Fairtrade:

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• Fairtrade
• From Field to Fork
• From Seed to Shelf

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Global view
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FLO Roles of FLO e.V and FLO-CERT

• Fairtrade Labelling Organisations International
  (FLO)
• FLO e.V
• Setting of Fairtrade Standards
• Setting of minimum prices
• Support Producers and Traders
• FLO-CERT
• Independent Certification Organisation
• Certifies producers and traders

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FLO-CERT - Certification Process

• Limited company FLO- CERT

Producer certification - conformity to FT
standards - Fairtrade benefits are used for
social and economic development Trade
certification - to cross check reported sales
and reported purchases
Functions
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FLO e.V Producer Services Relations (PSR)

• Support producers' compliance to entry and
  progress standards (both certified and new
  producers)
• Facilitating producers access to the Fairtrade
  market
• Linking producers organisations to known
  financial and business assistance opportunities
• Coordination of the workplans of Liaison Officers
• There are currently about 50 Liaison Officers

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Role of Liaison Officers

• Are country based
• Funded by external donors
• Involved in follow up work after certification
  decisions
• Assessing the business requirements of all
  producer groups
• Networking to facilitate technical and business
  assistance
• Assist in collecting pricing information

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Working through FLO-Cert preconditions Vietnam
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Liaison Officer explaining Fairtrade
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Standards for producers
Product specific standards Generic
Standards(Social, Environmental and Economic)
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Social Standards

• Democratic structure
• Transparent business structure
• All members to benefit
• Business planning
• No child labour
• No forced labour
• Non-discriminatory employment and business
  practices
• Freedom of association
• Health and safety standards

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Economic Standards

• The Fairtrade System sets a minimum price
  social premium
• Minimum Price
• Ensures that costs of sustainable production are
  covered
• Set by region or country
• Graded for conventional and organic
• Social Premium
• Managed democratically by the co-operative (for
  small farmers) or the joint body (for hired
  labour)
• Used for community projects such as water access
  and healthcare.

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The Arabica Coffee Market 1989 2008Comparison
of Fairtrade and New York Prices
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Environmental standards

• Banned pesticides
• Spray regimes
• Protective clothing
• Health screening for sprayers
• Water conservation measures
• Where appropriate, working towards organic status

Eldama Ravine, January 2007
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Global Network
Fairtrade Foundation registers importers,
traders, licensees and certifies their products
Other Labelling initiatives and FLO-CERT certify
products
FLO-CERT certifies producers to FLO producer
Standards
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Product Certification
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Fairtrade Cotton Supply Chain
Farming Seed Cotton
Certified Producer
Ginning Lint fibre
Certified Trader
Spinning Yarn
Certified Trader
Weaving/Knitting Fabric
Certified Trader
CMT Garments
Certified Trader
Licensee with the Fairtrade Foundation
Importing Retail/Wholesale
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UK Audit Process

• All UK registered companies submit quarterly
  reports covering their Fairtrade activities.
• They also have an annual on-site inspection to
  verify that they are adhering to the Fairtrade
  standards.

• We check every quarterly and inspection report to
  ensure that Fairtrade-Marked products in the
  shops actually contain Fairtrade ingredients.

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Imports / Purchases / Production

• What we analyse
• Minimum price / premiums paid
• Trade of Fairtrade goods after import
• Volumes of ingredients used in production
• Why we analyse it
• To ensure that Fairtrade-Certified producers are
  paid correctly
• To ensure companies do not sell more Fairtrade
  than they buy
• To trace Fairtrade ingredients through to
  finished product

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Tipping the Balance
Tipping the Balance
Help us in Tipping the Balance Of global
trade to make Fairtrade the norm