Fair Trade and Fair Trade Honey

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2 [Fair Trade certification] adds value to our honey: it attests that the product from Piauí is a clean food, that it is pesticidefree, has quality and a fair price. Antonio Leopoldino Dantas, Casa Apis Fair Trade and Fair Trade Honey

3 Fair Trade and Honey Honey bees produce honey as a food source from the nectar of flowers and store it in wax honeycombs inside the beehive. Beekeepers encourage overproduction of honey in artificial hives; they semidomesticate the insects and are able to take the excess without endangering the bee colony. Honey has a long history of human consumption it has been hunted for at least 10,000 years across the Mediterranean, in Africa, the Middle East, and Mesoamerica. Fair Trade Certified honey in the U.S. has a much shorter but equally successful history. The first Fair Trade honey imports hit the U.S. in 2008 and sales have grown ever since. International Honey Market Although humans have been keeping bees for thousands of centuries, the practice has only recently been recognized as a viable and stable income opportunity in the global market place. The U.S. is one of the main import countries of honey. Because consumer demand by far exceeds domestic supply, nearly 70 percent of the honey consumed in the United States is imported. A large percentage of the honey imported to the U.S. comes from impoverished beekeepers in Latin America and Asia. In 2009, the top three countries of origin of honey imported to the U.S. were Brazil, Vietnam and Argentina. Most beekeeping families live in remote locations and have little or no access to market information. Many beekeepers are dependent on local middlemen to buy their honey. In this weak negotiating position, beekeepers often sell their honey at a fraction of their production costs. Beekeepers are often unable to afford land of their own, and are forced to rent small parcels of land where they can store their hives. Furthermore, the honey market is a highly cyclical market that does not provide security or reliability for beekeepers. In recent years, global overproduction pitted honey producers against one another to offer lower and lower prices. As producers responded and supply dropped, prices subsequently spiked to all time highs. Market experts are now expecting a steep price drop continuing that dramatically variable market cycle that makes it hard for family beekeepers to support their children. Fair Trade: A Sustainable Solution Fair Trade provides an alternative to help honey producers, traders and food manufacturers participate in long-term, stable relationships that support a dependable living for beekeepers and their families. The Fair Trade standards promote the economic development of small honey producers by encouraging beekeepers to organize themselves in democratic cooperatives or associations that ensure equal representation of all individual members. This enables the small producers to negotiate with international buyers directly, avoid middlemen and actively engage in price negotiations. The honey producers gain access to international markets and are empowered to build organizational capacity to compete in the global marketplace. Small-scale honey producers are guaranteed a minimum price to cover the costs of sustainable production for their Fair Trade sales, which is especially significant whenever the honey market price drops. This floor price is paid to the individual beekeepers and ensures that families benefit from a reliable minimum household income. In addition to the minimum price, buyers pay a Fair Trade premium. The cooperative receives the Fair Trade premium directly and the cooperative members vote on how to invest the money in their beehives, cooperative or communities. Many cooperatives invest premium money in community projects to improve health and education, create microcredit programs or improve producer productivity. Premium money is also often re-invested in the economic and environmental development of the members, and used for various trainings to ensure organic certification, business skills, or quality improvements.

4 Trade Impact BY THE NUMBERS Honey has been one of the fastest-growing categories in the U.S. Fair Trade market since its launch in Growth was steady in the first two years, but a market explosion is truly underway in With 266 percent growth to date in 2010 over mid-year figures from 2009, and 1 st semester 2010 volumes exceeding 2008 and 2009 imports combined, Fair Trade honey has arrived. The exponential growth of the sales of Fair Trade honey on the U.S. market directly translates to a growth in additional income through Fair Trade sales for the honey producers. Imports of Fair Trade Certified Honey to U.S., 1 st Semester 2010 As the use of honey extends beyond the food industry to the body care industry, this category is positioned to continue its solid growth. In the first two years, the majority of the Fair Trade honey imported to the U.S. came from Mexico. However, a few newly certified beekeeper cooperatives in Brazil have been able to secure their position in the U.S. Fair Trade honey market this year. In 2010, 57 percent of the Fair Trade honey in the U.S. came from Mexico, but Brazilian cooperatives accounted for 43 percent of the honey imports. 57% 43% BRAZIL MEXICO The Fair Trade honey market is focused on high quality honey all Fair Trade honey imported to the U.S. is also organic certified. Fair Trade Premium Paid to Beekeeper Cooperatives in Brazil and Mexico for Honey Sales to U.S., January 2008 to June 2010 Flor de Campanilla $1,501 Ch'ilan Kaabo'ob $5,206 UDEPOM CASA APIS COMAPI ARIC $6,459 $8,316 $13,944 $23, Miel Bajo el Volcán $27,632 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000

