Guide to Fair Trade Labels V0002

GUIDE TO

FAIR TRADE LABELS

A STUDY COMPARING THE VARIOUS ETHICAL LABELS

Edition 2011

Fair Trade Label Guide 2011 Page 1

The Authors:

Maryne Dupuis Maurin, Virginie Fayolle, Suzanne Guillemot, Eugénie Malandin, Julie Stoll

Translated by Alistair Leadbetter on behalf of the European Fair Trade Association [EFTA] who paid for the translation. Any comments regarding the translation can be emailed to alistairl@traidcraft.co.uk

It should be noted that this translation has not been approved by the PFCE and should not be widely circulated or distributed

Fair Trade Label Guide 2011 Page 2 Thank You!

PFCE would like to thank all those people that have contributed to the completion of this labels guide, especially to those who reviewed the documentation for the various schemes:

• Linda Besigiroha, for 4C

• Olivier Cabrera, for Fairtrade Max Havelaar

• Albertine de Lange, for UTZ CERTIFIED

• Gilles Degroote, for Rainforest Alliance

• Gérald Godreuil and Joris Jansen , for WFTO

• Anne Hessenland, for Naturland

• Wolfgang Kathe, for Fair for Life

• Markus Kunz and Christa Suter and Pander Tschanennen , for bioRé®

• Laurent Lefebvre, for ECOCERT Equitable

• Bryony Morgan and Heiko Schindler, for Fair Wild

• Guillaume Picchiottino and Claudie Ravel, for Forest Garden Products

• Marie Requin, for Main dans la Main

• Paul Zuiderbeek, for UTZ CERTIFIED

Finally, this guide was made possible through the support of:

• Ministère des Affaires Etrangères et Européennes

• Agence Française de Développemen t

• Ministère de l’Ecologie, du Développement Durable, d u Transport et du Logement

Fair Trade Label Guide 2011 Page 3

Table of Contents

Preface ...... 5 Introduction ...... 6 Methodology ...... 8 Summary of Label Features ...... 11 Ecocert Equitable ...... 12 Fair for Life ...... 21 FairTrade Max Havelaar ...... 27 FairWild ...... 37 Forest Garden Products ...... 43 Main dans la Main ...... 50 Naturland Fair ...... 56 World Fair Trade Organisation ...... 63 Common Code for Coffee Community [4C] ...... 71 bioRé® ...... 76 Rainforest Alliance ...... 81 UTZ Certified ...... 86 Conclusion ...... 90 GLOSSARY...... 92

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Preface The Platform for Fair Trade (PFCE) is the leading French collective of organizations working to promote fair trade. In place of dialogue between actors and their institutional representatives, the PFCE has worked with the development sector to promote North / South relations that are fairer and more balanced.

In this context, the PFCE has gained several years expertise in the analysis of fair trade certification systems. The development of fair trade labels and business ethics reflects the first steps of many companies towards best practice and the desire of consumers to make sense of their purchases by opting for more responsible consumption practices. However, the proliferation of ethical or fair labels and brands does not always make it easy to understand the different approaches.

The creation of the National Fair Trade Commission (CNCE) in 2010 reflects the desire of the French authorities to regulate the fair trade sector in order to defend the credibility of the most demanding systems. However, to date, any type of approach can still claim be fair trade, with very different levels of commitment and guarantees to consumers.

Thus, this guide analyses the content of the labels that overtly claim to be fair trade, and also compares these with other approaches to ethical trade that are more or less similar and sometimes confused with fair trade.

This work aims to answer questions from consumers and their representative associations, from government agencies charged with promoting systems of responsible production and consumption and from companies wishing to engage with these approaches to fairness. More generally, it is intended to inform all civil society stakeholders that have worked with the development sector for many years.

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Introduction Definitions of Fair Trade Fair trade is a comprehensive approach, combining commitments toward economic, social, environmental development and the capacity building of producers as well as the related dimensions of education and advocacy* 1 for the implementation of trade based development. According to its most widely accepted definition, fair trade is:

"Fair trade is 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. Fair trade organisations, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade" [FINE*]

In France, the agreement AFNor* X50-340, published in January 2006, also serves as a reference. It aims to "structure existing practices by providing assurances to consumers." The agreement was signed by 51 organisations but has no normative value and is only a moral obligation to its signatories.

It describes the three pillars of fair trade:

1. The commercial dimension, with assistance in strengthening financial, technical and operational organisations of producers in the South; 2. The educational dimension, through information and the awareness-raising of the citizens of Northern and Southern partners; 3. The political dimension, through a commitment to greater justice in international trade rules.

1 The terms marked with an asterisk are defined in the glossary

Fair Trade Label Guide 2011 Page 6 Legal Obligations Article 60 of the Act of August 2, 2005 on SMEs is the first piece of legislation that defines fair trade. It also announced the creation of a framework for recognizing fair trade with the creation of the National Trade Fair Commission (Commission Nationale du Commerce Equitable or CNCE):

I. Fair trade is part of the national strategy for sustainable development. II. Within the activities of trade, crafts and services, fair trade organises the exchange of goods and services between developed countries and disadvantaged producers in developing countries. This trade aims to establish lasting relationships in order to ensure the economic and social progress of these producers. III. The people or organisations that ensure compliance with the conditions defined above are recognised by a commission whose composition, powers and criteria for recognition of the aforementioned people or organisations are defined by decree by the Council of State.

Decree No. 2007-986 of 15 May 2007 defines the methods for the establishment of the National Fair Trade Commission (CNCE). It is "responsible for granting recognition to people who ensure compliance by organisations claiming their participation in trade in goods and services within the scope of fair trade, the conditions mentioned in Article 60 of the aforementioned law."

The CNCE was officially established on April 22, 2010 by the Secretary of State for Trade, Crafts, SMEs, Tourism and Consumer Affairs and the Secretary of State for Ecology.

To be recognized by the CNCE, applicants must meet the requirements of a standard* whose writing was entrusted to a working group made up of certifiers, representatives of fair trade, government officials, of consumer groups and international development organisations. The working group have developed a standard to respond to the demands of the six criteria of Decree No. 2007-986 dated 15 May 2007:

"To recognize individuals or entities that ensure compliance with fair trade conditions, the commission is based on the following criteria:

I. - Objective: The person or entity's objective, in accordance with the principles of sustainable development, is to enable disadvantaged producers in developing countries to improve their living conditions, and producer organisations to strengthen their capacity for action and negotiation regarding markets and governments.

II. - Independence: the person or entity applying for recognition in ensuring compliance with fair trade conditions, does not participate in any activities associated with the production, processing or distribution of fair trade products or services. The activities of the person or entity applying for recognition will include information campaigns and public awareness-raising related to issues of fair trade.

III. - Transparency: the person or entity applying for recognition will make available to anyone who so requests all information relating to its operation, particularly concerning the control procedures and decision-making following the the fair trade audits and assessments.

IV. - Presence among producers in developing countries: the person or entity shall ensure the existence of a system of effective monitoring of compliance of conditions of fair trade, including in countries where producers are located. This check relates to the structure of the organisation of producers, on its democratic and transparent management of the revenues generated by fair trade, in order to achieve the economic, social and environmental development objectives.

Fair Trade Label Guide 2011 Page 7 V. - Checks on importers: the person or entity shall ensure compliance by importers of minimum requirements regarding the purchase price, the continuity of orders and their pre-financing.

VI. - Support and advocacy: the person or entity shall ensure the existence of support services for producers, to strengthen their technical and economic capacity, in their organisation and their capacity for action and negotiation related to markets and governments, and the provision of public awareness raising regarding issues of fair trade.”

In addition to this monitoring activity, the CNCE will:

1) Inform members of the Commission and all stakeholders involved (fair trade organisations, consumer representatives and state) on any kind of development which may affect trade fair (regulatory sector flows, consistency with actions for sustainable development, etc.) and be a source of proposals on any topic related to fair trade;

2) Communicate to promote awareness of its activities, provide educational materials, practical information and monitoring the sector on behalf of the consumer. The National Institute of Consumers is responsible for this communication strategy. Methodology What is a fair trade label? A label* is a special mark, created by a professional body or a parastatal, and whose logo is affixed to a product for sale to certify the origin, quality and production conditions in accordance with standards described in a specification.

The Consumer Code clearly specifies the terms of the label: its use is permitted in the case of non- processed food or non-food agricultural products, to guarantee the superior quality of those products. The certification* is based on private standards, which are approved by the government. The various public labels can use "AB” (Organic Agriculture)" or the "Red Label", both of which are registered with the Ministry of Agriculture and controlled by accredited certification bodies*. As for other products and services, the Consumer Code refers to "certification" and does not use the term “label” 2

The use of the term "label" for a private label collective is allowed. Three requirements must be complied with:

1. The characteristics are determined collectively by a professional type structure; 2. Control is exercised by a certifying body; 3. In the case of agricultural and food products, the word should not be confused with an agricultural label, that is to say that it should not present itself as a quality label.

In the fair trade sector, there are several private labels and this guide compares their features: what are the commitments guaranteed by these labels? Who are the organisations behind these labels? How the inspections been managed and by whom?

The eight fair trade labelling schemes discussed below, have each responded to these questions. This guide permits the comprehension and comparison of what these labels actually cover.

2 Consumer Code, art. L115-27 to 33 for non-food products and services

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The Presentation of Label Information Each label is introduced with key information and an overview of the approach. In order to distinguish the role and responsibilities of each actor, it clearly shows who is behind the label, who owns the standard and who carries out audits.

Each of the selected labels is analysed in detail following an interpretative framework inspired by the certification standard used by the CNCE. This approach allows the assessment of the labels’ compliance with the six fair trade principles defined by Decree No. 2007-986 of 15 May 2007 (see above).

Methodological Indications The analytical framework incorporates the three pillars of fair trade (economic, educational and political dimensions) and is available on the following criteria, which are themselves broken down into indicators measuring:

1) Economic criteria: fair price*, development premium*, pre-financing and traceability;

2) Social criteria: compliance with 11 core ILO conventions, additional social benefits;

3) The independence of producers and the strengthening of producer organisations: technical support, priority to small producers, business capacity building, etc.;

4) Environmental criteria: soil management, transportation, etc.;

5) Criteria for awareness-raising and education: awareness-raising activity by the label owner.

Each indicator is checked depending on whether it is actually considered part of the standard. The term “n/a” is used when the criterion is not applicable. This is the case for the criterion "Organic Agriculture conversion premium" for standards that require organic certification as a prerequisite to obtaining the fair trade label.

This formal analysis is supplemented by a third part dedicated to the analysis of labels. It specifies the content of each label’s social, economic and environmental criteria. The reader will find information about the context of each system, the scope of the standard and its relevance to the criteria of fair trade, the nature of audits, the different steps to obtain certification, the costs, transparency and governance system, management of the logo and labeling requirements, impact studies, public awareness-raising and advocacy. Particular attention is paid to the advocacy and awareness-raising criteria to verify to what extent the associations, companies and organisations carrying these labels meet this requirement. To facilitate the comparison of reference of each label, a comparison of labels is presented on the following page. Finally, the PFCE gives its opinion at the end of each label review. This is to emphasize their characteristics, to measure the adequacy of these labels with the criteria of the CNCE and makes suggestions to strengthen mechanisms behind the guarantees offered to consumers.

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The Choice of Labels The 2011 Guide to Labels analyses eight labels claiming to be Fair Trade: Ecocert Fair, Fair for Life, FairWild, International Fairtrade (Max Havelaar), Forest Garden Products, Naturland Fair, Main dans la Main and WFTO. These labels are all present in the French or European markets.

The choice of these labels does not constitute approval by the CNCE of their fairness and should not be taken as a future recognition of these labels by the CNCE.

To clarify some ambiguities, the guide also presents four labels or initiatives sometimes confused with the Fair Trade: Common Code for Coffee Community (4C), bioRé®, Rainforest Alliance and UTZ CERTIFIED. These labels are presented in the form of documents showing the social, economic and environmental sustainability.

Fair Trade Label Guide 2011 Page 10 Summary of Label Features Ecocert Fair for Life Fairtrade Max Havelaar FairWild ForestGarden Products Main ladans Main Naturland WFTO € Economic Criteria Fair price / fair compensation to workers Ø Premium for group projects Ø Ø Access facilitated to finance / pre-financing Ø Long term commitment from buyers Traceability Social Criteria Working time (No. 001) Forced labor (Nos. 29 and 105) Freedom of Association (No. 87 and 98) Equality (Nos. 100 and 111) Minimum Wage (131) Elimination of Child Labour (No. 138 and 182) Health and safety of workers (No. 155) Additional social benefits Governance Criteria Formalised collective structure for producers Ø Accessible to marginalized producers and workers Ø Ø Capacity building of producers Rights of indigenous peoples Ø Ø Ø Democratic decision-making within producer Ø organisations Transparent information in the management of the producer organisation Producer participation in the management of the producer organisation Non-discrimination within the producer organisation Monitoring of the democratic management of the Ø Ø development premium Reduction of the environmental impacts of Sustainable management of natural resources Protection of biodiversity Ø Energy management Soil Management Ø Water Management Ø Waste Management Transportation Management Ø Ø Ø Management of packaging materials Ø Ø Ø Ø Prohibition of hazardous substances Ø Ban on GMOs Ø Premium for Conversion to Organic Agriculture n/a n/a n/a n/a n/a Ø Information and education by holders of the label Ø Ø Ø Ø

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Ecocert Equitable

Producers by Ge ography Label : Ecocert Equitable, 2010 (ex EFT, 2006)

Label Creator : Ecocert (1991)

Verification Organisation : Ecocert

Contact : L’Isle de Jourdain, France

BP47 F-32600

Tél: + 33 (0)5 62 34 24 - Fax: +33 (0)5 62 07 11 67

[email protected] - http://www.ecocert.com

History : Ecocert was established in 1991 to carry out certification activities. This organisation is particularly active in the field of certification of organic farming and other initiatives related to sustainable development. Today, Ecocert is accredited by the French Accreditation Committee [COFRAC] for certain 250 references "product" activities, under EN 45011 (ISO 65*). Over 95% of its business attested from twenty countries. concerns the certification of products and services for agriculture and food (Bio EC, GLOBALGAP fruit and vegetables, Food IFS), cosmetics (natural and organic Cosmetics) and textiles (GOTS). In 2009 : - 60% food, 22% 2007, this organisation launched the EFT (Ecocert Fair Trade), cosmetics - 18% textile which focused on fair trade. The partnership with Bio Partenaire (and its collective brand Bio Equitable) has led to a new version of Ecocert Fair, published in February 2010. Since then, this standard Beneficiaries : - 60% producer applies to food products, cosmetics and textiles that meet both organisations - 35% sub the requirements of organic farming and fair trade. contracting producers, - 5 % plantations Standard Owner : Group Ecocert.

