For more information on SNV activities and projects, visit the Website:

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1 TOPICS APRIL INFORMATION 02 FAIRTRADE STANDARDS 03 FAIRTRADE CERTIFICATION INFORMATION FLO AND SNV: A STRATEGIC PARTNERSHIP SNV and FLO will contribute roughly 1.2 million euros to appoint 9 to 12 liaison officers in developing countries for a period of two years ( ). The partnership between FLO and SNV, a major international development organization based in the Netherlands, lays the foundation for activities in which FLO and SNV can achieve joint synergy and increased effectiveness, with special reference to activities in regions where both SNV and FLO are operating: Asia (Mekong & Himalaya), Latin America (Amazon-Andes countries and Central America), West Africa, East and Southern Africa. It is expected that 370 producer organizations, representing families will benefit from the cooperation between SNV and FLO. The liaison officers will support producer organizations and work together with SNV advisors in the region to capitalize on Fairtrade market opportunities. In order to operate on the international market, for many producer organizations, especially in the start-up phase, it is essential to receive support in the form of market knowledge and marketing. Offering such support is the principal role of the liaison officers structure. Some of the products concerned are coffee, cacao, tea, rice, nuts, bananas, and different kinds of fruit. SNV provides advisory services to organizations and governments in developing countries in their fight against poverty. SNV works worldwide with nearly 1,800 organizations in more than 30 countries in Africa, Asia and Eastern Europe and Latin America. SNV s core business is providing demand-driven advice with the aim of poverty alleviation, while conserving the environment and by combining thematic expertise with capacity building and institutional development. SNV is active in: collaborative forest and freshwater management, sustainable tourism, market access for the poor, local governance, and biogas and renewable energy. For more information on SNV activities and projects, visit the Website: 01

2 TOPICS APRIL INFORMATION 02 FAIRTRADE STANDARDS 03 FAIRTRADE CERTIFICATION INFORMATION MARKS & SPENCER SWITCHES TO FAIRTRADE COFFEE AND TEA On the 6th of March, the first day of Fairtrade Fortnight in the UK, Marks & Spencer announced it is converting all its coffee and tea to Fairtrade, and extending its range of Fairtrade products to cotton. Marks & Spencer (M&S) is the largest clothing retailer in the UK by turnover and it is also a multi-billion pound food retailer. Most of its shops sell both categories, clothes and food. The entire range of Marks & Spencer s coffee and tea, totaling 38 lines, is switching to Fairtrade in a move estimated to increase the value of all Fairtrade instant and ground coffee sold in the UK supermarkets by 18%, and increase the value of Fairtrade tea by approximately 30%. Marks & Spencer already sells only Fairtrade tea and coffee in its 200 Café Revive coffee shops, one of the largest chains in the UK, resulting in 35m cups of Fairtrade coffee having been sold since September Also t-shirts and socks made from Fairtrade certified cotton are on sale in 36 Marks & Spencer stores in the UK and on their Website: LIDL LAUNCHES RANGE OF FAIRTRADE PRODUCTS IN GERMANY Another big retailer, Lidl, is also joining Fairtrade. The chain will start offering Fairtrade Products in its German stores, a total of 2600, from the 27th of June. Lidl will offer eight Fairtrade labelled products under the name Fairglobe comprising organic roasted and instant coffee, organic bananas, organic honey, orange juice, chocolates in the varieties whole milk and dark and brown cane sugar. INDUCTION VISITS FOR NEW FLO AND NI S EMPLOYEES In order to improve our collaboration, FLO and the NIs started organizing induction meetings for the new staff members. Last December FLO organized the first two induction visits for new NI employees at its premises in Bonn. A total of 21 people participated. In February, it was FLO employees who went to Max Havelaar Switzerland offices in Basel. FLO and NI s each have their own tasks and responsibilities in our system. These tasks and responsibilities are complementary. 02

