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FAIRTRADE with the small producers, their products and plantationworkers from the low developped cou

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Dominican Republic. Ecuador (world-leading-banana-exporter) Ghana. Windward Islands ... Countries of (BANANA) origin are: Columbia. Costa Rica. Dominican Republic ... – PowerPoint PPT presentation

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Title: FAIRTRADE with the small producers, their products and plantationworkers from the low developped cou


1
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2
  • FAIRTRADE with the small producers, their
    products and plantation-workers from the (low
    developped) countries of the south

3
What 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)

4
Fairtrade 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.

5
The 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...)

6
FAIRTRADE 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... )

7
FAIRTRADE 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

8
FAIRTRADE 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

9
FAIRTRADE 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...

10
Producers (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

11
Producers 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

12
FAIRTRADE - 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

13
FAIRTRADE - the positive globalization
14
FAIRTRADE guarantees
  • Complete control by international networking of
    FLO with
  • producers
  • Fairtrade-organizations
  • importers
  • Licencees (companies)

15
Control
  • 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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Why 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

18
FAIRTRADE-labelled bananas...
  • come from small-farmers-cooperatives and
    plantages in
  • Columbia
  • Costa Rica
  • Dominican Republic
  • Ecuador (world-leading-banana-exporter)
  • Ghana
  • Windward Islands

19
Participation 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

20
FAIRTRADE-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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FAIRTRADE 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, ...)

23
FAIRTRADE 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!

24
How 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

25
alternative 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

26
The 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)

27
Contact-information (Austria)
FAIRTRADE Austria Wohllebengasse 12-14, 1040
ViennaTel. 01/533 09 56 Fax DW
11office_at_fairtrade.at www.fairtrade.at
28

Guarantees a better deal for producers
29
Why 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

30
The 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

31
Credible, 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.

32
The 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

33
FAIRTRADE 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...

34
FAIRTRADE 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

35
FAIRTRADE - (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

36
FAIRTRADE 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.

37
FAIRTRADE 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.

38
Otto 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.

39
FAIRTRADE ...
  • ... 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.

40
FLO 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

41
FAIRTRADE 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.

42
FAIRTRADE 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

43
More 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.

44
Social 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.

45
FAIRTRADE-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

46
BANANAS 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!

47
More 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

48
From 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.

49
The 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.

50
What 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
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