5 Fair Trade Impact BY THE NUMBERS Growth of Fair Trade Honey Sales Growth of Additional Income to Farmers With Fair Trade honey consumption and imports growing year over year in the U.S., the additional income paid to beekeepers has increased dramatically from January of 2008 until June of $100,000 $75,000 $50,000 $25,000 $86K+ PAID TO FARMERS SINCE 2008 $ Sem Honey Processing The first step in the honey processing is the removal of the honeycombs from the beehives, during which the beekeeper wears protective clothing consisting of a veiled helmet and protective gloves. Sometimes beekeepers use a beekeepers pipe to inject a puff of smoke into the beehive, which prompts the bees to gorge themselves on honey; this engorgement tranquilizes the bees and makes them less likely to sting when they leave the hive. The majority of the cells in the comb should be cupped; the beekeeper tests this by shaking it. If honey spurts out, the comb is reinserted into the honey chamber for several more days. The next step is the uncapping of the honeycombs, using a long-handled uncapping fork. Once the combs are uncapped, the honey can be extracted from the combs; for this purpose the honeycombs are inserted into an extractor. Through centrifugal force, the honey is drawn out; wax particles are removed. The honey is then taken to a processing facility, where it is heated to melt out the crystals and filtered. Pumped into jars or cans, the honey is then ready for shipment.

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7 ARIC (Productores Indígenas Serranos de Chiapas), Mexico PRODUCER SPOTLIGHT The cooperative ARIC (Productores Indígenas Serranos de Chiapas) was founded in 1991 and consists of 12 subgroups of honey and coffee producers. ARIC is located in the Sierra Madre District of Chiapas, Mexico. The region is marked by lush native forests, a beautiful mountain landscape and the poverty of its inhabitants. The many coffee and honey producers of the region are often unable to sustain their livelihoods and that of their families through the sales of their crops, but the region offers hardly any other employment opportunities. As a result, many coffee and honey producers are forced to leave the region or even emigrate in search of work and income. The lack of higher education makes it additionally difficult for the indigenous people of Chiapas to qualify for work outside of agricultural activities. Approximately 70 percent of the coffee and honey producers in the region have received only a primary education, and the remaining 30 percent of the inhabitants has never attended school. provides a warehouse and prepares the shipment of honey on behalf of its members. ARIC has especially profited from the Fair Trade requirement that cooperatives receive pre-financing for honey and coffee sold to overseas buyers. The cooperative, therefore, pays part of the price to members immediately, which is an incentive for members to sell to the cooperative rather than middlemen. Sales of honey and coffee have earned ARIC approximately $11,000 in premium money in Half of this money has been used to cover administration costs and certification costs on the level of the second grade association. The other half of the money was reinvested to increase the production volumes of the organization. With premium disbursements, the beekeepers have purchased brood chambers, wax, additional hives, and protective clothing. Increased productivity results in additional household income for each producer. In 1995 ARIC became a member of the Commission for the Development of the Indigenous Villages, which strengthened the organization and allowed it to benefit from the microcredit program run by the commission. The cooperative received Fair Trade certification for coffee and honey in 2006 and saw Fair Trade certification as an opportunity to further improve the situation of its members. ARIC hoped to gain better access to the international coffee and honey markets and to build sustainable long-term relationships with buyers in the U.S. and Europe. Both of these hopes have become reality, and these improvements have resulted in a more stable and reliable income for ARIC s members. Besides Fair Trade certification, ARIC also holds organic certification, which makes its products more attractive to overseas buyers. The members of ARIC own 90 to 150 beehives each, which matches the average in the region. These beehives are located in remote, thickly forested areas that are difficult to access. Most beekeepers travel by bus as far as possible and then walk through the forest to harvest their honey. They remove the honeycombs and transport them back to their houses where they fill 305 kilo containers provided by importers. The individual beekeepers then transport these containers to the cooperative and receive a receipt as evidence of the transfer of ownership. The cooperative