3 TOPICS APRIL INFORMATION 02 FAIRTRADE STANDARDS 03 FAIRTRADE CERTIFICATION INFORMATION It is therefore important to understand how these tasks and responsibilities are translated into working methods and activities. The Induction Visits are a great way to get this understanding, explains Alfred Elbertse, FLO Finance Director and organizer of the training at FLO. The success of such initiatives has encouraged us to continue with it. The next Induction visit will take place on April 26th in the FLO offices. FAIRTRADE STANDARDS WHAT IS NEW IN THE STANDARDS UNIT? An updated annual work plan of the Standards Unit is now available on the FLO Website. It now has been complemented by a work plan for the main product Fairtrade pricing projects. We invite stakeholders to continuously check the FLO website for draft standards which go into consultation and for the further time planning. Thereby stakeholders have the opportunity to offer feed-back to the Standards Unit or if applicable- to the consultant involved in the project. The website also has an updated list of all standards. New: some versions translated into Spanish. Standards Unit has also published its annual work plan with an explanation about the bigger context of standards work. Some additional information, for some projects: MANGO PRICE REVIEWING The Fairtrade mango price is due for review. The consultation process with producers and traders on proposed reviewed prices and premium just started and we are expecting to receive feedback until the end of April. PRICING All Fairtrade price announcements since October 2005 are still available on our website. All prices have been incorporated into the standards which you will also find on the website. Please check continuously updated standards and in particular all price announcements. FAIRTRADE CERTIFICATION FLO-CERT INCREASING QUANTITY AND QUALITY 2005 has been a year of growth for FLO-Cert Ltd. An important achievement for Producer Certification was the successful integration of 30 Max Havelaar Switzer- 03

4 TOPICS APRIL INFORMATION 02 FAIRTRADE STANDARDS 03 FAIRTRADE CERTIFICATION FAIRTRADE CERTIFICATION land Certified Flower groups into the FLO-Cert system. In order to face the increase in the number of producer certifications, 21 new inspectors were hired and trained and two local inspection bodies were sub-contracted was also the year of the opening of new local co-ordination offices in South Africa, India and Kenya was also a busy year for Trade Certification. Last year, FLO Cert began implementing trade certification inspections of Exporters and Importers. In total 19 inspections were carried out in In order to accomplish this new task, 14 European inspectors were hired and trained to perform trade inspections and four European inspection bodies were sub-contracted. Beside this, Trade Certification successfully integrated about 100 French and 25 Spanish licensees. Currently Producer Certification inspectors are being trained to perform the Trade Certification inspection checklist during producer inspections explains John Young, Trade Certification Director at FLO-Cert. For 2006 we plan to carry out about 180 trade certification inspections, adds John. IN 2008 WE WANT TO BE THE WORLD LEADING BANANA EXPORTER IN THE FAIR- TRADE MARKET Nowhere in Ecuador but South of Guayaquil can such wide and well tarred highways be found. This is the area where banana king Noboa s rules are law for banana farmers. This former candidate for presidency knows better than anyone how to manipulate the government to construct these racing tracks meant for fast transportation of his bananas. Yet, the small banana farmers of El Guabo do not allow themselves to be stopped by him from producing their fair bananas... The map in the office of the Asociación de Pequeños Productores Bananeros EL GUABO (APPBG) shows large areas of banana plantations. They belong to Ecuador s largest banana producers. In between them, like tiny moth-holes in a woollen blanket, are the plantations of small banana farmers. Hundreds of them. Luis Loja chairman of the El Guabo co-operative smiles in satisfaction over this patchwork quilt. More and more of these spots are appearing. We are growing. More and more farmers are convinced of the Fairtrade concept and want to join. Many of those convert their banana production to organic. They realise not only that consumers are increasingly demanding clean bananas, but also that the use of pesticides and other chemicals is detrimental to their own health. Moreover, Fairtrade guarantees a minimum price. 04

