Fair Trade USA 2011 Impact Report Fair Trade Certified Tea

Transcription

1 Fair Trade USA 2011 Impact Report Fair Trade Certified Tea

2 Table of Contents 03 Introduction & Highlights 04 Fair Trade Impact By the Numbers 07 Premium Payments to Fair Trade Certifed Tea Producer Organizantions 08 Imports of Fair Trade Certified Tea into the United States 09 Imports of Fair Trade Certified Tea into the United States by Country of Origin 10 Producer Spotlight

3 3 Introduction & Highlights Every Purchase Matters Fair Trade certification helps industry partners and consumers make every purchase matter, contributing to the long-term sustainability of farming communities around the world. In just 13 years, Fair Trade USA has established the Fair Trade Certified label as the leading mark of sustainability. Today, it assures consumers that the quality products they buy are improving lives and protecting the environment. To further that trust and provide greater transparency, Fair Trade USA s Certification department annually compiles and audits figures reported by its industry partners. As the leading third-party certifier of Fair Trade products, this report serves as a key indicator for the health and growth of Fair Trade in the United States. At the same time, we celebrate the many approaches within the Fair Trade movement and recognize other organizations who are participating in Fair Trade even though we cannot measure nor report their results. Quality Products In 2011, Fair Trade USA and its industry partners once again drove record imports to satisfy the continued growth in consumer demand for the more than 11,000 Fair Trade Certified products now available in virtually every major supermarket in America as well as thousands of restaurants, cafeterias and cafés. Fair Trade USA certified a record 138 million pounds of Fair Trade Coffee, 52 percent of which was also certified organic. In total, coffee imports were up over 30% versus Additionally, the majority of food categories showed impressive growth in 2011, including: Cocoa (156%), Tea (21%), and Sugar (31%). After a steady 2% growth in 2010 over 2009, imports of Fair Trade Certified produce grew 40% in Improving Lives Fair Trade USA is proud to announce that this growth in volume led to record community development premiums earned by farmers. For the first time ever, annual community development premiums topped the $20 million mark; at $22 million they were up over 50% versus Since 1998, Fair Trade USA and its partners have enabled Fair Trade farmers to earn more than $77 million in community development premiums, which have been used for community-elected development projects, covering Our Mission Fair Trade USA enables sustainable development and community empowerment by cultivating a more equitable global trade model that benefits farmers, workers, consumers, industry and the earth. We achieve our mission by certifying and promoting Fair Trade products. To learn more, visit areas like education, healthcare, environment, business management, quality improvement and productivity. In addition to what farmers earned in both sales and community-development premiums, since 2006 Fair Trade USA and its partners have invested over $7.4 million in programs to strengthen small-scale farming communities in projects spanning sugar, cocoa, produce, tea and coffee. Building on this deep history of development work, in 2011 Fair Trade USA took a new approach, called Co-op Link. Fair Trade USA surveyed farmers to better understand their most pressing needs, and in 2011 alone, raised $2 million for producer programs, and then worked with NGO s and local service providers to execute these programs. In addition, we helped facilitate $3 million in affordable trade finance loans to cooperatives. Protecting the Environment Protecting the environment is good for both people and the planet. Therefore, strict environmental criteria are core to Fair Trade s standards, including the elimination of harmful agro-chemicals and genetically-modified organisms, plus the development of environmental assessment plans to protect fragile ecosystems. In addition, although organic certification is not required by Fair Trade, over half of all Fair Trade Certified imports are also certified organic. Fair Trade Can and Must do More While the 2011 results are inspiring, the reality is that Fair Trade represents only a fraction of the products available to U.S. consumers. We are proud of what we have accomplished farmers, responsible companies, NGOs and conscious consumers all working together. Yet the need is much greater. According to the World Bank, more than 2 billion people live on less than two dollars a day. Today s Fair Trade model reaches only a small percentage of them. Fair Trade can and must do more. As always, Fair Trade USA thanks you for your support.

4 4 Fair Trade Impact By the Numbers Since the Fair Trade Certified tea program began in late 2000, certified imports by U.S. traders have totaled more than 9.2 million pounds and generated more than $3.1 million in premium payments to producer groups. New interest from major importers and brands, spurred by growing awareness and demand from U.S. consumers, propelled the annual growth rate to 21 percent in tea imports from 2010 to Fair Trade Certified Tea Imports ,000,000 8,000,000 7,000,000 6,000,000 POUNDS 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Conventional Tea Imports Organic Tea Imports / / Total Pounds 65,261 86,706 95, , , ,985 1,134,993 1,372,261 1,372,157 1,720,794 2,081,874 9,257,510 Certified % Organic n/a n/a 88% 100% 87% 94% 73% 85% 78% 73% 73% 77%

5 5 Fair Trade Impact By the Numbers Imports of Fair Trade Certified tea from China, Rwanda and India, together representing over three quarters of U.S. imports, continue to outweigh imports from all other origins. The diversity of certified teas in the United States has grown significantly in recent years. While traditional Asian origins like China, India, and Sri Lanka are still the largest source of Fair Trade Certified tea in U.S. markets, imports of African teas especially Egyptian herbal teas - continued to grow in This trend highlights the growing market for Fair Trade Certified new herbal tea blends in the United States U.S. Fair Trade Tea Origins Sri Lanka 3% Other Origins 1 4% South Africa 5% Egypt 10% China 29% Rwanda 24% India 25%

6 6 Fair Trade Impact By the Numbers Community Development Premiums Paid to Farmers and Workers Tea garden workers and tea farmers across Asia and Africa benefit from the commitment of U.S. consumers to support fair wages, strong cooperatives and fair working conditions. Premium funding paid to producers as a result of Fair Trade sales helps farmers and workers invest in better lives for themselves and their communities. The Fair Trade premiums fund programs that create better access to health care and education, support women and protect the environment. Community Development Premiums Paid to Fair Trade Farmers and Workers 3 2 US Dollars (in Millions) Total premium paid to Fair Trade farmers $3,127, /

7 7 Premium Payments to Fair Trade Certified Tea Producer Organizations Sales of Fair Trade Certified tea to the United States since 2001 have generated over $3.1 million in premiums, reaching producer organizations in eleven different countries this year, funding programs that create better access to health care and education, support women, and protect the environment. The impact of Fair Trade Certified tea continues to grow, year after year, and expand its reach across Africa and Asia. Premium Payments to Fair Trade Certified Tea Producer Organizations, Year Pounds Certified Producer Origins Premium 2 Organizations 1 < , $10, , $30, , $43, , $62, , $177, , $244, ,134, $428, ,372, $473, ,372, $454, ,720, $542, ,081, $657,944 Total 9,257,510 $3,127,205 1 Data on the number of producer organizations is not available prior to Fair Trade Premiums are fixed in U.S. Dollars, Euros or South African Rands, dependent on the tea type & quality. The 2011 conversion rate is a historical average from the time period. Tea premiums are dispersed by each garden s respective joint body of workers and management or organization of small producers total volume and premium figures for tea are adjusted to account for findings during audit. 4 For 2011, individual tea estates in India and Sri Lanka that are part of multiestate groups are now consolidated under larger producer organizations. Source: Fair Trade USA,

8 8 Imports of Fair Trade Certified Tea into the United States Reaching imports of over two million pounds for the first time in Fair Trade USA s history, imports of Fair Trade Certified tea into the U.S. continued the considerable growth trend from 2010 into Over 9.2 million pounds of Fair Trade Certified tea have traded through the United States to date, the great majority of which is also certified organic. Imports of Fair Trade Certified Tea into the United States, Total Fair Trade Certified Imports Organic Fair Trade Certified Imports Year 1 Pounds Certified Growth Rate Pounds Organic 2 Growth Rate Percent Organic < ,261 n/a n/a n/a n/a ,706 33% n/a n/a n/a ,669 10% 84,189 n/a 88% ,310 88% 180, % 100% , % 452, % 87% ,985 22% 594,564 31% 94% ,134,993 80% 826,342 39% 73% ,372,261 21% 1,168,504 41% 85% ,372,157 0% 1,063,900-9% 78% ,720,794 25% 1,252,008 15% 73% ,081,874 21% 1,512,005 21% 73% Total 9,257,510 7,134,272 77% tea figure includes tea certified in the second half of Volume of certified organic Fair Trade Tea is not available prior to Prior to 2007, organic status was not an element of the Fair Trade USA audit and should be considered an estimate total volume for tea has been adjusted to account for findings during audit. Source: Fair Trade USA

9 9 Imports of Fair Trade Certified Tea into the United States by Country of Origin Imports of Fair Trade Certified tea increased by 21 percent in This growth was primarily driven by China, surpassing India as the largest origin for Fair Trade Certified teas in the United States for the first time. Imports from Africa also maintained strong growth, highlighted by Burkina Faso and Malawi as new origins of supply for U.S. traders. Imports of Fair Trade Certified Tea into the United States by Country of Origin in Pounds, Country Growth Rate ( ) China 1,795, , , , , ,264 41% India 2,330, , , , , ,376 13% Nepal 2,166 2, n/a Sri Lanka 585, , ,141 40,271 48,747 62,687 29% Vietnam 19, ,833 1,798 8,659 6,746-22% Asia Subtotal 4,733, , , , ,396 1,181,073 26% Burkina Faso 13, ,178 n/a Egypt 606,837 73,195 69, , , ,607 72% Kenya 3, , % Malawi 7, ,584 n/a Rwanda 2 1,516,504 63, , , , ,321 15% South Africa 471,990 53, ,752 67,785 99,317 92,136-7% Tanzania 58,002 15,997 18,890 3,030 20, % Africa Subtotal 2,677, , , , , ,487 21% Total 3 7,691,497 1,134,993 1,372,261 1,372,157 1,720,794 2,081,874 21% total volume figures for tea are adjusted to account for findings during audit. 2 Rwandan imports, while representing a significant share of total volume, are primarily sold to customers in the United Kingdom total volumes include blended origins (116,844, 92,249 and 62,314 pounds respectively). Source: Fair Trade USA

10 10 Producer Spotlight Jiangxi Wuyuan Xitou Tea Farmers Association, China Fair Trade ID 3923 Year Founded 1984 Year Certified 2005 Number of Members 603 Structure Total Production Area Organic Production 1 st Grade Cooperative 207 hectares 113 hectares Fair Trade Premiums Support Medical insurance and basic health care workshops for members Subsidized school entrance fees for members children Funds to repair and purchase new equipment for primary processing facility Finances for organic certification and training Fair Trade has been good to us. It has paid for our medical insurance, improved our roads and added street lights so we are able to see at night. Yuai Zhuang, Cooperative Member Road repairs and installation of street lights

11 11 Producer Spotlight Royal Ottoman Company, Egypt Fair Trade ID 4537 Year Founded 1985 Year Certified 2006 Number of Workers 392 Structure Multi-Estate Total Production Area Organic Production 272 acres 272 acres Fair Trade Premiums Support Literacy programs and a computer education center for employees and community Clothing workshop teaching tailoring and sewing skills as additional source of income Water purification system constructed on site Implementation of a beehive project Calf raising program to promote food security Affordable and integrated medical clinic for employees and families With specific trainings and intensive work, Royal will try to raise people s living conditions through healthcare services, education programs and infrastructural projects, in addition to providing suitable jobs and salaries. Julia Rahn, Survey Respondent

12 12 Producer Spotlight Dunsandle Tea Estate, India Member of Bombay Burmah Trading Corporation, Ltd (BBTC) Fair Trade ID 1562 Year Founded 1938 Year Certified 1995 Number of Workers Over 300 Structure Estate Total Production Area 155 hectares Fair Trade Premiums Support Computer and electronic equipment for local school; notebooks for students AIDS awareness program for education and prevention Grant programs for workers and families (for example, funeral expenses) Pressure cookers for employees to help conserve timber resources The money I received from the new bond was timely. It helped me complete the construction of my house just before my retirement. Smt. Putyenketti, Former Cooperative Member NSC and SBI life insurance for employees