Ecocert SA is present in 80 countries (subsidiaries, offices, buildings). 72% of its business is concentrated in Europe. In France, Ecocert SA is comprised of three subsidiaries: Ecocert France (SAS AB), Ecocert Greenlife SAS (Eco Products) and Ecocert Environment (environmental management). Management of the Equitable Ecocert label is directly attached to Ecocert SA

Standard Scope : Production - Importation – Processing

Sectors : Food - Cosmetics – Apparel

Supply Chains / Products Labelled : grain (fonio, quinoa,

Fair Trade Label Guide 2011 Page 12 rice), food supplements (Acai, harpagophytum ), fresh fruit (bananas, pineapples, mangoes, papayas, coconuts, lychees, etc..), Dried fruit (dates, nuts coconut, cashew nuts), spices (pepper, cardamom, pepper, cloves, ginger), sugar cane, local varieties of potato, vanilla, coffee, tea, chocolate, oils (peanut, olive, baobab, sesame, argan , palm kernel, avocado, essential oils), shea butter, hibiscus, cotton.

Fair Trade Label Guide 2011 Page 13 Easy Reference Table

€ Economic Criteria

Fair price / fair compensation to workers Premium for group projects Access facilitated to finance / pre-financing Long term commitment from buyers Traceability Social Criteria

Working time (No. 001) Forced labor (Nos. 29 and 105) Freedom of Association (No. 87 and 98) Equality (Nos. 100 and 111) Minimum Wage (131) Elimination of Child Labour (No. 138 and 182) Health and safety of workers (No. 155) Additional social benefits Governance Criteria

Formalised collective structure for producers Accessible to marginalized producers and workers Capacity building of producers Rights of indigenous peoples Ø Democratic decision-making within producer organisations Transparent information in the management of the producer organisation Producer participation in the management of the producer organisation Non-discrimination within the producer organisation Monitoring of the democratic management of the development premium Environmental Criteria

Reduction of the environmental impacts of activities Sustainable management of natural resources Protection of biodiversity Energy management Soil management Water Management Waste Management Transportation Management Management of packaging materials Prohibition of hazardous substances Ban on GMOs Premium for Conversion to Organic Agriculture n/a Criteria Awareness

Information and education by holders of the label

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Analysis of the Label This analysis of the label covers the revised version from February 2010. The standard is presented in the form of principles to be followed. It is available in French, English and Spanish. Every aspect has minimum requirements (required for the first IMPACT STUDIES certificate), general requirements (required to renew the Ecocert is developing its certificate) and progress requirements (for continuous operational monitoring of the improvement). effectiveness of Ecocert Fair Trade. This approach aims to Eligibility assess the partnerships that The EFT standard sets eligibi lity criteria determining the type of have been implemented to products and operators eligible for the approach. ensure sustainable The export of fair trade products must be made to those countries development of industries and which produce little or none of the products. (For example: producers. An impact study of organic soybeans cannot be exported to the United States where shea butter in Burkina Faso has there is surplus production). already been completed. Only products from developing countries are eligible, subject to existing regulatory references. Exchanges can be North-South or South-South.

Plantations employing hired labour are eligible only where there is a lack of competition with independent producers located in the same area and with the establishment of social projects providing real added value to workers.

To be eligible, multinationals must have signed the UN’s Global Compact or be engaged in an equivalent process. Economic Criteria Transparency, sustainability, traceability : The buyer provides its partners with support for the marketing of products by sharing market information about prices, quality requirements and applicable regulatory changes and seeks new markets. In addition, the buyer agrees to volumes by a framework contract with a minimum extent of 3 years. To ensure a fair distribution of the value added, the margins earned by intermediate operators and distributors should be moderate and transparent vis-à-vis Ecocert.

Pre-financing : This may be granted if the request is justified (e.g. for the purchase of raw materials, pre-financing of processing etc.).

Fair Price : Determined through a collaborative negotiation specific to each producer organisation, this price is to cover production costs (inputs, labour, etc.), to obtain compensation for time spent in activity concerned, to satisfy the basic needs of the producer and the family and ensure the profitability of the

Fair Trade Label Guide 2011 Page 15 activity.

There are two guaranteed minimum prices: one for producer organisations (FOB) and one for individual producers (farmgate prices). The pricing mechanisms are explained in the framework contract. The purchase price is at or above the guaranteed minimum price. Prices are revised regularly. Ecocert recommends a fair price at least 15% above the conventional price (i.e. neither organic nor Fair Trade) and at least 5% above the average price of organic products that are non-Fair Trade.

Development Premium: referred to as a "development fund" in the Ecocert Equitable standard, it is calculated as being at least 5% of the order value. It is the beneficiaries or their representatives that choose how the funds are allocated.

This fund, supplemented with each purchase, aims to improve the quality of life for farmers and their families by the establishment of community facilities, social services, education and health. This contribution helps promote income-generating activities in the villages and communities involved (e.g. cooperative stores, transportation).

In certified plantations, a plantation committee composed of worker and management representatives is established by election. It enables a participative and democratic management of the fund. Social Criteria The EFT standard imposes controls over working conditions for employees throughout the whole southern network (both cooperative workers and also workers in any processing plants). Bringing together the eight fundamental Conventions of the ILO, the EFT goes further with requirements for additional social benefits, which at least match local legal requirements for pensions, health insurance and maternity.

If there are no local rules, minimum terms of prevention and insurance are in place to cover the risk of accidents and illnesses faced by workers.

In the case of a restriction of freedom of association and collective bargaining at the national level, the employer will not stop their own efforts and will facilitate the development of parallel means of association and bargaining for workers.

In addition, differences in treatment between temporary and permanent workers should be minimized.

Also, the company is encouraged to develop other social activities for its employees, such as support for community social programs (schools / health centres / scholarships, etc.) and more specific actions to improve the living conditions of those workers who are

Fair Trade Label Guide 2011 Page 16 most marginalized.

Another issue addressed is the alternation of buildings to facilitate the access of disabled workers. Producer Independence To strengthen the producer’s capacity, they benefit from a technical and commercial support: optimisation of on-site processing, development of local informal technical expertise, empowerment of production organisations, improving the sustainability of the local ecology, finding new markets, etc. An annual report outlines the results achieved in the implementation of plans for development and empowerment.

In the case of structured producer organisations s, these must have a formal status and must function democratically, with at least one annual general meeting. 60% of members must be small farmers or 60% of the volumes produced must come from this category. A "small producer" does not inherently depend on a workforce with regular or permanent workers and spends most of his working time to agricultural activities on his farm.

The companies with production contracts will generally bring informal producers together. During the first year, they initiate and support the establishment of one or more organisations operating in a participatory democratic fashion that will be effective within three years. Environmental Criteria The standards support those of organic agriculture (EU, JAP, NOS, for foods, Ecocert’s standards for natural and organic cosmetics and GOTS repository for textiles). In effect, some organic or ecological certification is mandatory. However, production can be undergoing conversion in the year of certification.

Beyond the biological nature of production, there are numerous progress criteria and are focussed on three main areas throughout the chain:

Production and processing: conservation measure water (sound irrigation, wastewater treatment), sustainable waste management and waste (sorting and recycling, composting), sustainable management of energy resources (policy of limiting overall consumption electricity);

Import-export: consolidation and decision to transport the most respectful of the environment (river, sea, rail);

Distribution: minimization of packaging and choice of environmentally friendly materials, restrictions on hard copy advertising

Fair Trade Label Guide 2011 Page 17 Awareness Raising and Advocacy The brand owner is encouraged to carry out a programme of education and awareness raising through various communications media.

Ecocert is involved in the European project Geo Fair Trade (see also: Fairtrade International, WFTO).

Ecocert is a member of the PFCE and also participates in the technical group of the National Fair Trade Commission (Commission Nationale du Commerce Equitable or CNCE). Management of the Logo and Labelling The logo appears on the product and can be used in the communication strategy of the company that uses it. Minimum thresholds have been defined according to different types of products:

Food: At least 25% of agricultural ingredients must be fair trade (the "25%" should correspond to a single ingredient).

Cosmetics: At least 5% of the total ingredients (including water) must be fair trade.

Textile: At least 70% of total fibres must be fair trade.

Based on the percentage of fair trade ingredients in the composition of the product, the name will be different:

"Fair Trade" according to the EFT: More than 95% of ingredients are fair trade. Communication of fair traded-ness can be made on the product (e.g: "Fair Trade Chocolate").

"Fair Trade chain X" according to the EFT (where “x” represents the controlled ingredient): Less than 95% of the product is fair trade. Communication of fair traded-ness cannot be made on an ingredient (e.g. "Cream with fair trade shea butter ").

The product packaging or label will show the total percentage of fair trade ingredients.

Control of Certification Stages of Certification 1) Make contact with Ecocert Fair Trade: They will provide the standards, the certification process, a fact sheet and application form. Return of completed application form.

2) Ecocert will review the application / proposal: Study of the application form to assess the eligibility of the operator, and to establish a quotation (including costs for assessment and

Fair Trade Label Guide 2011 Page 18 certification). Once your eligibility is confirmed by Ecocert , return the technical and financial proposals and a letter of commitment.

3) Document review: Self-assessment by completing the documents provided by Ecocert Fair Trade (receipts, labels, contracts, etc.). Ecocert will review your self-assessment and documentation to verify the feasibility of an inspection by Ecocert.

4) Assignment: Sending the file to the inspector

5) Initial inspection authority: In-depth monitoring visit[s]of the applicant[s].

6) Conclusion audit* and certification decision: Issuing of the list of non-conformities observed during the inspection and the required actions to conform.

7) Statement of compliance with Ecocert Fair Trade: once non- conformities have been addressed (receipt of sufficient evidence) for all sites.

A thorough inspection is performed annually and additional unannounced inspections may be made according to an assessment of the risk.

Control Methods

Self ev aluation Ø

External evaluation

Accredited independent third party Ø for ISO 65

Costs Fees are charged to the structure engaging with Ecocert . The se can be either buyers or producers' organisations. The costs of using the label for the company that markets the products are fixed. There is no license fee proportionate to the volumes sold.

Transparency and Governance

Standard freely available on internet

Producer s participat e in creating the standard

Producers participate in the evolution of the standard

Fair Trade Label Guide 2011 Page 19 Our Comments The Ecocert label Fairtrade applies to all types of products from organic agriculture and wild collection, which allows the labelling of local products previously not labelled Fair Trade. In addition, Ecocert Fair Trade links Fair Trade requirements to those of organic agriculture, the core business of Ecocert. Additionally, the Ecocert Fair Trade approach focuses on small producers since plantations, employing hired labour, are eligible only through exception.

Concerning participation in the discussion of fair trade, Ecocert is a member of the PFCE. It works closely with the association Bio Partner, another member of the PFCE, on all aspects of creating networks and reinforcing partnerships with producer organisations.

Finally, companies using the label are strongly encouraged to conduct awareness raising and education among consumers. However, it is regrettable that the company Ecocert, due to its status of independent certification body, cannot conduct business direct advocacy on fair trade. For inspections, we can note that they are performed by Ecocert auditors, whilst also being responsibility for the standard. It should be noted that a technical committee, composed of 11 members representing producer organisations, traders, distributors, consumer associations and NGOs are necessarily consulted on changes in the standard.

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Fair for Life

Producers by Geography Label : Fair for Life, February 2011 (version 2).

Label Creator : IMO and Bio-Foundation

Verification Organisation : IMO

Contact : Institut für Marktökologie, IMO Group Office

Weststrasse 51 - CH-8570 Weinfelden, Switzerland

Tel: +41- (0) 71 626 0 626 - Fax: 41 - (0) 71 626 0 623

[email protected]

http://www.fairforlife.net/

History :

The Fair for Life program, created in 2006, is the result of a Beneficiaries partnership between the certification body IMO (Institute for 60% producers and producer Marketecology) and the Swiss Foundation Bio-Foundation organisations (Stiftung Bio). IMO is a Certification particularly active in the fields of green products, organic farming and environmental 10% plantations management systems. Represented in 90 countries, IMO also certify the specifications FSC, PEFC, UTZ CERTIFIED, etc.. 30% of companies working under production contracts Standard Owner : The Bio-Foundation is a Swiss foundation whose objectives are the promotion of ecological agriculture, sustainable production systems and the protection of consumers who respect the environment. The foundation is involved in developing standards and the publication of the label.

Standard Scope : Production - Import – Processing

Sectors : Food - Cosmetics - Apparel – Tourism

Supply Chains / Products Labelled : The standard is applicable to the following products: fruits, vegetables, spices (vanilla, ginger, anise, fennel seed, chili), oil (olive, jojoba, coconut, palm), seafood (shrimp), cosmetics, flowers, textiles, handicrafts, toys, cotton, tea, coffee, cocoa, tobacco, rice, sesame, etc.

Fair Trade Label Guide 2011 Page 21 Easy Reference Table

€ Economic Criteria

Fair price / fair compensation to workers Premium for group projects Access facilitated to finance / pre-financing Long term commitment from buyers Traceability Social Criteria

Formalised collective structure for producers Accessible to marginalized producers and workers Capacity building of producers Rights of indigenous peoples Democratic decision-making within producer organisations Transparent information in the management of the producer organisation Producer participation in the management of the producer organisation Non-discrimination within the producer organisation Monitoring of the democratic management of the development premium Environmental Criteria

Reduction of the environmental impacts of activities Sustainable management of natural resources Protection of biodiversity Energy management Soil management Water Management Waste Management Transportation Management Management of packaging materials Ø Prohibition of hazardous substances Ø Ban on GMOs Premium for Conversion to Organic Agriculture n/a Criteria Awareness

Information and education by holders of the label Ø

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Analysis of the Label Provided in a tabular format, the standard is available in English and Spanish and is clear and understandable. The specification applies to organisations of small producers and to plantations. Therefore, the specification provides requirements that apply to workers or the companies that hire them and requirements that affect small farmers and their organisations. The criteria are evaluated on a scale from 0 to 4. A score of 2 is the minimum level that must be achieved. There are some validation criteria that must be achieved before certification is awarded. For others, 90% of all criteria must be met in the first year, at least 95% in the second year and 100% in the third year. The specification is generic and applies to all products. The cotton and textile industry is the one exception, for which there is a specific element within the specifications. Eligibility All areas are eligible, but "Fair for Life" is primarily intended for groups of low-income producers and workers in developing countries. Certification is available in industrialized countries if a relevant fair trade project can be presented. Economic Criteria Transparency, sustainability, traceability: the relationship between the producer and the buyer is based on transparency and the long-term commitment.

Pre-financing : considered essential, pre-financing is encouraged and can be as much as 50% of the price. It mainly applies to investments in production.

Fair price : the standard requires that trading partners agree on a fair price, based on open and transparent negotiations. The inspection body verifies that the price is correct: it must cover production costs and help contribute to social communities of producers and workers concerned. The fair price must be at least 5% higher than the price of equivalent conventional products, but if conventional commodity prices fall too, the differential should be higher.

