The website of the Fair Trade Association of Australia and New Zealand (FTAANZ) Inc provides you with information on the different fair trade initiatives operating in both countries, as well as links and insight to the larger global fair trade movement.
Read through the various pages of this About section of the site to learn about what fair trade is, why its important, and where the FTAANZ fits in and what it does. You will also find information on the two major global fair trade systems - FLO and IFAT - and what they do and how FTAANZ is working with those systems.
If you have any questions on this information, or have ideas for other information you would like to see covered here, please get in contact with us or post in our discussion forums.
Image: Hartmut Fiebig / www.fairtrade-media.de
So what is fair trade anyway? Why is it important? What is behind the formation of an organisation like the Fair Trade Association of Australia and New Zealand?
You can read here about what fair trade is and why it is important.
Image: Hartmut Fiebig / www.fairtrade-media.de
The Fair Trade Association of Australia and New Zealand works with and supports the FINE 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."
International trade has been a historical link between peoples of the world. It can be used to increase corporate profits without benefit to the wider community and to promote intercultural understanding, grassroots development and economic justice.
The advantages of current international trade practices are not visible to all people in the world.
For small farmers, access to market or price information is difficult and as a result, many become increasingly dependent on middlemen and receive smaller and smaller returns for their work. In bad times, many lose their only property - their land - and thus, their livelihoods.
Similarly many plantation workers endure low pay, unsafe working environments and poor living conditions. Too often they lack the opportunity to participate in decisions that affect their lives on the plantation. The way that many products are produced, traded and consumed is simply unjust; this is a major cause of continuing world poverty.
Fair Trade is an alternative approach to conventional trade. It 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 rights of, marginalised producers and workers - especially in low-income regions.
Fair Trade is about giving disadvantaged people power: by paying producers and workers fair prices for their work, by helping them gain the skills and knowledge they need to develop their businesses and to operate in the global economy, and by challenging unfair trading practices. It is about providing fair go, not charity. Together we can create more awareness of international consumer power and offer Australians and New Zealanders an opportunity to make real change through supporting fair trade activities and buying fairly traded products.
The Fair Trade Association of Australia and New Zealand (FTAANZ) Inc is an incorporated, not-for-profit, member based body for all individuals and organisations interested in and supportive of fair trade. Through its members, and a small secretariat, the FTAANZ seeks to increase awareness of fair trade; help facilitate and coordinate fair trade activities; assist producers from developing countries, especially in the Asia-Pacific region, to access Australian and New Zealand markets; and establish a regional organisation to manage Fairtrade certification and labelling. You can read more about the FTAANZ in related pages here, including its vision, mission and objectives, the people involved, its history, opportunities for volunteering or working with the FTAANZ, and its partners and supporters. You can contact us here. To download a short introduction to FTAANZ, click here. |
Mission Statement, Vision and Objectives
Fair Trade Association of Australia and New Zealand Inc
Mission Statement of the Fair Trade Association of Australia and New Zealand (FTAANZ) Incorporated
The FTAANZ seeks to bring together all interested parties in Australia and New Zealand to foster and promote a common understanding of Fair Trade: ensuring a better deal for producers and workers marginalized and disadvantaged through current international trade practices and rules.
FTAANZ works with and supports the FINE definition of fair trade which is:
“Fair Trade is an alternative approach to conventional international trade. It is a trading partnership which aims at sustainable development for excluded and disadvantaged producers. It seeks to do this by providing better trading conditions, by awareness raising and by campaigning”.
Our Vision
The Fair Trade Association of Australia and New Zealand seeks to achieve the following;
Our Objectives
1. Promote the concept of fair trade and increase awareness of its importance within Australian and New Zealand communities
2. Coordination of fair trade activities within Australia and New Zealand
3. Support developing country disadvantaged producers, particularly in the Asian-Pacific region, to access New Zealand and Australian markets under fair trade conditions
4. To facilitate the introduction of a fair trade certification and labelling system that will provide a useful tool for Australian and New Zealand companies and consumers to identify and purchase fair trade products
Image: Christof Krackhardt / www.fairtrade-media.de
Business Plan
To download our business plan summary 2005 - 2008, click here.
The FTAANZ is governed by an Executive Committee, elected at each year's Annual General Meeting. Read details of those on the current Executive Committee.
The day-to-day operations of the FTAANZ are undertaken by staff in Australia and New Zealand. You can read more about them here.
FTAANZ EXECUTIVE COMMITTEE 2005/06
(As elected at the AGM in August 2005)
Natasha Lewis (Chairperson) - Natasha Lewis is one of the founding members of the Fair Trade Association of Australia and New Zealand, and currently sits on the committee as secretary of the Association. Her passion for fair trade has helped to drive the Association as it takes the lead in pushing the fair trade agenda in Australia and New Zealand. As a regular speaker she is determinedly pushing education and understanding regarding the principles and benefits of Fair Trade. Originally educated as a Naturopath, Natasha quickly developed her interest in advancing sustainability both though industry and trade. This is being realized through both her organic food and products wholesale business, Organic Trader which recently launched the premium organic Fairtrade chocolate brand Cocolo, as well as her association with fair trade. Natasha is available for public speaking on fair trade at conferences, schools, universities, etc.
Barry Coates (Vice Chairperson) - is Executive Director of Oxfam New Zealand, an affiliate of Oxfam International. Oxfam NZ links practical grassroots projects, mainly focused on the Pacific, with international campaigns, such as Make Trade Fair, to address the causes of poverty and injustice. Barry was formerly Director of the World Development Movement (WDM), an international advocacy network based in the UK. He played a leading role in campaigning on issues of global justice: debt, international trade and investment and arms trade, and was a Board member of the Fairtrade Foundation, the Ethical Trading Initiative, and active in ethical investment and Corporate Social Responsibility. At World Wildlife Fund (WWF) in the early 1990s, Barry developed a programme on sustainable development, and participated in the Earth Summit in Rio as a member of the British government delegation. Barry has an undergraduate degree in economics and a Masters from Yale University.
Brett Inder (Treasurer) - Brett Inder is an Associate Professor in Business and Economics at Monash University. His research interests include various areas of Development Economics. He is also involved with People For Fair Trade, a group of volunteers committed to spereading the message of Fair Trade and to selling Fair Trade tea and coffee.
Nicole Philp (Secretary) - Nicole has been a passionate advocate of Fairtrade since 1999 and was a member of the founding FTAANZ Executive Committee. Nicole owns and manages Universal Village, a fair trading business involved in importing, distribution and marketing Fair Trade products.
Nicole has 15 years experience in business management and marketing and is very enthusiastic about helping FTAANZ get the Fairtrade message out there and into the hearts and minds of the general public. Nicole is the Secretary of FTAANZ and Co-ordinator of the Marketing Group. She also has experience working with development projects as an Administrator and Board Member of an aid & development NGO with project partners in India.
Jacqueline Grace - is a recent Graduate of Melbourne Unversity where she co-founded a student Fair Trade movement named Hooked. Since then Jacqui and her husband Tim have been assisting other campuses across Australia to establish Fair Trade campaigns. She is also involved in Fairtrade advocacy in various Faith based communities in the Victorian region. They also currently working on establishing interships with Fairtrade cooperatives in the Asia Pacific region and one day hopes to assist with the establishment of Fairtrade cocoa farms in Indonesia.
