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FAIRTRADE with the small producers , their products and plantation-workers from the (low developped) countries of the „south“. What is FAIRTRADE ?. It is an alternative business model for the small poducers in the „south“

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What is FAIRTRADE ?


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FAIRTRADE with the small producers, their products and plantation-workers from the (low developped) countries of the „south“
what is fairtrade
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)

fairtrade an advantage for all who participate
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.
the partners in the south
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...)
fairtrade standards for the small producers
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... )
fairtrade standards for wage workers
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
fairtrade protects the environment
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
fairtrade product groups
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...
producers small farming families
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
producers working men and women in smaller plantages and in the manufactoring process
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
fairtrade international cooperation
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
fairtrade guarantees
FAIRTRADE guarantees:

Complete control by international networking of FLO with:

  • producers
  • Fairtrade-organizations
  • importers
  • Licencees (companies)
control
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
why fairtrade
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
fairtrade labelled bananas
FAIRTRADE-labelled bananas...

come from small-farmers-cooperatives and plantages in

  • Columbia
  • Costa Rica
  • Dominican Republic
  • Ecuador (world-leading-banana-exporter)
  • Ghana
  • Windward Islands
participation in the fairtrade system
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
fairtrade prices shown at the example of coffee
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
fairtrade a broad public platform
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, ...)
fairtrade products so fair so good
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!
how can i support fairtrade
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-cafeteria
    • FAIRTRADE-coffee, -tea, -orangejuice in the teacher‘s room
alternative trading fairtrade pionieers
„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
the quality sealing fair trade with commercial partners too
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)
slide27

Contact-information (Austria)

FAIRTRADE Austria

Wohllebengasse 12-14, 1040 ViennaTel.: +01/533 09 56; Fax: DW 11office@fairtrade.at; www.fairtrade.at

why fairtrade labelling
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 don‘t 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

the core tasks of flo founded in 1997 seated in bonn germany
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 fairtrade‘s impact in commercial markets.
  • Promoting producer support - strengthen their organization and production
credible universal enabling development
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.
the impact of fairtrade
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

fairtrade checked and certified flo standards
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...
fairtrade office vienna
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
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FAIRTRADE - (and other) Coffee - example 1:„How much money stays at the producer?“ (smallfarmer/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
fairtrade coffee example 2
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.

fairtrade bananas
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.
otto tausig a famous actor in austria
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.“

fairtrade
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“.
flo the independant controlling agency
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
fairtrade austria
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-organizations (licenced importers.

fairtrade bananas in austria
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
more about fairtrade bananas
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.
social standards in the banana trade
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.
fairtrade banana price spring 2003
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

bananas the steps from the producer to the consumer
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!
more about the banana price
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
from the andes to the alps
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.
the cooperative el guabo in the province el oro in ecuador
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.
what fairtrade offers el guablo and it s small farming producers
What FAIRTRADE offers „El Guablo“ and it‘s 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