FLO International

1. FLO International • Guaranteeing • a better deal for producers

2. Presenting a viable trade alternative FT (labelled) products represent: • For producers: • A fairer deal in a globalised market • An effective tool for autonomous development through trade • For consumers: • An informed choice in (mainstream) shopping behaviour • Consumers’ responsibility

3. 1) Some history 2) FLO structure 3) Way of working (in standard setting)

4. History of Fair Trade • People concerned about supporting disadvantaged people in developing countries – Trade not Aid (some 40 years ago). • World Shops, Church bazars, etc • Alternative Trading organisations (ATOs) • Mainstreaming requires labelling (UCIRI)

5. History of Fairtrade Labelling • First Fairtrade label, called Max Havelaar, was initiated in 1988 in the Netherlands. • Switzerland launched in the meantime, in 1991 the second Max Havelaar label • In 1992 the Transfair label was launched in several European countries (coordinated by TransFair International)

6. History of Fairtrade Labelling • While more National Initiatives and Fairtrade products emerged, the need for harmonisation became apparent • In 1997, FLO International was established, as a secretariat for all National Labelling Initiatives • Since 2001: Harmonisation of Standards, certification procedures and trade auditing

7. The Fair Trade movement Definition of Fair Trade: „Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South. Fair Trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.“ (Common definition agreed by FLO, IFAT, NEWS!, EFTA – FINE)

8. The Fair Trade movement FINE is an informal collaboration platform of four big networks active in Fair Trade F airtrade Labelling Organisations (FLO) I nternational Federation for Alternative Trade (IFAT) N etwork of European Worldshops (NEWS!) E uropean Fair Trade Association (EFTA)

9. FLOInternational The Mission To enable development & empowerment of disadvantaged producers & workers by: a)setting international FairTrade standards; b)certifying production and trade according to international FairTrade standards; c)facilitating and developing FairTrade markets through national FT labeling organizations; d)facilitating producer support; e) promoting the FT-approach in debates on trade and development.

10. Producers and companies registered with FLO • 19 national fairtrade labelling organisations • 375 FLO certified producer organisations in 48 producing countries • 800,000 producers • Including dependents 5 million people affected • 337 FLO registered companies worldwide • 509 companies in 18 countries are licensed to use the Fairtrade certification mark

11. Results so far

12. FLO and stakeholders FLO’s open structure • FLO Board (direct participation) • Standards and Policies Committee • Certification and Appeals Committees • FLO Fairtrade Forum • Marketing meetings

13. FLO’S NEW STRUCTURE: FLO Meeting of Members Certif. cie Prod. Support Facilitator. February 2002 FLO Fairtrade Forum Regional Producer Meetings FLO Board Markets & marketing meetings Appeal cie 1/3 Executive board 1/3  FLO/NI staff  stakeholders Director  deciding  consultative Fin. & Adm. Info system Standards + policy Cte. Certification Unit Product Managers Inspection regional/local Trade Auditing Producer Liaison Officers

14. Stakeholder Participation Terms of Appointment (overarching principles for all governing committees) • Balance of stakeholder interest • Balance of expertise and knowledge FLO Board appoints S&P and Certification Cte. for a 2-3 years term upon nomination

15. Stakeholder Participation Standards & Policies (9 members in total) • 2 - Producers (SH + HL) • 2 - Traders - conventional and ATO (Alternative Trading Organisation) • 3 - National FLO member organisations (Nis) • 2 - External Experts (incl. 1 representative from trade union movement)

16. Stakeholder Participation Members of S&P Committee (Sept.03) – 9 in total Producer: Carlos Vargas, Coocafe/Costa Rica – coffee cooperative; position is vacant Alex Yeboah Afari, VREL/Ghana – banana plantation Traders: Jeroen Kroezen, AgroFair Gerd Nickoleit, gepa Nis: Fenny Eshuis, MH-NL Judith Kyst, MH-DK Max Leuzinger, MH-CH Externals: David Joyce – ICTU (Irish Congress of Trade Unions); position is vacant Phil Wells – Consultant Coordinator:Olaf Paulsen, FLO - Manager Policy Development

