Transcript CREATING A VIABLE TRADE ALTERNATIVE

FLO International
Guaranteeing
a better deal for producers
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
1) Some history
2) FLO structure
3) Way of working
(in standard setting)
History of Fair Trade
• People concerned about supporting
disadvantaged people in developing
countries – Trade not Aid (some 40 years
ago).
• World Shops, Church bazars, etc
• Alternative Trading organisations (ATOs)
• Mainstreaming requires labelling (UCIRI)
History of Fairtrade Labelling
• First Fairtrade label, called Max Havelaar, was
initiated in 1988 in the Netherlands.
• Switzerland launched in the meantime, in
1991 the second Max Havelaar label
• In 1992 the Transfair label was launched in
several European countries (coordinated by
TransFair International)
History of Fairtrade Labelling
•While more National Initiatives and Fairtrade
products emerged, the need for harmonisation
became apparent
• In 1997, FLO International was established, as a
secretariat for all National Labelling Initiatives
•Since 2001: Harmonisation of Standards,
certification procedures and trade auditing
The Fair Trade movement
Definition of Fair Trade:
„Fair Trade is a trading partnership, based on dialogue,
transparency and respect, that seeks greater equity in
international trade. It contributes to sustainable development
by offering better trading conditions to, and securing the
rights of, marginalized producers and workers – especially in
the South.
Fair Trade organizations (backed by consumers) are engaged
actively in supporting producers, awareness raising and in
campaigning for changes in the rules and practice of
conventional international trade.“
(Common definition agreed by FLO, IFAT, NEWS!, EFTA – FINE)
The Fair Trade movement
FINE is an informal collaboration platform of
four big networks active in Fair Trade
F airtrade Labelling Organisations (FLO)
I nternational Federation for Alternative
Trade (IFAT)
N etwork of European Worldshops (NEWS!)
E uropean Fair Trade Association (EFTA)
FLO International
The Mission
To enable development & empowerment of disadvantaged
producers & workers by:
a) setting international FairTrade standards;
b) certifying production and trade according to
international FairTrade standards;
c) facilitating and developing FairTrade markets through
national FT labeling organizations;
d) facilitating producer support;
e) promoting the FT-approach in debates on trade and
development.
Producers and companies
registered with FLO
• 19 national fairtrade labelling organisations
• 375 FLO certified producer organisations in
48 producing countries
• 800,000 producers
• Including dependents 5 million people affected
• 337 FLO registered companies worldwide
• 509 companies in 18 countries are licensed to
use the Fairtrade certification mark
Results so far
General Sales generated by labelled fairtrade (1997 - 2003)
90000
80000
83.761
70000
60000
58.809
50000
Volume (MT)
48.548
40000
39.750
33.495
30000
25.972
28.913
20000
10000
0
1997
1998
1999
2000
2001
2002
2003
FLO and stakeholders
FLO’s open structure
•
•
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•
FLO Board (direct participation)
Standards and Policies Committee
Certification and Appeals Committees
FLO Fairtrade Forum
Marketing meetings
FLO’S NEW STRUCTURE:
FLO
February 2002
Meeting of Members
Regional
Producer
Meetings
FLO Board
Markets &
marketing
meetings
1/3 Appeal cie
Executive
board
1/3 Certif. cie
 FLO/NI staff
 stakeholders
Director
 deciding
Fin. & Adm.
 consultative
Info system
Inspection
regional/local
Certification
Unit
Trade
Auditing
Standards +
policy Cte.
Prod. Support
Facilitator.
Product
Managers
Producer Liaison Officers
Stakeholder Participation
Terms of Appointment
(overarching principles for all governing
committees)
 Balance of stakeholder interest
 Balance of expertise and knowledge
FLO Board appoints S&P and Certification Cte.
for a 2-3 years term upon nomination
Stakeholder Participation
Standards & Policies
(9 members in total)
 2 - Producers (SH + HL)
 2 - Traders - conventional and ATO
(Alternative Trading Organisation)
 3 - National FLO member organisations (Nis)
 2 - External Experts (incl. 1 representative
from trade union movement)
Stakeholder Participation
Members of S&P Committee (Sept.03) – 9 in total
Carlos Vargas, Coocafe/Costa Rica – coffee
cooperative; position is vacant
Alex Yeboah Afari, VREL/Ghana – banana
plantation
Traders:
Jeroen Kroezen, AgroFair
Gerd Nickoleit, gepa
Nis:
Fenny Eshuis, MH-NL
Judith Kyst, MH-DK
Max Leuzinger, MH-CH
Externals: David Joyce – ICTU (Irish Congress of Trade
Unions); position is vacant
Phil Wells – Consultant
Coordinator:Olaf Paulsen, FLO - Manager Policy Development
Producer:
Stakeholder Participation
Certification Cte.
