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Business Aspects

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Business news, practical advice, tools, resources and encouragement to help those involved in Fair Trade business succeed.

Fairtrade America Names First CEO – Hans Theyer

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Fairtrade America, the new organization representing the Fairtrade International (FLO) system in the U.S., today announced the appointment of Hans P. Theyer as its executive director. Prior to joining Fairtrade America, Hans helped create and run a consulting practice specializing in developing social impact strategies for businesses. He previously served as Executive Director of Agros International, a non-profit organization dedicated to rural poverty alleviation throughout Central America and Mexico. Hans was a leader in Microsoft’s Rural Computing effort, an initiative to empower emerging markets throughout the rural, developing world with access to information and communications technology.

Originally from Chile, Hans holds a Masters in Business Administration (MBA) degree from London Business School. He has nearly 20 years of experience in business including sales, marketing and business development positions with Microsoft and leading international banking institutions.

More at Fairtrade America post

Small Producer Symbol Shares New Developments

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The Small Producer Symbol (SPP), a certification and labeling system created and run by small Fair Trade producers in Latin America, reports that now 33 small producer organizations are certified under the system and another 16 are in process of getting certified. 11 others have applied for certification.

Also, a new Canadian importer, N. J. Douek & Sons, has joined the list of registered companies and a German buyer is in process of registration.

The system welcomed its sixth certification body, the Colombian certifier Biotrópico. Fair Trade pioneer Equal Exchange recently made its SPP coffee purchases public, which will enable Equal Exchange to launch eight Latin American coffees under the SPP in the course of 2013.

More at Small Producer Symbol

New Book Examines Direction, Messages & Tensions in Fair Trade

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“Fair Trade, Sustainability and Social Change”, by Ian Hudson, Mark Hudson and Mara Fridell, should be required reading for anyone interested in the strategic direction, challenges and opportunities of Fair Trade and its social movement. Only once every 5-10 years does such a thoughtful book come out about the big picture and major issues in Fair Trade. Although a bit academic at times for the lay reader, the authors present in accessible style critical topics like the pros & cons of various ways actors message about Fair Trade, how Fair Trade compares to other sustainability certifications, and tensions arising as Fair Trade engages large corporations.

More at FTRN review of “Fair Trade, Sustainability and Social Change”

Africa Cotton Producers Form New Cotton Network Within Fairtrade Africa

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(Note – this post was corrected on 4-22-13 to report that the new cotton network operates within Fairtrade Africa, not as a 4th regional producer network in the FLO system)

A new producer network, within Fairtrade Africa, has been created by cotton producers from Benin, Burkina Faso, Mali and Senegal. They met in Dakar to set up a network which will represent the voice of cotton farmers in the Fairtrade system.

Currently cotton producers in Africa are already being represented by AproCar, the African Cotton Producer Association. The new network will partner with the existing organization, complementing rather than duplicating its efforts to uplift the situation of African cotton farmers.

More at Fairtrade Africa post

Hershey to Source Some Fair Trade Cocoa – “Raise the Bar, Hershey!” Campaign Has Advocated for Years

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When Hershey announced in October 2012 that it would source only certified cocoa by 2020, the company remained vague on which certifications, and on their timeline/benchmarks for achieving this. Now Hershey has published an update, which mentions: “Hershey has already committed to source cocoa through three of the world’s most recognized cocoa certifying organizations: UTZ, Fair Trade USA and Rainforest Alliance.”

The update also states that: “The company has committed to scaling its certified cocoa purchases at the following rate:

  • At least 10 percent by the end of 2013
  • 40 to 50 percent by the end of 2016
  • 100 percent by 2020″

“Raise the Bar, Hershey!” campaign partner Global Exchange blog update

The Hershey Company official update

Fair World Project post

FTF Conference Coming May 1-3 in Raleigh

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Fair Trade Federation is hosting its annual conference in Raleigh, NC, May 1-3. Attendees can engage in Fair Trade business & wholesale products, or simply learn more. Special student pricing & comped tickets for media!

The gathering offers:

• Networking with other Fair Trade stakeholders
• Sessions and workshops featuring expert speakers focused on building Fair Trade businesses and the movement as a whole
• Delicious Fair Trade snacks
• Expanded Fair Trade Expo– an opportunity for wholesalers to display products and connect with retailers

More information at FTF Conference

First-Ever Fair Trade Certification for Wild-Collected Cocoa

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Through the Fair Wild Certification program, the first-ever Fair Trade certification was given for wild-collected cocoa in November 2012. Most cocoa, including Fair Trade cocoa, is farmed rather than wild-collected. The Yuracaré indigenous people of the Amazon basin in Bolivia formed an association, Yuracaré Forest Cocoa Gatherers Association (ARCASY), and partnered with Rainforest Exquisite Products S.A. (REPSA), a Bolivian company that specializes in the sustainable production and commercialization of non-wood forest products, to pursue certification. Around 150 collectors / harvesters currently make up ARCASY.

