International Fairtrade in Central Asia Challenges and Opportunities The Global Fairtrade System Fairtrade International Aziz Rasulov NAPP FT Associate Officer
Who we are Vision and Mission Fairtrade worldwide Global Strategy Fairtrade International Internal Structure NAPP FAIRTRADE IN CA
The FAIRTRADE Certification Mark Means that producers and traders have met the Fairtrade Standards Supported by an independent, transparent and globally-consistent certification system (FLOCERT), accredited by ISO 65
Fairtrade Vision A world in which all producers can enjoy secure, sustainable livelihoods, fulfill their potential and decide on their future. Our Mission Connect disadvantaged producers and consumers, promote fairer trading conditions and empower producers to combat poverty, strengthen their position and take more control over their lives. Rice farmer Simon Rawles
Fairtrade core principles in line with Fairtrade Global Strategic Vision 2016-20120 Supporting small-farmers and workers to become empowered through strong organization Linking producers to markets, developing price and premium mechanisms, and making the case for companies to invest in fair, long lasting relationships Developing our grassroots social movements for change across the world More flexibility for producers in regions Rice farmer Simon Rawles
Fairtrade Worldwide
A little bit of Fairtrade history 1940s and 50s First fair trade initiatives in USA, then 60s /70s in Europe 1988 First ever Fairtrade label, Max Havelaar Early 1990s Various national Fairtrade organizations set up across Europe 1997 Fairtrade International (FLO) founded 2000s New member countries inc. AUSNZ, Spain, South Africa 2002 Introduction of the international FAIRTRADE Mark 2004 Founding of FLOCERT 2010 Common brand and identity 2012 New constitution more representation for producers
Fairtrade 2013 James A. Rodríguez James A. Rodríguez
Anette C. Kay Fairtrade 2013
How Fairtrade works Fairtrade Organization Fairtrade System Fairtrade Product Scope Fairtrade Standards
FLOCERT Fairtrade Organization Certification Fairtrade International 3 Producer Networks NAPP, FTA, CLAC Producer facing 19 National Fairtrade Organisations Market facing 5 Fairtrade Marketing Organisations Market facing
The Fairtrade System Certification FLOCERT Production Chain Producer Trader Licensee Distributor Consumer Fairtrade Services Fairtrade International Producer Networks National Fairtrade Organizations or GAM Fairtrade Marketing Organizations Producer support Standard / Price setting Licensing Promotion
Fairtrade Standards Scope Cane Sugar Fairtrade Standards for around 300 raw products Over 30,0000 Fairtrade labelled products on sale worldwide Oilseeds and Oleaginous Fruit Fresh Fruit Fresh Vegetables Flowers and Plants Hired Labour Seed Cotton Small Producers Organizations Nuts Herbs and herbal teas & Spices Prepared & Preserved Fruit (and Vegetables) Sports Balls Cereals Tea Cocoa Coffee Honey Fiber crops Gold Timber Price and Premium Table with over 1000 prices Contract Production Rice/Cotton in India Cotton/Dried Fruit in Pakistan Cocoa in Oceania Fairtrade 2013 13
Fairtrade Standards Key components: Fairtrade Minimum Price: a price floor to protect producers if market prices fall Fairtrade Premium: additional funds above the purchase price to invest in community needs or businesses. Democratic decision-making at the producer level Long-term, stable contracts with buyers Protection of the environment Adherence to core International Labour Organization conventions Core and development criteria producers mapping their own development Fairtrade 2011
Examples of successful market penetration Fairtrade 2011 Fairtrade International - an overview
Fairtrade Global Retail Sales 10 Years of Strong Growth 6 5,5 5 4,3 4,9 4,8 4 3 2,4 2,9 3,4 2 1 0,8 1,1 1,6 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Estimated sales in billions of euros
Fairtrade is unique in offering four important benefits Stable Prices For most products there is a Fairtrade Minimum Price that aims to cover the costs of sustainable production even when world market prices fall. Fairtrade Premium The Premium helps producers to improve the quality of their lives. It is paid on top of the agreed Fairtrade price, and producers decide democratically how to use it. Typically they invest it in education, healthcare, farm improvements or processing facilities to increase income. Partnership Producers are involved in decisions that affect their future. Fairtrade certified producers jointly own and manage Fairtrade International. Through the Fairtrade International's Board, its Committees and consultation processes producers can influence prices, premiums, standards and overall strategy. Empowerm ent of farmers and workers Small farmer groups must have a democratic structure and transparent administration in order to be certified. Workers must be allowed to have representatives on a committee that decides on the use of the Fairtrade Premium. Both groups are supported by Fairtrade International to develop their capacity in this area.
The Fairtrade Premium In addition to the price paid for the product, there is an additional sum of money, called the Fairtrade Premium, that farmers receive for products sold on Fairtrade terms. This money goes into a community fund for workers and farmers to use to improve their social, economic and environmental conditions.
PREMIUM USAGE? The use of this additional income is decided upon democratically by producers within the farmers organization. The Premium is invested in education and healthcare, farm improvements to increase yield and quality, or processing facilities to increase income..
