© Fairtrade 2010

The Global Fairtrade System

Fairtrade International

InternationalFairtrade in Central Asia Challenges and Opportunities

Aziz RasulovNAPP FT Associate Officer

Who we areVision and MissionFairtrade worldwideGlobal StrategyFairtrade InternationalInternal StructureNAPPFAIRTRADE IN CA

© Fairtrade 2010

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 2010

FairtradeVision

A world in which all producerscan enjoy secure, sustainablelivelihoods, fulfill their potential and decide on their future.

Connect disadvantaged producersand consumers, promote fairer trading conditions and empowerproducers to combat poverty, strengthen their position and takemore control over their lives.

Our MissionRice farmer ©Simon Rawles

© Fairtrade 2010

Fairtrade core principles in line with Fairtrade Global Strategic Vision 2016-20120

Rice farmer ©Simon Rawles

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 worldMore flexibility for producers in regions

© Fairtrade 2010

Fairtrade Worldwide

© Fairtrade 2010

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

© Fairtrade 2013© Anette C. Kay

How Fairtrade works

• Fairtrade Organization• Fairtrade System • Fairtrade Product Scope• Fairtrade Standards

© Fairtrade 2010

© Fairtrade 2010

Fairtrade International

3 Producer Networks

NAPP, FTA, CLAC

Producer facing

19 National Fairtrade

Organisations

Market facing

5 FairtradeMarketing

Organisations

Market facing

Fairtrade Organization

FLOCERT

Certification

© Fairtrade 2010

Producer Trader Licensee Distributor Consumer

FairtradeInternational

FLOCERT

National Fairtrade Organizations or GAM

Fairtrade Services

Certification

Production Chain

• Producer support• Standard / Price setting

• Licensing• Promotion

The Fairtrade System

Producer Networks

Fairtrade Marketing Organizations

© Fairtrade 2013 13

Fairtrade Standards Scope

CoffeeHerbs andherbal teas& Spices

CocoaNuts

Cereals

Oilseeds and Oleaginous

Fruit

Flowers and Plants

Fresh Fruit

Tea

Seed Cotton

FreshVegetables

Prepared & PreservedFruit (and

Vegetables)

HoneyCane Sugar

Small Producers‘ Organizations

Hired Labour Sports Balls

Price andPremium Table withover 1000 prices

ContractProduction

Rice/Cotton in India

Cotton/Dried Fruit in Pakistan

Cocoa in Oceania

GoldTimber

Fiber crops

Fairtrade Standards for around 300 raw productsOver 30,0000 Fairtrade labelled products on sale

worldwide

© Fairtrade 2011

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

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Examples of successful market penetration

Fairtrade International - an overview

© Fairtrade 2010

Fairtrade Global Retail Sales – 10 Years of Strong Growth

€0,8 €1,1

€1,6

€2,4

€2,9

€3,4

€4,3

€4,9 €4,8

€5,5

0

1

2

3

4

5

6

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Estimated sales in billions of euros

© Fairtrade 2010

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.

Empowerment 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.

© Fairtrade 2010

The Fairtrade PremiumIn 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.

© Fairtrade 2010

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.

.

© Fairtrade 2010

PREMIUM USAGE

© Fairtrade 2010

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

Strategic Framework “Unlocking the Power of the Many”

© Fairtrade 2010

3. Unlocking the power of companies and the grassroots social movement

4. Unlocking the power of the global Fairtrade system

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

Strengthen the global Fairtrade system,Increasing the voice of producers,

Working closely together to minimize costs and maximize impact

© Fairtrade 2010

Sustainable farms and farming

GOOD AGRICULTURAL PRACTICES

People - Health

No destruction of habitats

No GMO

Sustainable region and ecosystem

INCREASE BIODIVERSITY

Additional contributions to the Planet

CARBON and ENERGY

The approach (Environmental Strategy)

© Fairtrade 2011

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 MissionTo 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 Networksin Indonesia, China, Thailand, Vietnam, India, Sri

Lanka, Pakistan and Central Asia

© Fairtrade 2011

NAPP is represented in Fairtrade International Board & Standards committee

DELEGATES FROM EACH MEMBERSHIP GROUP

50% VOTES PRODUCER NETWORKS

50% VOTES LABELLING INITIATIVES

© Fairtrade 2011

NAPP at a Glance Country Num. Country Num.

Afghanistan 0 Pakistan 8

China 14Papua New

Guinea 3East Timor 1 Philippines 3

Fiji 3 Samoa 1India 85 Sri Lanka 23

Indonesia 19 Tajikistan 2Iran 1 Thailand 21

Kyrgyzstan 2 Tonga 1Lao 1 Uzbekistan 3

Nepal 1 Vietnam 17Kazakhstan 0 Turkmenistan 0

Total 209

Numbers of producers in NAPP zone

© Fairtrade 2010

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

SRI LANKA, CENTRAL ASIA AND PAKISTAN

© Fairtrade 2011

© Fairtrade 2010

11% of global Fairtrade Premium revenues were received by producer organizations in Asia and Pacific during 2012–13.

82% of Fairtrade Premium was received by producers in Indonesia, India, Fiji, Papua New Guinea and China.

© 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.

UZBEKISTAN

3KYRGYZSTAN

2TAJIKISTAN

3

Fairtrade in Central Asia

EXPANSION OF FAIRTRADE IN CENTRAL ASIA 2016

0,46 %

TAJIKISTAN

0,23 %

KYRGYZSTAN

0,01 %

UZBEKISTAN

ARABLE LAND- 1,4 Mln haFAIRTRADE – 3315,4 ha

ARABLE LAND- 0,8 Mln haFAIRTRADE – 3692,6 ha

ARABLE LAND- 4,4 Mln haFAIRTRADE – 555,1 ha

© Fairtrade 2010

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

0

1

2

3

4

5

6

2008 2009 2010 2011 2012 2013 2014 2015 2016

NU

MB

ERS

OF

SPO

YEARS

Expectation to grow 2008-2016

Kyrgyzstan Uzbekistan Tajikistan

Opportunities in Central Asia Asia

© Fairtrade 2010

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

© Fairtrade 2010

Producer networks now

have equal voting rights

in Fairtrade’s highest

decision-making body,

the General Assembly.

© Mimundo.org

New established Regional Network of Producers in Central Asia

© Fairtrade 2010

PLAN HIGHLIGHTS 2016

IMPROVINNG POWER OF

SMALLHOLDER FARMERS IN

MARKET

WOMEN’S ECONOMIC

EMPOWERMENT

SUSTAINABLE WORK OF REGIONAL

PRODUCER’S NETWORK IN

CENTRAL ASIA

CLIMATE CHANGE ADAPTATION TO

CLIMATE CHANGE

DISEASTER RISK MANAGEMNT

TO DEVELOP SUSTAINABLE

SUPPLY CHAIN LINK TO TRADERS WORK

WITH TRADERS

Compliance to commitment

© Fairtrade 2010

Thank you for Attention !