Fairtrade certification
History
Although many attempts to market Fairtrade products were observed in the 1960s and 1970s, Fairtrade sales only really took off with Fairtrade labelling in the late 1980s. Fairtrade sales prior to labelling initiatives were contained to relatively small world shops (also called charity shops), operated by alternative trading organizations (ATOs) such as Oxfam and Traidcraft. Many felt that these world shops were too disconnected from the rhythm and the lifestyle of contemporary developed societies. The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers. The only way to increase sale opportunities was to start offering Fairtrade products where consumers normally shop, in the large distribution channels. The problem was to find a way to expand distribution without compromising consumer trust in Fairtrade products and in their origins.
At the initiative of Mexican coffee farmers, the first Fairtrade labelling initiative, Stichting Max Havelaar, was launched in the Netherlands on November 15, 1988 by Nico Roozen, Frans van der Hoff and Dutch ecumenical development agency Solidaridad. The initiative offered disadvantaged coffee producers following various social and environmental standards an above market price for their crop. The coffee, originating from the UCIRI cooperative in Mexico, was imported by Dutch company Van Weely, roasted by Neuteboom, sold directly to worldshops and, for the first time, to mainstream retailers across the Netherlands.
The initiative was groundbreaking[vague] as for the first time Fairtrade coffee was being offered to a larger consumer segment. Fairtrade labelling also allowed consumers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the farmers at the end of the supply chain[citation needed].
The initiative was a great success[citation needed] and was replicated in several other markets: in the ensuing years, similar non-profit Fairtrade labelling organizations were set up in other European countries and North America, called ax Havelaar (in Belgium, Switzerland, Denmark, Norway and France), ransfair (in Germany, Austria, Luxembourg, Italy, the United States, Canada and Japan), or carrying a national name: airtrade Mark in the UK and Ireland, ttvisemrkt in Sweden, and “Reilu kauppa” (Finnish) or “Rejl handel” (Swedish) in Finland.
Retail Value
Global Fairtrade Sales
Year
Sales Value
2008
2 900 000 000
2007
2 381 000 000
2006
1 623 000 000
2005
1 141 570 191
2004
831 523 066
2003
554 766 710
2002
300 000 000
2001
248 000 000
2000
220 000 000
Initially, while the Max Havelaars and the Transfairs co-operated product by product with equivalent standards and producer lists there was no contractual agreement to ensure global standards. In 1994, a process of convergence among the labelling organizations or Is (for abelling Initiatives) started with the establishment of a TransMax working group, culminating in 1997 in the creation of Fairtrade Labelling Organizations International. FLO is an umbrella organization whose mission is to set the Fairtrade standards, support, inspect and certify disadvantaged producers and harmonize the Fairtrade message across the movement.
In 2002, FLO launched a new International Fairtrade Certification Mark, effectively replacing most previous Max Havelaar and TransFair certification marks. The goals of the launch were to improve the visibility of the Mark on supermarket shelves, facilitate cross border trade and simplify export procedures for both producers and exporters.
Today, all but two Labelling Initiatives, namely TransFair USA and TransFair Canada, have adopted the new mark. These two organizations currently use the Fair Trade Certified Mark. TransFair USA has apparently elected to continue with its own mark for the time being. It is not yet clear if or when the Canadian organization intends to adopt the new logo.
In January 2004, Fairtrade Labelling Organizations International was divided into two independent organizations: FLO International, which sets Fairtrade standards and provides producer business support, and FLO-CERT, which inspects and certifies producer organizations. The aim of the split was to ensure the impartiality, the independence of the certification process and compliance with ISO 65 standards for product certification bodies.
At present, over 24 labelling initiatives and producer networks are members or associate members of FLO International. There are now Fairtrade Certification Marks on dozens of different products, based on FLO certification for coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, honey, fruit juices, nuts, fresh fruit, quinoa, herbs and spices, wine and footballs etc.
Fairtrade standards
A T-shirt made from Fairtrade certified cotton.
Given the development focus of Fairtrade, FLO International standards contain minimum requirements that all producer organisations must meet to become certified as well as progress requirements in which producers must demonstrate improvements over time.
There are two types of Fairtrade standards for disadvantaged[vague] producers: standards for small farmers’ organizations and for hired labour situations. Fairtrade standards for small farmers’ organizations include requirements for democratic decision making, ensuring that producers have a say in how the Fairtrade Premiums are invested etc. They also include requirements for capacity building and economic strengthening of the organization.