5 This ensures a secure income. The owners of Dole bananas have to watch out that the spots between their plantations do not become very large. Luis Loja (42) is an enthusiastic and committed promoter of the fairtrade producers interests. With his plantation of only one hectare he is no different from the other banana producers in El Guabo. For almost two years now he has been the chairman. He stepped in after the inspiring leader Jorge Ramirez passed away. A crisis threatened El Guabo : how could the continuity of the APPBG be guaranteed? After Luis appointment followed that of the Dutch Lianne Zoeteweij (31) as a general manager. She and Luis Loja together are the pivot of El Guabo, supported by Wilson Navarrete (secretary) and a team of 30 in the central office. Not only the export contracts, the logistics for transportation, the banana quality monitoring and the control of the FLO-criteria are organized from here. Also the co-ordination of the education and health-care programs, the capacity building of banana producers, educational activities on management skills and the execution of environmental and social programs take place here. The office, based in the capital El Oro of the province with the same name, is not so much the administrative centre of the association El Guabo. It is most of all the headquarters of a successful enterprise of over 300 small banana farmers, in which more than 100 people earn a living. EL GUABO COOPERATIVE, MARCH PHOTO: PETER RHEBERGEN 05

6 TOPICS APRIL INFORMATION 02 FAIRTRADE STANDARDS 03 FAIRTRADE CERTIFICATION THE EL GUABO CO-OPERATIVE El Guabo (APPBG) has a fairly short history. On 27 November 1997, 14 banana farmers, supported by Solidaridad (a Dutch NGO), founded a co-operative that was meant to function according the principles of Fairtrade. Until that date the farmers depended on sales to intermediary traders and the developments on the world market. Often the income was insufficient to cover the basic costs. This dependent position was definitely not a guarantee for healthy labour conditions and reasonable subsistence. The production of clean bananas was not on the agenda at all. In 1998 FLO certification was obtained and on 18 October 1998 the first 1056 boxes of Max Havelaar-bananas were shipped to Coop. Suisse. It was not all that easy in the initial phase Wilson Navarrete (40) says. We did not have good logistics for the transport of bananas. Although direct export was much cheaper for us, we did not have any experience. And when in 2001 we obtained SKAL-certification for organic bananas, we even had to increase the quality criteria for the bananas and for the production. But we managed. Because of the success of El Guabo, small banana farmers in El Oro, Guayas and Azuay noticed that the Fairtrade system could be in their interest, and they joined. Also for Navarrete himself and his family El Guabo has been of great importance. For many years he used to be a plantation worker, without a secure income, social security, health-care or a contribution to the cost of school materials for his children. Presently he is one of the bigger small independent banana producers. He is the owner of a 13 hectares plantation. Banana producers in El Guabo own on average 6 hectares, that produce approximately 150 boxes of 18 kilos of bananas weekly. I was lucky to be able to buy my boss s plantation. That cost a huge amount of money. I still have a considerable debt and I am still paying off. This is possible because through Fairtrade I have a secure income. If that was not the case, I would have gone to Spain to find work, just like so many others do. My case is similar to the position of many more producers over here. Just like the other members of the co-operative Navarete he can make use of the services and facilities made available by the organisation because of the premium paid on each box of bananas. Anibal board member responsible for Social Affairs mentions some of the activities (in 2004). Health-care: health insurance for the producers US$ 41,

7 Also to employees of APPBG producers a compensation for medical costs was granted a total of US$ 82, Furthermore preventive medical research was carried out and First Aid training was given. Education: 444 children received school materials or a bonus of US$ for study costs. Activities for children/ childcare: US$ 2, Cost of living US$ 2, Food stuffs at value of US$ per employee are distributed monthly. A substantial part of El Guabo s income is used for the improvement of production methods: irrigation, drainage, cable transport of bananas, and environmental protection measures. IMPACT At the packing station near the Trefoil s (64) farm in La Cadenza in the canton Passage (El Oro), the El Guabo inspector checks the quality of the supplied bananas. Imperturbably he throws bananas aside that do not meet the quality required. They have to be clean, whole, of the right colour and length and size must be sufficient. Every week an inspection takes place. The inspector is unrelenting. Besides this, once a year there is an unannounced FLO inspection. Teofilo and his 8 labourers are busy. This evening 900 kilos of bananas, packed in 18 kilo boxes, have to be ready for shipment to the Netherlands and Finland in the Machala harbour. The inspector appears to be disturbing them. But Teofilo and his men appreciate his presence. It is good that there is a strict control on quality and transport. It is important to keep the trust of the Fairtrade banana consumers in Europe Teofilo says. This is also in my own interest. Presently I have the guarantee of a stable price, and a reasonable income. Because of this I have been able to improve my house and to fix my roof. Moreover, the people that work for me are also guaranteed an income. They no longer depend on the additional income from selling the cocoa they produce around their homes, next to their insecure job on a large plantation His son Juan adds: Before Fairtrade there was hardly any preventive health-care. People worked in between the bananas trees that were sprayed with pesticides. They themselves fell ill. Juan has been back for a few weeks now after a few years stay in the USA. In Louisiana he washed dishes in a restaurant in the daytime and at night he worked as a loader for UPS. He has not decided yet whether he will return to the USA. The earning is good, but it is a hard life. Over here one works hard too, but at least it is for your own plantation and farm. 07