17. Stakeholder Participation • Certification Cte. • (6 members in total) • 1 - Producer Organisation • 2 - Traders - conventional and ATOs (Alternative Trading Organisations) • 1 - National FLO member organisation (Nis) • 2 - External Experts

18. Stakeholder Participation Members of the Certification Committee (as of Sept.03) – 6 in total Producer: Juan Eduardo Henriquez Santos, Chile - honey cooperative Traders: Kirit Dal, Nirwana Sugar Ltd., UK Marjoleine Motz, Fairtrade Assistance (FTA), NL Nis: Jos Harmsen, MH-NL Externals: Liz Humphrey, Consultant Rolf Belling, Consultant Coordinator: Rüdiger Meyer, FLO – Manager FLO Cert

19. FLOInternational 1.Defining Fairtrade Standards Social, Environmental and Economic Standards & Policies 2.Guaranteeing the Standards Inspection and Certification FLO Certification Ltd. 3.Business facilitation Supply & Demand, Quality Product Management 4.Producer support Compliance, linking to development Producer Support Network Functions

20. Standards & Policies (S&P) • S&P Committee - Mandate - Decide on Standards proposals (incl ratification process through FLO Board) - Develop advice and recommendations on > Fairtrade principles - generic standards > FLO policies related to standards > Product specific standards and prices 2 Producers, 2 traders, 3 Nis, 2 External experts (1 trade union rep.) – senior experts in different fields FLO Board sets priorities for workplan

21. Stakeholder Participation Way of working - S&P Committee • At times 7 different work teams (WT) • Terms of work for WTs • Inviting special expertise as per WT • Reporting back to S&P Committee • 4-6 physical meetings of S&P per year • WTs mostly work by email consultation

22. Defining Fairtrade StandardsStandards & Policies (S&P) Social Standards • Small farmers / Hired labour • Generic / Product specific • Minimum requirements / Progress requirements Environmental Standards • Generic / Product specific Economic/Trade RelationshipStandards • Generic / Product specific • Minimum Price and FT-Premium • Pre-financing • Medium/long term commitment

23. Standards DevelopmentProcedures for Standard setting • Product Rational Paper (policy frame) • Light or heavy approach/cost-benefit • Proposal for standards (product specific requirements, defining minimum price) • Consultation with stakeholders • Standards decision by S&P Cte; ratification by FLO director mandated by the FLO Board

24. Standards ReviewProcedures for Standard setting • Regular review of generic and product specific standards (3 year cycle) • Co-ordinated by the S&P Cte • Extended stakeholder consultation • Final decision ratified by FLO Board

25. FLOInternational 1.Defining Fairtrade Standards Social, Environmental and Economic Standards & Policies 2.Guaranteeing the Standards Inspection and Certification FLO Certification Ltd. 3.Business facilitation Supply & Demand, Quality Product Management 4.Producer support Compliance, linking to development Producer Support Network Functions

26. Guaranteeing the standardsFLO Certification Ltd. • Legaly separate sub-set of FLO International • Follows ISO standards for certification bodies Functions • Producers inspection • conformity to FT standards • FT benefits are used for social and economic development • Certification • Trade auditing • to cross check reported sales and reported purchases

27. FLO-Business facilitation Enhance FT’s impact in commercial markets: • matching supply and demand in volume and quality • anticipate and react on market trends • work with cross border operating companies Improve producers’ response to the market: • Providing information on quality requirements • Providing information on trends and traders • Relation management FLO Product Managers: • a team of product specialists dedicated to the strategic marketing of FT, and existing and new products

28. Facilitating ProducerSupport - PSN Support producers to strengthen their position: • commercial performance • quality produce • institutional building Link between producers and support: • identify needs for support with producers and FLO Cert • identify donors and technical expertise • bringing together the right partners and facilitate FLO Producer Support Facilitator: • closely linked to product managers in the North and producers and liaison people in the South