Fairtrade standards for hired labour situations ensure that employees receive what supporters describe as “decent wages”[citation needed] and may join unions and bargain collectively. Fairtrade-certified plantations must also ensure that there is no forced or child labour and that health and safety requirements are met. In a hired labour situation, Fairtrade standards require a oint body to be set up with representatives from both the management and the employees. This joint body decides on how Fairtrade premiums will be spent to benefit plantation employees.
For some products, such as coffee, only Fairtrade standards for small farmers’ organizations are applicable. For others, such as tea, both small farmers’ organizations and plantations can be certified.
Fairtrade standards and procedures are approved by the FLO International Standards Committee, an external committee comprising all FLO stakeholders (labeling initiatives, producers and traders) and external experts. Fairtrade standards are set by FLO International in accordance to the requirements of the ISEAL Code of Good Practice in standard setting and are in addition the result of a consultation process, involving a variety of stakeholders: producers, traders, external experts, inspectors, certification staff etc.
Fairtrade inspection and certification
Fairtrade inspection and certification are carried by FLO-CERT, an independent body created by FLO in 2004. FLO-CERT ensures that both producers and traders comply with the FLO International Fairtrade Standards and that producers invest the benefits received through Fairtrade in their development.
FLO-CERT works with a network of 72 independent inspectors that regularly visit producer and trade organizations and report back to FLO-CERT. All certification decisions are then taken by a Certification Committee, composed of stakeholders from producers, traders, national labelling organisations and external experts. An Appeals Committee handles all appeals.
FLO-CERT inspections and certification follow the international ISO standards for product certification bodies (ISO 65).
Fairtrade pricing
Cocoa Market Price vs. Fairtrade Minimum Price
The Fairtrade system is distinct from other ethical trading schemes as it provides producers two major monetary benefits: the Fairtrade Minimum Price and the Fairtrade Premium.
The Fairtrade Minimum Price is a guaranteed price that is said to cover the costs of sustainable production. The set Fairtrade Price is always the minimum price paid but rises if market prices are higher.
The Fairtrade Premium is a separate payment designated for social and economic development in the producing communities. The producers themselves decide how these funds are to be spent. As part of the Fairtrade criteria, registered producers are accountable to FLO-CERT for the use of this money. It is generally used for improvements in health, education or other social facilities, although it may also be used for certain development projects to enable farmers to improve productivity or reduce their reliance on single commodities.
The Fairtrade premium and the Fairtrade Minimum price do not always significantly increase the end price paid by consumers for a product[citation needed]. There are other factors to consider when considering the price structure of Fairtrade products: sometimes economies of scale are missing or often the products are differentiated due to their organic farming practices etc.
Fairtrade impact studies
FLO-CERT Certified Fairtrade Coffee Producer in Uganda
Main article: Fair trade impact studies
Several independent studies have recently measured the impact of fair trade on disadvantaged farmers and workers. The following studies are described and discussed on the Fair trade impact studies page.
Brewing Justice: Fair Trade Coffee, Sustainability and Survival
The Impact of Fair Trade on Producers and their Organizations: A Case Study with Coocafe in Costa Rica
One Cup at a time: Poverty Alleviation and Fair Trade coffee in Latin America
tude d’impact du commerce quitable sur les organisations et familles paysannes et leurs territoires dans la filire caf des Yungas de Bolivie
Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?
Fair Trade on marginalised producers: an impact analysis on Kenyan farmers
Assessing the Potential of Fair Trade for Poverty Reduction and Conflict Prevention: A Case Study of Bolivian Coffee Producers
Criticism
Main article: Fair trade debate
Fairtrade certification’s increasing popularity has drawn criticism from both ends of the political spectrum.
Scope of Fairtrade
A Traidcraft Fairtrade stall in a church in Tilehurst.
The Economist magazine criticized Fairtrade certification in its December 7, 2006 issue, claiming that Fairtrade ertification is predicated on political assumptions about the best way to organise labour. In particular, for some commodities (including coffee) certification is available only to co-operatives of small producers, who are deemed to be most likely to give workers a fair deal when deciding how to spend the Fairtrade premium. Coffee plantations or large family firms cannot be certified.”
Fairtrade supporters, such as Oxford University professor Alex Nicholls, object to this criticism by arguing that the certification program was created in the first place to address perceived market failures affecting small farmers’ organizations. Fairtrade is seen as an attempt to address these market failures by providing to the most in need price stability, business support, access to premium Northern markets and better general trading conditions.
