1

FLO-Cert GmbH

FAIRTRADE CERTIFICATION

GUARANTEEING A BETTER DEAL FOR PRODUCERS AND WORKERS

2

FLO-Cert GmbH

WHO WE ARE AND WHAT WE DO

1. The Mission of FAIRTRADE Certification2. FLO-Cert at a glance3. Facts & Figures4. Certification System &Fees5. The FAIRTRADE Standards 6. Long term trade relationships7. Composite Products8. 2006 at a glance

3

FLO-Cert GmbH

‘Guaranteeing A better Deal for Small Farmers and Wage Workers’

1. Mission of FAIRTRADE

4

FLO-Cert GmbH

2. FLO-Cert at a glance

• Independent Certification Company, but a member of FLO International

• Owned by stakeholders in Fairtrade

• Two internal controlling bodies: GB & CC

• Head office in Bonn, satellites in Paris, San Jose, Bangalore, Cape Town, Nairobi, Rio

• Certification Team represents 15 nationalities & 9 languages

5

FLO-Cert GmbH

540 Certified Coops and Plantations in 52 countries Representing app. 1 Million farmers and workers

550 Registered Traders

55 regularly trained local Inspectors

Expected Turnover 2005: app. 2,1 Million Euro

Independent Certification Committee meeting 6 times per year

Certified retail value in 2004: app. 1 Billion Euro

3. Facts & Figures

6

FLO-Cert GmbH

Process:Application Inspection Coordination Inspection Certification Appeal

4. Certification System & Fees• ISO 65 Compliant Certification system

• 2 Certification Processes (Producer & Trade)

Fees:

• Transition from subsidisation to cost effectiveness

• Transitional fee system 2004-2005

• Cost based fee system-2006

Eligibility check: Pre-Assessment Service

7

FLO-Cert GmbH

5. Fairtrade Standards (1/3)

Organisations, Products & Trade

• Part A: Generic Standards for SF/HL

• Part B: Product Specific Standards

• Part C: Trade Standards & Policies

8

FLO-Cert GmbH

5. Fairtrade Standards (2/3)

Generic Standards:

• Requirements for Social Development, Democracy, Non-Discrimination, Health & Safety, Freedom of Association & Collective Bargaining, economic Development, Environment

• Minimum & Progress Requirements

•Participative Audit methodology

9

FLO-Cert GmbH

5. Fairtrade Standards (3/3)

Product Specific Standards

• Requirements relevant only to specific product realities

Trade Standards & Policies

• Traceability

• Premium payments to Producers

• Product integrity

10

FLO-Cert GmbH

6. Long term trade relationships

“A long term trade relationship is the only guarantee a Producer has for sustained income.”

• Fairtrade is about sustainable development

-Guarding against “bonded contracts”

-Helping Producers to be reliable trading partners

-Balancing act with the realities of trade

11

FLO-Cert GmbH

7. Composite products

“all ingredients of a product carrying a FT Label must be sourced from FT Certified Producers…..except…”

• an exception would make sense and helps the Producer,

• exceptions should be temporary

• at least 50% of ingredients have a FT Certified source, or

• if the “significant ingredient” adds up to at least 20% of the product’s dry weight.

12

FLO-Cert GmbH

8. 2006 at a glance

• New Generic HL & SF Standards

• ISO 65 accreditation

• Producer Certification Fund (already active)

• New Technology to make Fairtrade easier & quicker

• Exploring cooperation with Other Certification systems

13

FLO-Cert GmbH

FLO-Cert The Fairtrade Certifier

www.fairtrade.net