8 TEÓFILO AND HIS SON JUAN ON THEIR PROPERTY. PHOTO: PETER RHEBERGEN Since Fairtrade, a lot has changed for the better. My father does not need money from me anymore. He wants me to stay here and work with him. A few hundred meters away there is a lot of movement at the neighbouring packing station. Also here the shipment of bananas for Europe is prepared. Victor Nugra (57) and his 5 sons are proud to produce exclusively organic bananas. Their 6 hectares offer them a secure basic income through Fairtrade. Besides getting a better price it is important for us that all our bananas are organic. Health is most important - of consumers and our own. We have seen enough trouble caused by the small planes that spray pesticides on the plantations. Victor Nugra does not have trouble with the strict criteria of FLO and SKAL in order to meet the certification requirements of the EcoOké/Fairtrade-label. One continuously has to control the quality and to be alert. Continuously improve the production methods. Gladly we receive a lot of support from our co-operative. There are regular meetings where producers can exchange experiences and receive information. Through Fairtrade we have been able to access the international market. We notice that the consumer s interest for the organic, fair and clean banana increases. MEETING On our way to a meeting of Rio Joya an organization of around 28 small banana producers in Abdon Calderon Luis Loja points at the long sticks in the huge banana plantations in which the well-tarred roads cross each other. The sticks carry multi-coloured small buckets or banners. These are the beacons for the small spraying planes. Enormous surfaces of banana-green are sprayed with pesticides here. The labourers just work in between and have hardly any protection against this poison. The owners of these large plantations do not worry about this, or about the consumers health. We hardly need to convince our members of the danger. 08

9 We provide a lot of information on how they can supply good quality without those dangerous pesticides. On the way Loja shows us full of pride the El Guabo warehouse in Tenguel. The co-operative members in the region are supplied with (packing) materials from these bodegas and receive technical assistance. The road to the small banana producers of Rio Joya gets smaller and more difficult. Abdon Calderon is situated in a completely natural area. Only since two years its organization is a member of the El Guabo co-operative. Together its producers own less than 160 hectares in banana production. On the plot of one of them, in a carré of plastic chairs, the 20 persons present are waiting for their president to arrive. There is no such thing as an agenda for the meeting. It is no problem for Luis Loja. Being a small producer himself, he easily relates to the socios. He speaks their language and knows their living conditions. In spite of his poor school education he knows how to chair the meeting adequately, and he stimulates the members to ask questions. Soon it appears that the main issue is how to improve the quality of the organic bananas. And they want to have more insight in the use of the income generated through the US$1 of premium per box of bananas. Loja takes his time for the explanation. He points out that the premium is a part of the FLO-Certification and he explains what the money is used for. If you want to have a different distribution for the use of the premium, this is possible. You have to present a proposal in our general assembly. Then he explains the functioning of the El Guabo statutes and the contribution every member can make by participating in co-operative meetings. Everyone knows of FLO s existence and they underline the importance. FLO takes care of the promotion of our products in the whole world. Through Fairtrade we have access to the world market Marcelo indicates. He and the other persons present have no problems with the FLO certification criteria. It is not so complicated to meet the quality criteria and organizational requirements. One has to give it attention continuously. But it provides us with a stable income. Marcelo knows what he is talking about. If anyone, he can be called a pequeño productor bananero (small banana producer). His weekly production does not exceed 5 boxes. He has to replenish his income with the production of citrus fruits and cocoa. A stable price for his bananas is of vital importance. The trip back is not smooth. The polished roads of Noboa and other mega banana producers cannot prevent the car having serious problems, and we are stuck. 09

