Rob Cameron
Position: Chief Executive
Organization: Fairtrade Labelling
Organizations (FLO) International
F: What is the difference between Fairtrade and fair
trade?
RC: 'Fairtrade' specifically describes
the certification and labelling system governed by Fairtrade
Labelling Organizations International (FLO). The broader term 'fair
trade' refers to the movement as a whole and encompasses other fair
trade organizations.
F: What is the scope of the market for ethical
products?
RC: The evidence suggests that the
public appetite for ethical products is extremely strong. Sales of
Fairtrade products have grown at an average of 40% over the past
five years, with an estimated retail value of 2.4 billion euros
(US$3.2 billion) in 2007. As a result, consumers are helping to
support over 1.5 million farmers and workers in over 60 countries
in the developing world. And when you include families and
dependents this is over 7.5 million people.
We expect this growth to continue as Fairtrade reaches new
markets, develops new labelled products and matures in relatively
young markets such as the United States and Japan. We also expect
the market to broaden in terms of the product range, the countries
in which Fairtrade operates and the countries in which Fairtrade
products are sold. South to south trade will also be a further
driver of growth.
F: How do you expect the global economic crisis to
impact on Fairtrade?
RC: Recent events have put us into
uncharted waters but so far indications are strong that Fairtrade
sales will be maintained. While the prospect of recession and
increasing prices of staple foods has attracted extensive media
coverage over the last nine months, Fairtrade sales have continued
to grow in our biggest markets. For example, in the United Kingdom
sales grew by 55% in the period April to June 2008, as compared to
the same time last year.
If recession sets in, the priorities for some consumers will
change, and of course this could slow growth. However, one of our
major strengths is the way the market has been built up over the
years and there is a core of hundreds of thousands of individuals
who have taken action to promote sales of Fairtrade products over
the last couple of decades. Recent research suggests that
consu-mers' commitment to ethically traded products remains strong.
For example, the Henley Centre's research 'Feeling the Pinch' shows
that consumers place 'stop buying fair trade and environmentally
sound products' at the bottom of a list of actions that they might
take in tightening economic environment.
Recessions hurt everyone, but one thing is for sure: in a global
slowdown, producers in the south will almost certainly be
proportionately disadvantaged further and will need all the help
that Fairtrade offers them.
F: To what extent does the Fairtrade Certification
Mark cover environmental sustainability?
RC: FLO strengthened its environmental
standards in 2006 so that Fairtrade-certified products would be
produced with better environmental performance. For example,
certified producers make environmental protection part of farm
management and are encouraged to minimize the use of nonrenewable
energy. In fact, we believe that Fairtrade environmental standards
are in a large part as strong as other schemes that are more
specifically environmentally focused. However, while we are
committed to promoting, encouraging and rewarding good
environmental practice, Fairtrade's aim is to support producers
that are most disadvantaged. We must avoid imposing overly onerous
environmental constraints that impede producers' access to the
Fairtrade market.
F: Elsewhere in this edition we've heard how the
number of 'competing' labels confuses consumers [see page 44]. What
is the relationship between the Fairtrade label and other
environmental and ethical labels?
RC: The growth in consumer interest
has stimulated the launch of several new certification schemes in
recent years, and also supported the growth of some existing
organizations. We welcome any positive effort to promote
sustainable agriculture that benefits farmers, workers and the
environment.
However, while we know that Fairtrade is not the only answer, we
see it as one of the stronger schemes. For example, to sell coffee
with the Fairtrade label, 100% of its contents must have been
sourced on Fairtrade terms; other schemes are less demanding.
Moreover, only Fairtrade ensures that producers are protected
through a price floor (Fairtrade Minimum Price) that covers the
cost of sustainable production and receive an extra Fairtrade
Premium.
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.
Consumer confusion continues to be a concern to us, which is why
we work so closely with other groups such as consumer
representatives and other NGOs and we support the work of bodies
such as ISEAL that are working to bring greater clarity into the
field.
F: Even within a Fairtrade label, consumers do not
feel assured that all of their ethical concerns are being
addressed. Is this a problem?
RC: Not so much a problem as an
opportunity to have even greater positive impact. In October, for
example, we published a new standard for flowers, which strengthens
the trading conditions within supply chains.
Flowers are one of FLO's most dynamic products and the industry
is an important export earner for certified producers in Colombia,
Ecuador, Egypt, Ethiopia, India, Kenya, Sri Lanka, Tanzania and
Zimbabwe. In response to campaigns and reports highlighting
extremely poor working conditions on some labour farms, we
introduced this new standard which, among other improvements, only
certifies farms that ensure safe and acceptable working conditions.
It's vital to us, and to the growth of the market, that consumers
can buy Fairtrade flowers knowing that workers are treated
fairly.
F: Are there plans for partnerships between FLO and
other labels?
RC: Yes, for example we are assessing
the feasibility of developing a common label for timber with the
Forestry Stewardship Council (FSC) and we are in regular
discussions with other complementary labels and schemes. We are
also exploring the possibility of working with other certifiers,
which could lower the inspection fees, logistics and administrative
workload for producer organizations.
F: African organic producers report prohibitive
costs of certification. How is FLO addressing this
concern?
RC: We are confident that the FLO
producer fee system is affordable and enables producers to
participate. To underpin this, we changed the original volume-based
fee system to a real cost-related fee system, which means the cost
is based on the number of working days required for inspection.
However, recognizing that some groups do face severe hardship,
FLO has a Producer Certification Fund for producers' organizations
that need help to pay certification fees. Applicants that comply
with Fairtrade standards, pass an initial scope-check, and where
there is a market for their products, can receive up to 75% of the
certification fee. During 2007, 74,000 euros (US$99,000) was
granted from the fund.
F:How can developing-country
exporters and their national leaders capitalize on developed
ethical trade markets?
RC: FLO works mostly with agricultural
producers looking to export. These agricultural commodities are
often their only source of revenue. By selling their produce on the
Fairtrade market, producers benefit from Fairtrade prices, which
provide them with financial security and cover their cost of
sustainable production.
By supporting producers to access Fairtrade certification, not
only do the local rural communities benefit, but they have the
opportunity to access new markets. Some governments, for instance
the Windward Islands in the Caribbean, formally support producers
to access certification. And many traders pay the certification
fees of the producer organizations they are buying from. This
represents a win-win as producers reap the financial and social
benefits and traders have access to a new growing market.
F: What do you see as the future for
Fairtrade?
RC: The growth of Fairtrade in recent
years means that we can now make a step change in the impact of our
work, and create and sustain enduring change in the way trade is
conducted.
We will broaden, deepen and strengthen our operations so that
more producers can benefit: We will broaden Fairtrade to enable
more producers and communities in more countries; we will deepen
Fairtrade to increase the value that each producer and producer
organization sees from their engagement with Fairtrade; we will
provide more support and business services. We will also strengthen
our organization so that we are more streamlined and cost effective
and that producers are better represented.
Fairtrade Labelling Organizations International (FLO) is a
non-profit, multistakeholder association involving 23 member
organizations worldwide. It develops and reviews Fairtrade
standards and provides support to Fairtrade Certified Producers by
assisting them in gaining and maintaining Fairtrade certification
and capitalizing on market opportunities.www.fairtrade.net