FAIRTRADE

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FAIRTRADE Linking Sustainable Production and
Consumption Steve Knapp National Consumer
Conference - Perth 2008
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TRUST PROVE IT!
Fairtrade Certification
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Fairtrades 5 Guarantees

• 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
• A closer link between consumers and producers

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The Fairtrade Supply Chain
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The Arabica Coffee Market
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Fairtrade Standards for Coffee

• Fairtrade minimum price 1.25 US/lb
• Fairtrade Premium of 0.10c US/lb for social
  economic investments
• Organic Premium of 0.20c US/lb to encourage
  env. sustainable production
• Farmers organised into Producer Organisations
  that they own and govern
• Democratic decision making
• Transparency in price and premium use
• Environmental standards encourage sustainable
  production
• Up to 60 pre-finance

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Fairtrade Structure
20 Labeling Initiatives (inc. FLANZ)
3 Producer Networks NAP, CLAC AFN
International Fairtrade Multi-stakeholder
Structure of FLO e.V FLO-Cert
FLO General Assembly (FLO Members)

• FLO Board of Directors
• 5 Labeling Initiatives
• 4 Producer Networks
• 2 Traders
• 2 Independents
• (ChairIndependent)

FLO-Cert Board of Directors

• FLO e.V
• General Admin Unit
• Standards Unit
• Producer Business Unit

• FLO-Cert
• Producer Certification
• Trade Certification
• Follows ISO 65 Procedures

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International Fairtrade

• Global Retail sales of over US2bn with over 40
  annual growth
• Over 650 FLO registered traders worldwide
• Coffee, tea, cocoa, sugar, fresh dried fruits,
  nuts and spices, rice, and cotton.
• Over 550 FLO certified producer organisations in
  over 50 producing countries
• Over a million producers
• Benefiting 5 million people

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Fairtrade Certified Producers
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HOAC - Highlands Organic Agricultural Cooperative
- PNG

• 2600 members
• produces 50 containers
• Use of the Fairtrade
• premium
• Improvement of roads and infrastructure
• Equipment for primary schools
• Support for 4 health centres
• Support for community groups

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Global Growth in Fairtrade Certified Volumes by
Product 2004/05
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Growth in International Fairtrade Certified
Product Markets 2004/05
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Growing Fairtrade Market in Australia New
Zealand

• Fairtrade Retail Sales in ANZ
• 2003 AU200k
• 2004 AU1.5million
• 2006 AU11million
• 2007 over AU15m
• Number of Licensees in ANZ
• 7 at end of 2003
• 58 at end of 2005
• now 120 licensees

• Public recognition of the FAIRTRADE Label in NZ
  now 21.
• Approx one third of total ANZ sales are in NZ
• Fairtrade Certified imports of over 1000MT into
  ANZ in 2007.

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Volume of Fairtrade Labelled Sales in ANZ
2004-2007
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The Co-op promoted their Fairtrade coffee lines
through TV advertising
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Fairtrade in the Supermarkets
Marks Spencers - March 2006 - All coffee tea
Fairtrade. Now extended range to include
Fairtrade certified cotton, honey, chocolate,
avocadoes, pineapples, mangoes bananas
April 2005 - Tescos We are the biggest seller of
Fairtrade products and are now offering our
customers the widest Fairtrade range available
anywhere in the UK. January 2007 - Sainsburys
announce all banana will be Fairtrade Certified
(10 million bananas per week). Waitrose also
committed to 100 Fairtrade bananas one week
later. November 2006 - Coles launched own-brand
Fairtrade Certified coffee and are now stocking a
growing range of Fairtrade products. Woolworths
also stock Fairtrade Certified coffee, tea and
chocolate across ANZ.
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Fair Trade Communities

• Awards for
• Councils
• Faith Groups
• Schools
• Universities
• Workplaces

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Why Fairtrade Certified?

• Growing number of consumers looking for ethical
  products and solutions to the worlds problems
• Fairtrade provides a robust ISO 65 accredited
  certification system and 3rd party verification
  of Fairtrade standards
• Consumers recognise Fairtrade Certified products
  are doing good by reducing poverty in
  developing countries
• Enables consumers to engage, contribute and be
  confident their contribution is effective

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www.fairtrade.org.nz