10 Luis Loja does not allow this to influence his excellent mood about the course of the meeting with small banana farmers in Rio Joya. But in no time a tow to the farm of one of the El Guabo members is organised. He is willing to loan his pick-up. The members of our co-operative help each-other wherever they can, Loja mentions subtly. Our organization s socios are well aware that we can only succeed together. For us small producers Fairtrade is tremendously important. Without Fairtrade we will not succeed and we can not take care of our families and the environment. For us it is a major challenge to have El Guabo (APPBG) in 2008 be the world leading banana on the Fairtrade market!. This article was written by Peter Rhebergen, after his visit to El Guabo Cooperative, Ecuador, on the 29th and 30th of March FLO would like to thank Peter for volunteering as reporter and writer in Ecuador and Peru. FLO PRODUCER BUSINESS UNIT FOR AFRICA: A GROWING TEAM! The FLO Producer Business Unit (PBU) for Africa is growing. Considering that a total of 150 organisations are now FLO-Cert certified in Africa, it was very necessary to increase the representation of FLO PBU in the field. Four new liaison officers have recently been appointed in West and East Africa. In West Africa, one liaison officer is responsible for: Benin, Burkina Faso, Mali, Senegal, Togo and French speaking Cameroon. The other liaison officer will be working with certified organisations in Ghana and English speaking Cameroon. In East Africa, there is one liaison officer responsible for Kenya and Tanzania (all groups except flowers) and another liaison officer for Rwanda and Uganda. Since 1st April, two flower farm support workers have also started their activities in Kenya and Tanzania. In Bonn, the team consists of two regional managers and two regional coordinators (one being currently recruited for West Africa). LIAISON OFFICER TRAINING IN AFRICA From 6th to 12th of March, PBU Africa organised trainings for the new liaison officers in Arusha, Tanzania. This training, which was possible thanks to our partnership with SNV Netherlands, was meant to prepare the newly appointed liaison offi- 10

11 cers for their new roles. The participation of Chira Schouten (former liaison officer in East Africa) and Sandra Kruger, liaison officer in South Africa, was very valuable to understand the function of the liaison officers. The FLO-Cert certification system was presented by Ben Mwarania, the Standards Unit by Cécile Phillipart and the Liaison Officer Development Department by Matthias Kuhlmann. Mr Damian Salla, secretary of the African Fairtrade Network, also joined the training during which he informed us about the AFN objectives and future plans. The new liaison officers did not only attend theoretical sessions, they also had the chance to participate in a FLO-Cert inspection with Christian Schmeling, FLO-Cert inspector in Tanzania. Six SNV members also attended part of the training. Everybody has welcomed this training as a positive and rich experience. This was the first liaison officer training organised in Africa and we hope to have many more in the future. We did not only learn about FLO during this event, but also about team building and goal achievement. With the new liaison officers in the ground and the team members in Bonn, we hope to better address the problems faced by African producers and make Africa a strong supplier and competitor in the FT market says Christelle Ayglon, FLO Regional Manager for North, West, Central and East Africa. END OF THE TRAINING - CHRISTELLE AYGLON, REGIONAL MANAGER FOR NORTH, WEST, CENTRAL AND EAST AFRICA, WITH BEN MWARANIA, FLO-CERT CERTIFICATION COORDINATOR FOR EAST AFRICA, AND CHIRA SCHOUTEN, FORMER LIAISON OFFICER FOR EAST AFRICA. 11