Development Premium : If the premium development is applied as per the standard, its amount is not fixed by the standard, but by the trading partners. In practice it is often around 10% of farm gate price paid to producers. For employees, the premium deposited in a fund represents 5 to 10% of turnover less the costs of labour. The premium is negotiated independently of prices. Managed in a transparent and collective manner, the allocation of the premium is determined by the beneficiaries. The standard requires that the money must be invested in community projects

Fair Trade Label Guide 2011 Page 23 (schools, hospitals), social projects or p roductive investment common (warehouses, etc.). The value of the guaranteed minimum price and Fairtrade premium as determined by Fairtrade International serves as a reference. Social Criteria The 11 core ILO conventions must be observed. Some additi onal social criteria are not required to obtain certification but are encouraged in an improvement process. Examples: workig hours adapted for parents with young children, supplementary social benefits (life insurance, free childcare, grants for education). Producer Independence To strengthen the capacity of producers, buyers of certified products are encouraged to provide further support for the development bonus: purchases of subsidised inputs, loans, community projects, etc. Environmental Criteria All the stages of production must have a recognized organic or environmental certification (eg AB, the Global Organic Textile Standard [GOTS], FSC timber etc.). Operations that are not already certified by one of these programs must comply with environmental criteria that complement the Fair for Life specification. This is a set of environmental commitments specific to each sector (agriculture, forestry, etc.). Moreover, the main issues concerning water conservation, energy management, ecosystems and wastewater are verified by annual audits. Finally, to obtain certification, companies must not be involved in activities that result in environmental destruction. Companies are also encouraged to continually improve their energy use. Awareness Raising and Advocacy Awareness raising is not a criterion of the standard . However, IMO and Fair for Life are involved in changing corporate behavior through participation in trade shows, conferences or seminars in the intervention. Management of the Logo / Label The logo is affixed to the products and can be used in corporate communications of the user company.

The logo and text vary according to the composition of the product:

Products labeled "Fair for Life": In principle, 80% of ingredients must be certified to use the logo. A minimum of 50% (water included) is nevertheless tolerated if the firm submits a plan of action that allows it to reach 80% certified ingredients over a period of three years and the % of ingredients are certified

Fair Trade Label Guide 2011 Page 24 marked on the produ ct.

For products tobe labelled "made with ingredients certified Fair for Life"at least 20% of ingredients must be certified. Control of Certification

Stages of Certification 1) Send a written request to Fair for Life with a description of the project

2) Cost Estimate by Fair for Life certification and contract drafting

3)Advance payment of 80% of costs

4) Setting a date for the audit

5) Verification by the applicant that his documents are up to date: employment contracts, regulations, etc.

6) Audit on site or in the field

7) Analysis of the audit

8) Certification

A control audit is conducted every year.

Control Methods

Self evaluation Ø

External evaluation

Accredited independent third party Ø for ISO 65

Fair Trade Label Guide 2011 Page 25 Costs To minimize costs, audits for certification Fair for Life can be performed simultaneously with those for organic certification.

Audit costs are borne by producers or paid by the partner companies of producer organisations.

There is no specific support to improve access to certification and no license fees for carrying the label.

Transparency and Governance

Standard freely available on internet

Producers participate in creating the sta d rd

Producers participate in the evolution of the standard

Our Comments The label Fair for Life combines the requirements of organic farming and fair trade. It covers all the demands made by fair trade with the notable exception of the criterion for awareness- raising by businesses.

Fair for Life is one of the few labels that they are applicable to products of handicraft sector (with the guarantee carried by WFTO).

This label is also one of the first producers to be eligible for industrialized countries. No doubt this position will be debated within the community of fair trade companies and promoters.

Like the Ecocert Fair, Fair for Life is a label recently launched by a certification body, IMO, specializing in organic farming. Nevertheless, the partnership with Bio Foundation, which owns the standard, seems relevant because it allows the label to be separated from the auditing body.

The non-profit status of Bio Foundation could enable it to strengthen the system within the fair trade movement’s campaigns: advocacy for change of world trade rules, promoting farming, etc.

Fair Trade Label Guide 2011 Page 26

FairTrade Max Havelaar

Producers by Geography Label : Fairtrade Max Havelaar

Label Creator : Fairtrade International (ex FLO, 1997)

Verification Organisation : FLO-CERT Gmbh (2003)

Contact : FLO-CERT Gmbh, Bonn, Allemagne

Bonner Talweg 177 - 53129 Bonn

Tél : +49(0) 228 249 30

[email protected]

www.flo-cert.net Beneficiaries:

1.5 million producers / workers, [by including families, 8 million Max Havelaar France, Montreuil, France people], 827 organisations in 261 rue de Paris - 93446 Montreuil Cedex over 60 countries Tél : 01 42 87 70 21

http://www.maxhavelaarfrance.org/ Products : : In 1988, Francisco Van Der Hoff a Dutch worker with 80 million consumers in over 50 History countries. the priesthood, moved to Mexico and, with Nico Roozen of the Dutch NGO Solidar, decided to form an organisation aimed at labelling Mexican coffee that satisfied a series of economic, social and environmental criteria. They named the label “Max In France: 3,015 labeled Havelaar”, after the hero of the novel of the same name, products marketed by 205 recounting the struggle of a colonial administrator to improve the companies lives of Indonesian farmers during the Dutch colonization in the nineteenth century. This label represents over 80% of fair trade in the world. In France, the label is handled by Max Havelaar Turnover (estimated): France. International: 3.4 billion euros in 2009 Standard Owner : Fairtrade International

In France: 287 million euros in Fairtrade International is a nonprofit organisation comprising: 2009 The Fairtrade Federation which is responsible for the drafting of

Fair Trade Label Guide 2011 Page 27 guidelines and provides overall management operations such as support to producer organisations in the field, pipeline management and consultative roundtable sessions (bringing together producers and buyers) , corporate communications and global rules for using the label.

The continental networks of producers: CLAC (Coordinadora Latinoamericana y del Caribe de Comercio Justo Pequeños Productores), NFA (African Fairtrade Network), NAP (Network for Asian Fairtrade Producers). These associations provide producer representation to the bodies and committees of Fairtrade International. They also support programs for the capacity building of producer organisations in the South.

The national labeling associations, such as Max Havelaar France, whose main functions are the management and promotion of Fairtrade. They also engage in public awareness-raising and provide support for trading organisations to develop their commitment to fair trade.

In the decision-making bodies of the Fairtrade Federation, such as the board, the "North" (labeling organisations) and the "South" (producer networks) decide together. Fairtrade International is a member of the FTAO (FairTrade Advocacy Office) which brings together the major international Fair Trade organisations and conducts advocacy activities.

Standard Scope : Production - Import – Processing

Sectors : Food - Cosmetics – Apparel

Supply Chains / Products Labelled : alcohol, bananas, nuts and butters (shea, olive, argan, peanut, cashew, almond, etc..), Cocoa, coffee, cotton (seed), spices and herbs, flowers, fresh fruit, dried fruit, fruit juices, honey, quinoa, rice, sugar, tea, wine.

Fair Trade Label Guide 2011 Page 28 Easy Reference Table

€ Economic Criteria

Fair price / fair compensation to workers Premium for group projects Access facilitated to finance / pre-financing Long term commitment from buyers Traceability Social Criteria

Reduction of the environmental impacts of activities Sustainable management of natural resources Protection of biodiversity Energy management Soil management Water Management Waste Management Transportation Management Ø Management of packaging materials Ø Prohibition of hazardous substances Ban on GMOs Premium for Conversion to Organic Agriculture Criteria Awareness

Information and education by holders of the label

Fair Trade Label Guide 2011 Page 29

Analysis of the Label Impact Studies There are two categories of standards: a generic specification that applies to all products and to be respected by all producers and / or operators and a set of specifications for each product (eg coffee, sugar, In 2007, Max Havelaar France bananas, etc.). Each standard is broken down and commissioned an impact study adapted in the manner of organisations of producers / from Oréade-Brèche on the workers (small farmers organized into cooperatives, effects and impacts of Fairtrade hired labor working in agricultural plantations and / or in Peru and the Dominican contract growers being organized, etc.) . Republic ( http://f3e.asso.fr/- Etude-des-effets-et-de-l-impact- The standards are available in English, French, du-.html ). Portuguese and Spanish. They are based around three main axes:

In 2008, FINE (FLO, WFTO (formerly IFAT), NEWS! And 1. Sustainable production conditions (working EFTA) in cooperation with DAWS conditions and protection of the environment); (Dutch Association of 2. Fair trading conditions; WorldShops) conducted a survey 3. The socio-economic development of to gather the facts and figures of independent producers. Fair Trade in 33 consumer countries. As part of the project These axes are broken down into criteria consisting of to collect impact studies with general requirements (to be completed when the PFCE, Max Havelaar France organisations join the Fair Trade system), minimum collaborated on an impact study requirements (to be completed before the initial of the quinoa industry in Bolivia, certification) and progress requirements (to be complied as well as working on mapping of over time through continuous improvement). existing fair trade, controlled by CIRAD. In this study, most Eligibility impact studies referred to were Three types of organisation are eligible: for Fairtrade International labelled supply chains. Max 1. Small producer organisations. Havelaar France also publishes 2. Contract production companies for rice and an annual report on the impact cotton in India and for nuts and dried fruits in of fair trade showing the results Pakistan. in a series of impact studies (the 3. Plantations and businesses using hired labour first assessment 2008/2009 was for bananas, fruits and vegetables, fruit juices, devoted to small producer tea, wine and flowers. organisations in Latin America, a To be eligible, small farmer organisations (cooperatives, second is being prepared on associations or other types of organisations run small producer organisations in democratically by member producers) must either be Africa). composed of at least 50% of small producers, or have 50% of their volume production from these small producers.

Fair Trade Label Guide 2011 Page 30 Economic Criteria Transparency, sustainability, traceability : Buyers undertake to submit a procurement plan for producers and agents with whom they wish to work. The exchange of information between different actors is considered essential.

Pre-financing: can represent up to 60% of the contract value and is made at the request of producers.

Fair Price: The guaranteed minimum prices are intended to protect farmers from market fluctuations and so they cannot sell their produce at a loss. They are defined through a participatory research to calculate costs of production and operation.

Development Premium : it must allow a social, economic and / or environmental development of the organisation and its members and through them their families, workers and surrounding communities. In plantations, the decision to allocate the premium shall be made jointly between management and agricultural workers.

The amounts of the guaranteed minimum price and premium are defined by product, by type of processing (eg fresh fruit, dried, pureed, etc.), by mode of production (organic or conventional) and by geographical location. This information is available on the website of Fairtrade International (www.fairtrade.net).

When the market price is higher than the guaranteed minimum price, then the prevailing market price is used. Social Criteria The 11 core conventions of the ILO must be respected.

In the case of employees, if there are no active or unions recognised in the geographical area, the structure must establish a democratic election to appoint a committee of workers to represent them and negotiate with management to defend their rights and interests. The establishment of a social security scheme and maternity leave are two mandatory criteria.

In addition, in an improvement process, the producer organisation is encouraged to increase the duration of maternity leave and set up a provident fund and pension system.

Ongoing training and awareness of occupational health

Fair Trade Label Guide 2011 Page 31 and safety must be provided Producer Independence The s tandard promotes a model where the producer organisations strengthen their skills and those of their members. It is the same for workers in plantations operating working as hired labour.

The standards provide a framework for producers to set their own development goals. This framework allows producer organisations to define and manage their own business strategies and production (eg conversion to organic agriculture, income diversification, etc.). Producers are also involved in strengthening their organisational capacity and their social role within their communities.

The status of women should be valued and enable them to access decision-making positions.

Where plantations are certified, it is mandatory to establish an annual plan of work for social development (different from the premium) from the first year after obtaining certification.

Primary education must be provided for children of all permanent workers and the plantation should have a concern for children's schooling beyond this minimum requirement. Facilities must be suitable and there must be qualified teachers. If the situation warrants, a school bus system must be established.

Training on fair trade for the rights, responsibilities and the benefits of the premium and its management needs to be taught to all employees.

To go further in the support process:

Established in 2004 by Fairtrade International (formerly FLO), the PSR program (Producer Services and Relations Unit) is to strengthen producer organisations and their place in the industry. The service must improve access to new markets. Training in local language on fair trade, management, ICS (Internal Control System), the environment, and others topics are provided to producers and employees. This program educates and advises producers in their certification process and development. It also facilitates relationships with buyers. The PSR consists of five regional managers (including three in Africa), 7 regional coordinators and 30 local coordinators in the field.

Fair Trade Label Guide 2011 Page 32 Environmental Criteria The specifications contain minimum criteria relating to the prohibition of pesticides and inputs identified as hazardous (list of 70 substances), the prohibition of GMO seeds, management and storage of inputs and the definition of an environmental protection plan. These minimum requirements are supplemented by progress criteria to be implemented over a 6-year period. They concern the management of natural resources, protection of biodiversity through the management of endangered species, the balance and diversification of crops, reforestation and cultivation under plant shade, the minimum consumption of energy and water and the use of renewable energy, the use of herbicides as necessary and the recycling of materials.

Complementary to the ban on GMO products, monitoring of use of GMOs in the neighborhood helps prevent cross-contamination.

In addition, the organisations are encouraged to set up a system of internal control within three years and to support local projects for the protection of the environment.

With an additional premium, producers are encouraged to convert to organic farming, which is more environmentally friendly than conventional agriculture. Awareness and Advocacy Accordance with the FINE definition, that it assisted in developing, Fairtrade International conducts advocacy for the improvement of living conditions of Southern producers and to change the rules of world trade. It is present at major international conferences on development issues, protection of biodiversity and global warming.

In France, Max Havelaar France engages in many activities to raise awareness:

The campaign “Fair Trade Territories” with communities (also supported by the Platform for Fair Trade Federation and Artisans du Monde);

The campaign 'Changing the Label" aimed at the general public and stakeholders in the textile industry for more equity in the cotton sector;

Fair Trade Fortnight with such events as fair brunches for the general public.

Fair Trade Label Guide 2011 Page 33 Max Havelaar France is also involved in the CNCE and numerous working groups led by Coordination Sud (example: food security group, etc.). Management of the Logo / Label The logo is used on the products and can be used in corporate communications.

For dry products, 100% (gross weight) of the product must be fair to use the logo. In the case of a composite product, the logo is on the product when at least 50% (gross weight) of ingredients are fair (reduced to 20% on specific products and after validation of Max Havelaar France).

The use of conventional ingredients, where fair trade versions are available, is prohibited.

Control of Certification FLO -CERT, an ISO -65 accredited enti ity, is in charge of the inspection and certification of producer organisations and commercial actors in accordance with international Fairtrade standards. Capital is held by Fairtrade International but FLO-CERT operates independently. Stages of Certification 1) Make contact with FLO -CERT to apply for candidacy

2) Complete the application form

3) First analysis of the record and documents provided - cost: 500 euros

4) Audit of the production site and of the entire chain

5) Analysis by a Certification Committee composed of two representatives of producers, two importers of two, two representatives of national associations and certification by an external expert

6) Issue a list of corrective actions taken

7) certificate valid for one year

An annual inspection is carried out by FLO-CERT.