Mainstreaming of Fairtrade
On the other end of the spectrum, some believe Fairtrade certification bodies are not radical enough. French author Christian Jacquiau, in his book Les coulisses du commerce quitable, calls for stricter Fairtrade standards and criticizes Fairtrade labelling organizations, especially Max Havelaar France, for working within the current system (i.e. partnerships with mass retailers, multinational corporations etc.) rather than establishing a new fairer, fully autonomous trading system. Jacquiau is also a staunch supporter of significantly higher fair trade prices in order to maximize the impact, as most producers only sell a portion of their crop under Fairtrade terms. He defends in his book a minority of fair trade networks (such as Minga or Artisans du monde in France) that he believes have higher ethical value.
See also
v d e
Fair trade
Core topics
Fair trade History of fair trade Fairtrade certification Fair trade and politics Fair trade impact studies Fair trade debate Alternative trading organization Trade justice Trade Justice Movement Sweatshops Worldshop
Federations
Fairtrade Labelling Organizations International World Fair Trade Organization Network of European Worldshops European Fair Trade Association FINE Fair Trade Federation
Certification
FLO International (standard-setting & producer support) FLO-CERT (inspection & certification) International Fairtrade Certification Mark Fair Trade Certified Mark
Labeling initiatives
Asociacin del Sello de Productos de Comercio Justo Comercio Justo Mxico Fair Trade Association of Australia and New Zealand Fairtrade sterreich Fairtrade Mark Ireland The Fairtrade Foundation Max Havelaar Belgium Association Max Havelaar France Max Havelaar Danmark Stichting Max Havelaar Fairtrade Max Havelaar Norge Max Havelaar-Stiftung Switzerland Reilun kaupan edistmisyhdistys Rttvisemrkt TransFair Canada TransFair Deutschland TransFair Italia TransFair Japan TransFair-Minka Luxembourg TransFair USA
Alternative trading
organizations
AgroFair Alter Eco Artisans du Monde Cafdirect Claro Fair Trade Cooperative Coffees Ctm altromercato Divine Chocolate Equal Exchange Equal Exchange Trading Equita El Puente EZA Fairer Handel Fair Trade Original Rainforest Alliance Gepa The Fair Trade Company Handcrafting Justice Ideas Intermon Oxfam Pachacuti La Siembra Oxfam-Magasins du monde Oxfam Trading Oxfam-Wereldwinkels SERRV International Solidar’Monde Traidcraft Twin Trading Ten Thousand Villages Veja Sneakers
Campaigns
Fairtrade Town List of Fairtrade settlements Fairtrade fortnight Make Trade Fair No Sweat United Students Against Sweatshops World Fair Trade Day
Media
Black Gold (film) One Cup (film) Brewing Justice (book)
Category:Fair trade Fair trade media at Commons
References
^ Fairtrade Labelling Organizations International (2009). [tt_news=105&tx_ttnews[backPid]=361&cHash=1082e96b5e Global Fairtrade sales increase by 22%]. URL accessed on June 10, 2009.
^ Just-Food Global Market Review, 2005
^ Fairtrade Labelling Organizations International (2009). [tt_news=105&tx_ttnews[backPid]=361&cHash=1082e96b5e Global Fairtrade sales increase by 22%]. URL accessed on June 10, 2009.
^ Fairtrade Labelling Organizations International (2006). Annual Reports 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008. Accessed June 10, 2009.
^ TransFair USA FAQ – “Some LIs, including TransFair USA, have elected to continue using their current labels.”
^ Fairtrade Labelling Organizations International (2006). Standard Setting. Accessed October 4, 2006.
^ The Fairtrade Foundation. (2006). [www.fairtrade.org.uk/downloads/pdf/Fairtrade_and_supply_chain.pdf Review of UK supply chain, returns to producers, and retail margin issues]. Accessed December 31, 2006.
^ The Economist. December 7, 2006. Voting with your trolley. Accessed 31 December 2006.
^ Jacquiau, Christian (2006). Les Coulisses du Commerce quitable. ditions Mille et Une Nuits. Paris.
External links
FLO International
FLO-CERT
Categories: Fair trade | Product certificationHidden categories: All Wikipedia articles needing clarification | Wikipedia articles needing clarification from March 2009 | All articles with unsourced statements | Articles with unsourced statements from March 2009 | Articles with unsourced statements from February 2009
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