More at BTC post

Labor Group ILRF Says Theo Chocolate & IMO “Fair for Life” Destroy U.S. Worker Rights; IMO & Theo Reject Allegations

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On February 11, 2013 the International Labor Rights Forum (ILRF) released a report on alleged U.S. labor rights violations by Theo Chocolate and IMO, the “Fair For Life” certification body of Theo’s Fair Trade recognition. IMO does not accept the report findings and conclusions. Theo also declares the accusations false.

The ILRF report states that “IMO violates consumer trust, changes code to accommodate companies’ interference with worker organizing…  and neglects to intervene to uphold its commitment to fair trade standards.” The report states that Theo “hired an anti-union consultant and was violating the international labor standards promoted by “Fair for Life” during a union organizing campaign. When Theo workers decided to join the Teamsters, management responded with hostility, intimidation and retaliation including threatening to close the company if workers formed a union, harassing union supporters, driving several workers to leave the company, and firing at least one union supporter.”

See ILRF report

See IMO response

See Theo response

Added 4-18-13: Triple  Pundit Investigates ILRF & Theo Issues

Trade Policy Campaign Opposes Trans-Pacific Partnership & Fast Tracking

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The Citizens Trade Campaign invites people to join its initiative to oppose the TPP and fast tracking:

In his State of the Union speech, President Obama claimed that the Trans-Pacific Partnership will “boost American exports, support Americans jobs and level the playing field.” Please take action now to let Congress know you don’t buy it.

The legacy of trade pacts on which the TPP is modeled has clearly been one of job destruction, not job creation.

Since the Korea-US Free Trade Agreement was implemented during President Obama’s first term, our bilateral trade deficit is up and U.S. exports to South Korea are down.  Before that, China’s entry into the World Trade Organization caused our deficit with that country to skyrocket.  And before that, the North American Free Trade Agreement (NAFTA) converted a U.S. trade surplus with Mexico into a large trade deficit.

All this means the loss of livelihood for hard-working American families and an increase in sweatshop working conditions throughout the globe. There is zero evidence that the Office of U.S. Trade Representative has taken these lessons to heart.  Instead, leaked texts suggest that the TPP will become a “NAFTA on steroids.”

Congress should not delegate away its constitutional authority to ensure trade agreements work for most Americans.  It must oppose Fast Tracking the TPP.  Instead, Congress should set mandatory trade negotiating requirements that protect fundamental labor rights; eliminate “investor-state” offshoring incentives; maintain “Buy American” government procurement policies; safeguard against currency manipulation; and include strong Rules of Origin.

TAKE ACTION: Please send a message to Congress now urging them to oppose fast tracking the TPP.  Once you’ve done that, consider writing a Letter to the Editor to your local newspaper to make your views even further heard.

IMO “Fair for Life” Certification Planning Minor Revision to Program with Stakeholder Consultation

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IMO announced the upcoming minor revision of its Fair for Life Program in 2013 by the Bio-Foundation:

The scope of this revision will be Module 1 (Labelling and Control Requirements) and Module 4 (Handling Operations) only, as implementation of the programme in by now over 180 operations worldwide has indicated several technical aspects that need to be further clarified or strengthened for effective implementation of the programme and its objectives.

In mid March 2013 stakeholders will be formally invited to a public stakeholder consultation of the proposed revised standard documents.

-       First round of consultation Mid March to End of April (45 days)

-       Second round of consultation of 2nd drafts June to Mid July  (45 days)

-       Final standard to be ready by Oct. 2013

FFL revision 2013   PROPOSED ISSUES TO BE REVIEWED AND REVISED

Control & Labelling Requirements (Module 1)

  • For Life logo indications and labelling requirements; additional Fair for life logo version negative print ; slight modifications to logo versions and compulsory indications on product labels
  • Procedures for Fair for Life brand holders (incl. exceptions)
  • Audit procedures: update after review against GSCP methodology
  • Grievance and public complaints procedures
  • Fair for Life Rating publication on the Fair for life website (compulsory, or at least compulsory minimum information statement to be published)
  • Annex 2 list of equivalent schemes
  • Annex 3-5 Composition rules for multi-ingredient products (improve clarity; consistency with compulsory labelling indications in main part of Module 1)

Fair for Life Handler (Module 4)

  • Updated guidance on procedures and necessary information in case of purchase from other fair trade schemes
  • Review handler criteria, as some are very difficult to verify

Review chapter on social responsibility and permitted proofs of decent labour practices, including the IMO verification of responsible labour practices option.

More at Fair for Life