NB: at every stage, the applicant may apply for support and guidance to PSR.

Fair Trade Label Guide 2011 Page 34 Contro l Methods

Self evaluation Ø

External evaluation

Accredited independent third party for ISO 65

Costs A document detailing all certification costs is available on the website of FLO-CERT http://www.flo-cert.net

For producer organisations: some of the costs can be supported by a fund established by Fairtrade International. This funding is made available to producers so that they can pay an initial or renewal inspection. Funding is available for up to 75% for those producer organisations most in need. The allocation can be obtained only 2 times.

For those using the label: the license fee is calculated differently depending on the sector:

From 2 to 2.5% of turnover from sales of labeled products: for example, ready meals, ice creams, beer

Volume of the product (from 0.03 to 0.55 € / kg): for example, coffee, tea, quinoa

Transparency and Governance

Standard freely available on internet

Producers participate in creating the standard

Producers participate in the evolution of the standard

Producers and producer organisation s are repre sented by continental networks of producers: CLAC, AFN and NAP. These entities participate actively in decisions of the Fairtrade Federation and its board of directors. These associations are also full members of the general assembly.

Fair Trade Label Guide 2011 Page 35 Our Comments Fairtrade / Max Havelaar label is the oldest and best known for products sold as fair trade. It represents over 80% of commercially available products. Despite the development of new labels, it remains the primary actor in the sector.

This is the only guarantee system that relies on a network of volunteers to support advocacy and awareness-raising of citizens and consumers. This is one of the few fair trade labels that actually develops the three pillars of the approach

The longevity of the label now allows the analysis of the impact of the approach and the label on Southern producers. FairTrade International was one of the first organisations to perform impact studies. It is also one of the only fair trade labels to have truly adopted the independent audits and FLO-cert is certified ISO 65 based on the FairTrade standard.

Moreover, the governance of the label s is much improved over recent years with strong ownership and representation of producers' organisations in decision making.

However, decision-making processes are relatively long and heavy to put in place, such as updating guaranteed minimum prices too infrequently based on reports of changing production costs etc. Also note that the integration of small producers' organisations can be difficult due to the complexity and cost of the guarantee system, despite the support in place.

Moreover, the methods for labeling plantations, although intended to extend the benefits of fair trade to their employees, raises doubts and has caused some debate, among industry observers and also for stakeholders (producers' organisations and certified businesses). In some sectors and areas, some producer organisations have found themselves in competition with certified plantations. The central issues that the system must now address are which agricultural model to priviledge and how to balance often conflicting demands in order to prove that Fairtrade is able to cope.

Fair Trade Label Guide 2011 Page 36 FairWild

Producers by Geography Label : FairWild version 1.0 (2006), FairWild version 2.0 (2010)

Label Creator : IMO, SIPPO, Forum Essenzia e.V. (2006) et FairWild Foundation (2008)

Verification Organisation : IMO

Contact : Weinfelden, Suisse

Weststrasse 51 CH-8570 Weinfelden Switzerland

Tel: +41-71-6 26 06 26 - Fax: +41-71-6 26 06 23

[email protected]

http://www.fairwild.org/

History : The FairWild (version 1.0) standard was established in 2006 by IMO, SIPPO (the Swiss Import Promotion Programme) and Forum ESSENZIA eV. It is based on the ISSC-MAP standard (International Standard for Sustainable Wild Collection of Medicinal and Aromatic Plants ), created by WWF Germany (World Wildlife Fund), the BfN (Bundesant für Naturschutz - German Federal Agency for Nature Conservation), the TRAFFIC (Wildlife Trade Monitoring Network) and IUCN (International Conservation Union). This label certifies that the collecting of medicinal and aromatic plants is made in a sustainable manner. Version 2.0 repository FairWild was published in August 2010.

Standard Owner : Since 2008, the label has been operated by the FairWild Foundation, while relying on technical assistance from WWF and TRAFFIC

Standard Scope: Food - Cosmetics - Pharmaceutical Industry

Sectors : Production - Import – Processing

Supply Chains / Products Labelled: The certification applies to all products that are collected (plants, fruits, nuts, mushrooms, berries, etc.).

Fair Trade Label Guide 2011 Page 37 Easy Reference Table

€ Economic Criteria

Fair price / fair compensation to workers Premium for group projects Access facilitated to finance / pre-financing Long term commitment from buyers Traceability Social Criteria

Formalised collective structure for producers Accessible to marginalized producers and workers Ø Capacity building of producers Rights of indigenous peoples Democratic decision-making within producer organisations Transparent information in the management of the producer organisation Producer participation in the management of the producer organisation Non-discrimination within the producer organisation Monitoring of the democratic management of the development premium Environmental Criteria

Reduction of the environmental impacts of activities Sustainable management of natural resources Protection of biodiversity Energy management Soil management Water Management Waste Management Transportation Management Management of packaging materials Ø Prohibition of hazardous substances Ban on GMOs Premium for Conversion to Organic Agriculture Criteria Awareness

Information and education by holders of the label Ø

Fair Trade Label Guide 2011 Page 38

Analysis of the Label Impact studies: FairWild is a label that has been developed to ensure sustainable collection of plants, mushrooms and wild fruits. This label combines strong social and environmental commitments, as well as specific aspects of fair trade. The certification is without FairWild verifies the social geographical restriction. impact of the premium development. The standard consists of 11 principles and 29 criteria Eligibility For certified FairWild gatherers, gatherers ’ organisation s and employees of processing plants operting in the collection sector. It applies to actors from the South and in the North under certain conditions (disadvantaged or marginalized collectors in developed countries) Economic Criteria Transparency, sustaina bility, traceability: Buyers should be fully transparent about the costs and benefits generated. A dialogue should be initiated with collectors, especially with regard to setiing prices.

Pre-financing: The financing is set at a minimum of 20%.

Fair Price: The fair price includes collection costs, the price paid to collectors, purchasing costs and processing and certification costs. The price paid to collectors sufficient to cover their needs and those of their families.

Development Premium : This corresponds to 10% of the harvest purchased. It is intended for social development projects and managed by a fund in which the gatherer groups are represented. During the first 5 years, the premium must also be used to improve the sustainability of harvesting. Social Criteria FairWild guarantee s compliance with the core ILO Conventions: The prohibition of forced labor, freedom of association and right to collective bargaining, supervision of child labor and non- discrimination. The standard also covers hygiene, health and safety (access to potable water, fire protection, etc..), and good working conditions (contract, salary, training, limiting working hours and paid leave, pension funds, etc..). Producer Independence To create additional revenue sources, collectors dependent on a single product are encouraged to diversify their collection. The buyer supports the establishment of democratically founded

Fair Trade Label Guide 2011 Page 39 collector’s organisation s. Programs to integrate marginalized groups and especially women need to be implemented.

An important facet of this standard is the respect and recognition of the beliefs and traditions of local communities and indigenous peoples. This requires the sustainable management of areas of collection but also a knowledge of community law, traditional uses and cultural and religious meanings.

The sales of the collected products should not affect the availability, accessibility and quality of medicinal plants for local and traditional usage. Environmental Criteria The standard is used t o prevent negative environmental impacts associated with the harvesting of wild medicinal and aromatic plants. This prevention is mainly incorporated into management practices and gathering that identify, inventory, assess the impacts of the activity on rare, threatened or endangered species. Collection activities must not affect the diversity of the ecosystem and the rules of picking limit waste production.

The collection should take place in an environment where there are specific indicators for species for which the risks of unsustainability are higher (endangered, little known and endemic species, including increased commercial demand etc.). Awareness Raising and Advocacy The FairWild foundation that manages the standard is also involved in consulting activities with stakeholders in the regulation of collection activities (states, local governments, NGOs, etc.). The principles of sustainable collection are promoted among medicinal plant experts in the form of articles and newsletters (see Square Brackets, CBD newsletter for Civil Society, etc.). Management of the Logo / Label The label may be used on packaging in promotional campaigns subject of an agreement with the foundation FairWild.

The logo size depends on the percentage composition of (gross weight):

The FairWild logo is clearly shown: composition > or = 75%

The FairWild logo has a secondary placing: composition is between 20 to 75%

The phrase "contains % FairWild certified ingredient" can be used : <20%

Fair Trade Label Guide 2011 Page 40 Control of Certification

Stages of Certification 1) Application form with FairWild

2) Analysis by IMO and FairWild of the application and documents provided

3) Audit carried out by IMO leading to the drafting of a report

4) Evaluation of the audit report and documents provided (resource management plan, sustainable practice of collecting, calculating costs throughout the chain, traceability, documentation concerning "fair practices": premium, premium price, etc.).

5) Obtaining the certificate if the set of minimum criteria are met.

Control Methods

Self evaluation Ø

External evaluation

Accredited independent third party Ø for ISO 65

Costs Certification costs are borne by the applicant for certification: producer, importer or buyer. The standard v2.0 is available in English, German, Portuguese, Serbo-Croatian and Spanish.

Tran sparency and Governance

Standard freely available on internet

Producers participate in creating the standard

Producers participate in the evolution of the standard

Fair Trade Label Guide 2011 Page 41 Our Comments FairWild label covers all requirements made by fair trade acto rs. It does not explicitly target the disadvantaged small producers and gatherers, although in reality it is an often marginalized population in the South but also North. As for Fair For Life, with which the standard shares a similar history (development carried by the certification body IMO), we regret the lack of encouragment given to companies to educate consumers about fair trade.

The label FairWild differs from other fair trade labels by two characteristics: firstly, it deals with the collection activities of wild medicinal and aromatic plants and it responds to specific problems related to the protection of endangered species, overexploitation of natural resources and exploitation of informal, poorly organised labour. The label is one of the only to refer to the rights of indigenous peoples, as well as beliefs and customs.

The separation of ownership of the standard (FairWild Foundation) with the inspection body IMO shows the relevance of this link to the principles of fair trade to change trade rules. The foundation conducts advocacy and counseling, beyond the promotion of the standard. For example, it supported the relevant regulatory institutions in Bosnia and Herzegovina to better define a regulatory framework respecting the principles of sustainable development. The foundation has also started an accreditation program which should lead to the opening of the audit of the standard to agencies other than IMO.

Fair Trade Label Guide 2011 Page 42

Forest Garden Products

Producers by Geography Label : Forest Garden Products

Label Creator : Forest Garden Products (1987)

Verification Organisation : Forest Garden Products Inspection and Certification (PVT) LDT (1987) accredited certifier of products ISO 65 by SLAB (Sri Lankan Accreditation Board) since December 22, 2010

Contact : COLOMBO, SRI-LANKA

M. Deva Vikrantha

FGP (Pvt).Ltd

33-1/1 Kinross Avenue

Colombo 04, Sri-Lanka

Tel: +9411 2552494

[email protected]

http://www.forestgardencertification.com

History : Realising the impacts of deforestation and soil degradation Dr. Ranil Senanayake, an ecologist from Sri Lanka, set up a model of a highly sustainable system, similar to the forest culture itself. This particularly model of agroforestry encourages the restoration of deforested and degraded areas by offering the forest populations new sources of income, food and other basic needs. This method of cultivation allows the conservation of water and soil, the controlling of pests, and increase in biodiversity and the restoration of cycle of nutrients.

Standard Owner : the IAFN (International Analog Forestry Network)

Originally designed by Dr. Ranil Senanayake, founder of Forest

Fair Trade Label Guide 2011 Page 43 Garden Product IC (Inspection and Certification), the standard is managed by the IAFN (International Analog Forestry Network), a network of thirty organisations invested with safeguarding and principle of the analog forestry system. Created in 1996, the network promotes the exchange of knowledge and experience among its members who include Forest Garden Product IC and the company Guayapi Tropical, also a member of the PFCE.

Standard Scope : Production - Importation – Processing

Sectors : Agriculture - Cosmetics - Food - Nutritional Supplements

Supply Chains / Products Labelled : Raw materials from certified lands:

1. Amazonia: Warana, Muirapuama, Andiroba, Copaiba, Acai and other Amazonian plants

2. Sri Lanka: Coffee, tea, spices (cinnamon, cloves, black pepper, etc.)

Fair Trade Label Guide 2011 Page 44 Easy Reference Table

€ Economic Criteria

Fair price / fair compensation to workers Ø Premium for group projects Ø Access facilitated to finance / pre-financing Ø Long term commitment from buyers Traceability Social Criteria

Formalised collective structure for producers Accessible to marginalized producers and workers Capacity building of producers Rights of indigenous peoples Democratic decision-making within producer organisations Ø Transparent information in the management of the producer organisation Producer participation in the management of the producer organisation Non-discrimination within the producer organisation Monitoring of the democratic management of the development premium Ø Environmental Criteria

Reduction of the environmental impacts of activities Sustainable management of natural resources Protection of biodiversity Energy management Soil management Water Management Waste Management Transportation Management Ø Management of packaging materials Ø Prohibition of hazardous substances Ban on GMOs Premium for Conversion to Organic Agriculture n/a Criteria Awareness

Information and education by holders of the label

Fair Trade Label Guide 2011 Page 45 Analysis of the Label Impact Studies: Available in English and Spanish, the specification is presented in the form of principles to follow and is composed of numerous annexes which accurately describe the environmental aspects and the methodology for the cultivation of an analog forest. In field studies are conducted annually. An impact study of a Eligibility Warana project in Brazil, Aimed at individual farmers, small groups or producer commissioned by the PFCE and organisations, the certification applies to plant and animal completed in 2010 aims to products from specific ecosystems in South and North. For ensure: example, the area of Sateré Mawé Amazon is certified by Forest Garden Products.

1) Implementation of good Economic Criteria practices in the fair trade suply Transparency, sustainability, traceability: traceability must be chain in the Brazilian Amazon; assured throughout the chain. Regarding prices, importers undertake to be transparent to producers and consumers.

Fair Price: There is no minimum price guaranteed by the 2) the appropriateness of guarantee scheme, or methodology for calculating fair price. criteria used by the FGP label Prices are proposed and established by the producers, and, for recognition by the CNCE. depending on demand and to finance various projects. Prices must be above the conventional purchase price.

Development Premium : The specifications make no mention of development premium. There is no incentive to implement joint projects of general interest by producer organisations via fair trade activities. Standards, however, require that the certified producer organisations have a social mission to develop their members (capacity building, education, social projects, etc.). Social Criteria The fundamental ILO conv entions are not explicitly mentioned in the standard. However, the requirements refer to the absence of forced labor, the presence of minimum wages, lack of child labor and health and safety of workers. Producer Independence Producer organi sations mus t implement Internal Control Systems (ICS). To strengthen the capacity of producers, technical training is offered on various topics such as optimization of the analog forest, organic farming, livestock, etc. In larger organisations, the establishment of a system of social responsibility (CSR - Corporate Social Responsibility) enables the creation and implementation of a collective labour agreement.

The increase in revenues from the sale of certified products can be invested in domestic infrastructure and community projects.