Nigel Walsh - Nigel has worked in the advertising, design and marketing industry in Australia for over 28 years. The last 7 years have been as Marketing Manager of Oxfam Australia Trading Pty Ltd (Oxfam Shops, Oxfam Shop Mail Order). Nigel and Oxfam Australia Trading (a fair trade organisation) are passionate supporters of fair trade. OAT trades with over 35 countries worldwide contributing to a sustainable income for marginalised artisans and their communities. The Oxfam shops and Oxfam mail order shop sells wide range of fair trade handcrafts and fairtrade commodities.
Nigel will use every opportunity to promote the concept, and benefits, of fair trade to the Australian public.
Caroline Thomas - Caroline is committed to promoting Fair Trade in Australia & New Zealand, having seen the success of the business sector in Europe. She is an independent marketing consultant bringing over 15 years of experience in Australia and overseas.
Caroline has been an active & long-term supporter of the Fair Trade campaign, providing pro-bono marketing to Oxfam Australia, the Make Poverty History campaign and other charities. She is committed to marketing the Fair Trade benefits across all the different stakeholders in our region.
Eileen Davenport - Eileen is currently working as a freelance social researcher on fair trade and development issues and has published articles on fair and ethical trade. She is a member of the Registration Committee of IFAT, the sister international fair trade organisation to FLO and has been involved in fair trade and ethical trade issues for a number of years. She has an academic background in social sciences and has worked in the academic, NGO and government sectors. For the last nine years she has been living in New Zealand and during that time has been the Research Director for Council for International Development in New Zealand and more recently has been working freelance on NGO capacity building in the Pacific and social impact assessment.
Stephen Knapp (FTAANZ & FLANZ Director), Auckland, New Zealand – Steve is the Executive Director of the Fair Trade Association of Australia and New Zealand (FTAANZ) and of Fairtrade Labelling Australia and New Zealand (FLANZ). He is based in Auckland and is the director of activities across both countries. He graduated from the London School of Economics in Industrial and Business Economics in 1991 and is completing a Masters in Development Studies. He was the Managing Director of a commercial trading company for 10 years and then the Executive Director of a regeneration company supporting social and community enterprise development in the UK. He has also held several voluntary directorships of community based organisations. Contact Steve on steve@fairtrade.org.nz.
Neil Bowker (FTAANZ Executive Officer, Australia), Melbourne, Australia – Neil spent ten years as a Public Servant in Canberra, Melbourne and Adelaide before taking three years off to travel through Asia and the UK. In 2001, he returned to Australia to set up Adelaide Fair Trade, a not-for-profit organisaton aimed at making Fair Trade products more accessible to consumers in Adelaide. As manager of AFT he imported crafts mostly from IFAT members, and developed networks to distribute Fair Trade crafts and tea / coffee / chocolate in Adelaide, as well as managing the volunteer-run Fair Trade shop. Neil joined FTAANZ as the Executive Officer for Australia and is particularly interested in strengthening Fair Trade networks and developing procurement programs. Contact Neil on neil@fairtrade.com.au.
Audrey Jacometti (Licensing & Labelling Officer), Melbourne, Australia – Audrey moved to Melbourne from France after completing a Bachelor of International Administration, Politics and Languages at the University of Grenoble. Audrey has developed administrative, research, communication and project reporting skills and experiences in her previous employment and internship positions from the University of Melbourne, a peace-oriented NGO in Spain and the NGO Bureau of the United Nations in Geneva. An avid photographer, Audrey actively participates in the Association's efforts to raise awareness of Fair Trade among the Australian and New Zealand public. Contact Audrey on admin@fta.org.au.
Pravin Sawmy (Networks Officer), Auckland, New Zealand - Pravin moved to Auckland in 2005 after working for fair trade organisations in Italy. With a background in education and commerce, Pravin has always had a great interest in fair trade due to his family connections with sugar farming in Mauritius. He now works to build and develop fair trade networks within New Zealand. Contact Pravin on pravin@fairtrade.org.nz.
Rachel Morrison (Marketing & Communications Manager), Auckland, New Zealand - Rachel moved to New Zealand from the UK in 2006 and is based in Auckland. After studying for a BA (Hons) Politics and an MSc Marketing, Rachel worked in various marketing roles for large multinational companies for seven years. A family move to New Zealand has allowed Rachel to follow her personal convictions and take a part-time role with FTAANZ, and now works three days a week. Contact Rachel on rachel@fairtrade.org.nz.
Jessica Morthorpe (Certification Assistant), Melbourne, Australia. Jessica is studying Science and Commerce at the Australian National University. Her majors are Zoology, Human Ecology and Marketing. Jessica’s professional background is in environmental change management. Contact Jessica on jessica@fairtrade.com.au.
Cameron Neil (Certification & Labelling Manager), Melbourne, Australia. Cameron has worked for fair trade in Australia since December 2003 and now leads the certification and labelling activities of Fairtrade Labelling ANZ. For more see here. Contact Cameron on audit@fairtrade.com.au.
How long has the organisation been operating?
The FTAANZ was founded as an incorporated not-for-profit association in the ACT as of 2 June 2003. Activities and initiatives under the banner of the FTAANZ have been carried on since this date. Products bearing the Fairtrade Certification label began to be sold in Australia and New Zealand as of October 2003.
Why was the FTAANZ formed?
The Association was formed to bring together the increasing number of fair trade related activities and actors in Australia and New Zealand to increase effectiveness and impact through economies of scale, collaboration, and information sharing.
The FTAANZ has 3 clear client groups that it exists for. The first is its members. The FTAANZ is a membership-based body and it has a responsibility to provide services to individual and organisational members within the framework of its vision and objectives (see the Vision & Mission section). The second group of clients are those organisations and businesses in Australia and New Zealand who are participating in the Fairtrade system (i.e. the use of the Fairtrade Certification label on products). The FTAANZ provides services to this client group to support the effective use of the label, in accordance with international standards, and to educate consumers. The third and most important client group are those for whom the whole concept of fair trade exists – disadvantaged producers in developing countries. The underpinning purpose of FTAANZ activities is to facilitate and promote trade and consumption in Australia and New Zealand that directly supports sustainable development and a ‘fair go’ for those producers in developing countries being marginalised and adversely effected by current global trading arrangements.
What has FTAANZ achieved to date?
Products, launches, research, licensees
Marketing & Campaigns
Organisational Development
One of our activities in 2004 and 2005 was to create an education resource kit for use with young people aged 10 - 13 years. Check out the kit in our Resources section or click here.
Check out the Projects section for information on other activities.
Stay tuned for more details on current FTAANZ activities and on what we have been doing over the last two years.
