Fair trade
The example of coffee growers association Guaya'b(Jacaltenango, Huehuetenango, Guatemala)SUMMARY1. Introduction, the conventional tradea. The traditional circuit: many intermediariesb. The consequences in terms of price: a small part to producerc. The price of coffee, fruit of the global stock marketd. A way for the producer?2. The history of fair tradea. A call from the Southb. NGO initiatives ...c. ... Towards a truly global organization
3. Definition and principles of fair trade
"Trading with the social goal is not the profit but maximum assistance dévelloppement"
4. The operation of a network of fair tradea. Producers: a cooperative organizationb. Fair Trade Organizations- Labelisation (employment contracts)- Import and direct sales- Awareness
5. A few figuresa. In the South, supports 5 million peopleb. In the north, represents a turnover of 200 million Euros
6. Finally, what future for Fair Trade?a. ... Progress?b. ... But still limits
1. Introduction, the conventional trade
1.1. The traditional circuit: many intermediariesThe route of conventional trade of export commodities is sinuous, marked local intermediaries, regional and international.
The example of Jacaltenango (40 000 inhabitants, northern Sierra de los Cuchumatanes in Guatemala): list of intermediate
1.2. The consequences in terms of price: a small part to producer
Breakdown of price: A minimum share for the producer:• Purchase $ 50 for 45kg of green gold• Sales in Europe to over $ 250 $ -300
A minimum share to the producer1.3. The price of coffee, fruit of the global stock market
Who decides the price of coffee?The commodities exchange: after oil, coffee is the second product in importance to the exchange traded commodity in London and New York.
The cafe attracts speculators buying coffee producer when prices are low and selling when prices are high: 12 billion dollars traded.
Huge profits in the coffee industry, but for producers annual salary is about $ 1050.
Prices are determined by four large companies that buy 80% of world coffee: Nestlé, Phillip Morris, Sarah Lee, Procter and Gooble.
1.4. A way for the producer?
A findingSmall producers, geographically isolated by poor infrastructure and transport, are kept in the dark and dependent on intermediaries (the "coyotes") who buy at low prices.This situation does not allow them to grow, access to education, health ...
Food crops (maize, frijoles, ...) in their plots, their just a subsistence permit.
Some figures for Guatemala: Agriculture accounts for 2 / 3 of exports (coffee, bananas and sugar cane) 50% of exports to the United States Exports in the form of unprocessed 78% of farmers own 10% of the land
A vicious circleIn this context of unequal trade, the country can not develop, use of a global footprint, which subject them to unequal trade agreements ...
A vicious circle for the South, now in the development of a disability
2. The history of fair trade
2.1. A call from the South1964: From this, the idea of fair trade was initiated by developing countries in UNCTAD (United Nations Conference on Trade and Development) with the principle of "Trade not the assistance ".The idea of fair trade, however, has known no response.
2.2. NGO initiatives ...1969: Faced with the silence of the international bodies, the Dutch group initiatives have emerged with the sale of handicrafts in shops "Third World".The new idea here is to import and sell these products directly, by removing all traditional middlemen. These shops are more an advocacy role for the ills of conventional trade, a commercial role.
1973: The real start is the introduction of the "coffee joint indio" directly from cooperatives in Guatemala is very successful.The turnover of coffee quickly exceeds that of traditional products.An alternative trading system is born.
1988: Creation of the first label "Fair Trade" named Max Haavelar.This is a label, not a mark, which certifies that the product exits the die fair trade.Its aim is to enable these products to be sold outside the Third World shops to reach a wider number of consumers.
He signed the release of these products from simple AC circuit, and their entry into the retail industry.
2.3. ... Towards a truly global organizationSince 1988, the fair trade sector has seen:
• A EXTENSION: other countries have embarked on this path:o Using the label Max Haavelar Netherlands, Belgium, France, Denmark, Switzerland,o by creating their own label: Transfair Germany, Austria, Luxembourg, Italy FairTrade Mark Ireland, United Kingdom.
• A DIVERSIFICATION: other products are now "fair trade": tea, sugar, cocoa, chocolate, honey and bananas.