Additionally, decisions within the organisation must be transparent and collective projects must concern topics of general

Fair Trade Label Guide 2011 Page 46 interest (health, educ ation, nutrition, culture, etc. ).

By allowing a diversification of crops, agroforestry can reduce vulnerability and dependency of producers on a single product. Environmental Criteria The label FGP goes beyond organic farming. Beyond the prohibition of the use of pesticides and chemical fertilizers, agroforestry provides a sustainable management and restoration of the original ecosystem. The establishment of an analog forest allows an increase in biodiversity, improvements in the nutrient cycle, water conservation, soil restoration, controls the appearance and proliferation of parasites, etc.

Soil fertility is increased and carbon footprint reduced by the cultivation of plants for carbon sequestration. Numerous analyses of soil and animal and plant biodiversity allow the evolution of all these criteria to be measured. Awareness Raising and Advocacy The framework does not encourage businesses to carry out these actual activities. In practice however, companies that carry the label are actively involved in awareness raising or advocacy. This is the case for the company Guayapi Tropical in France. Management of the Logo / Label The logo is affixed to the products:

For dry products: 100% of the gross weight must be fair trade and from organic farming

For a composite product: the certified products are clearly identified in the ingredient list but the label does not provide for a minimum percentage required to use the label.

The logo can also be used in corporate communications.

Fair Trade Label Guide 2011 Page 47 Control of Certification

Stages of Certification 1) Forward application to FGP IC

2) Inspection visit: documentation review and samples (soil) for analysis and comparison basis for further developments, check the procedure for progress

3) Report and recommendations of the inspectors sent to the Certification Committee

4) Approval or denial of certification

5) Registration of the candidate by the secretariat

6) Issuance of Certificate Level B (certification "in transition")

7) Establishment of a three-year plan to support the local people, during which further inspections can be conducted

8) Certification

An annual check is performed to re-certify

Control Methods

Self evaluation Ø

External evaluation

Accredited independent third party for ISO 65

Costs Costs can be b orn by all actors : producer organisation s, buyers or importers.

A relevant internal control system (ICS) can lead to reduced monitoring costs.

Forest Garden Products has established a fund that supports the costs of inspection and certification for producer organisations that wish to join the process but that lack financial capacity,.

There are no licensing fees for labelled products.

Certificates are available on the Forest Garden Products website

Fair Trade Label Guide 2011 Page 48 Transparency and Governance

Standard freely available on internet

Producers p rticipate in creating the Ø standard

Producers participate in the evolution of the standard

Our Comments The Forest Garden Product label (FGP) does not currently cover all of the fair trade principles, in particular the criteria relating to economic issues: guaranteed minimum price and the development premium. On these points, the standard is vague and states only that prices should be above the conventional purchase price and that certified producer organisations must have a mission to develop its members (capacity building and education).

In addition to being a Southern label, the FGP standard is particularly demanding on environmental criteria, ranging from organic farming to the restoration of biodiversity in the certified area, covering an entire ecosystem and several supply chains. It is therefore hoped that the demanding environmental standards can influence other fair trade labels to increase their own requirements.

In terms of the logo, it is regrettable that the label can be affixed to a product regardless of the percentage of certified ingredients.

Nevertheless, the FGP label is not yet a guarantee of fair trade as defined by the movement. Its partnership with the company Guayapi Tropical, also a member of the PFCE, should foster the strengthening of the economic criteria of the label. A recent impact study on the Amazonian Warana industry, coordinated by the PFCE, shows a strong complementarity between the environmental impacts of the FGP label and Guayapi Tropical’s social and economic practices.

Fair Trade Label Guide 2011 Page 49

Main dans la Main

Producers by Geography Label : Main dans la Main (1998)

Label Creator : Rapunzel Naturkost AG (1974)

Verification Organisation : IMO

Contact : Rapunzel : Legau, Allemagne

Rapunzel Naturkost AG

Rapunzelstrabe, 1

D-87764 Legau, Allemagne

Tel: 0049-83305291133

[email protected]

Raiponce : Cavaillon, France

570, Allée de Cabedans Beneficiaries : 84300 Cavaillon, France 34% of producer organisations, Tel: 0033 4.32.50.07.30 33% plantations, [email protected] 33% contract production growers www.rapunzel.fr

Since the Main dans la Main History : In the beginning, Rapunzel was a small grocery store fund was established, 45 selling Bavarian bread and vegetables. Gradually, the business producer organisations have grew and became an importer of organic products and Rapunzel benefited from 84 social and became a limited company in 1989. It launched in France in 1991 environmental projects from a under the name of Rapunzel France, and then changed its name total development premium to Raponce [the French translation of Rapunzel] in January 1996. spend of €239,000 In 1998 the program "Main dans la Main" was created which defined the rules of fair exchange between the company and its

Fair Trade Label Guide 2011 Page 50 suppliers in the South

Standard Owner : The company Rapunzel.

Based in Germany, the company established direct contracts "Main dans la Main" [hand in hand] with its Southern partners. Rapunzel also developed a partnership with Deutsche UmweltHilfe [DUH], a German environmental protection organisation, to manage development projects and manage the "Main dans la Main" program and its endowment, which funds the projects development. Products bearing the logo "Main dans la Main" are marketed in France by Raponce, the French subsidiary.

Standard Scope : Production - Import - Processing

Sectors : Food

Supply Chains / Products Labelled : cocoa, coffee, sugar, dried fruit, fruit (mango, pineapple, coconut), Brazil nuts, quinoa. 70 of Rapunzel’s 400 products are certified "Main dans la Main" of which 57 are available in France, distributed through networks of stores specializing in organic products (Biocoop network, etc.).

Fair Trade Label Guide 2011 Page 51 Easy Reference Table

€ Economic Criteria

Fair price / fair compensation to workers Premium for group projects Ø Access facilitated to finance / pre-financing Long term commitment from buyers Traceability Social Criteria

Formalised collective structure for producers Ø Accessible to marginalized producers and workers Ø Capacity building of producers Rights of indigenous peoples Ø Democratic decision-making within producer organisations Transparent information in the management of the producer organisation Producer participation in the management of the producer organisation Non-discrimination within the producer organisation Monitoring of the democratic management of the development premium Ø Environmental Criteria

Information and education by holders of the label Ø

Fair Trade Label Guide 2011 Page 52

Analysis of the Label Impact Studies: Pre sented in the form of principles to follow, the standard is available in French on Rapunzel’s website, and is classified No Impact Studies have been according to basic criteria (to be met during the first inspection) conducted. and development criteria (in a continuous improvement process). Eligibility The “Main dans la Main” programme is intended for small farmer cooperatives, farms, plantations, processing units and exporters in developing countries. Economic Criteria Transparency, sustainability, traceability : Rapunzel commit s to the producer organisation to buy the entire production.

Pre-financing : Pre-financing and credit may be granted upon request and in an emergency.

Fair Price: Generally, the price paid to partners is to cover production costs and to ensure their livelihood. In the case of small farmer cooperatives, it must prove that the price paid directly benefits directly the farmers. If partner makes a profit, it must establish a methodology for the equitable distribution of profits: bonuses, wage increases, direct social benefits (health insurance, pensions) or indirect (nurseries, canteens, housing).

Development Premium: There is no development premium in the framework of Main dans la Main. However, each year, Rapunzel pays 1% of the purchase value of raw materials labeled "Main dans la Main" to DUH. The DUH heads the committee responsible for selecting projects to be supported by the fund. Ces projets doivent poursuivre un but social, économique, de santé ou de formation. These projects are must have social, economic, health or training goals. Funded projects do not necessarily have to involve Main dans la Main’s partners, but they can still make requests for support for their projects. Social Criteria The 11 core ILO conventions must be observed. Wages must at least be at the legal minimum rate. If there is no legislation concerning social benefits, then plans must be put in placefor health insurance, maternity protection and retirement plans.

For workers living in their place of work, access to schools, to transportation and health services must be facilitated.

Fair Trade Label Guide 2011 Page 53 Producer Independence Empowerment is not explicity encouraged among producers or producer organisations that supply Rapunzel. Furthermore the lack of a premium fund managed by producer organisations limits their ability to mobilize resources for the implementation of collective projects.

However, food technicians, agricultural engineers and business experts advise and support farmers about farming methods, processing, quality management and business issues. These measures permit the improvement of organisational performance and the standard of living of the producers. Environmental Criteria Products must be organically farm ed, and non -polluting production processes are encouraged. Training aimed at improving environmental practices is given by agronomists.

Sale of organic products in local markets is encouraged. Awareness Raising and Advocacy Rapunzel is involved in ra ising awareness among the general public through lectures, distribution of information booklets, in- store demonstrations and specialty publications in the press. Management of the Logo / Label At least 50% of the product ingredients should be certified in order for the logo to be used on packaging and in corporate communications. Only Rapunzel branded products may bear the Main dans la Main logo. Control of Certification

Stages of Certification 1) Verification by the applicant that the requirem ents of the specifications "Main dans la Main" are met

2) Signing the contract

3) Site audit

4) Certification accepted after analysis of the audit report by purchasing and marketing staff from Main dans la Main and Rapunzel

An audit is conducted every year.

Fair Trade Label Guide 2011 Page 54

Control Methods

Self evaluation Ø

External evaluation

Accredited independent third party Ø for ISO 65

Costs Rapunzel pays all audit costs . A list of Main dans la Main certified producer organisations is available on the Raiponce / Rapunzel website.

Transparency and Governance

Standard freely ava lable on internet

Producers participate in creating the Ø standard

Producers participate in the evolution of the standard

Our Comments Although the commitments to the standard are controlled by a certification body, this program is not strictly speaking a label. In effect, this is an approach developed by Rapunzel to distinguish the products it sells and for which it develops business relations it describes as fair with its suppliers.

The Main dans la Main programme develops strong social and environmental criteria but does not cover some of the fundamental principles of fair trade such as the empowerment of producers and the payment of a development premium.

To strengthen the technical, commercial and agricultural capacity ofproducers, support and training are strong pillars of this standard. Moreover one can appreciate the long-term relationships that Rapunzel has with its suppliers and the support provided to them through funded programs. It is regrettable however that no impact study has yet been made on this program.

Fair Trade Label Guide 2011 Page 55

Naturland Fair

Producers by Geography Label : Naturland Fair, 2009 (revised in May 2010)

Label Creator : Naturland (1982)

Verification Organisation : Naturland

Contact :

Naturland Association for Organic Agriculture

Kleinhaderner Weg 1

82166 Gräfelfing, Allemagne

Tel: +49 (0) 89-89 80 82-0 - Fax:+49 (0) 89-89 80 82-90

[email protected]

http://www.naturland.de

History : A pioneer in the German organic sector in the 80s, Naturland is now an international association active in many areas: sustainable forest management, sustainable fishing, cosmetics, textiles, etc. Based on the three pillars of sustainability - agriculture, social interaction and equitable relationship, the label "Naturland Fair" was launched in 2010. It is an optional extra for companies already using the organic label "Naturland".

Standard Owner : The Naturland association includes 55,000 farmers and 101 cooperatives engaged in organic farming in Germany and around the world. It develops frameworks, organizes the certification audits and carries out advocacy activities.

Standard Scope : Production - Import - Processing

Fair Trade Label Guide 2011 Page 56 Certification can be applied to products or to organis ations

Sectors : Food - Cosmetics - Textiles – Wood

Supply Chains / Products Labelled : Although applicable to any product, it is essentially for organic food products. Certification began in 2010 on: Coffee, olive oil, tea, tropical fruits, sugarcane, spices.

Fair Trade Label Guide 2011 Page 57

Easy Reference Table

€ Economic Criteria

Fair price / fair compensation to workers Premium for group projects Access facilitated to finance / pre-financing Long term commitment from buyers Traceability Social Criteria

Information and education by holders of the label

Fair Trade Label Guide 2011 Page 58 Analysis of the Label The specification "Naturland Fair" comes in the form of principles to follow. It is available in English, Spanish and German. Eligibility The label applies to production sectors and organisation s located in both the South and the North.

When 70% of a company’s products are certified Fair Naturland, these companies can make use of the phrase "Naturland Fair Partner." An approach to fair trade South-South cooperation can be foreseen. Economic Criteria Transparency, sustainability, traceability: Trade relations should be based on dialogue, transparency and respect. The buyer must work the perspective of long-term partnership based on sharing information.

Pre-financing: It can be up to 60% in very poor countries or those where bank loans are difficult to access.

Fair price: Negotiated between the buyer and producers, the equitable price shall correspond to the cost of living and allow the provision of an adequate profit margin for future investment. Buyers can use the guaranteed minimum price developed by the label FairTrade International / MaxHavelaar. If it does not exist or is deemed insufficient, the price paid must reflect the costs of production complemented by a margin of around 10% of the price.

Development Premium: The premium development is allocated to producer organisations that collectively decide its use: health, educational or environmental projects, and in some cases may be used as additional income for small producers. Producer organisations are encouraged to focus on projects affecting the most disadvantaged groups (women, minorities, disadvantaged producers, etc.). In the case of plantations, there is a special fund for employees and it is employees that participate in decisions about the fund’s use. Social Criteria The 11 core ILO conventions must be observed. Additional social benefits are encouraged to improve conditions related to maternity leave, retirement and health. Producer Independence To strengthen the capacity of producers and their organis at ions, training in education, organisational, cultural methods, strategic development and quality improvement should be provided in

Fair Trade Label Guide 2011 Page 59 partnership with corporate buyers. Development projects must allow producer organisations to build capacity and be independent. Rural structures must be maintained and consolidated.

To increase the effectiveness of activities, a technical team assists with the first monitoring visits in order to organise meetings between inspectors and producers or processors.

For the sake of development and food security, food production must prioritise the local population and favour the regional market. Thus, 80% of inputs [e.g. seeds] must be locally sourced to ensure that the crops are adapted to soils and to local knowledge. Environmental Criteria Organic certification (EU 834/2007) is mandatory. The gener al Naturland standard also addresses themes of transportation and packaging. Awareness and Advocacy Companies distributing certified products must participate in educational projects or campaigns to provide consumers with information on fair trade. In their advocacy, buyers and processors using the label must represent the interests of producers.

Naturland Fair has set up a campaign on food safety "Organic and Fair - More Food For All" to promote access to organic and fair trade products for everyone. Management of the Logo / Label The logo can be used on packaging and promotional purposes, subject to authorization.

For dry, unprocessed product: 100% of (gross weight) must be fair trade

For a composite product: At least 50% of the ingredients (gross weight) must be fair

The use of conventional ingredients where fair trade ones are available is prohibited.

When a business is certified, 70% of the organisation’s production must comply with standards before it can become "Naturland Fair Partner."

Fair Trade Label Guide 2011 Page 60 Control of Certification

Stages of Certification A thorough inspection is conducted annually by Naturland inspectors. Additional spot checks may be made according to a risk analysis.

1) Exchange of information between the candidate and Naturland staff: explanation of the implementation and the fundamental partnership with Naturland Fair.

2) Writing of a paper developing the strategy of fair partnership within the organisation (policies, guiding principles etc.). It is recommended that producers and workers are involved in developing this document.