Image: Christof Krackhardt / www.fairtrade-media.de
FTAANZ / FLANZ Annual Report Download Page
Fair Trade Association of Australia and New Zealand Inc
For Australia: ABN 83 962 988 499
(Note that FTAANZ Inc provides the Secretariat for Fairtrade Labelling Australia & New Zealand)
Contacts
New Zealand
E-mail: info@fairtrade.org.nz
Phone: +64 9 920 4950
Fax: +64 9 920 4951
Director: Stephen Knapp
Networks Coordinator: Pravin Sawmy
Marketing & Communications: Rachel Morrison
Asia Pacific Project Manager: Maria Jose Trogolo
Australia
E-mail: aust@fairtrade.com.au
Phone: +61 3 9662 2919
Fax: +61 3 9663 3482
Executive Officer: Neil Bowker
Fairtrade Labelling Officer: Audrey Jacometti
FTAANZ Inc Executive Committee
Chairperson - Natasha Lewis natasha@fta.org.au
Secretary - secretary@fta.org.au
Mailing addresses:
FTAANZ Inc (Australia)
PO Box 306
Flinders Lane PO VIC 8009
Australia
FTAANZ Inc (New Zealand)
PO Box 33 1587
Takapuna Auckland 0740
New Zealand
FTAANZ is always on the look out for volunteers to assist in the various activities of the network and its membership. From time to time we may also have paid opportunities, although these are rare.
Check back regularly to see what is on offer, e-mail us to register your interest in assisting our work, or - better still - join FTAANZ so that you receive notification of new opportunities regularly!
Current Job Opportunities with FTAANZ:
Current Job Opportunities with Fairtrade Labelling Australia & New Zealand
Current Volunteer Opportunities with FTAANZ:
Other Job Opportunities:
Current available positions with one of our members, Oxfam Australia, are detailed at the end of the navigation box to the right, or you can go to their website http://www.oxfam.org.au/. They are currently seeking to fill a number of national and international positions.
Fairtrade Labelling Australia and New Zealand (FLANZ) is seeking a full time Certification Officer to be based in our Melbourne office.
Fairtrade is a dynamic, consumer driven, international movement. It links disadvantaged producers in developing countries with businesses and consumers in the developed world. Fairtrade is about business and trade – not charity. Fairtrade ensures the payment of a fair price for globally traded products and supports disadvantaged producers to access markets, enabling them them to provide for their families and invest in community development.
Sales of Fairtrade labeled products are growing rapidly in Australia and New Zealand, and more and more businesses are signing up to trade in Fairtrade certified products. The internationally recognised Fairtrade system is delivering benefits to disadvantaged producers throughout the developing world.
There is an exciting opportunity for the right person to assume responsibility for certification services in Australia and New Zealand, to guarantee the integrity of the Fairtrade Label and maintain business and consumer confidence in the Fairtrade Certification system. This is a highly unique role in a vibrant and rapidly growing organisation and field, with significant opportunities for career advancement in the coming years.
The full Job Description is available here.
For more details on Fairtrade, Fairtrade Certification & Labelling and the position, see www.fairtrade.net, www.fairtrade.com.au, or email audit@fairtrade.com.au.
The closing date for applications is Monday 1 December 2008, with interviews to follow within the week. Commencement date to be negotiated with the successful candidate but an early January start is desirable.
Please direct all applications to: audit@fairtrade.com.au.
Applications should include:
- a covering letter
- an up to date curriculum vitae
- a document outlining your relevant skills and experience in relation to the competencies outlined in the job description
Volunteer Positions Available
A number of projects are currently being developed by FTAANZ which will require input from volunteers. For more information, please watch this space or send an email outlining your interests and skills to aust@fta.org.au
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Researcher - Intern, Auckland NZ
Based in Auckland, NZ - This position provides opportunities for students to gain practical experience in an interdisciplinary and international working environment and to promote a greater understanding of the problems, challenges and opportunities that farmers in Asia-Pacific face. Download the job description to find out more. Closing Date 17th July 2007.
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FTAANZ Inc is the peak body for fair trade in Australia and New Zealand. You can get involved in FTAANZ as a member with full voting rights, as an associate with member benefits except voting rights, or you can join our mailing list for occasional news and events mailouts.
Become a member
Through joining the FTAANZ you will meet other individuals and organisations involved in fair trade in Australia and New Zealand. You can benefit from the coordination of fair trade campaigns and from the research conducted and compiled in order to develop useful educational and promotional materials. The FTAANZ is responsive to its members in helping them to access and promote fair trade products in Australia and New Zealand.
You also get a range of benefits, including access to members only areas and information on this website, access to member discussion forums and online community features, invitations to member only workshops and events, member newsletters, and other benefits as offered from time to time.
Also, in joining FTAANZ, you get an active voice in the development and future direction of fair trade activities in Australia, New Zealand and the region, through the Annual General Meeting, general meetings with members, and opportunities to serve on the Executive Committee and various working groups and sub-committees.
There are several categories of membership for organisations, with varying investments asked of you to become a member and support fair trade depending on your status and capacity to pay.
Download the membership form - which provides details on categories of membership - complete it, and return it to the address specified.
Apply to become a member (Australia) (92KB doc)
Apply to become a member (New Zealand) (30KB doc)
Become an associate
An alternative to becoming a member for businesses and other organisations which wish to be less involved but still have access to the newsletter and other information about fair trade is to become an associate.
This is also a great way for individuals to become involved and be part of the full mailing lists and receive most of the other benefits of being a member, except without voting rights.
Apply to become an associate (Australia) (85KB doc)
Apply to become an associate (New Zealand) (86KB doc)
Sign up to the email list
The third alternative is to sign up to our email list. This is free, and while you don't get the newsletter or other benefits members or associates receive, you will receive occasional emails with news and events. To sign up to our email list, please send an email to:
Australia: aust@fairtrade.com.au with your email address and postcode (so we can link you up to local events);
NZ: info@fairtrade.org.nz with your email address and city.
The work of the FTAANZ is only possible through the support and participation of a range of partners.
Our current partners are:
Oxfam Australia - see http://www.oxfam.org.au/ for more information
Our previous partners include:
The Myer Foundation - see http://www.myerfoundation.org.au/ for more information
Other specific supporters include:
Thank you to Fresh Promotions Qld for their sponsorship of beautiful engraved pens for the Adelaide University Fairtrade Coffee campaign.
What is IFAT?
IFAT is the International Fair Trade Association, the global network of Fair Trade Organizations (FTOs). Over 270 organizations in 60 countries form the basis of the network, and membership is growing steadily. Approximately 65% of IFAT members are based in the South (that is: Asia, the Middle East, Africa and Latin America) with the rest coming from Europe, North America & the Pacific Rim.
IFAT members have the concept of 'fair trade' at the heart of their mission and at the core of what they do. They come in many shapes and sizes and represent the fair trade chain from product to sale. They are producer co-operatives and associations, export marketing companies, importers, retailers, national and regional fair trade networks, financial institutions and other support organizations, dedicated to the fair trade movement. IFAT members trade in a wide variety of fair trade goods, including giftware, household goods, furniture, garments, jewellery, food and beverages. They all adhere to IFAT’s code of Practice, developed by the members themselves.
IFAT's mission is to improve the livelihoods and well being of disadvantaged producers by linking and promoting Fair Trade Organizations, and speaking out for greater justice in world trade.
More info at www.ifat.org.
Learn more about IFAT and IFAT in Australia & New Zealand
The Beginning of IFAT
Fair trade (as we now know it) began in the immediate post Second World War years when American church based bodies, the Mennonites and the Church of the Brethren, began trading in a small way with impoverished women’s groups in Puerto Rico and Jordan.