12 FACTS & FIGURES THE FINE PLATFORM PRESENTS FAIRTRADE IN EUROPE 2005 The members of the FINE platform, the four principal European and International federations for Fair Trade (FLO, IFAT, NEWS and EFTA) commissioned a survey to evaluate the presence of Fairtrade in 25 European countries. The result of this survey, conducted by Jean Marie Krier, is the book Fair Trade in Europe The study shows that Fair Trade sales in Europe have been growing at an average 20% per year since The annual net retail value of Fair Trade products sold in Europe now exceeds EUR 660 million. This is more than double the figure from five years ago. Fair Trade has thus become one of the fastest growing markets in the world. Fair Trade products can now be found in 55,000 supermarkets all over Europe and the market share has become significant in some countries: 47% of all bananas, 28% of the flowers and 9% of the sugar sold in Switzerland are Fair Trade labelled. In the UK, a market with eight times the population of Switzerland, labelled products have achieved a 5% market share of tea, a 5.5% share of bananas and a 20% share of ground coffee. FAIR TRADE IN EUROPE 2005: FACTS AND FIGURES ON FAIR TRADE IN 25 EUROPEAN COUNTRIES AUTHOR: JEAN MARIE KRIER From modest beginnings in the 1950s, Fair Trade has expanded into a worldwide movement, benefiting more than five 5 million producers and their families in developing countries. There are now over 2,800 World shops within Europe, stocking almost exclusively Fair Trade products imported by 200 Fair Trade organisations. If you are interested in reading the survey, you can download it from FLO Website: NEWS FROM NIS FAIRTRADE EXPLOSION IN FINLAND In 2005, the popularity of Fairtrade products increased dramatically in Finland. The total growth of all Fairtrade products sold in Finland experienced a growth of 104% in comparison with Bananas were the best selling product, with a growth of 107%, reaching 7% market share of the total banana market in Finland. 12

13 NEWS FROM NIS Finns bought 5 million kilos of Fairtrade bananas in 2005, a very good number for a country of only 5.2 million inhabitants. Other products Fairtrade certified products also experienced an important growth. Coffee sales went up with 14% in 2005, pineapples 108%, tea 27%, sugar 13%, honey 11%, chocolate 36% and oranges 36%. The total sales of Fairtrade products in Finland amounted to 13 million euros in Currently, there are a little over one hundred Fairtrade products on sale in Finland sold by 22 licensees selling Fairtrade labelled products. THE PRESIDENT OF EL GUABO, JOVANNY CORONEL, AND STAFF MEMBERS OF REILUN KAUPAN (NI IN FINLAND), ANSWER CONSUMERS QUESTIONS IN A SUPERMARKET IN OULU, NORTHERN FINLAND, DU- RING THE CELEBRATION OF THE 5TH ANNIVERSARY OF FAIRTRADE FRUITS IN FINLAND, MARCH

14 COMING UP SWEDEN LAUNCHES THE FAIRTRADE TOWN CONCEPT More news from the Scandinavian countries... Following the successful model of the Fairtrade Foundation in the UK, Sweden is launching the Fairtrade town concept. To become a Fairtrade town, the local council and local groups must be committed to serving Fairtrade products and supporting the Fairtrade concept. We have adapted the British model to the Swedish reality. We are convinced it is going to be an effective way of handling public procurement and other issues around the country, says Daniel Sommerstein, Project Manager at Rättvisemärkt in Sweden. Marketing and Communications Meeting in Bonn, on the 24th and 25th of April. The staff of the Nis and FLO who work in Communications and Marketing will have the opportunity to meet in Bonn to share experiences, best practices and decide on next steps to improve their cooperation. The FLO Meeting of Members (MoM) will be on Tuesday the 16th and 17th of May, at FLO offices in Bonn, Germany. The First Meeting of the African Fairtrade Network Members is scheduled for June 6th and 7th. The two days Meeting will be held at the conference hall of the Kilimanjaro Native Cooperative Union (KNCU) in Moshi Tanzania. Conference: Fairtrade and Sustainable Development, on the 19th and 21st of June, at the University of Quebec, Canada. The Fair Trade and Sustainable Development colloquium aims to explore the contributions and limits of Fair Trade from the perspective of the social, economic and environmental goals of sustainable development. The goal of the conference is to continue the analysis begun at the first international conference held in 2002, which brought together more than 200 people under the banner: Fair Trade, Cooperatives and Sustai nable Development. IMPRINT EDITOR: VERONICA PERÉZ INFORMATION OFFICER V.PEREZ@FAIRTRADE.NET T: F: PICTURES: FAIRTRADE MEDIA HENRIK KASTENSKOV TEXTS: FLO INTERNATIONAL BONN GERMANY DESIGN: COLOGNE GERMANY 14