3) Analysis of the document of the application by the certification committee of Naturland.

4) Site inspection leading to the certification if the company complies with the Naturland Fair standards.

An annual audit is done for recertification

Control Methods

Self evaluation

External evaluation

Accredited independent third party Ø for ISO 65

Costs "Naturland Fai r" certification is an additional option for producers and manufacturers already Naturland certified. Audit costs are borne by the applicant organisation. Naturland members pay annual dues and license fees.

Transparency and Governance

Standard freely a vailable on internet

Producers participate in creating the standard

Producers participate in the evolution of the standard

Fair Trade Label Guide 2011 Page 61 Our Comments Naturland Association is a non -profit organisation . From the organics world, it developed multiple production standards in areas not covered by the label AB [organic agriculture]. It also developed its own fair trade label. Like other recent labels such as Fair for Life or FairWild, this label applies to products or organisations in the South and in the North.

Another feature of this label is that it concerns the labeling of products, while promoting the conduct of the particularly committed companies via a special logo "Naturland Fair Partner."

Particular attention is paid to agricultural models and to food security issues: the process encourages support for small farms and requires that 80% of product ingredients come from local sources. The label refers explicitly to the FINE definition of Fair Trade, part developed by FairTrade International and WFTO. Like these two historical actors of fair trade, the Naturland association conducts advocacy and awareness-raising to change the international rules governing agricultural production and trade relations. Its status as a nonprofit organisation supports its involvement in advocacy campaigns and education and positions the organisation among other civil society activists.

Fair Trade Label Guide 2011 Page 62

World Fair Trade Organisation

Members by Geography Label : FTO ( Fair Trade Organisation)

Label Creator : WFTO (World Fair Trade Organisation)

Verification Organisation : WFTO members (peer evaluations) and independent consultants

Contact : Prijssestraat 24

4101 CR Culemborg - The Netherlands

Tel: +31 (0) 345 53 59 14 - Fax: +31 (0) 847 47 44 01

http://www.wfto.com/

History : WFTO (formerly IFAT - International Association for Alternative Trade) is an international association founded in 1989 to bring together the Northern and Southern fair trade organisations (FTOs). The organisation then created an organisational guarantee for its members, called "Fair Trade Organisation" (FTO). The guarantee is based on self-evaluation Beneficiaries: and peer reviews. Representing over two thirds of the WFTO 110 million "artisans, farmers, membership, Southern organisations participated in the producers, farmers, artisans, development of the standard and methodology for obtaining the including 30 million guarantee. marginalized with their families and communities Standard Owner : WFTO

WFTO seeks above all to promote fair trade and social justice through the promotion of its members, and awareness-raising Global turnover : €1.66 billion and advocacy. WFTO is composed of 350 fair trade organisations, in 70 countries. There are five regional offices: COFTA in Africa, WFTO-Asia, WFTO-Latin America, WFTO-Pacific and WFTO- Europe. Two-thirds of the members are organisations of the

South.

Standard Scope : Production - Import - Processing – Distribution

Fair Trade Label Guide 2011 Page 63 Sectors : Agriculture - Crafts - Cosmetics - Apparel

Supply Chains / Products Labelled : The standard covers the organisations specialized in the manufacture, marketing and distribution of fair trade products (crafts, food, cosmetics and textiles.). It is not a product label.

Fair Trade Label Guide 2011 Page 64 Easy Reference Table

€ Economic Criteria

Fair price / fair compensation to workers Premium for group projects Access facilitated to finance / pre-financing Long term commitment from buyers Traceability Social Criteria

Reduction of the environmental impacts of activities Sustainable management of natural resources Protection of biodiversity Ø Energy management Soil management Ø Water Management Ø Waste Management Transportation Management Management of packaging materials Prohibition of hazardous substances Ø Ban on GMOs Ø Premium for Conversion to Organic Agriculture Ø Criteria Awareness

Information and education by holders of the label

Fair Trade Label Guide 2011 Page 65

Analysis of the Label WFTO has not , to date , The FTO standards , available in English, French and Spanish, is developed system of based on ten principles to follow: Creating opportunities for monitoring the impact of economically disadvantaged producers, transparency and security on the producers. accountability, business practices, capacity building, promotion There are a few impact studies Fair Trade, paying a fair price, gender equality, working conducted by researchers and conditions, child labor and the environment. referenced in the mapping of impact studies conducted in Eligibility 2010 by CIRAD on behalf of the Any structure involved in fair trade can become a member: PFCE. producers from developing countries, producer organisations, processors, importers, distributors, shops, organisations that promote and support. For organsiations involved in trading activity, at least 50% of revenues must come from the sale of fair trade products. Economic Criteria Transparency, sustainability, traceability: The relationship must be balanced between the different actors. The exchange of information on products, markets, production times and quality should add to the strength and influence of producers and their organisations.

Pre-financing: Financial assistance may be granted to producers and producer organisations.

Fair price: The price should allow the producers to provide for their basic needs and those of their family such as medical care, education and the opportunity to save. The system for calculating the fair price should be detailed. WFTO provides its members with a detailed procedure to help them fix prices.

Development Premium : The WFTO criteria do not provide for a development premium as part of the fair price. The fair price is established to allow the producer organisation to offer a fair price or purchase price, and to implement collective economic and social projects. Social Criteria The 11 core ILO conventions must be observed. Organisation s must provide women with equal opportunities for training, participation in decision making and access to positions of responsibility. Producer Independence For the sake of sustainability of the activity and capacity building of producers, quality and traditional knowledge should be valued. Producers and employees must be involved in decision making

Fair Trade Label Guide 2011 Page 66 and functioning of organisation s. The production of goods with high added value is encouraged (e.g. processing plant on site).

In respecting the cultural identity of producers and their traditions, the business must not encroach on native land claims and must not destroy resources vital to their survival. Environmental Criteria The e nvironmental criteria of the FTO system are not detailed and the approach is more general when compared to other systems. However, the environmental policy is assessed during the evaluation. From the perspective of sustainable management of natural resources, local purchases and the use of recycled or biodegradable materials for packaging should be encouraged. In addition, maritime transport should be promoted where possible.

Specific points refer to the use of environmentally friendly technologies. To sensitize them to environmental issues, training and technical assistance should be provided to producers. Awareness and Advocacy WFTO conducts and supports advocacy with national and international aims to improve the living conditions of the poorest in developing countries. WFTO advocates for changing the rules of world trade and for a transformation of modes of production and consumption to improve the living conditions of workers and producers in the poorest countries. WFTO and its members are very active in raising awareness among citizens, businesses and governments. WFTO is involved in the World Fair Trade Day initiative. Management of the Logo / Label It is used only on the communication media , such as letterheads, of the member organisations, and not on product packaging.

Fair Trade Label Guide 2011 Page 67 Control of Certification

Stages of Certification 1) Status of Provisiona l M ember : acquired from submitting a registration questionnaire, the balance sheets of the previous two years and the signed code of practice.

The application must be supported by two WFTO members acting as sponsors. Member organisations of the same country must give their opinion.

2) Self-assessment against the WFTO criteria and sending various documents (payroll, social policies, contracts).

3) Analysis of the self-assessment which is then sent to all partners and published on the website of WFTO.

4) The Board decides to award permanent member status

5) External Evaluation conducted by a person authorized by the committee exclusive WFTO on a sample of 5 to 10% of members each year.

The procedure for self-evaluation and possible external evaluation is renewed every two years.

There is a complaints procedure that allows members to challenge the Board if they believe that another member fails to meet one or more criteria.

Control Methods

Self evaluation

External evaluation

Accredited independent third party Ø for ISO 65

Fair Trade Label Guide 2011 Page 68 Costs As it is based primarily on self -assessment, monitoring costs are low. Beyond the assessment paid by all members, organisations bebefitiing from the guarantee pay a monitoring fee of an amount between 25 and 1000 USD depending on the size of the organisation.

Transparency and Governance

Standard freely available on internet

Producer s participat e in creating the standard

Producers participate in the evolution of the standard

Our Comments The guarantee offered by WFTO deals exclusively with Fair Trade organisations (FTOs). The guarantee covers the main requirements of the Fair Trade movement, even if environmental criteria could be formulated more precisely.

This is the main guarantee system, along with FairTrade / MaxHavelaar that places advocacy and civic education activities as instruments of transformation of trade and modes of production and consumption at the heart of its social mission.

Through its organisational focus approach "organisation", the system has the advantage of responding to the specifics of the handicraft sector, often composed of smaller organisations, and members drawn from the most disadvantaged groups.

However, the method of auditing those engaged with this label, essentially based on self-assessment and peer review may be less reliable than an independent certification audit. This is driving WFTO toward a more robust system with the development of a organisational label, which can be shown on Products: SFTMS (Sustainable Fair Trade Management System). Producer organisations and their trading partners will be audited on the basis of a detailed standard and by an external certification body.

Fair Trade Label Guide 2011 Page 69

Some Approaches to Ethical Trade

Is everything ethical fair? The multiplication of ethical and fair labels and certification schemes raises legitimate questions from consumers (citizens, companies or governments). The differences between the initiatives are not always easy to identify and the distinction between "ethics" and "fair" is not always clear.

That's why we chose to supplement this guide with an overview of four approaches to ethical trade: bioRe ®, 4C, Rainforest Alliance and UTZ CERTIFIED.

In terms of social criteria, the labels or approaches to ethical trading all refer to, as a minimum requirement, the application of ILO standards. They sometimes have a strong environmental focus, such as bioRe ® or Rainforest. They are usually accompanied by support programs for farmers or their organisations to improve their production techniques and to enhance their management skills. This support, as well as improved environmental practices, often allows producers to improve the quality of their products and to achieve better market prices.

It is usually at the within the economic criteria that these labels or ethical trade initiatives differ most from fair trade. The standards do not provide for a guaranteed minimum price, or a development premium for producers to run joint projects for their communities. There is no pre- financing of orders. Essentially, the criteria of these ethical approaches apply only to production methods and the organisation of producers. There are no reciprocal responsibilities on the part of the trading partners planned and controlled in the standards.

In the fair trade project, it is the relationship between trading partners that is modified. The Fair Trade criteria enforce rights and obligations for both parties: vendors / producers in the South and purchasers in the North. It is this relationship that should lead towards greater equity. It is also thanks to the economic commitments from the commercial partners that producers can increase their processes of independence or empowerment.

Fair Trade Label Guide 2011 Page 70

Common Code f or Coffee Community

[4C]

Producers by Geography Approach : 4C [Common Code for Coffee Community]

Creator of the Approach : 4C Association (2006)

Verification Organisation : IMO, Africert, OKO garantie, Biocert, Latcert, etc. (list available on 4C’s website)

Contact : Bonn – Allemagne

4C Secretariat

Adenauerallee 108 53113 Bonn

Tél: +49 (0) 228 850 50 0 - Fax +49 (0) 228 850 50 20

[email protected]

http://www.4c-coffeeassociation.org Beneficiaries : History : The 4C Association is the result of a public-private 299,694 producers who partnership between the German Coffee Association and the produced 8,116,000 60kg bags German Cooperation Agency (GTZ) on behalf of the Ministry for of coffee Economic Cooperation and Development. Bringing together roasters and coffee brands, the 4C Association was founded in 2006 to develop a code of conduct* to improve business practices and encourage the establishment of a sustainable coffee chain. In Countries : 2010, the association estimated that about 30% of the global 22 countries - 357 000 ha supply of green coffee comes from members of the 4C Association.

Approach Owner : The 4C Association. Distributors : The association members are divided into three categories: Aldi, COOP, Kraft, Lidl, Nestle, producers, actors from trade and industry (Aldi, Kraft, Lidl, Nestle Touton - 70% of businesses and etc.) and actors of civil society (Oxfam, Rainforest, etc.). The industries are located in Europe association is present in East Africa, in West Africa, South America and the United States. and Southeast Asia.

Sectors : Food

Supply Chains / Products Labelled : Coffee

Fair Trade Label Guide 2011 Page 71 Analysis of the Approach The 4C code of conduct, is available in English, French, Spanish, Portuguese and Indonesian and covers ten unacceptable practices that are often found in coffee plantations; "worst forms of child labour, forced or bonded labour, trafficking in persons, prohibiting membership of or representation by a trade union, forced eviction without adequate compensation, failure to provide adequate housing where required by workers, failure to provide potable water to all workers, cutting of primary forest or destruction of other forms of natural resources that are designated by national and/ or international, use of pesticides banned under the Stockholm Convention on Persistent Organic Pollutants (POPs) and listed in the Rotterdam Convention on Prior Informed Consent (PIC), immoral transactions in business relations according to international covenants, national law and practice.”

Once these unacceptable practices have been excluded, producers and their organisations must engage in a continuous improvement process based around 28 principles of sustainable development in their social, economic and environmental approaches. Each principle includes criteria ranked according to the desired level of sustainability:

Green: desirable practice

Yellow: practice to be improved

Red: current behavior to be abandoned.

This color coding allows producers and workers to better understand their own status, seeing the points of compliance and areas for improvement. To obtain the license 4C and sell coffee under the label, producers or organisations must achieve an average level of compliance (yellow criteria). This average means that if a "red practice” is scored against one of the criteria, it must be compensated by an equal number of "green practices". In the long term, all practices must reach the green level. Economic Criteria The Code of Conduct states that it aims to implement practices that enable economically viable organisations, just as they also have a socially and environmentally sustainable basis. This must be accompanied by reasonable incomes for all players in the coffee chain. However, beyond the stated objectives, the economic criteria of the code of conduct focus on access for producers to market information, pricing transparency and traceability within the supply chain. There is no enforcement mechanism to ensure that producers are properly paid. If market information is fundamental to guide production decisions of organisations, allowing them to better negotiate prices with buyers, the approach does not call into question the mechanisms

Fair Trade Label Guide 2011 Page 72 of price formation, or protect producers if there is a significant fall in world prices. Social Criteria The specification incorporates the main conventions of respect for freedom of association and right to organize (C87), the right to organise and collective bargaining (C98), abolition of forced labour (C105), compliance with the conditions of employment on plantations (C110), against the worst forms of child labor (C182), and minimum wages. Producer Independence 4C provides free technical support services to commercial producers so that their operations are more efficient and profitable. In addition, candidates are guided to prepare for the audit vists which are conducted by an outside agency. Environmental Criteria Aware of major issues related to coffee plantations, 4C encourages producers to improve environmental practices: conservation of biodiversity, use and packaging of chemicals, conservation and soil fertility and nutrient management, water, waste and energy. Awareness and Advocacy 4C is developing tools for promotion, information and public relations. Management of the Logo / Label The 4C logo should not be used on packaging but can be used by members as part of their communication tools. If companies want to express that they are members of the 4C association on their packaging, they can state that they are members but this is not a logo.

Fair Trade Label Guide 2011 Page 73 Control of Certification

Stages of Certification A thorough inspection is conducted ann ually. Additional spot checks may be made according to a risk analysis.