Fair Trade Organisatie, in the Netherlands, was the first European Alternative (Fair) Trade Organization, and was founded in 1959. Oxfam GB, which raised money during the war for the relief of civilian populations in Nazi occupied Europe, continued its humanitarian and disaster relief work after the war and then became involved in work with others to overcome poverty. During the 1960s, this started to include trade with those impoverished communities. In the early 1970s Fair Trade Organisatie founded several similar groups in other European countries, including GEPA in Germany, CLARO in Switzerland and EZA in Austria.
Working with their partners in countries in the South, these and other emerging organizations in the North helped to establish the Southern FTOs that organise producers and production, provide social services to producers, and export to the North. During the 1970s also, volunteers working with Oxfam Australia (then known as Community Aid Abroad) started trading, as did Trade Aid in New Zealand.
By the late 1970s, many of the Northern FTOs were meeting in conference every two or three years, and by the end of the 1980s they decided to set up an association to further improve the way they worked together.
IFAT was founded (as the International Federation for Alternative Trade), in 1989 by 36 Northern Fair Trade Organizations meeting in Noordwijk, The Netherlands. The key decision taken at the founding conference was to admit producer organizations in the South as full members of the new body with equal status with the Northern organizations. Today, two thirds of IFAT’s membership comes from the South.
The Structure of IFAT
IFAT's membership covers five separate regions: Africa, Asia, Latin America, Europe, and North America & Pacific Rim.
IFAT has an elected Executive Committee, responsible for developing and implementing the plans arising from the strategic priorities agreed by the members at their Annual General Meeting. The Executive Committee is the guardian of the IFAT Constitution and Standards for Fair Trade Organizations. It makes policy, and decides which organizations may join the network.
Each region is represented on the Executive Committee by its own elected member. The Committee members act as a point of contact for members in their region, and may be involved in the co-ordination of the members' national and regional platforms.
IFAT's activities are coordinated by a small International Secretariat of appointed staff, currently based in The Netherlands.
Developing the Fair Trade Market
IFAT co-ordinates work on developing an environment for the fair trade market to grow, to help increase the opportunities for marginalised small-scale producers.
Traders looking for fair trade partners often use IFAT as a first point of contact with Fair Trade Organizations around the world. IFAT actively encourages links between Fair Trade Organizations to the business support services offered by members or other specialist providers.
IFAT brings members together for inspiration and learning. Using linkages provided by IFAT, members can build on each others' marketing experience and expertise. Every two years IFAT organises the Mohammed Islam Artisan Recognition Award to encourage, recognize and reward creativity in product development. IFAT’s international and regional conferences are the venue in which members share experiences, attend seminars, deliver feedback to trading partners, and develop their knowledge.
IFAT members have demonstrated the effectiveness of regional cooperation as a strategy for accessing markets. For instance, via the Asia Fair Trade Forum, Asian members now regularly exhibit at regional Trade Fairs such as the Bangkok International Gift Fair. Regional conferences provide the venue for building these partnerships.
More info at www.ifat.org/mktdvment.shtml
Market Development Services
Connecting Producers and Buyers - CatGen software developed by IFAT member Peoplink allows IFAT members to display products online. The separate databases are linked and can be searched from the IFAT website, enabling members to get in touch with buyers from all over the world.
Financial Services for Producers - The Shared Interest Clearing House, another IFAT member, provides credit, advance payments and various financial services to producers, enabling them to grow their business at favourable rates.
Publications and Advice - IFAT has teamed up with partners such as the International Fund for Agricultural Development to make innovation more readily available to producers. Products include advice guides and manuals on various topics (e.g. "How to Participate in Trade Fairs") and an online library is currently being set up on the IFAT website.
Speaking out for Fair Trade
IFAT is an advocate for fair trade - condemning the injustices of the international trade system and championing a radical, yet practical vision for change. IFAT and IFAT members have first-hand knowledge of the conditions under which trade can be a powerful force for sustainable economic and social development, and are thus uniquely placed to speak on behalf of disadvantaged producers in these debates.
Together with FLO, NEWS! (Network of European World Shops) and EFTA (European Fair Trade Association), IFAT operates a joint dedicated advocacy office, to influence European and global politics and increase the awareness of fair trade among decision makers.
IFAT develops the voice of fair trade by building the capacity of members, and IFAT as a network, to conduct effective advocacy campaigns. And it delivers the message of fair trade by developing and then communicating IFAT's particular perspective on the current debates around trade and development.
Every second Saturday of May, tens (if not hundreds) of thousands of people across the globe celebrate World Fair Trade Day, a very public part of IFAT’s advocacy and campaigning work.
More info at www.ifat.org/advocacy.shtml
Building Trust in Fair Trade
In the early stages of the growth of fair trade, consumers of fair trade products knew the importers and distributors personally. The guarantee that those goods had been purchased on the basis of certain ethical principles was essentially, therefore, a question of trust between acquaintances. As a result of fair trade’s growth, the direct and personal link between producers and consumers has often been broken.
While the IFAT Code of Practice continues to provide the basic philosophy and core principles of FTOs, the assurance that fair trade standards are being met by the members has become essential for the continued growth of fair trade. IFAT members have therefore developed a set of common standards for all Fair Trade Organizations, and a monitoring system to help its members show that they meet these standards.
The IFAT system aims to be comprehensive and clear, but also friendly. It takes into account the daily reality of its member organizations. It tries to avoid heavy (and one-way) reporting but also to capture the qualities of an organization that can be difficult to measure. It emphasises learning and improvement: it is a process that is owned by the participants.
More info at www.ifat.org/monitoring.shtml
IFAT Standards for Fair Trade
The full text of the standards is available at www.ifat.org/downloads/monitoringdownloads.shtml
The IFAT Monitoring Process
IFAT’s Monitoring System is based on a three-tier process:
Self Assessment is the first step of the monitoring process, in which members assess themselves against IFAT’s Fair Trade Standards. All the standards have indicators, which member organizations must meet or show progress towards. The Self Assessment report states the degree of compliance with these indicators and is sent to IFAT every two years.
Mutual Review (peer review) is the second step. Members send their Self-Assessment reports to their trading partners allowing for comments and feedback to both the initial organization and to a Registration Committee.
The third process, External Auditing, is used to establish the credibility of an organization’s Self Assessment report and its compliance with the Standards, and to check that the system itself is working. 5-10% of FTOs are audited annually, and ad-hoc External Audits can also be used if and when concerns are raised about a member’s working practices.
An internal IFAT Registration Committee examines all Self-Assessment reports, Mutual Review reports and External Audits, and recommends to the IFAT Executive Committee if the organization should be registered as a Fair Trade Organization. Registered members can then use the FTO mark to identify themselves as a Fair Trade Organization.
More info at www.ifat.org/monitoring.shtml
The FTO Mark
Launched in 2004 at the World Social Forum in Mumbai, India, the FTO Mark identifies registered Fair Trade Organizations worldwide.
A list of registered members can be found at www.ifat.org/registeredftos.shtml.
Currently there are about 150 registered FTOs, and the number is steadily growing.
The FTO Mark is a quality mark which means standards are being met regarding working conditions, wages, child labour and the environment, and demonstrates that an organization's trading activity is dedicated to the development of disadvantaged producers, and is sustainable and committed to continual improvement.