• Structure: In this world teeming NGOs and initiatives, some structures and spaces have been implemented to align and structure the actions:o FLO International (Fairtrade Labelling Organisation) entity under which joined together the three labels (Max Haavelar, Transfair and Fairtrade). Coordinates the activities of the three labels and is the only competent body for fair trade (see his role in part 3).o Creating NEWS: coordination of the "world shops" such as Third World Artisans du Monde ....o Establishment of the EFTA (European Fair Trade Association) allows such lobbying in Brussels to try to influence the decisions taken at European level, fair trade activists with a vision of course opposite to that is law today: the reign of the market for maximum profit.
3. Definition and principles of fair trade
"Trading with the social goal is not the profit but maximum assistance dévelloppement"
In October 2001, the informal network "FINE" made a single definition of fair trade, accepted by all actors in the movement:
"Fair Trade is a trading partnership, based on dialogue, transparency and respect, with the aim of achieving greater equity in world trade.It contributes to sustainable development by offering better trading conditions and guaranteeing the rights of marginalized producers and workers, especially in the south of the planet.The Fair Trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in rules and practices of conventional international trade. "
4. The operation of a network of fair trade4.1. Producers: a cooperative organization(Meeting with Goya'b association, a cooperative of coffee family in northern Guatemala belonging to the global network of Fair Trade)
Our cycling journey in Central America has led us into the valley of Jacaltenango. This valley is located in the northern mountains of Guatemala, between 1000 and 2000 meters. The slopes are covered with coffee trees, often mixed with other trees and shrubs, which protect the plantations of the sun and help keep them in a wet environment.
Coffee (Lake Atitlan, Guatemala)
The valley is very isolated, connected only by tracks in poor condition with major axes of the country, and more than 6 hours from the nearest town: Huehuetenango.
Valley JacaltenangoThe vast majority of Indian Poptils, who constitute the majority of people in the region are coffee growers.
Family Poptil we have received. Apart from the father's occupation (doctor) this family has a few plots of land on which they operate coffee.
However, with revenues of $ 1000 USD per year, this activity does not allow them to live decently. This is explained by the low-income fall of coffee prices and the exploitation of buyers who take advantage of the vulnerability of small producers, to impose their prices.In this context, the locals are forced to grow alongside their exploitation of coffee subsistence products such as corn and black beans for food.
It is in this environment that the association was created Goya'ba. Starting from the observation that unity is strength, it now includes 330 farm families. This union allows the association to sell coffee production and wholesale to call a manager, an accountant, an agronomist and thus establish a better balance of power with buyers.
Our visit to the association Goya'b
The association is based on fundamental principles such as solidarity (Goya'b also means "Mutual" in Indian language Poptil), transparency, investment of all its members in the decisions made by the association and decision of consciousness.
The operation
The association is organized into 22 groups comprising fifteen families in the community.At each meeting, the claims of each family group are carried by one person, spokesman for the entity.7 people are in a period of one year the group's decision-making association.
The organization of the association Goya'b
Training and information:
All families have the support of producers and support of commercial commercial, accounting and technical advisor. This work enables people to better manage its financial resources, to be informed of how the coffee ... Technically, the agronomist gives them a better understanding of soil and techniques necessary for the practice of organic farming .
Fair Trade:
All these principles adopted by the association meets the requirements of the fair trade sector. Since the creation of Goya'b in 1998, 60% of production is sold in the fair trade network.
When a coyote (purchaser of the conventional sector) provides $ 50 for a bag of 45 kg of grain, fair trade organizations to buy more than 125 USD, the price remains fixed throughout the year. This significant difference in price will ensure a decent life for farmers and ensures development of the whole community. Indeed, on every bag of coffee sold $ 5 is spent on health or community facilities such as schools and water systems.In recent years, a health fund is fed by its funds and can cover the medical expenses of members of the association.
What future for Goya'b?
European bodies to ensure fair trade farmers a stable partnership, long-term development for the community.The challenge today for Lucas Silvestre (the manager of the association) and Antonio (agricultural engineer) is to switch to organic farming on all land farmed.If this transformation provides a better sale price to producers, it also helps conserve land for future generations. It requires use of natural fertilizers, by planting natural barriers to stop soil erosion, ...One of the long-term goals is a waste collection in the whole community to reduce the pollution of soil and rivers in the region.For Antonio, these changes will take time and go through a significant investment, education and awareness of all.
