Climate Change green breakfast seminar - making international supply chains work for smallholder...
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Transcript of Climate Change green breakfast seminar - making international supply chains work for smallholder...
© 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
© Fairtrade 2011
UK FAIRTRADE Mark Awareness at 77% in 2011 (TNS)
Fairtrade in 2012Fairtrade in 2012
Premium delivered to producers
(FLO M&E report 2010)
© Fairtrade 2011
Growth in number of producer groups benefitting through Fairtrade
Growth in number of producer groups benefitting through Fairtrade
© Fairtrade 2011
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
© Fairtrade 2011
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
© Fairtrade 2011
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?
© Fairtrade 2011
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
© Fairtrade 2011
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