8 C A SA A PIS ABO UT THE CO O PERATIVE FLO ID Ye ar Founde d 2005 Ye ar Ce rtifie d 2009 N um be r of Me m be rs 910 Ce rtifie d Hone y P roduce rs 322 Structure 2nd Grade Certified Honey Produ 322 Structure

9 Casa Apis, Brazil PRODUCER SPOTLIGHT The umbrella organization Casa Apis unites several cooperatives in the northeastern Brazilian states Piaui and Ceara in the production of honey. This region is characterized by great economic and social problems such as poverty, high rates of infant mortality, hunger, low wages, and a high concentration of income and land. In this semi-arid region that is plagued by droughts, agriculture is still the main source of family income; the inability to sustain family livelihoods through agriculture causes many people to move to the overcrowded cities. Especially in the summer period, when the climate is particularly hot and dry, the population suffers. Several NGOs and local universities have identified beekeeping as an opportunity to improve quality of life in the states of Piaui and Ceara. is now able to sell Grade A honey to the U.S. Fair Trade market. Because Casa Apis has only recently started their Fair Trade sales, the member cooperatives have not yet invested their Fair Trade premium. However, they have already approved premium plans to paint and furnish the headquarters of the cooperatives and to construct dormitories for members to stay in when they travel long distances to deliver honey to the cooperative headquarters. The cooperatives met for the first time in 2003, at a meeting organized and funded by the Brazilian Ministry of Agriculture. The beekeepers of the region faced many difficulties at this time. Competition among the various cooperatives for the same market opportunities had decreased the value of the honey. Furthermore, the involvement of middlemen in the regional honey trade weakened cooperatives, as many producers chose to sell their honey to them at a low price in order to secure an immediate income. The production methods of the beekeepers were also not in line with the requirements of the Brazilian Ministry of Agriculture, which created another hurdle toward increasing honey incomes. The need to unify in order to improve conditions was apparent to all the cooperatives and after months of discussion, analysis, and the creation of a technology center, Casa Apis was founded in Eight cooperatives founded Casa Apis, since then another cooperative has joined the organization. Since its foundation, Casa Apis has showed continued improvement. The organization has trained a myriad of beekeepers and inspected their apiaries. In May 2008 the institution received the Seal of Federal (SIF) by the Ministry of Agriculture which certified that the honey is produced in line with government requirements. In March 2009 Casa Apis received its Fair Trade certification as well as organic certification. Four of the eight member cooperatives are covered by the Fair Trade certificate of the umbrella organization. Casa Apis

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11 COMAPI, Brazil PRODUCER SPOTLIGHT COMAPI is located not far from Casa Apis, in the northeast of Brazil, a semi-arid hilly region. The area is characterized by great economic and social problems such as poverty, high rates of infant mortality, hunger, low wages, and a high concentration of income and land. In this zone that is plagued by droughts, agriculture is still the main source of family income; however, the inability to sustain family livelihoods through agriculture causes many families to abandon their farms and move to the overcrowded cities. The COMAPI cooperative consists of ten different subgroups, spread out over 35 counties, and unites a total of 545 member families. Beekeeping as a form of income creation came to the region in 1989 and the cooperative was established in The cooperative is run democratically with each member family represented by one family member in the general assembly of COMAPI. The cooperative s mission is to improve the quality of the honey and ensure that the members can earn a sustainable livelihood through beekeeping. At the same time, the cooperative aims to improve the education of cooperative members and help them develop a heightened political consciousness. Outside of beekeeping, COMAPI has identified the breeding and sales of goats, sheep and chickens as a possible source of additional, diversified income. Certification Fee COMAPI returned the loan it had received from a supporting trader in Germany for the initial Fair Trade certification fees. Renovation of Processing Facilities The premium was invested in the renovation of the cooperative s processing facilities, which serve all beekeepers in the community starting during the next harvest season in January 2011.The renovation of the processing facilities and storage rooms was identified as the biggest priority in COMAPI hopes that these improvements will allow the cooperative to start selling its honey to the EU and supply greater amounts of honey to the U.S. COMAPI s honey is harvested from January to May, processed in the cooperative s own facilities, and exported from February to July. COMAPI has become Fair Trade certified very recently in March 2010 and now hopes to market its honey more effectively, increase its sales, and receive social premiums to implement improvement projects in its communities. COMAPI has received $13,944 of premium money in the first two quarters of With this initial additional Fair Trade income, the cooperative has been able to establish the following programs: Technical Assistance A consultant was hired for three months in order to visit the different communities and train the members on organic and Fair Trade certification.