PREMIUM USAGE
Strategic Framework Unlocking the Power of the Many 1. Unlocking the power of smallholder 2. Unlocking the power of workers World-class work with smallholders supporting them to build thriving businesses and communities Delivery of real change for workers implementing workers rights strategy and progressing towards living wages
3. Unlocking the power of companies and the grassroots social movement Strengthening the Fairtrade movement to increase producers sales, Building mature and developing new markets, Work with 100% Fair Trade Organizations, New ways of working in cotton, cocoa and sugar 4. Unlocking the power of the global Fairtrade system Strengthen the global Fairtrade system, Increasing the voice of producers, Working closely together to minimize costs and maximize impact
The approach (Environmental Strategy) People - Health No destruction of habitats No GMO Sustainable farms and farming GOOD AGRICULTURAL PRACTICES Sustainable region and ecosystem INCREASE BIODIVERSITY Additional contributions to the Planet CARBON and ENERGY
Network of Asia Pacific Producers- NAPP Fairtrade NAPP was established in 2005 and is a member of Fairtrade International It is a multi-stakeholder body comprising of representatives of producer organizations, premium committees, small farmer organizations and promoting bodies who are Fairtrade certified across the Asia Pacific region. All these producers share ownership of the Fairtrade system and have an equal voice in all decisions that affect them. As a Producer Network, NAPP ensures their collective voice is heard in the system. NAPP works to ensure that Asian and Pacific realities and conditions are taken into account while setting Fairtrade Standards without compromising on the basic principles of Fairtrade. NAPP acts as an official representative of Asian and Pacific producers within Fairtrade International Fairtrade 2011
NAPP Mission To facilitate the incorporation of more producers to be able to join the Fairtrade movement in Asia and the Pacific through an existing wide range of products and services Aim to strengthen the capacities of small producer and worker organizations, and support them to achieve sustainable development through fair trade. NAPP supports producers through on field associates by: o providing training in local languages o offering guidance on Fairtrade certification requirements o facilitating relationships with buyers and access to new markets o supporting producer involvement in consultations on Standards and Pricing o supporting networking and partnership development Fairtrade 2011
Regional Networks Fairtrade NAPP has established National Networks in Indonesia, China, Thailand, Vietnam, India, Sri Lanka, Pakistan and Central Asia Fairtrade 2011
NAPP is represented in Fairtrade International Board & Standards committee 50% VOTES LABELLING INITIATIVES 50% VOTES PRODUCER NETWORKS DELEGATES FROM EACH MEMBERSHIP GROUP Fairtrade 2011
Numbers of producers in NAPP zone NAPP at a Glance Country Num. Country Num. Afghanistan 0 Pakistan 8 China 14 Papua New Guinea 3 East Timor 1 Philippines 3 Fiji 3 Samoa 1 India 85 Sri Lanka 23 Indonesia 19 Tajikistan 2 Iran 1 Thailand 21 Kyrgyzstan 2 Tonga 1 Lao 1 Uzbekistan 3 Nepal 1 Vietnam 17 Kazakhstan 0 Turkmenistan 0 Total 209 Fairtrade 2011
SRI LANKA, CENTRAL ASIA AND PAKISTAN Sri Lanka, Central Asia and Pakistan HL 38 SPO 19, CP 1, 6 Applicants Main Products : Tea, spices. Cotton, fruits, vegetables Footballs Other Products :, Saffron, Cut foliage, Dry Fruit and nuts Main Market : Europe, (Netherlands), UK, US
Fairtrade 2011
82% of Fairtrade Premium was received by producers in Indonesia, India, Fiji, Papua New Guinea and China. 11% of global Fairtrade Premium revenues were received by producer organizations in Asia and Pacific during 2012 13.
Fairtrade 2011 While workers in plantations and sports ball factories in Asia and Pacific account for 49% of all workers in the Fairtrade system, only 12% of the global Fairtrade Premium flows to these organizations.
Fairtrade in Central Asia UZBEKISTAN KYRGYZSTAN 2 3 TAJIKISTAN 3
EXPANSION OF FAIRTRADE IN CENTRAL ASIA 2016 KYRGYZSTAN TAJIKISTAN UZBEKISTAN 0,23 % 0,46 % 0,01 % ARABLE LAND- 1,4 Mln ha FAIRTRADE 3315,4 ha ARABLE LAND- 0,8 Mln ha FAIRTRADE 3692,6 ha ARABLE LAND- 4,4 Mln ha FAIRTRADE 555,1 ha
Challenges in Central Asia CHALLENGES Low sale of FT products, MARKETS! Organisation: weak member participation, leadership skill, and management; transparency Dependence from Traders/decision making less Less of women participation Procedures and practices of Fairtrade, Flo-cert
Opportunities in Central Asia Asia 6 Expectation to grow 2008-2016 5 NUMBERS OF SPO 4 3 2 1 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 YEARS Kyrgyzstan Uzbekistan Tajikistan
Opportunities in Central Asia OPPORTUNITIES Access to information about Fairtrade Business orientation/new markets Consulting provided/napp Associate is available in region Fundraising/Donors/Cooperation Training for SPO ISO 9001, Certification for Organic Regional Network of Producers in CA
REGIONAL WORKSHOPS 2015 KYRGYZSTAN Fairtrade Conference in Central Asia, 2012 KYRGYZSTAN Organic cotton and products in Jalal-Abad October 24, 2015 TAJIKISTAN Challenges and opportunities of promoting Fairtrade principles in Central Asia July 27-29, 2015
Mimundo.org Producer networks now have equal voting rights in Fairtrade s highest decision-making body, the General Assembly.
New established Regional Network of Producers in Central Asia
IMPROVINNG POWER OF SMALLHOLDER FARMERS IN MARKET WOMEN S ECONOMIC EMPOWERMENT PLAN HIGHLIGHTS 2016 SUSTAINABLE WORK OF REGIONAL PRODUCER S NETWORK IN CENTRAL ASIA DISEASTER RISK MANAGEMNT CLIMATE CHANGE ADAPTATION TO CLIMATE CHANGE TO DEVELOP SUSTAINABLE SUPPLY CHAIN LINK TO TRADERS WORK WITH TRADERS Compliance to commitment
Thank you for Attention!