The FTO mark is a means of identification which sets FTOs apart from other commercial businesses, making them recognizable to consumers as mission driven organizations whose core activity is fair trade. It also gives FTOs definable recognition amongst existing and new business partners, governments and donors who wish to support fair trade activities - providing wider market opportunities for producers.
Registered organizations identify themselves as FTOs by displaying the FTO Mark on stationery, websites, posters and other promotional material.
Unlike the FAIRTRADE Label, the FTO Mark is not a product label - it has not been designed as a label to appear on handcrafts or other products. It is a mark to identify Fair Trade Organizations.
More info at www.ifat.org/theftomark.shtml
Right now, the FTO Mark is on a Global Journey promotional tour. The latest information on the Global Journey can be found at www.ifat.org/globaljourney/index/shtml. The Global Journey will be coming to Australia and New Zealand in July 2006.
The Fair Trade Association of Australia and New Zealand recognises IFAT as a credible fair trade system and is working to ensure IFAT members and FTOs are included within the organisation.
FTAANZ is considering various opportunities for connecting to the IFAT system, enhancing the work of IFAT members in ANZ, promoting FTOs and their products, and other initiatives. Further developments will be announced on this site and here.
You can find information on current Australian and New Zealand IFAT members here, learn about how to trade in IFAT goods, as well as search for fair trade products sold through IFAT stores.
The Fairtrade Labelling Organizations International (FLO) is the global umbrella body for Fairtrade certification and labelling around the world. There are 20 different consumer initiatives in 21 countries that participate in the FLO system including the Fairtrade Foundation in the UK, Transfair USA, Max Havelaar in the Netherlands and Fairtrade Labelling Australia & New Zealand.
See here for info on Fairtrade Labelling Australia & New Zealand.
FLO is responsible for setting international Fairtrade standards that producers in developing countries and international traders are required to meet in order for products to be labelled as FAIRTRADE. FLO-CERT, a separate certification body established in 2003, is responsible for verifying compliance with these standards.
History of Fairtrade Labelling
The first Fairtrade labelling initiative was established in 1988 in the Netherlands with the Max Havelaar label, based on a fictional character who opposed the exploitation of coffee producers in former Dutch colonies. The idea of placing a label on a product identifying it as fairly traded enabled such products to be bought and sold outside of traditional fair trade networks, making it more accessible to mainstream consumers. By 1997, there were 17 national consumer initiatives in Europe, North America and Japan. In that year, they came together to form the umbrella body, the Fairtrade Labelling Organizations International (FLO) with the goal of harmonizing their various standards and certification procedures to strengthen that fair-trade labelling movement worldwide.
Today there are 20 labelling initiatives in 21 countries under the umbrella of the Fairtrade Labelling Organizations International (FLO).
FLO Structure
The FLO Board is the highest decision-making structure of FLO. It includes representatives from certified producer organisations, traders and national consumer labelling initiatives.
For more information on FLO structures, visit the FLO website http://www.fairtrade.net/sites/aboutflo/structure.htm
FLANZ Annual Report to the inaugural Annual General Meeting, December 2006
Public Version for Stakeholders
Monday 4 December 2006
This is a report on behalf of the chair and the board on the first 18 months of activity presented to the members of the company; Oxfam NZ, Oxfam Aus, CWS NZ, & FoE Aus, at this the first Annual General Meeting of Fairtrade Labelling Australia and New Zealand.
Fairtrade Labelling Australia & New Zealand was incorporated in Australia on 19th July 2005 as a company limited by guarantee with four organisations as members. A board of directors was appointed and FLANZ was registered in New Zealand as an overseas company operating in New Zealand.
In August 2005 FLANZ became a full member of Fairtrade Labelling Organisations, the international organisation that governs the use of the Fairtrade Label worldwide. As a full member of FLO, FLANZ has the sole right to license the use of the International FAIRTRADE Label in Australia and New Zealand.
FLANZ sets policy, within the international guidelines, and administers the Fairtrade Labelling scheme in Australia and New Zealand. To carry out these activities 3 staff were appointed:
Audrey Jacometti, the Labelling Officer, is responsible for the administration of the Labelling scheme. This includes processing licensee applications, approving product packaging and promotional use of the label, raising invoices for license fees and maintaining all the necessary records and information. Audrey is also the company secretary.
Cameron Neil, Trade Certification Analyst, is responsible for the trade audit function of the labelling system. Cameron cross checks flow of goods reports and supply chain information, in order for FLANZ to maintain a system that provides a robust guarantee that products that carry the FAIRTRADE label come from a Fairtrade Certified source and comply to international Fairtrade standards. Cameron is also responsible for developing Labelling policy and making certification recommendations.
Steve Knapp was appointed as the Executive Director of Fairtrade Labelling Australia & New Zealand and is also the Executive Director of the Fair Trade Association of Australia and New Zealand. Steve is responsible for the effective management of both organisations. Within FLANZ, Cameron and Audrey both report to Steve, and as the Executive Director, he reports to the board.
The Board of directors has met 5 times in the first 18 months of operations, 3 times physically and twice by teleconference. The Board’s main responsibilities are to receive reports on activities, manage risk, determine forward strategy and make final certification and policy decisions.
The board are in turn accountable to the members. The members are, in effect, the owners and guardians of the company and the integrity of the FAIRTRADE Label in Australia and New Zealand.
In order to be guardians of the company and integrity of the FAIRTRADE Label and system, members need communication and information from the Board. As a new organisation we do not have all these systems currently in place. This is also an ongoing process and will develop as we develop as an organisation. The AGM is an important opportunity for members to receive information and provide feedback to the Board.
At the AGM, members are responsible for electing new board members, receiving annual reports and the audited financial statements, and appointing company auditors for the coming year. Any changes to the constitution also require approval by the members. At this meeting there is a proposed change to the constitution that to take effect requires members approval.
FLANZ has made tremendous progress in it’s first 18 months. We are operating in a dynamic and fast growing market. When FLANZ was incorporated the FAIRTRADE Label was already being used by 24 companies in Australia and 15 in New Zealand. These companies were licensed to use the Label through the Fairtrade Foundation in the UK. One of the first priorities for FLANZ was to develop our own license agreement and transfer all these companies over. 18 months later we now have almost 100 licensees, about 70 in Australia and 30 in New Zealand.
The range of Fairtrade Labelled products is also growing. Coffee is still the main product, but sales of tea and chocolate are growing fast. New Labelled products, although, still with limited availability, are sugar, sportsballs, rice, quinoa and cotton.
The estimated retail sales of Fairtrade Labelled products in ANZ in 2004 were AU$1.5m in value and 50MT in volume. By end of 2005 this had increased to AU$6m and 160MT. By the end of 2006 we are expecting well over AU$10m in sales value and more than 300MT of product.
Wholesale sales of Fairtrade Labelled products provide FLANZ with a 2% license fee paid by businesses that are licensed to use the Label to identify their products as Fairtrade. Our business plan forecast for wholesale sales in the 2005/06 financial year was AU$5m that was projected to generate a license fee income of AU$100k. So far reported wholesale sales are AU$6.85m for the period.
However there is a time lag between FLANZ receiving license fees and when the recorded sale was made and this is reflected in the cash position in the financial reports. Although we expect to receive a license fees of AU$130k for sales reported made in the 2005/06 FY, only AU$82k license fee income was received in the period. We currently estimate 6 months from the date of the reported sale to actually receiving license fee income.
