5 psr xh

© Fairtrade 2012

Producer Services and Relations

How does PSR work?Xavier Huchet

© Fairtrade 2012 Producer Services and Relations

Contents

1. PSR Mission and Goal2. PSR Structure 3. PSR Services4. Partnerships

2

© Fairtrade 2012 Producer Services and Relations

PSR is the leading service provider for Fairtrade producers, empowering them and their

organizations to strengthen their capacity to comply with Fairtrade standards, benefit from

growing market opportunities and achieve sustainable development.

PSR Mission

3

© Fairtrade 2012 Producer Services and Relations

Target groups : farmers & workers

Support to:Get certified

Stay certified

Maximise benefits of Fairtrade

PSR Goal

4

© Fairtrade 2012 Producer Services and Relations

PSR Director

Projects & Partnerships Manager

Head of Region Asia

Assistant

Head of Region Latin America

Head of Region Africa & ME

North Africa & Middle East

East Africa

West Africa

Central America

Head of Liaison &Service

Development

South America I

South America II

Caribbean

SE & Pacific Islands

South Asia

Sri Lanka, Pakistan &

Central Asia

Southern Africa & Indian Ocean

Decentralization model:•Decentralised regional representation (RC, LO)•Ghana office•India office•Kenya office•Others (Colombia, Brazil, Indonesia)

Producer Services & Relations Structure

© Fairtrade 2012 Producer Services and Relations

Field support

Producer facing services are delivered through a decentralised network of Liaison Officers in

around 60 countries

0

10

20

30

40

50

2005 2006 2007 2008 2010

917

24 27

47

Number of LO's

6

© Fairtrade 2012 Producer Services and Relations

PSR Reach by Region Liaison

Officers

Certified

Producer

Organizations

Applicant

Producer

Organizations

Asia 10 204 43

Africa&

Middle East 21 340 78

Latin America 17 567 157

© Fairtrade 2012 Producer Services and Relations

2008 Strategic Review - Partnerships

...Producer support becoming a more integral part

of the Fairtrade system so that producers are

helped to enter and stay in the system. Stronger

partnerships with technical service providers will

increase the capacity of Fairtrade Certified

Producers to transform the lives of their

members...

8

© Fairtrade 2012 Producer Services and Relations

Fairtrade Producer Service Long Term vision as of 2011

Fairtrade producers should be able to chose from a variety of service providers based on location, capacity, cost and expertise

Institutional development partnerships

Business development partnerships

Producer development partnerships

Knowledge partnerships

Fairtrade producersFairtrade producers

9

© Fairtrade 2012 Producer Services and RelationsHow to Work with PSR 2011, FI Members

FAIRTRADE PRODUCER SERVICES: MATRIX FOR ROLES & RESPONSIBILITIES TO END-2012

KEY PSR PSR & PN’S PN’S & PARTNERS

SERVICES TO PRODUCERS SERVICES TO SYSTEMCERTIFICATION ADVISORY SERVICES

(60% PSR)•Introduce new producer groups to Fairtrade system and standards requirements•Prepare producers for audit. Review compliance issues and actions required•Help strengthen organisations (e.g. gender & labour rights, use of premium, environmental planning & business administration)•Involving producers in continual improvement of Fairtrade system (feedback system, roll-out of New Standards Framework)•Emergency response (natural disasters, PR incidents, contract defaults)

PRODUCT AND TRADE-RELATED SERVICES (25% PSR)

•Supply-side information on producer groups and production capacity•Supporting Fairtrade licensees’ sourcing and development plans •Identifying needs for standards revisions including minimum price and premium (in future model = need for review of economic mechanism toolbox) •Facilitating producer input into reviews of standards

BUSINESS & DEVELOPMENT SERVICES(10% PSR)

•Direct producer services relating to B&D aspects of New Standards Framework, e.g.—Cost management and pricing—Cashflow management and sources of finance—Contract negotiation—Productivity & quality—Accessing and using market information to add value•Generic services related to Fairtrade standards and compliance (e.g. child labour)•System-wide projects aimed at strengthening Fairtrade’s relevance to sustainability agenda (climate change, resource restraints, productivity and livelihoods)

SERVICES FOR OTHER SYSTEM FUNCTIONS(5% PSR)

•Maintaining risk register and response plans by country/product sector •Providing fast information response to critical issues, e.g. negative publicity•Supporting contacts between producers and key influencers in media, government, business by maintaining producer information and providing logistical support•Supporting impact assessment work including collection of data•Strategic development of producer services

10

© Fairtrade 2012 Producer Services and Relations

PSR Role in Partnerships

Since 2011, PSR focus is on identifying and developing partnerships for Business and Development Services including:

• Enhancement of business skills, such as contract negotiation, pricing, productivity and product quality• Large scale compliance related projects, such as Child Labour• Large scale Fairtrade priority related projects, such as Conflict Affected Areas

11

© Fairtrade 2012 Producer Services and Relations

The SNV-FLO Partnership brings together two leaders in market-based economic and social development. Together we work in 11 African countries in a range of products on:

• Exchange of knowledge and information• Provision of Fairtrade liaison services• Supporting the establishment of new producer networks and maintenance of existing networks• Capacity development of producer groups• Access to markets, finance and technology by producer groups

Current examples...

12

© Fairtrade 2012 Producer Services and Relations

In Argentina we have a joint project with Fundación Fortalecer to promote sustainable producing systems through Fairtrade markets. Together we plan to support producers of particularly raisins and olive oil by:

• Supporting small producer organizations in the implementation of Fairtrade practices so that they can comply with the minimum conditions to get Fairtrade certification.

• Facilitating access of small producer organizations to the information of markets interested in Fairtrade products.

Current examples...

13

© Fairtrade 2012 Producer Services and Relations

LAOS:Introduction to Fairtrade

© Fairtrade 2012 Producer Services and Relations

INDONESIA:Explaining coffee FMP

© Fairtrade 2012 Producer Services and Relations

TANZANIA:Joint Body training at flower farm 16

© Fairtrade 2012 Producer Services and Relations

BURKINA FASO:Fresh and dried Fairtrade mangoes 17

© Fairtrade 2012 Producer Services and Relations

Cotton, SENEGAL:Cotton farmers see their final labelled product 18

© Fairtrade 2012 Producer Services and Relations

THANK YOU!ANY QUESTIONS?

19

© Fairtrade 2012 Producer Services and Relations 20