1) Become a member by filling out the registration form on the website of 4C

2) Payment of entry fees

3) Establishment of a " 4C unit" group of farmers to be able to fulfill at least one container of coffee

4) Self-evaluation of the candidate

5) Audit request by an external certification body – There is guidance for applicants for the preparation of the visit

6) Site audit

7) Establishment of an improvement program with a management plan.

8) Authorization to sell 4C coffee

Annual monitoring is not systematic but depends on the level of risk estimated by the certifying body.

Control Methods

Self evaluation

External evaluation

Accredited independent third party Ø for ISO 65

Costs The cost of joining is proportional to the quantities of coffee produced.

To promote access of disadvantaged producers to the scheme, the amount is about 7.5 euros for a production of 100 to 250 60kg bags.

The costs associated with producer monitoring and support producers are supported by the importers’ membership fees.

A list of all members is available on the website of 4C.

Fair Trade Label Guide 2011 Page 74

Transparency and Governance

Standard f reely available on internet

Producers participate in creating the tandard

Producers participate in the evolution of the standard

Our Comments The code of conduct 4C is an improvement process relatively accessible for all players in the coffee chain. If the approach is much less demanding than those proposed by the Fair Trade labels or by other ethical trade labels, it does encourage importing companies to start thinking about their relationships with their suppliers and their social responsibility towards them. Moreover, the 4C network develops a presence on the ground to provide training and support producers. In this sense, the 4C approach strengthens the sustainability of supply chains and of importing companies to secure their supplies from more efficient production units.

However, the absence of economic criteria in the code of conduct does not guarantee, in a context of high price volatility of raw materials, conditions where producers are properly remunerated.

Fair Trade Label Guide 2011 Page 75

bioRé®

Producers by Geography Approach : bioRé®

Creator of the Approach : Remei AG (1983) and bioRe Foundation ® (1997)

Verification Organisation : FLO-CERT for the social criteria of cotton production, Bioinspecta INDOCERT for organic criteria, Intertek for social and environmental criteria in textile production.

Contact : Rotkreuz, Switzerland

Lettenstrasse 9 – CH-6343

Tél : +41(0)41 798 32 32

[email protected]

Beneficiaries : http://www.remei.ch/fr 39 industrial production sites with 8,438 growers of organic http://www.biore.ch/fr cotton Supplying countries: India, History : Remei AG is a Swiss company that manufactures Tanzania, Lithuania organic cotton items for brands of ready-to-wear such as Coop International sales: Switzerland, Coop Italia, Greenpeace Magazin, Mammut, Elkline €15.1m during 2009-2010 or Monoprix in France. Faced with a cotton market in constant In France, Monoprix is the only deterioration, the biore Foundation ® and the company Remei AG distributor (sales of €581,527 in bioRé® created the label, which certifies that the cotton used 2009-2010) satisifes the stringent demands of organic production and social requirements. The label ensures production conforming with five basic criteria: organically farmed cotton, "fairness”, ecologically friendly manufacturing methods, transparency and innovation (especially ecologically friendly innovation).

Approach Owner : The bioRé® Foundation ®.

The Foundation manages the development and evolution of the standard, directly linked with the bioRé® Tanzania and bioRé® India businesses, themselves directly related to producer organisations.

Standard Scope : All stages of textile manufacture and production, spinning, knitting, dyeing, making, processing, importation.

Fair Trade Label Guide 2011 Page 76 Sectors : Textiles

Supply Chains / Products Labelled : cotton, thread, clothing

Analysis of the Approach

Eligibility The standards apply to branches of cotton introduced by the bioRé® Foundation in India and Tanzania. Products manufactured by Remei AG under the bioRé®label are intended for all brands and distributors of textile products. Economic Criteria As part of their corporate partnerships bioRé® Tanzania and bioRé® India, producers receive a guaranteed purchase of 80% of their production for a period of 5 years. The standard does not provide for guaranteed minimum price. The purchase price is fixed at conventional market prices to which is added a premium of approximately 15% above the market price for organic cotton and 10% for cotton in conversion. Social Criteria The 11 core ILO conventions must be observed.

A program to identify minority or disadvantaged groups should be established to promote their integration.

The ginning, spinning, knitting and garment making are certified to SA 8000 social norms or BSCI (Business Social Compliance Initiative). Producer Independence bioRé® Tanzania and India bioRé® have production contracts where they bring together informal or non-organised producers. The first year, they must initiate and support the establishment of one or more instances operating in a participatory democratic way which will be effective within the next 2 years.

It is essential that 90% of members are small producers or 90% of the volume of products comes from this category. Support programs are in place and producers participate in the selection of community projects: on-site processing unit (gin), mobile care units, wells, schools, etc.

Local training centers are funded by the foundation to enable producers to improve their knowledge of farming and agricultural

Fair Trade Label Guide 2011 Page 77 techniques (manufacture of fe rtilizers an d pesticides made from natural products). The biore Foundation ® also gives farmers loans at 0% interest for them to modernize their production methods or to live healthier lives. Environmental Criteria The standard requires that bioRé® cotton is deri ved from certified organic farming (certified EU 834/2007) or sources in conversion. Crop diversification is encouraged to provide a source of additional income to households and, therefore, be less dependent on the sale of cotton. In the case of clothing manufacturing, bleaching shall be done without chlorine, dyes made without toxic heavy metals and formaldehyde-free finishing. Environmental concerns should be considered with regard to transport and packaging (recyclable materials, etc.). Awareness Raising and Advocacy The program bioRé® does not require the organisation using the logo to public awareness-raising. Management of the Logo / Label The logo is affixed to those products that use 100% cotton that meets the bioRé® standards. It can also be used in the trading partners’ communication materials.

Fair Trade Label Guide 2011 Page 78 Control of Certification

Stages of Certification The social aspects of cotton production are audited by FLO -CERT.

1) Information from bioRé® India or bioRé® Tanzania based on the geographical location

2) Referral of the application

3) Site audit conducted by FLO-CERT

4) Sending a letter of compliance if minimum standards are respected

Certification is valid for 1 year. Surveillance audits are conducted annually.

Every year, the standards are revised. Written by bioRé® Foundation, it is checked and validated by FLO-CERT.

Control Methods

Self evaluation Ø

External evaluation

Accredited independent third party Ø for ISO 65

Costs All costs relating to the control are supported by the foundation bioRé®. There is no license fee for using the label. However, brands can financially support the Foundation through donations.

To ensure full traceability and transparency, an identification number on the garment can allow the cotton used to be traced throughout its production process (http://www.remei.ch/en/biore-philosophy/transparency ).

Transparency and Governance

Standard freely available on internet Ø

Producers participate in creating the standard

Producers participate in the evolution of the standard

Fair Trade Label Guide 2011 Page 79 Our Comments This label is, in terms of its social , environmental or economic commitments, a demanding one. The foundation’s work in the field enables the support of producers and the improvement of their living and working conditions.

However, although the economic commitments are strong (a commitment to buy 80% of production for 5 years), the criteria differ from those of fair trade (no guaranteed minimum price, no development premium, etc.). Moreover, the absence of projects to empower producers makes the process relatively distant from that of fair trade. Indeed, the producers involved in the program are particularly dependent on their main customer, Remei. This dependence, performed according to CSR standards, could undermine producers since the bulk of their revenues are tied to the stability or development of Remei. This vertical integration of the supply chain, even organized under stringent ethical practices, remains an issue whereby the producers lack over their own development.

Moreover, the label maintains much ambiguity regarding its membership in the world of fair trade. Even though the term "fair trade" is never used in the information provided by bioRé® (standards, website, etc.), the term "fair" it is widely used. Some of Remei’s major customers, such as Monoprix, go even further by presenting their products labeled as bioRé® as being "fair trade".

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Rainforest Alliance

Producers by Geography

Approach : Rainforest Alliance

Creator of the Approach : Rainforest Alliance (1986) and the Sustainable Agriculture Network (1992)

Verification Organisation : Sustainable Farm Certification International

Contact : Rainforest Alliance 665 Broadway, Suite 500 New York, NY 10012 USA Phone: +1 (212) 677-1900

[email protected] Beneficiaries : http://www.rainforest-alliance.org 62,784 certified farms or 2.8 Contact en France : Gilles Degroote [email protected] million people (producers / workers and their families) History : The Rainforest Alliance is an NGO founded in 1986 Geographical Reach: whose purpose is to preserve biodiversity and improve the social conditions of workers. In 1989, Rainforest Alliance developed the 20 countries - 579,000 hectares first step in sustainable management of tropical forests and certified creates the eco-label FSC (Forest Stewardship Council). Subsequently, the NGO created a certification program in Brands : agriculture in order to increase the profitability and sustainability of production. This program leads to the creation of a label jointly Cote d 'Or, Innocent Drinks, Jacques Vabre, Kraft, Lipton, run by the Rainforest Alliance and the Sustainable Agriculture Network (SAN). Currently, Rainforest Alliance certifies farms that Nespresso, Subway, comply with this standard. The certification "Rainforest Alliance Certified ™" farms is implemented by an international certification organisation, Sustainable Farm Certification, The Rainforest Alliance is mainly used by large companies in the food industry, such as Lipton, Kraft, etc.

Approach Owner : Sustainable Agriculture Network (SAN).

This is a network of sustainable agriculture involving local NGOs in Central and Latin America, responsible for developing the standard for the responsible management of estate farms.

Fair Trade Label Guide 2011 Page 81 Sectors : Food

Supply Chains / Products Labelled : twenty products: coffee, cocoa, tea, vanilla, rubber, fruits and vegetables (bananas, mangoes, avocados, pineapples, onions, citrus fruits, kiwi, grapes, etc.), and medicinal plants. Analysis of the Approach The SAN specification is available in English, French and Spanish and is built around 3 main areas: environmental protection, protection of producers and workers and the establishment of a management and cost control plan.

The standard is organized into 10 main principles: establishing a system of social and environmental management, ecosystem conservation, wildlife and flora, water conservation, good working conditions for workers, health and safety, community relations, crop management, soil conservation and management and waste management. These principles are broken down into 94 criteria. To be certified SAN and therefore use the Rainforest Alliance logo, the farm must meet at least 50% of the criteria of each principle and at least 80% of all the standard’s requirements. Fourteen criteria are mandatory; the failure of just one of them disqualifies the organisation. Economic Criteria The mandatory criteria are paying wages above the legal minimum, or above the regional average for employees who work on certified farms, and the implementation of traceability systems to avoid mixing of products from certified plantations and from elsewhere.

The economic benefits for producers are mainly from improved farm management practices, improving product quality through more environmentally friendly agricultural practices and their knowledge of markets.

The Rainforest label is not involved in the terms of trade between the producers and their buyers; there is neither a guaranteed minimum price nor development premium for the implementation of collective projects. Social Criteria The mandatory criteria are: no recruitment of children under 15 years, the absence of forced labour, wearing personal protection during spraying of pesticides and a lack of discriminatory hiring policies.

Workers benefit from freedom of association enabling them to negotiate with their employer.

Fair Trade Label Guide 2011 Page 82 Access to education, medical care, transportation and training is encouraged for workers and their families. In addition, they should enjoy good working conditions and housing. Medical examinations that look for the appearance of chronic diseases related to chemical application are recommended. Producer Independence An educational program will be based on three themes designed to strengthen the capacities of workers / producers and their families:

1) Objectives and general requirements of the Rainforest Alliance certification

2) Environmental practices and ecosystem conservation

3) Basic concepts of health and hygiene

Another program aimed at reducing costs while increasing productivity and quality is placed on farms. Producers are supported by a technical team from Rainforest Alliance. Environmental Criteria The following are unacceptable practices: the use of unauthorized agrochemicals listed in an annex to the standard, transgenic crops, the introduction of new crops on land not suitable for this purpose, the deposit of solids in water courses, lack of programs to conserve ecosystems, the lack of protection of the integrity of natural ecosystems (destruction or transformation of an ecosystem), hunting, and wildlife trafficking, the depositing of untreated sewage into waterways.

To develop good environmental practices, such measures are encouraged that result in the reduction and optimization of waste, the reduction of water use, the conservation and restoration of degraded ecosystems and the promotion of biodiversity, the minimisation of the application of chemicals, the prioritisation of the use of physical, mechanical, cultural or biological control methods. Awareness Raising and Advocacy The value of the Rainforest Alliance guarantee to consumers is driven by brands distributing certified products that highlight the impact of certification on their packaging or through their communication tools. Rainforest Alliance verifies all messages associated with certification.

The Rainforest Alliance and SAN conduct advocacy in respect of biodiversity, particularly in the Americas.

Fair Trade Label Guide 2011 Page 83 Management of the Logo / Label The logo is affixed to the products. It can also be used in the brand’s corporate communications. For products consisting of 90% to 100% certified ingredients, the logo is affixed to the front of the product. When it is composed of 30 to 90% certified ingredients, the logo is affixed to the side or back of the product, with reference to the percentage of certified ingredients. Below 30%, only a statement such as "this product uses ingredients from Rainforest Alliance Certified farms" can be affixed to the product. Control of Certification

Stages of Certification 1) Contact the ce rtifying body for the SAN standard, Sustainable Farm Certification, Intl

2) Set up a file

3) Certification audit to verify compliance with social and environmental standards.

4) Analysis of the audit report and documents by a committee of experts

5) SAN Certification valid for 3 years - permission to use the Rainforest Alliance logo

6) Verification Audit every year to assess progress and identify any corrective actions

Control Methods

Self evaluation Ø

External evaluation

Accredited independent third party Ø for ISO 65

Costs Farms pay the certification fee and an annual fee of certification varies depending on the size of their organisation. Disadvantaged producers can participate in the supply chain.

A list of all certified operators is available on the website of the certification body: Sustainable Farm Certification, Intl. http://sustainablefarmcert.com/certified_farms.cfm

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Transparency and G overnance

Standard freely available on internet

Producer s participat e in creating the standard

Producers participate in the evolution of the standard

Our Comments The Rainforest Alliance has high environmental and social standards. Moreover, beyond auditing against the standard’s requirements, the NGO organises the advisers who can support producers in their efforts to improve their practices and the implementation of label criteria.

Regarding the economic criteria, the standards of SAN (Sustainable Agriculture Network) focus on improving farm management. The label plans to capitalise on improved knowledge and skills of farmers to enhance their ability to negotiate the sales of their produce on the international market.

If this approach is indeed necessary to improve the sustainability of farms and farmers' incomes, this decision seems nevertheless simplistic. In fact the label acts on the consequences arising from the rules of world trade, but not its causes. By imposing requirements solely on producer organisations, Rainforest Alliance does not seek to change the practices of companies that buy certified products. It is only for producers to ensure that best practice can be valued in the market among their customers.

Concerning the possible confusion of approaches with fair trade, Rainforest is aware of its differences and its complementarities with fair trade labels and its communication on the subject is not ambiguous. However, it does happen that, despite the vigilance of the label’s representatives, that some of the companies use the label to communicate "their fair commitments."