This and a backlog of reporting, and consequently invoicing, put some pressure on the company’s cash flow position over the course of the year. This was solved with an agreed loan from the Fair Trade Association of Australia and New Zealand. This shows as a AU$42k liability in the financial reports. These issues have now been resolved; there is no longer a backlog of reporting or invoicing, outstanding receivables are being collected and the loan to FTAANZ has now been repaid.
At June 2006 FLANZ has a net asset position of AU$21k, this retained profit is license fee income that is surplus to the direct running costs of FLANZ. Although FLANZ contracts Cameron directly to provide trade audit services, both the Labelling Officer and the Executive Director are currently employed by FTAANZ. Consequently FTAANZ and FLANZ have drawn up a services agreement by which FLANZ contracts FTAANZ to supply a schedule of services, in order to begin to cover the costs of the administration of the Labelling system, that are currently borne by FTAANZ, and supported by NZAID and Oxfam Australia seed funding.
The intention is for surplus license fee income, beyond FLANZ running costs and development needs, to be used to contract services from FTAANZ to further the objectives of FLANZ. Initially these are the costs of administering the Labelling system, but as income increases will potentially be extended to include business development services, promotion and education activities, building the fair trade movement and producer support.
Because of the close relationship between FTAANZ and FLANZ this contract for services is regarded as a related party transaction and is currently not permitted under the FLANZ constitution. Hence there is a proposed constitutional change and this and the related party transaction that to take effect requires your approval as members. These proposals are also tabled at this meeting.
FLANZ has also taken its role within the international Fairtrade labelling system seriously, and although it is a long distance to travel, has attended all 3 FLO MoMs at the FLO offices in Germany, since we became a full voting member and we have engaged and contributed to current international debate on FLO governance and the direction of Fairtrade labelling.
The FLANZ Certification Analyst has also attended this year an international Trade Audit meeting in Vienna, and we learnt that many of the Trade Audit issues that we are working on solutions for after 18 months of operations, are the same issues that the more established Labelling Initiatives are also grappling with.
As a result of this meeting, and previous board discussions, we are currently developing a proposal for a new Trade Audit system that audits traceability and licensees’ systems, primarily through external audit and inspections, that will replace the unpopular and onerous Flow of Goods reporting that attempts to track all flow of goods through the system. We hope to implement this system in the coming year.
Next year will continue to be exciting and challenging for Fairtrade Labelling. We expect the market to continue to grow and we will concentrate on consolidating and maintaining our internal systems to manage this growth. We aim to provide more business development services to licensees and continue to support the growth of the fair trade movement in order to provide increased benefits to the marginalised and disadvantaged producers of the products we consume everyday.
Steve Knapp, Director & Diana Gibson, Chair
See here for an accompanying presentation that provides an overview of the fair trade movement in Australia and around the world that locates Fairtrade Labelling ANZ and what it does.
The Fairtrade Label is a “seal of approval” that appears on products that meet internationally agreed Fairtrade standards and which guarantees to consumers that their purchases will benefit the producers, their families and the surrounding communities from the developing countries that they originate from.
The Fairtrade Certification and Labelling system is administered in Australia & New Zealand by Fairtrade Labelling Australia & New Zealand, a local not-for-profit organisation that is a full member of FLO e.V. internationally. Read more about Fairtrade Labelling ANZ here.
The Fairtrade guarantee to consumers is backed by a certification and trade audit system that applies to all companies in the supply chain up to the point of final packaging. This includes Fairtrade certified producers (who comply with Fairtrade standards), Fairtrade registered importers (who pay a Fairtrade premium, in addition to minimum prices, that supports social, economic and environmental development) and Fairtrade licensees (who a licensed to apply the Fairtrade label to packaged products and sell them in to the market).
Look for the Fairtrade label on products such as coffee, tea and chocolate (with more to come!) to ensure that the benefits really do go back to producers.
For details on the state of the Australian & New Zealand market, go here.
Fairtrade markets - global figures - as of March 2005
(source: www.fairtrade.net/sites/impact/facts.html)
There are 531 producer organzations certified by FLO, representing over one million of farmers and workers, coming from over 50 countries in Africa, Asia and Latin America. Including their dependents, five million people are affected.
667 registered traders, consisting of exporters, importers, processors and manufacturers, coming from 50 countries all over the world.
Between 2003 and 2004, Fairtrade labelled sales across the world grew by 56% to over 125,000 Metric Tones (MT), representing a fantastic growth.
Sales of certified Fairtrade products mean extra benefits for FLO certified producer organisations. The extra benefits for coffee farmers, for instance, during 2003, taking the World market price as defined for Arabica by the NY - and for Robusta by the London stock exchange compared with the Fairtrade minimum price and premium, amounts to over 22 million US$.
| General sales in Metric Tones (MT) by Fairtrade Labelling | ||
| 1997 | 25,972 | |
| 1998 | 28,913 | +11.3 % |
| 1999 | 33,495 | +15.8 % |
| 2000 | 39,750 | +18.7 % |
| 2001 | 48,506 | +22.0 % |
| 2002 | 58,813 | +21.2 % |
| 2003 | 80,633 | +42.0% |
| 2004 | 125,596 | +56.0% |
There are 2 main types of FAIRTRADE standards for developing country producers – for smallholder producer organisations and for hired labour situations. Fairtrade standards for smallholder producer organisations include requirements for democratic decision making, ensuring that producers have a say in how the Fairtrade premiums are invested. They also include requirements for capacity building and economic strengthening of the organisation. Fairtrade standards for hired labour situations ensure that workers receive decent wages and enjoy the freedom of join unions and bargain collectively. Fairtrade certified plantations must also ensure that there is no forced or child labour and that health and safety requirements are met. In a hired labour situation, Fairtrade standards require a “joint body” to be set up with representatives from both management and workers. This joint body decides on how Fairtrade premiums will be spent to benefit plantation workers.
For some products, such as coffee, only Fairtrade standards for smallholder organisations are applicable. For others, such as tea, both smallholder producers and plantations can be certified.
Depending on the product, there may also be specific environmental requirements to be met. As of July 2006, generic environmental standards will be applicable across all product categories.
Given the development focus of Fairtrade, FLO standards contain minimum requirements that all producer organisations must meet to become certified as well as progress requirements in which producers must demonstrate improvements over time.
Fairtrade standards now exist for a wide range of products from coffee, cocoa, tea, nuts and spices to fresh and dried fruits, wine, nuts and spices and sports balls.
For more information and to download Fairtrade standards, visit the FLO website http://www.fairtrade.net/sites/standards/general.html
Coming soon here will be more information on Fairtrade benefits to producers, including links to producer profiles and other information in the Producers & Impact section
Fairtrade benefits - global figures - as of March 2004
Sales of certified Fairtrade products mean extra benefits for FLO certified producer organisations. The extra benefits for coffee farmers, for instance, during 2002, taking the World market price as defined for Arabica by the NY and for Robusta by the London stock exchange, compared with the Fairtrade minimum price and premium, amounts to over 30 million US$.
