partners and
  facilitate

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Impact and scope of FLO
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Producers and companies registered with FLO

• 17 national fairtrade labelling organisations
• 315 FLO certified producer organisations in 45
  producing countries
• 800,000 producers
• Including dependents 5 million people affected
• 249 FLO registered companies worldwide
• 88 companies in 17 countries are licensed to use
  the Fairtrade certification mark

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Qualitative Impact

• Access to market information
• Organisational development
• Export knowledge
• Capacity building of organisation members or
  workers
• Investment in local social projects
• Investment in organic production

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Qualitative Impact

Students at the Agricultural School of Uciri,
Mexico. A School set up by Uciri to educate
members-children to learn about organic
agriculture and cultural and social aspects of
their Association
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Qualitative Impact

'We have seen achievements. For example before we
did not know the correct price for coffee, we did
not know how coffee was consumed.
Now I do and I have money to buy my children
their little clothes. I could build my little
house. Day by day things are improving, and this
is because of the better price.' Mario
Hernandez, Prodecoop, Nicaragua
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Qualitative Impact
'Fairtrade really is fair. This is a system which
can benefit everyone, farmers and consumers. Many
farmers are wanting to join but we must be able
to sell the tea - we need more markets. T G
Kumurasinhe, Sri Lanka

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Environmental Impact

• Re-forestation projects
• Organic waste projects
• Water cleaning projects
• Training on organic production

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Environmental Impact
Organic compost in Costa Rica, part of an organic
waste programme Coopesarapiqui, Costa Rica
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Environmental Impact
Percentage of organic certified coffee coming
from Fairtrade certified organisations 1999
31 2000 39 2001 44 2002 51
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Economic Impact

• Retail turnover of Fairtrade-labelled products
  increased by 15-20 p/a in last five years
• 2002 an estimated 260 million US turnover
• 2002 sales have generated up to 40 million US
  additional income to producers and workers

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Results so far
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Most important markets

• In volume (t) 2001 2002
• Switzerland 15,911 18,485
• England 12,597 15,152
• Holland 5,712 5,401
• Germany 4,490 4,295

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Promising markets

• In percentage of growth 2001 2002
• Austria 454
• France 116
• Norway 102
• Canada 86

And...
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Promising markets
. Australia and New Zealand!
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