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UTZ Certified

Beneficiaries : Approach: UTZ Certified More than 95,000 coffee farms Creator of the Approach : UTZ Certified (Kapeh Utz, 1999) are certified UTZ

In the first quarter of 2010: Verification Organisation : The producer can choose. A list 32,042 tons of UTZ certified of approved agencies is available at http://www.utzcertified.org/ coffee was purchased by roasters and coffee brands Contact : Contact: De Ruyterkade 6 1013 AA Amsterdam

The Netherlands

Tel: + 31 20 530 8000 - Fax: + 31 20 530 8099

[email protected]

http://www.utzcertified.org/

History : Created in 1999 in Guatemala, Utz Kapeh, meaning "good coffee" in the Mayan language, based itself in 2002 in the Netherlands. In 2007, Utz Kapeh changed its name to UTZ CERTIFIED. The program promotes responsible trading focused mainly on social and environmental criteria and to ensure efficient and professional farms, food safety and traceability. Originally created for the coffee supply chain, the program has gradually incorporated other sectors: tea, cocoa and palm oil.

Approach Owner : The UTZ CERTIFIED Foundation. It also provides traceability services to two associations: the RSPO (Round Table Sustainable Palm Oil) and BCI (Better Cotton Initiative), to promote the production and use of sustainable palm oil and cotton.

The UTZ CERTIFIED warranty is used by multinational companies such as Ikea, McDonald's but also by domestic mills and chocolate producers.

Fair Trade Label Guide 2011 Page 86 Sectors : Food

Supply Chains / Products Labelled : cocoa, coffee, tea, rooibos, palm oil

Analysis of the Approach There are four product specifications (cocoa, coffee, tea and rooibos) available in several languages (English, French, Spanish, Portuguese, Vietnamese and Indonesian).

Divided into ten chapters (soil management, irrigation, natural resources and biodiversity, labor rights, etc.), each standard is presented in a table format which details the goals that are planned to be achieved over a period of four years to promote a process of continuous improvement.

Reviewed regularly, the standards are written jointly by agronomists, producers, certifiers and buyers. Economic Criteria The prices negotiated between producers and buyers must be greater than the conventional market prices. The UTZ CERTIFIED program provides for the payment of a "sustainability premium" by buyers. The amount of this premium is the difference between the market price and the price paid to producers certified by UTZ CERTIFIED. UTZ gives no indication of the amount of the premium that must result from negotiations between producer organisations and their buyers. The objective of UTZ CERTIFIED is to strengthen the economic position of the producer by providing a higher income through increased productivity and product quality and access to to “sustainable” markets. Social Criteria The 11 core ILO conventions must be observed. Convention No. 155 on the health and safety of workers is replaced by Convention No. 184 concerning safety and health in agriculture (except for small cocoa farmers). Training on various topics, such as farming methods or marketing, are provided in the local language to strengthen the capacity of producers. The education of children must be ensured and care centers must be available to families. Education programs on various topics, such as hygiene, nutrition and prevention of AIDS, are set up with producers. Environmental Criteria Programs for water management, soil and energy must be put in place. The use of fertilizers and agro-chemicals must be registered by producers. This measure allows a process of reduction to a reasonable level to be initiated. The plants used by

Fair Trade Label Guide 2011 Page 87 producers must be adapted to the farming area . In addition, deforestation is prohibited and endangered species must be protected. Awareness Raising and Advocacy UTZ CERTIFIED, through its distributors (Ikea, McDonalds, etc.), increases public awareness by creating communication campaigns focused on the impacts of products grown in accordance with the requirements of the standard. Management of the Logo / Label To put the logo on the product and use it in corporate communications, the percentage of certified content in the final product must be at least 90% for coffee and at least 30% for tea and cocoa. These percentages are expected to increase in future years to progressively increase the number of certified farms and the availability of these products on the market.

Control of Certification

Stages of Certification 1) Register online at the site of UTZ CERTIFIED

2) Self-assessment of compliance with the specifications

3) Site audit by a certification body approved by UTZ CERTIFIED

4) Period of one month for possible corrective actions

5) Analysis of the audit, self-evaluation and documentation by UTZ CERTIFIED

6) Obtaining the certificate

An annual audit is conducted every year to renew the certificate.

Control Methods

Self evaluation

External evaluation

Accredited independent third party for ISO 65

Fair Trade Label Guide 2011 Page 88 Costs The applicant pay s the costs of the UTZ CERTIFIED audit conducted by the independent body.

In addition to the price paid to producers UTZ, the buyer contributes to the running costs of UTZ CERTIFIED (0.012 USD / kg for the coffee programme, 0.01 euros / kg for the cocoa programme).

Representing 30% of UTZ CERTIFIED stakeholders, producers are heavily involved, particularly in the evolution of the code of conduct.

Tra nsparency and Governance

Standard freely available on internet

Producer s participat e in creating the standard

Producers participate in the evolution of the standard

Our Comments This label focuses mainly on the implementation of good agricultural practices and the eradication of the worst forms of exploitative labour. Thus, the label UTZ CERTIFIED does not cover the requirements of fair trade labels and organic farming, nor would it claim to do so. The program established by the foundation and supports businesses in a process that allows them to offer products grown responsibly.

The expanding of the label to other agricultural sectors than coffee helps to integrate new producers in the UTZ CERTIFIED process.

UTZ CERTIFIED is also involved in the proliferation of labels and the subsequent confusion generated for consumers. Eventually it is hoped that these labels developed for the same sectors will harmonize their standards to offer greater clarity to consumers.

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Conclusion This 2011 edition analyses eight fair trade labels. This particular choice allows the comparison of the approaches of these historic labels and founders of Fair Trade (Fairtrade / Max Havelaar and WFTO) with the more recent entrants. This comparative approach identifies both the major similarities between the approaches, but also their differences. This study may also identify major trends in the development of new labels (Who is responsible? Who controls the specifications? What products are included? etc.)

For instance, one of the most striking features about the new labels is that they combine all the fair trade criteria with those of organic farming. This is the case for the labels initiated by certification bodies Ecocert, IMO, FGP or Naturland, or like the one developed by Rapunzel, which specialises in organic products. This trend responds to a demand from consumers and their representative organisations. It also responds to an interest in sustainability of organic agricultural supply chains: if organic farming is a plus for the environment, it leads to lower yields which can be often offset by more profitable business practices. As for the "historical labels", there is also this tendency to combine organic and fair trade: for example, the standards for Fairtrade / Max Havelaar include economic incentives to convert the certified producer organisations to organic farming. So there is a real convergence developing: whether the organic world wishes to apply and recognise fairer trading partnership, or whether the historical fair trade actors wish to incorporate more environmentally friendly practices.

Therefore, these developments show again that fair trade is entirely in a holistic approach to sustainable development, which combines strong social, economic and environmental criteria.

This analysis also noted the strong influence of the label Fairtrade / Max Havelaar in the development of these new labels: it is often the benchmark for new entrants. Some, like Ecocert Fair, Fair Naturland or even make reference to the guaranteed minimum prices produced by Fairtrade / Max Havelaar as the absolute minimum to apply on their own channels when such prices exist.

But paradoxically, it is also in the development of minimum price that we observe the greatest difference between the historic Fairtrade / Max Havelaar label and newer labels. For the pioneering label, those prices apply for products and are the result of extensive consultation between all stakeholders in the sector. For other labels, the minimum charge is developed through consultation between producers and buyers for each business partnership. The role of the certifying body is then considerable, since it should not only verify that minimum prices were actually paid by business partners, but also that they were reached correctly.

These prices are in effect to cover the costs of production and operation of producers and their organisations. This difference in methodology then allows the new fair trade labels to develop new fair trade certified supply chains faster and at lower cost. Moreover, their standards are often developed in the form of generic specifications applicable to all sectors, while for Fairtrade / Max Havelaar, there is a standard for each of the certifiable products. This method is more flexible, allowing these new labels to target niches and get a place on the market. Some, like FairWild FGP or even concentrate on their application very specific sectors such as gathering wild fruits and flowers.

One of the great differences in relation to historical labels concerns the eligibility of producers that benefit from the approach: several labels (Naturland Fair, Fair for Life, FairWild) may apply to fair trade approaches for producers in industrialised countries (so-called "Northern" countries). This trend corresponds to a market trend that aims to bring together local and international movement and concerns. Fair trade is not only concerned with trade that flows south / north, but also north /

Fair Trade Label Guide 2011 Page 90 north. There are also approaches emerging that relate to south / south fair trade (which are not covered by this guide).

Another prominent feature on the emergence of these new fair trade labels is the type of organisations that develops the label. Labels or guarantee schemes like those from Fairtrade / Max Havelaar and WFTO are have arisen from the world of international NGOs and civil society organisations and have gradually increased the professionalism and credibility of their systems in response to questions and crtitiquesand to pressure from consumer organisations. For new labels, it is the reverse process that is observed: developed or initiated mostly by certifying bodies, it is not so much the strength of their systems that are questioned, but their commitment or intention to change the rules of world trade. Moreover, it is here that their respect for the fundaments of fair trade are least convincing. Indeed, few of them have invested heavily in development education* and in advocacy activities, while all accepted definitions of fair trade insist on these dimensions. Indeed, beyond the operation of a niche market, even in an equitable manner, the CNCE, as per the FINE definition, expects the fair trade certification systems to promote policies and practices that will support the development of the disadvantaged populations of the poorest countries. Moreover, unlike the pioneers, none of these new labels is supported by a network of volunteer activists who work to better understand and develop fair trade. However, these private certification bodies work with several non-profit organisations (associations or foundations) to support, manage and evolve the standard and thereby separate the activity of managing the label from its control. This separation of roles could eventually allow these labels to ramp up their advocacy role and to play a fuller role a policy of social, economic and environmental transformation.

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GLOSSARY ACCREDITATION Certificate issued by a third party with respect to a certifying body, constituting a formal recognition of the competence of the latter to carry out a specific conformity assessment. Certification bodies are accredited to be eligible to perform the certification audits of a particular standard. In accreditation of certification bodies, ISO 65 is the one that guarantees the highest degree of competence, independence and impartiality. In France, only COFRAC is empowered to implement such programs for accreditation.

ADVOCACY In politics, advocacy is the defence of a written or oral opinion, a cause, policy or group of persons. In terms of fair trade the term is used to designate the activities implemented by fair trade organisations and their partners in civil society to influence decision makers to develop policies to improve the situation of producers in developing countries. The areas of intervention in advocacy are varied: they may concern the reform of global trade rules, issues of global warming, agricultural policy, regulation of prices of raw materials etc.

AFNor The French Agency for Standardization (AFNOR) covers four business areas: standardisation, certification, technical publishing and training. In the fair trade sector, it has facilitated cooperation between stakeholders to develop the standard reference X50-340 issued in January 2006. AFNor is the French representative in the International Organisation for Standardization (ISO).

AUDIT The audit is a methodical examination of a situation regarding a product, process, or organisation, carried out in cooperation with stakeholders in order to verify compliance with a predetermined standard and the adequacy of the latter with its objective. There is also mention of inspection, audit or control through a certification process.

CODE OF CONDUCT A document to identify some principles and norms of behaviour that an organisation decides to apply to the conduct of its business or operations. It is a non-binding commitment made voluntarily. It is a tool that is often found as part of CSR policies.

DEVELOPMENT PREMIUM Granted in addition to a fair price or directly integrated into prices calculations, the development premium should enable capacity building and empowerment of farmers, particularly small and marginalized producers and workers in developing countries, their organisations and their respective communities.

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DEVELOPMENT EDUCATION Development education is an educational process that aims to provide an analysis and critical reflection on the mechanisms that govern the North-South relations. Beyond its missions of education and information, development education aims to encourage everyone to change their values and behaviors, to think about the consequences of our day to day actions to achieve a just distribution of power and resources worldwide.

FINE The FINE network is the source of the most commonly accepted definition of fair trade at international level. Aujourd'hui disparu, son sigle se compose des quatre organismes internationaux et historiques de commerce équitable : FLO International (Fairtrade Labelling Organisations), IFAT (International Federation for Alternative Trade) devenue WFTO (World Fair Trade Organisation) en 2009, NEWS (Network of European World Shops) aujourd'hui disparue et EFTA (European Fair Trade Association). Now defunct, its acronym is composed of four international and historical trade fair: FLO (Fairtrade Labelling Organisations), IFAT (International Federation for Alternative Trade which became WFTO (World Fair Trade Organisation) in 2009), NEWS (Network of European World Shops) and EFTA (European Fair Trade Association). With the disappearance of the NEWS, the renaming the FLO and IFAT, the network is now known as FEW.

ISO ISO (International Organisation for Standardisation) is the largest producer and publisher of international standards. It comprises a network of national standards institutes from 160 countries. ISO is a non-governmental organisation that builds bridges between the public and the private sector. Many of its member institutes are indeed part of their country’s governmental structure or are mandated by their government. Other member organisations have their roots exclusively in the private sector and have been prepared by partnerships of industry associations at the national level.

INTERNATIONAL STANDARD ISO 65 ISO 65 describes the criteria for ensuring the competence, independence and impartiality of certification bodies.

LABEL Special mark created by a professional body or a parastatal and placed on a product for sale, to certify the origin, quality and production conditions in accordance with predetermined standards.

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FAIR PRICE The fair price (sometimes including a development premium managed collectively by producers or workers) must allow a producer organisation to cover the costs of production and logistics, to pay remuneration adequate to meet the basic needs of producers and disadvantaged workers and their families and improve their standard of living (education, culture, health, housing, recreation, etc..), a margin to make investments (production tools, etc..) and contribute to the satisfaction of collective needs (organisation, education, culture, health, recreation, infrastructure, structuring of producer organisations, etc..).

This price must be at least equal or equivalent to the reference price (set for certain products and geographical areas), recognized by the international federations of trade fair.

STANDARD Benchmarks (or standards) established by consensus in a body recognized by government and which guarantees a required level to be achieved for a given activity. Originating from either a private or public organisation, its application is not mandatory but sometimes a condition to befitting from a designation or a label. In France, AFNor (French Agency for Standardization) develops and publishes standards and coordinates the French standardization system.

A standard will involve technical document defining the characteristics that must be present in a product or service and the procedures to control the conformity of the product or service to these characteristics.

SUSTAINABLE DEVELOPMENT Sustainable development is development that meets present needs without compromising the ability of future generations to meet theirs. Two concepts are inherent in this concept: the concept of "need" and more particular the essential needs of the poor, who should be given the highest priority and the idea of the limitations imposed by the state of technology and our social organisations imposed on the environment's ability to meet present and future needs. This definition, stated by the Prime Minister of Norway Gro Harlem Brundtland in 1987, was adopted by the international community in Agenda 21 of the Rio Conference in 1992. Sustainable development rests on three pillars, economic, social and environmental, which are often added to the political and cultural pillars.

THIRD PARTY CERTIFICATION Third-party certification is a process of allocating licenses by a trusted third party, which shows that a product complies with the requirements of the standard or technical specifications.

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