Update 1 May 2008
Market highlights:
See the full figures here (pdf, 79kb)
Download our Fair Trade Fortnight 2008 press release on Fairtrade market performance (pdf, 144kb)
Summary
2007 was another successful year for Fairtrade labelling in Australia and New Zealand. More businesses and consumers continue to join with us to provide more sustainable development opportunities to farming and producer communities in Africa, Asia and Latin America.
The number of companies participating as Fairtrade licensed operators, Fairtrade importers, and, of course, in those companies retailing Fairtrade products to consumers continues to grow. The product range is also expanding. During the last 12 months, sales of Fairtrade cotton and sugar have commenced, and sales of sportsballs, quinoa, rice have slowly grown. Sales growth continues in coffee, tea, and chocolate products (bars, drinking chocolate, drinking cocoa).
Fairtrade Labelling ANZ is excited about opportunities to further expand and engage retailers, businesses and consumers in Australia and New Zealand in transforming the trade conditions, livelihoods and lives of developing country producers and their families throughout 2008. We pay special recognition to the hard work and commitment of our licensee, importer and retail partners who are investing more of their time and energy into increasing Fairtrade sales – leading to even more economic investment in the sustainable development of producer communities.
Detail
As at the start of April 2008, Fairtrade Labelling ANZ had 130 businesses licensed to sell Fairtrade products (30 New Zealand), including one coffee roaster in Hong Kong. This compares to 89 at the beginning of 2007. Companies with Fairtrade certified products from the UK and the US are also selling their products here, including Green & Blacks (chocolate, drinking chocolate, cocoa), Clipper Teas (coffee, tea), Hampstead Teas (tea, including herbal), La Siembra (drinking chocolate) and Alter Eco (coffee, tea, rice, sugar). A handful of businesses in both Australia and New Zealand are also purchasing clothing made from Fairtrade certified cotton via the UK.
The majority of licensed operators in ANZ continue to be engaged in trading Fairtrade coffee. There are 6 licensees for Fairtrade tea, 4 for chocolate, one for sportsballs, one for quinoa, and 7 for cotton.
A full list of licensees is available from our website: www.fairtrade.com.au/buyandsell.
The retail footprint of Fairtrade products has expanded further throughout 2007. Fairtrade products are now available in cafes, from local organic, health and grocery shops, online, by mail order, from national supermarket and retail chains, and of course from fair trade shops. Major supermarkets in Australia and New Zealand continue to expand the range of Fairtrade products on shelves with Fairtrade tea and coffee available from most stores – including some private label options. Fairtrade chocolate availability from mainstream stores is also increasing. The diversity of outlets making Fairtrade labelled products available is bringing Fairtrade to different consumer groups and helping to increase awareness amongst consumers as a whole.
A searchable database of where to buy Fairtrade goods is available here www.fairtrade.com.au/locator (can be accessed through the shortcuts link as well).
You can also find a list of major retailers that stock Fairtrade labelled products here www.fairtrade.com.au/MajorRetailers. These lists are always being updated as new information comes to us. If you are selling Fairtrade products and you are not on this list, or you believe there should be retailers listed that are not, go here to learn how to be listed in our database www.fairtrade.com.au/listindatabase.
Fairtrade Sales
Reviewing the retail sales figures for Fairtrade products in Australia and New Zealand is good news for producers as the ANZ market for Fairtrade products grows rapidly.
In addition to the points raised earlier:
Other information
What is the Fairtrade Label?
The Fairtrade Label is a “seal of approval” that appears on products that meet internationally agreed Fairtrade standards and which guarantees to consumers that their purchase of a particular product will benefit the producers, their families and the surrounding communities from the developing countries that they originate from. Consumers can be assured of the benefits flowing from their purchase of products bearing the Fairtrade Label because there is a monitoring and auditing system behind that label that applies to all participants in the supply chain of the product. This includes Fairtrade certified producers (who comply with Fairtrade standards), Fairtrade registered importers (who pay a Fairtrade premium, in addition to minimum prices, that supports social, economic and environmental development) and Fairtrade licensees (who a licensed to apply the Fairtrade label to packaged products and sell them in to the market).
Where can I buy Fairtrade products?
Coffee, tea, chocolate and drinking chocolate are the Fairtrade labeled products currently available in Australia and New Zealand. Fairtrade labeled products are available from a range of cafes and retail outlets, and also via mail order. You can seach for details on where and how you can buy fairtrade labeled products in the "Buy & Sell" section of our website!
Why purchase Fairtrade?
Fairtrade certified products in Australia and New Zealand guarantee to consumers that the producers in developing countries, for example cooperatives of smallholder farmers in the case of coffee, were paid a fair price and are being supported to improve their livelihoods. Behind the Fairtrade label on these products is a Fairtrade certification system based on a clear set of internationally agreed standards that are independently assessed and monitored to ensure that the benefits of Fairtrade are clear and transparent to consumers. Most importantly, Fairtrade provides benefits that allow producers to invest in their communities, organisations and production systems, leading to long-term developmental benefits. It provides a framework that enables empowerment of farmers and workers in the face of many challenges associated with global trade. For organisations, purchasing Fairtrade products such as coffee, tea, cocoa and chocolate – all available in Australia – provides a very easy way to contribute positively to poverty eradication and sustainable development efforts in the developing world. Its high quality and tastes great; is competitive on price; much of it is organic so you can address people’s health concerns; and it provides a wonderful tool in the office to educate people about global trade, justice and sustainable development issues. It’s also a great way to demonstrate your organisations commitment to corporate social responsibility.
Other Certification Systems and Labels
There are increasingly a number of social and environmental claims in the market place from FAIRTRADE and organic labels to Rainforest Alliance certified as well as corporate initiatives. While more product labels provide consumers with greater choice, the proliferation of certification and labelling systems can make it hard to distinguish credible certification and labelling from initiatives with lower standards.
What is the difference between certification and labelling?
Who runs social and environmental certification and labelling initiatives?
Are there other fair trade certification systems?
Are there other social certification systems?
What about environmental protection?
What is the Rainforest Alliance Certified Program?
What is the difference between fairtrade and organic?
What if I want to buy a product that is both fair trade and environmentally preferable?
How can I tell if a product label is credible?
Global Ecolabelling Network (GEN)
For a recent overview and comparison of coffee environmental and social certification systems, review the following article from the Sustainable Commodity Initiative, a partnership between UNCTAD and IISD: www.iisd.org/pdf/2004/sci_coffee_labelling.pdf
For another comparison, see Consumers International article, called "From Bean to Cup", online at www.consumersinternational.org/Templates/News.asp?NodeID=94997
What is the difference between certification and labelling?
Certification means that a given product or company has been checked by an independent third party for meeting a given set of standards. Many product-based certification systems will also use labelling as a tool to help consumers recognize products that meet certification standards. However, not all eco-labels are supported by credible certification systems.
Most social and environmental certification and labelling initiatives are voluntary programs that are run by non-state organisations, be they NGOs, industry players or multi-stakeholder platforms that ensure balanced participation from all interested parties. The governance structures vary dramatically between initiatives
Fairtrade is the only certification system that ensures that producers in developing countries are paid a fair price that covers the cost of production as well as a premium for social, environmental and economic investment in the local community. A unique feature of Fairtrade is its focus on development; the certification system is specifically designed to facilitate capacity building and empowerment of smallholder producers and disadvantaged workers in developing countries.