Visit the coffee guided by Antonio, the agronomist
For Juan, a member of Goya'b producer since 1998, Fair Trade offers of course a better life. But beyond higher income, fair trade and cooperative grouping offers more dignity to farmers through the experience gained over the years, their investment in the group and recognition of their work in developing countries North.
Met Don Juan (center) coffee producer and member of the association Goya'b, in right foreground Antonio (Agronomist Association)4.2. Fair Trade Organizations
FLO: work of labeling (employment contracts)
FLO: a body which issues the labels of the EC.FLO authenticates a product that (throughout the supply chain from farm to supermarket) to the strict standards of Fair Trade.FLO decides that sells and buys fair trade products
The labels are issued to the producer in exchange for a contract of employment:1. Refusal of forced and child labor;2. Selling prices of products set at an international level and taking into account the basic needs of producers.3. Long-term contract, the duration for producers to consider a long-term development.4. Down payment, to allow the existence of a working capital in the cooperative (purchase of raw materials ...)5. Guarantee the quality of products (most products must be organic)
Agencies importers of EC- Buy direct producer cooperatives,- Roasting (for coffee) and sales to European consumers under Fair Trade labels.
The EC platforms: raising awarenessTo that fair trade is reality, consumer awareness programs are needed.Many initiatives have emerged:- The week of international solidarity: European day during which the EC is promoted including;- Free your clothes: Belgium, France, Canada, Australia and Japan: the laying bare of Systm North-South relations in the field of textiles and clothing.- Ethics of label and many other initiatives ...All these initiatives are the source of hundreds of association. In France, they came together (for efficiency) and have formed "The platform of Fair Trade." This platform brings together all the players and fair trade such as: Artisans du Monde, CCFD, Agir ici, Engineers Without Borders, Andean, ....
Its purpose: to promote the EC to the French public opinion.
Indeed the development of the EC through an advocacy and awareness that consumption is also a political choice.
Diagram explaining the operation of the Fair Trade sector
5. A few figures
5.1. In the South, supports 5 million people
The organization of fair trade is in contact with 45 countries, representing: 800 business partners 800 000 farming families 5 million people
5.2. In the north, represents a turnover of 200 million Euros
According to the report of FairTrade, the volume of product being a fair trade for 2000 amounted to 200 million Euros is only 0.1% of European trade with the Third World.
This represents an average consumption of fair trade products per capita per year: Switzerland: 39 Frcs Netherlands: 14 Frcs Germany: 7 Frcs France: 0.5 Frcs
Something encouraging: the turnover of fair trade has increased for 2000: 5%.
Ultimately, the growth in the share of fair trade in the traditional trade requires above all the awareness campaigns in the North, so that consumers know "the political content of a chocolate bar or a bag Leather ... "(excerpt from an article in the diplomatic world" of unequal exchange fair trade ").
6. Finally, what future for Fair Trade?6.1. ... Progress? The outreach work is already bearing fruit in the countries of Europe. The EC now occupies respectively 2.4% and 3.5% of the coffee market in the Netherlands and Switzerland.6.2. ... But still limits Beware of marketing humanitarianThis awareness of public opinion has made ethics a selling point: "There is concern that the humanitarian concerns of consumers [...] n'amènent to the birth of many labels guaranteeing wrongly ethic production "(commerceequitable.org).
The EC stain resting on volunteering ....Fair trade is a slow task because volunteering is an essential.
The EC as a difficult task against the current of liberal thought that currently dominate the policies of Western countries (EU, United States of America, ...).From a report of the European Parliament: "Surprising as it may seem, there in the jungle of international trade more" niche "under the banner of justice and solidarity: Fair Trade, Commercio Justo, Gerechter und Partnerschaftlucher, Fair Trade [...]. "
We will keep as concluding sentence (taken from an article in the diplomatic world "of unequal exchange fair trade"):
"And if these two cups of coffee, taste like, contained two opposing political messages? And if these two chocolate bars, of similar appearance, enclosed two different stories? And if, on the other side, distant chain, countless producers continued to sweat blood for others, while some others are starting to sweat blood for themselves? "
References
www.commercequitable.orgwww.commercequitable.comwww.commerce-equitable.be
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