Climate Change green breakfast seminar - making international supply chains work for smallholder farmers

© Fairtrade 2011

© Fairtrade 2011

This Morning:• Fairtrade• The Importance of

Fairtrade • How we create and

maintain Impact • Working with

Smallholder Farmers

This Morning:• Fairtrade• The Importance of

Fairtrade • How we create and

maintain Impact • Working with

Smallholder Farmers

© Fairtrade 2011

FAIRTRADE

1988 1992 1994 1997 2000 2001 2003 2004 2007 2008 2009 2010

1st Fairtrade product

launches in Netherlands

Fairtrade Foundation

created

First UK Fairtrade product

Fairtrade Labelling

Organisation established

Fairtrade bananas launched

Garstang declares itself first Fairtrade

town

Fairtrade Mark

awareness is 25%

Launch of FLO-

Cert

Sainsbury & Waitrose

bananas all Fairtrade

Tate & Lyle 100%

conversion

Sainsbury’s tea and coffee

Fairtrade

Awareness at 74%

Where Fairtrade has come fromWhere Fairtrade has come from

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UK FAIRTRADE Mark Awareness at 77% in 2011 (TNS)

Fairtrade in 2012Fairtrade in 2012

Premium delivered to producers

(FLO M&E report 2010)

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Growth in number of producer groups benefitting through Fairtrade

Growth in number of producer groups benefitting through Fairtrade

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Fairtrade – huge need and potentialFairtrade – huge need and potential

1.5 million 1 billionV

Conservative estimate of UK imports from Fairtrade producer countries

£1.5 billion £8 billion

Retail sales value of Fairtrade in the UK

V

Need

Potential

© Fairtrade 2011

THE IMPORTANCE OF FAIRTRADE

The FAIRTRADE Mark is the only independent consumer guarantee of a better deal for producers in the developing world.

7.5 million people

producers, workers, their families

and communities - benefit from Fairtrade

A closer link between shoppers

and producers

The FAIRTRADE Mark means:

Farmers receive a fair and stable price for their

products

Producer groups receive a premium

to invest in improving their communities and businesses

Greater respect for the

environment Small farmers have a stronger

position in world markets

FAIRTRADE means…….extra income to invest in bringing about change for the future

‘With Fairtrade income we were able to implement a fermentation program to improve the quality of our cocoa and to convert our production to certified organic.’      

FAIRTRADE means…….Producers are working to protect their environment

Isidoro de la Rosa, Executive Director, CONACADO 

‘The banana industry in the Windward Islands is about livelihood but due to unforeseen forces [world trade rules] we are struggling, Fairtrade continues to be our niche and I am confident we will survive”.

FAIRTRADE means…….Small farmers have a stronger position in world markets

Nioka Abbott, Banana Grower and Chair of Langley Park cooperative, St Vincent

© Fairtrade 2011

CREATING IMPACT

How Fairtrade creates impactHow Fairtrade creates impact

Fairtrade Producer impact

Standards

Partnerships and

alliances

Monitoring, evaluation

and research

Building markets

Economic

Environmental

Empowerment

Social

Community infrastructure

Coocafe – Costa RicaA COOCAFE Foundation offers a programme of scholarship to producers’ children and gives economic support to schools in the areas of the co-operatives

COOCAFE has a project building septic tanks for local communities. As villages rely on water from the local river for everyday needs, the rivers are becoming polluted.

‘With these grants, we are helping to make our children professionals - they are now at university with Fairtrade grants.

I have two nieces who are graduates. I know one boy who is studying law thanks to Fairtrade. There is another boy studying aviation engineering.’

01/01/2009

Ecologicalconservation

Coocafe – Costa Rica

COOCAFE set up a foundation to protect and conserve biodiversity and offer environmental education, aiming to make better use of natural resources available to satisfy producers’ economic needs

Rise in trading capacity

Cecovasa – Peru

CEPICAFE – Peru Since going Fairtrade, coffee exports have climbed from 8 to 1,700 tonnes per year

© Fairtrade 2011

WORKING WITH SMALLHOLDER FARMERS

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How do we work with our brand and supplier parnters?How do we work with our brand and supplier parnters?

Evolving relationship with Brands

Sales Driver Increases sales

ConsumersOffers consumer facing

ethical assurance

Marketing Inclusion in a wider

movement

BrandEnhances brand equity through trust in the mark

SustainabilityFundamental to a

sustainable strategy for commodities

SupplyAssist with the security of supply for the future

Producer Partnerships

Brings buyers closer to their supply chain

Trading PracticesAssists with changing buying

practices

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Farmer Organisation’s model of change (Twin, 2010)

How do Farmer organisations want to work with us?How do Farmer organisations want to work with us?

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Working with Smallholder Farmers to

support their development

Working with Smallholder Farmers to

support their development

© Fairtrade 2011

Five elements of smallholder supply chain relationshipsFive elements of smallholder supply chain relationships

Examples of supply chain Assessment

Smallholder Premium spendSmallholder Premium spend

Fairtrade Premium expenditure by category:

Small producer and contract production organisation 2009-10

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Looking to the future

© Fairtrade 2011

Producer Financial ProfilingProducer Financial Profiling

Helping smallholders provide a preliminary overview of the organisational structure and financial performance

4 Sections;- Score Summary- Facts and Figures- Capability Radar- Commentaries