One of the emerging certification systems, mostly in Europe at this stage, is Utz Kapeh. Utz Kapeh and Fairtrade have worked together to produce a document that outlines the similarities and differences between the two systems and labels. You can download this comparison document here.
Yes. A number of social certification systems operate around the world mainly focusing on workers rights based on the International Labour Organisation conventions (ILO). Examples of such ethical codes include Social Accountability International and its SA8000 standard, the Clean Clothes Campaign and the Fair Labor Association. Most of these were developed for the footwear and apparel industry and the primary goal is to protect workers rights. While the actual code or standard used is very similar there are a number of differences in their verification rules and procedures.
These systems are generally used by brand name companies to monitor and improve the labour conditions of their supply chain partners. They are generally not used as an end consumer tool and therefore, rarely use product labels.
These systems can be complementary to the Fairtrade certification systems in that there is a common interest in ensuring workers rights. However, Fairtrade also has a developmental and capacity building focus and given this, the entry point into the system may be different from other systems. Fairtrade is also the only social system that includes an in-built mechanism to fund required improvements through the social premium. Given this developmental focus, a producer group could graduate from the Fairtrade system and move into a other social systems.
Some certification and labelling systems only address social justice issues in their standards while others only focus on environmental protection. A few initiatives cover both social and environmental protection. Fairtrade includes generic environmental standards that cover minimum environmental standards based on integrated pest management (IPM) with a view to building capacity in environmental protection over time. Certification standards with a stronger focus on environmental requirements include organic agriculture certification and the Rainforest Alliance Certified program.
The Rainforest Alliance Certified program is a certification and labelling program whose standards include requirements for ecosystem and wildlife conservation, waste management, water conservation, soil conservation, community relations as well as fair treatment and good conditions for workers, including compliance to key ILO conventions and national law. Standards are set by the Sustainable Agriculture Network, a group of environmental organizations in Latin America.
Unlike Fairtrade, there is no economic component to Rainforest Alliance standards so while compliance to minimum wages is required, the standards don't go beyond this to look at a fair price or living wages.
Unlike organic standards where synthetic agrochemicals are prohibited, in SAN standards there is a requirement for integrated crop management that includes a prohibition on certain types of agrochemicals, strict control of those allowed and a commitment to their reduction in use over time.
Read this article from Ethical Corporation on the competition between Fairtrade and Rainforest Alliance Certification for coffee, and also see this for an overview of environmental and social certification systems in coffee. Here is a UK Guardian article comparing RA and Fairtrade.
Consumers International has also put out an article, From Bean To Cup, exploring various coffee certifications.
Utz Kapeh is a growing coffee certification program, popular in Europe. It has not really made it to Australia or New Zealand yet.
A joint statement from Fairtrade and Utz Kapeh has been issued to show the differences between the two systems.
You can download it here (75kb, pdf).
What is the difference between fairtrade and organic?
Many Fairtrade certified products in Australia and New Zealand are also organically certified. The Fairtrade certification ensures Fairtrade criteria such as democratic decision making, decent working conditions and a fair price are met while organic certification is a guarantee that the environmental requirements of organic agriculture standards are met. While most people understand organic agriculture as the prohibition of synthetic agrochemicals, there are other key components including nature conservation by prohibiting the clearing of primary ecosystems, biodiversity preservation, soil and water conservation, no GMOs, crop diversity, soil fertility and biological activity among others. Organic certification standards generally do not cover social justice or fair trade issues in any detail.
Many Fairtrade certified producers use the Fairtrade premium to invest in environmental projects, including extension support for organic agriculture. In this way, they use Fairtrade as a capacity building tool to improve environmental performance and gain additional market certifications at the same time. 45% of Fairtrade certified producers are also certified organic and this trend seems to be growing.
What if I want to buy a product that is both fair trade and environmentally preferable?
Fairtrade standards do cover environmental requirements but if you want a stronger demonstration of environmental protection, then one way is to buy products that are certified both for social and for environmental issues. For example, there is a strong market for Fairtrade and organic certified products, such as coffee, tea and chocolate with 70% of Fairtrade sales worldwide also being organically certified. Fairtrade and Rainforest Alliance certified is also another possible combination.
A number of credible international certification systems are cooperating to make it easier for producers to gain access to multiple certifications and take advantage of this increasing market opportunity. Some of these activities are being coordinated by the ISEAL Alliance.
How can I tell if a product label is credible?
It can be difficult to tell if a product label is credible. Given that there are a number of different aspects to the credibility of a label, it is important to find out about a given label including getting answers to the following questions:
There are also a number of networks of certification initiatives working to ensure high quality and credible systems.
Global Ecolabelling Network (GEN)
In Australia, a new group has set up an information service on 'greenwashing' which reviews a range of initiatives and how they stack up to their claims. See the Eco-Shout's Greenwashing page here.
The ISEAL Alliance (International Social and Environmental Accreditation and Labelling Alliance) was formed in 1999 by leading international social and environmental systems to support members standards and verification systems to attain a high level of quality and to gain public credibility, political recognition and market success (ISEAL 2002). As an example, the ISEAL Alliance has developed a Code of Good Practice for Setting Social and Environmental Standards (link to ISEAL site on this) including requirements for transparency, due process, harmonisation and participation. All members will need to comply with this code in their own standard-setting activities.
The Fairtrade Labelling Organizations International (FLO) is a member of the ISEAL Alliance along with other members including:
For more information on the ISEAL Alliance, go to www.isealalliance.org
Global Ecolabelling Network (GEN)
An associate member of the ISEAL Alliance is the Global Ecolabelling Network (GEN) (www.gen.gr.jp ) GEN is a non-profit association of third-party, environmental performance labelling organisations founded in 1994 to improve, promote, and develop the "ecolabelling" of products and services. GEN member product standards are generally based on life cycle considerations. Products certified under these systems tend to be manufactured products such as photocopiers, printers, cleaning products. The Australian and New Zealand members of GEN are the Australian Environmental Labelling Association (AELA) with its Environmental Choice label (www.aela.org.au) and the Environmental Choice New Zealand (www.enviro-choice.org.nz)
Fairtrade Labelling Australia & New Zealand
**Note that as of 30 June 2008 all our Australian staff are located in our Melbourne office. The Canberra office is now closed**
Certification & Labelling Manager - Cameron Neil - see bio here
Contact Cameron for all queries on Fairtrade trade certification, licensee reporting requirements, producer and trader certification, Fairtrade certification policy or general queries on the Fairtrade certification system globally
Licensing and Labelling Officer - Audrey Jacometti
Contact Audrey for all queries on becoming a Fairtrade licensee, use of the Fairtrade Label, or general queries on the Fairtrade certification system in Australia and New Zealand
Certification Assistant - Jessica Morthorpe
T: +61 (0) 3 9662 2919
F: +61 (0) 3 9663 3482
P: Fairtrade Labelling ANZ, PO Box 306, FLINDERS LANE PO, VIC, 8009 Australia
If you have queries about becoming a registered trader in Australia or New Zealand, send an e-mail to registration@flo-cert.net.
For more information on who the different actors are in the Fairtrade system, and to learn how you or your company can buy and sell Fairtrade certified products, see the "Buy & Sell" section of our website.
There will be more information here soon about the web development company and our ISP.
For any queries on the site, direct them to web@fta.org.au.