(6 members in total)
 1 - Producer Organisation
 2 - Traders - conventional and ATOs
(Alternative Trading Organisations)
 1 - National FLO member organisation (Nis)
 2 - External Experts
Stakeholder Participation
Members of the Certification Committee
(as of Sept.03) – 6 in total
Producer:
Juan Eduardo Henriquez Santos, Chile - honey
cooperative
Traders:
Kirit Dal, Nirwana Sugar Ltd., UK
Marjoleine Motz, Fairtrade Assistance (FTA), NL
Nis:
Jos Harmsen, MH-NL
Externals:
Liz Humphrey, Consultant
Rolf Belling, Consultant
Coordinator: Rüdiger Meyer, FLO – Manager FLO Cert
FLO International
1.Defining Fairtrade Standards
Social, Environmental and Economic
Standards & Policies
2.Guaranteeing the Standards
Functions
Inspection and Certification
FLO Certification Ltd.
3.Business facilitation
Supply & Demand, Quality
Product Management
4.Producer support
Compliance, linking to development
Producer Support Network
Standards & Policies
(S&P)
• S&P Committee - Mandate
- Decide on Standards proposals (incl
ratification process through FLO Board)
- Develop advice and recommendations on
> Fairtrade principles - generic standards
> FLO policies related to standards
> Product specific standards and prices
2 Producers, 2 traders, 3 Nis, 2 External
experts (1 trade union rep.) – senior experts in
different fields
FLO Board sets priorities for workplan
Stakeholder Participation
Way of working - S&P Committee
At times 7 different work teams (WT)
Terms of work for WTs
Inviting special expertise as per WT
Reporting back to S&P Committee
4-6 physical meetings of S&P per year
WTs mostly work by email consultation
Defining Fairtrade Standards
Standards & Policies (S&P)
Social Standards
• Small farmers / Hired labour
• Generic / Product specific
• Minimum requirements / Progress requirements
Environmental Standards
• Generic / Product specific
Economic/Trade Relationship Standards




Generic / Product specific
Minimum Price and FT-Premium
Pre-financing
Medium/long term commitment
Standards Development
Procedures for Standard setting
• Product Rational Paper (policy frame)
• Light or heavy approach/cost-benefit
• Proposal for standards (product specific
requirements, defining minimum price)
• Consultation with stakeholders
• Standards decision by S&P Cte;
ratification by FLO director mandated
by the FLO Board
Standards Review
Procedures for Standard setting
• Regular review of generic and product
specific standards (3 year cycle)
• Co-ordinated by the S&P Cte
• Extended stakeholder consultation
• Final decision ratified by FLO Board
FLO International
1.Defining Fairtrade Standards
Social, Environmental and Economic
Standards & Policies
2.Guaranteeing the Standards
Functions
Inspection and Certification
FLO Certification Ltd.
3.Business facilitation
Supply & Demand, Quality
Product Management
4.Producer support
Compliance, linking to development
Producer Support Network
Guaranteeing the standards
FLO Certification Ltd.
• Legaly separate sub-set of FLO International
• Follows ISO standards for certification bodies
•Producers inspection
conformity to FT standards
FT benefits are used for social and
Functions
economic development
•Certification
•Trade auditing
to cross check reported sales and
reported purchases
FLO-Business facilitation
Enhance FT’s 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
FLO Product Managers:
– a team of product specialists dedicated to the strategic
marketing of FT, and existing and new products
Facilitating Producer
Support - PSN
Support producers to strengthen their position:
– commercial performance
– quality produce
– institutional building
Link between producers and support:
– identify needs for support with producers and FLO Cert
– identify donors and technical expertise
– bringing together the right partners and facilitate
FLO Producer Support Facilitator:
– closely linked to product managers in the North and
producers and liaison people in the South