Julie Pereira tiedotustilaisuudessa 19.8.1999

Julie Pereira, FairTrade Labelling Organizations International, pääsihteeri
Tiivistelmä puheesta 19.8. Reilun kaupan tuotteiden julkistamistilaisuudessa

1.WHAT IS FAIRTRADE?

The concept of Fairtrade, marginalized Southern farmers selling their produce (mainly craft) directly to concerned consumers in the North via charity shops, was invented 40 years ago in Europe by what are now called alternative trading organisations.

2.WHY FAIRTRADE LABELLING?
 
Despite the success of FT and the multiplication of charity shops in Europe, there was far more supply of FT produce than there could ever be demand. To break through the "world shops" sales ceiling, it was necessary to bring FT produce into mainstream retail.  This idea, we owe to a small co-operative of Mexican coffee farmers, UCIRI. They linked up with counterparts in the NL to turn their plan into reality and to bring FT coffee onto supermarket shelves. 
For FT products to sell, they had to be clearly identifiable to distinguish them from other supermarket products.
Absolutely central to the label is credibility. In a supermarket  context, it is necessary for consumers interested in the ethical qualities of a product to have an independent guarantee that the benefits of this FT have indeed flowed to the producers.

Ten years down the road, FT labelled produce is available to consumers in 17 countries. Two years ago the national offices that promoted the FT labels came together to create one international body: FLO, Fairtrade Labelling Organizations International (FLO). FLO is pleased to welcome Finland among its membership this year.

At the present time, FLO labels 7 products: coffee, tea, cocoa products, bananas, honey, sugar and orangejuice.

3.WHAT DOES FTL STAND FOR?

FT is about a fairer trade of fairly produced products. What does that mean?

Most people understand that production conditions vary and that workers are treated differently in different countries. To protect workers from abuse, most countries are signatory to international labour conventions. Fairtrade products are always produced in fair conditions that meet all international agreements. 

But the specificity of Fairtrade is more than that: its about a fairer trading environment:

# Fairtrade guaranties producers in the South a fair price for their produce, which at the very least covers the cost of production.

# Fairtrade encourages long term relationships between buyer and seller, as direct as possible, so that producers can invest in their futures with confidence.

# In addition to a fair price, Fairtrade guaranties producers a social premium to support them in their development.

 The first very basic concept behind Fairtrade is to enable producers to get a fair return for their labour.  Large plantations or companies with multiple assets may be able to hold out when prices are low; but for the small-scale farmer, the effects are all too often catastrophic.

FTL follows market mechanisms; we believe that trade is an essential development tool.  But trade without regulation can worsen the gap between the "haves and have-nots" because it does not consider the players' initial difference in bargaining power.

4.HOW DOES FTL WORK?

In exchange for the benefits (trade and income) of participating in the FTL scheme producers and importers must meet a number of conditions to sell on the FT market:

Producers:

# Meet all product-specific FT criteria which include: democratic decision-taking, financial transparency, open to monitoring, environmentally sound practices,  etc..
# Meet market requirements (export capability)

Importers:

# Pay FT price & premium
# Long term trading relations
# Meet audit requirements

Consumers have a right to a guarantee that the benefits of FT reach the producers.

To achieve this,

# FLO sets Fairtrade criteria (covering social, economic and environmental issues).
# FLO monitors all producers and audits importers annually.
# FLO controls the system to guarantee that the same amount of produce sold by producers is the same amount to be found in the retail market

As the intention of FT labelling is to go beyond traditional 'charity' sales outlets and reach out to consumers unaware of the issues, it needs to be accompanied by a large consumer awareness programme. 

5.WHO PAYS FOR THE FTL SYSTEM?

The consumer.
On each packet of FT coffee is a FT label. The company selling the coffee must pay a small fee to use the logo. This fee, as any other cost, is passed on to the consumer who therefore pays for all of the Fairtrade mechanism (monitoring of 400 producer groups, dozens of importers and hundreds of licensees).  Producers and importers do not pay any 'fees'.

 
6.IMPACT

FT is part of a solution, it is a demonstration of a sustainable alternative. One with unquestionable impact: we estimate consumers pay in excess of $300 million per year on FT products. This impacts on an estimated 5 million persons in the South.


7.CONCLUSION

Fairtrade is a market access mechanism with the primary aim of achieving greater stability for southern producers and their families so they can move out of a subsistence economy and invest in their futures.  As a 'development tool' it is very important for us as a to be sustainable:  Fairtrade labelling does not, like so many other development options, require the injection of external funds. 

FTL is an exciting concept which

# raises awareness, constantly reminding consumers about who benefits from trade, and who could benefit if consumers demand Fairtrade products,

# enables consumers to use their purchasing power positively and contribute directly to improving the livelihoods of disadvantaged producers in the South

Around the world, consumers have said yes to Fairtrade and have supported their words with action: buying FT products. We welcome Finland among the nations that have said yes there is a problem and yes there are solutions. On behalf of 4.5 million persons in the South, FLO wishes the Finnish office every success in its work to promote Fairtrade in Finland: may all Finns chose a Fairer trade with the South and make a direct difference to the lives of the world's producers.

 

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