12 Fair Trade and Fair Trade Standards A CLOSER LOOK To date, Fair Trade has helped almost 1.5 million families in 58 developing countries build more sustainable communities through wide-spread implementation of the Fair Trade Standards. Here's how. Fair Trade Principles We Guarantee a Fair Price Our unique commitment to fair prices and development premiums distinguishes the Fair Trade Certified label from other sustainability labels. Farmer groups are guaranteed a price that covers the cost of sustainable production, a premium for community-selected development projects and an additional price premium for certified organic crops. We Promote Access to Credit Buyers are required to offer commercial credit to farmers upon request, either directly or in collaboration with financial intermediaries. Access to timely credit on favorable terms allows farmer organizations to increase export capacity and improve product quality. We Require Democracy and Transparency Empowerment is an essential goal of Fair Trade. Small farmers form cooperatives that allow them to process and export their harvests competitively. Farmers are audited annually for transparency, democratic process and sound financial management. We Promote Environmental Sustainability Fair Trade standards require environmentally-sustainable farming methods that protect farmers health and preserve ecosystems. These standards strictly prohibit the use of GMOs and the most toxic agrochemicals, promote active conservation of soil and water resources and protect surrounding forests. More than half of all Fair Trade farms are certified organic. We Oppose Child Labor, Forced Labor, and Work-Place Discrimination Fair Trade farmers and workers can count on more than just better prices. They are guaranteed freedom of association and safe working conditions. Child labor, forced labor and discrimination are strictly prohibited by Fair Trade standards. If we find breaches of our standards, we will take immediate action to protect children and forced laborers and to ensure fair treatment for all on the farms and factories that carry the Fair Trade mark. We Support Community Development U.S. importers and manufacturers agree to pay Fair Trade premiums that allow farmers and farm workers to invest in community development projects. These projects from clean drinking water, scholarships and health care services to housing, reforestation and organic certification benefit entire towns and regions.

13 What is Fair Trade and Fair Trade certifiedtm? Fair Trade is a market-based model of international trade that benefits more than one million farmers and farm workers in 58 developing countries across Africa, Asia and Latin America. Fair Trade certification enables consumers to vote for a better world with their dollars, simply by looking for the Fair Trade Certified label on the products they buy. Fair Trade Certified agricultural products including coffee, tea and herbs, cocoa and chocolate, fresh fruit, sugar, rice, flowers, honey and spices are currently available at more than 50,000 retail establishments in the United States. Our Mission TransFair USA enables sustainable development and community empowerment by cultivating a more equitable global trade model that benefits farmers, workers, consumers, industry and the earth. We achieve our mission by certifying and promoting Fair Trade products. Fair Trade certification verifies and acknowledges the commitment of these producers to meet internationally recognized Fair Trade standards. What are the Fair Trade standards? The Fair Trade standards are the backbone to this system of farmer-led development. Both buyers and sellers of Fair Trade products agree to uphold a set of standards in order to create a more just method of trade that takes into account the triple bottom line economic, social and environmental gain. How does Fair Trade certification ensure that the products I buy are fair? Fair Trade producers undergo annual audits to demonstrate that they are implementing Fair Trade standards to ensure that the products consumers buy are traded in the most fair and just manner. Through adoption of Fair Trade standards, farmers strengthen their communities and take their products directly to global markets. In turn, these efforts support dramatic improvements in income and quality of life. Fair Trade USA 1500 Broadway Street, Suite 1500 Oakland, CA Tel: / Fax: