International social label: Fairtrade for non-food products In brief Fairtrade Labeling Organizations International (FLO) is part of a worldwide network of Fair Trade organisations involved in supporting producers, awareness raising and campaigning for changes in the rules and practices of conventional international trade. FLO International is an umbrella organisation of 20 Labelling Initiatives in Europe as well as Canada, the United States, Japan, Australia and New Zealand. Within Europe FLO is active in Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Ireland, Italy, Luxemburg, Netherlands, Norway, Spain, Sweden, Switzerland and the UK. FLO International is the leading standard setting and certification organisation for labelled Fairtrade. Fairtrade Certification Marks can be found on coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, honey, fruit juices, nuts, fresh fruit, quinoa, herbs and spices, wine, footballs, textiles, jewellery and decorative objects. Certification is done by an independent international certification company, FLO-CERT GMBH. Products that carry the Fairtrade label guarantee the consumer that producers got a Fairtrade Minimum Price. This is a guaranteed price that covers the cost of sustainable production. For more information on FLO International please refer to the external links section. What s the difference between Fairtrade and Fair Trade? The term Fairtrade is used to describe the certification and labelling system governed by FLO designed to allow consumers to identify goods produced under agreed labour and environmental standards. The term Fair Trade is used to refer to the Fair Trade movement as a whole and can be used to describe both labelled and unlabelled goods and the work of Alternative Trade Organizations (ATOs), Fair Trade federations and networks such as IFAT(global network of alternative trading organisations), NEWS, EFTA (European Fair Trade Association) etc. The term fair trade is a broader term often used to describe one or many of the above, but can also occasionally be used to refer to trade justice issues. Market impact In 2006, consumers worldwide bought 1,6 billion Euros worth of Fairtrade Certified Products, 42 % more than the year before. The market for Fairtrade products is growing as the products are more and more sold through the mainstream channels, such as supermarkets. Another catalyser is the sales through governments and private sector. European supermarkets are investing heavily in fairtrade products, with most commitment going to bananas and beverages. Fair Trade sales have grown by 20% to 30% per year throughout Europe, reaching around 2 billion in 2006. In the Netherlands, Fair Trade now attracts increasing numbers of critical consumers, as is evidenced by the rapidly increasing turnover rates. The annual turnover of the company Fair Trade Original (FTO) amounts to around 14 million. The World Shop movement in the Netherlands has expanded into a chain of 400 shops with a total annual turnover of around
EUR 7 million. FTO also supplies fair Residence Coffee to the Dutch parliament, the European Parliament, 235 municipal authorities, 4 provincial governments and a growing number of supermarkets. Fair trade market shares remain low, on the French market, although the sector is growing rapidly as a result of the emergence of these products in major retail outlets and the increasing number of participants. Sales of fair trade coffee (which represent 2/3 of all fair trade food sales) account for less than 5 % of total coffee sales. For other products, market shares are under 1 %. The UK now has the largest market for fairtrade bananas because of similar commitments by Sainsbury s and Waitrose. Over a quarter of all bananas sold in the UK are now fairtrade; the highest market share for any EU country. Monitoring IFAT members will be expected to carry out an annual self-assessment and produce a report for the IFAT Secretariat, which monitors their performance against the IFAT Code of Practice. No one methodology has been prescribed for this self-monitoring exercise, but IFAT is encouraging a developmental approach, which inspires members to recognise their strengths and weaknesses and work on improving them. For more information on IFAT please refer to the external links section. Impact on producers and their communities FLO represents over 1,4 million farmers and workers, in 58 countries in Africa, Asia and Latin America. In 2005, the Fairtrade system had approximately 1 million workers and farmers in 58 developing countries in Africa, Asia and Latin America. Fairtrade Premiums enables producers to better their communities by providing: Improved access to low or no-interest loans Technical assistance for building infrastructure to improve production Communications systems, and collectively-owned transport and processing equipment Better health care and education Technical training and skill diversification for cooperative members and their families Any other investment deemed necessary or beneficial to the community or organization. Fairtrade Producers The concept of Fairtrade, goes far beyond a simple economic transaction by establishing long term relationships between producers and buyers, enabling producers to strengthen their businesses and diversify their sources of income. Unlike aid, which is dependent on donors, Fairtrade offers a more sustainable solution for farmers, workers, and their families to improve their livelihoods. In 2007, the Fairtrade system benefited approximately 1.5 million workers, farmers in 58 developing countries in Africa, Asia and Latin America. Outline of support organisations 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 organisations (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. Fair Trade's strategic intent is:
deliberately to work with marginalised producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency to empower producers and workers as stakeholders in their own organisations to play a actively wider role in the global arena to achieve greater equity in international trade. The European Fair Trade Association (EFTA) consists of 11 member organisations in 9 European countries and is concerned with the exchange of information, co-ordination of activities and improved specialisation and division of tasks between the members. This allows them to provide better and more expert advice to their partners and to operate more efficiently. For more information on EFTA please refer to the external links section. The Global Network of Alternative Trade Organization (IFAT) is a global network of 154 fair trade organisations in 49 countries around the world. The present members of IFAT fit into three categories: producers, exporting alternative trading organisations (ATOs) in the South and importing ATOs in the North. ATOs in southern countries work with producer groups to guarantee that producers receive fair prices and to find markets for their products. ATOs located in industrialised countries sell fair trade products through retail stores, mail order catalogues, church bazaars and home enterprises. Target groups Fair Trade products are purchased directly from cooperatives or small business set up by farmers and craftsmen. IFAT producer organisations are based in African, Asian and Latin American nations. Many work with disadvantaged people who are vulnerable to exploitation, such as single women heads of households, disabled people, seasonal agricultural workers and slum dwellers. Fair Trade products include textiles, jewellery, indigenous musical instruments, decorative objects and a host of other handcrafted items plus foodstuffs such as coffee, tea, honey, nuts and spices. Producer Support Producers considering Fairtrade certification often have many questions. What can Fairtrade do for me? Can I start exporting directly? What are Fairtrade standards and requirements? Would I sell more if I obtained organic certification? How do I obtain an export license? How do I fill out the paperwork for shipment? Given their geographical distance from their main customer markets and the often unreliable communication means in some parts of the world, it can be difficult for producers to find answers. In order to address these questions, Fairtrade Labelling Organizations (FLO) International offers support through the Producer Business Unit (PBU), Liaison Officers on the ground and, if needed, financial support through the Producer Certification Fund. For more information on FLO International, PBU and Liaison Officers please refer to the external links section. Fairtrade Non-Food Products The range of FLO Fairtrade products consists primarily of typical agricultural products. However, manufactured products are becoming important future candidates for Fairtrade certification.
Currently, there are Fairtrade standards for 18 different product categories. It can be broadly divided into food and non food products The following is a list of the most popular fair trade non-food products and its producers. 1. Cotton: It is the major source of foreign exchange and government revenue for West African countries such as Burkina Faso, Mali, and Benin and it is estimated that 10 million people in the region depend directly on cotton production for their living. FLO has developed Fairtrade Standards for cotton in 2005. FLO estimates that 28.000 farmers are currently benefiting from the initiative. This is still a modest figure, but an increasing number of consumers are demanding textile products made out of Fairtrade Cotton. As a consequence, FLO expects that more and more producers will be able to sell their cotton under Fairtrade terms. For those farmers who are already selling their cotton to the Fairtrade market, the financial benefits are significant. For example, in the 2005/06 harvest, the income farmers received for Fairtrade Cotton compared to the cotton traded under conventional terms was 40 % higher in Senegal and 70 % higher in Mali. This additional income made it possible to concretely improve the lives of many communities. Fairtrade Standards for cotton: Producers are small family farms organized in cooperatives (or associations) which they own and govern democratically. The minimum guaranteed price (Fairtrade Minimum Price) is paid directly to the producer organizations. Environmental standards restrict the use of agrochemicals and encourage sustainability. Pre-export lines of credit are given to the cooperatives if requested, of up to 60 % of the purchase price. A Premium of 0,05-0,06 US$/kilo is added to the purchase price and is used by producer organizations for social and economic investments such as education, health services, processing equipment, and loans to members. No forced labour of any kind, including child labour. At the end of 2006, FLO International worked with 14 cotton producer organizations in Africa, Asia, and Latin America. 2. Flower: In some African countries, the cut-flower industry is one of the major export earners. In Kenya, it employs 70,000 people, the majority of whom are women. Fairtrade labelling aims to support these campaigns by certifying those farms which ensure safety and good working conditions for the employees. Consumers in diverse countries can now purchase Fairtrade flowers from developing countries with the guarantee that the rights of the workers who have produced them are being respected. An additional payment of 8% of the export price is managed by a Joint Body consisting of workers and managers. At the end of 2006, FLO International worked with 28 flowers and ornamental plants farms in Africa, Asia, and Latin America. 3. Sport balls were the first non-food product which was Fairtrade Certified. The movement toward Fairtrade Certification of sport balls began in 2001, and was a logical progression from the elimination of child labor in the soccer ball industry in Pakistan. As a parallel effort, in 1997 TransFair Italy began a project called "Palloni
Eticii", which focused on campaigning around the child labor eradication efforts and marketing balls that were child labor free. This program involved working with one producer (Talon, now Fairtrade Certified). In 2001, as the child labor eradication program seemed to be successful, and there were learnings from Palloni Eticii, another FLO member Labelling Initiative, Rattvisemarkt in Sweden, also became interested in the project. Rattvisemarkt conducted some preliminary research about the possibility to certify Fairtrade Sport balls (including on standards) in close cooperation with FLO. FLO finally created Standards for Sportballs in 2002. That year, the first three sports balls producer organisations became Fairtrade Certified in the centre of the world s football production in Pakistan. Where can you find FairTrade producers information? If you want to find out where fairtrade producers are located, please check the database available on the FLO website in the external links section. Last updated: July 2008