FAIRTRADE LABELLING ORGANISATION &
FAIRTRADE CERTIFIED HONEY

FLO STANDARDS - THE FAIR TRADE PROCESS EXPLAINED FOR PRODUCERS IN THE REGION
Pascasie Nyirandege, FLO, Rwanda/Uganda

FLO

• THE PRINCIPLES
• THE MISSION
• THE SYSTEM

Labelled Fairtrade: the basic principles

• The basis of FLO’s activities is Fair Trade, defined as:
• “a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South.”
• Central values: partnership, dialogue, transparency, accountability, respect,
  (gender-) equity, sustainability

FLO International

The Mission:

To enable development & empowerment of disadvantaged
producers & workers by:

a)  setting international FairTrade standards;

b)  certifying production and trade according to international
     FairTrade standards;

c)  developing FairTrade markets through national FT labeling
     organisations;

d)  providing producer support;

e)  promoting the FT-approach in debates on trade and
     development

National Initiatives (20)

Fair Trade Labelling System

FAIRTRADE STANDARDS

• DEFINED
• CATEGORIES

Defining Fairtrade Standards

Social Standards

• Small farmers / Hired labour
• Generic / Product specific
• Minimum requirements / Progress requirements

Economic / Trade Standards

• Generic (not for trade yet) / Product specific
• Minimum Price and FT-Premium
• Pre-financing
• Medium/long term commitment

Environmental Standards

• Generic / Product specific

FLO has different standards for three different Fairtrade situations

• Standards for small farmer organisations, who cultivate their land (Smallholder Standards)
• Standards for companies, which are dependent on hired workers (Hired Labour Standards)
• Standards for small and unorganised cotton or rice farmers, who cultivate their land or have some hired workers (Contract Production Standards)

Defining Fairtrade Standards

• Product specific standards:
  Bananas (HL), Cocoa, Coffee, Dried Fruit, Fresh Fruit (HL), Honey, Juices, Nuts and oil seeds, Quinoa, Rice, Herbs and spices, Sugar, Tea (HL), Wine (HL)
  Cotton, Flowers (HL), Sportsballs (HL)

Certification Process

FAIRTRADE CERTIFIED HONEY

• PARTNERS IN HONEY TRADE
• FAIRTRADE HONEY PRICE
• ORIGIN OF FT HONEY
• TRENDS

Partners in Honey trade

• 26 Certified producer organisations: 13 in Mexico, 4 in Chile, 5 in Guatemala, 2 in Nicaragua, 1 in Argentina,1 in Zambia
• 3 Registered exporters (1 in Chile and 1 in Mexico,1 Nicaragua)
• 29 Registered Traders: in the UK (6), Germany (6), Switzerland (4), France (4), Italy (4), Belgium (3), the Netherlands (1) and Japan (1).

FT Honey Price

• New FLO price since December 2005
• 1,800 USD/Mt min. price for A quality
• 1,650 USD/Mt min. price for B quality
• 150 USD/Mt Fairtrade premium
• 150 USD/Mt for organic certified honey

When Market Price > Fairtrade Min Price
FLO Min price= Market price + Fairtrade premium

FLO Honey import origins, 2003

Trends

• FT market: niche and stable
• Since 2002, high price situation
• August 2004, some price stabilisation with Chinese honey back into the market
• Origins most demanded: Mexico, Chile, Guatemala
• Main markets: Switzerland, Germany
• Sales as final product and to the industry.

Challenges

• Competition with domestically produced honey
• High quality standards required by law
• Trade barriers on exports (Africa)- EU list of authorised import countries
• Niche market
• Demand for non-organic Fairtrade honey
• For producer group: Producing enough quantity for export.

Opportunities

• Demand for organic fairtrade honey
• Markets with potential increase: France, Belgium, Italy, Scandinavian Countries
• Potential new markets: catering, cosmetic, industry.
  

A GROWTH IN FAIRTRADE LABELLED HONEY IN COMING YEARS IS EXPECTED

• FLO producer support network is planning to work on new projects that could help Fairtrade honey producers export the right quality for the European retail market.

More information available

• Email: info@fairtrade.net


• Web: http://www.fairtrade.net/sites/standards/standards.html


• Web: http://www.flo-cert. net


• Email: Certification@flo-cert.net
  

Contact Pascasie Nyirandege
PBU Liaison Officer for Uganda/Rwanda
FLO International
Bonner Talweg 177
53129 Bonn
Germany

  Download Pascasie Nyirandege's PowerPoint presentation here (748kb .pps file)