© Fairtrade 2012 your Fairtrade cookbook Matilde Defraije Michael Van Overstraeten.
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Transcript of © Fairtrade 2012 your Fairtrade cookbook Matilde Defraije Michael Van Overstraeten.
© Fairtrade 2012
your Fairtrade cookbookMatilde DefraijeMichael Van Overstraeten
© Fairtrade 2010
agenda > Introduction : the scope of Certification & Licensing
> New Standards Framework, what’s new ?
> Are You Compliant ? strenghened controls
> The Product Certification Process
> Food Composite Product Policy(discussion)
> Traceability & Mass Balance(discussion)
> Labeling Fairtrade Products, how and when ?
> Support & Tools(discussion)
14.30 15.1514.45 15.00
© Fairtrade 2010
objective
The Fairtrade Certification Mark is your independent guarantee that this product has been certified in accordance with international Fairtrade Standards. Thepurchase of this product enables the improvement of working and living conditions of producers in developing countries and encourages environmentalprotection.
© Fairtrade 2010
Definitions Certification contract framework contract allowing certification of products (and
ingredients) against the Fairtrade specifications compliance to the Fairtrade standards control audits applies to : every operator handling non-finished Fairtrade
inputs/outputs
Licensing contract framework contract allowing the usage of the Fairtrade Certification
Mark on finished products compliance to the Certification Mark guidelines licensing rights control audits applies to : brand owners
in Belgium : “Certification & Licensing contract”
© Fairtrade 2010
Certification Who needs certification ? Every operator in the supply chain from producer to retailer, until the product is labeled
Who
lesa
ler
Ret
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Pro
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Pro
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or
Pro
cess
or
Exp
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Impo
rter
Once the end product is packaged, it can no longer be tampered with.
So from there certification is no longer required.
© Fairtrade 2010
Definitions responsabilities of the “License Holder” comply to certification requirements when applicable
(certification & licensing) compliance to the Fairtrade standards allow control audits certification of the finished products quarterly sales reporting payment of license fees
© Fairtrade 2010
agenda > Introduction : the scope of Certification & Licensing
> New Standards Framework, what’s new ?
> Are You Compliant ? strenghened controls
> The Product Certification Process
> Food Composite Product Policy(discussion)
> Traceability & Mass Balance(discussion)
> Labeling Fairtrade Products, how and when ?
> Support & Tools(discussion)
14.30 15.1514.45 15.00
© Fairtrade 2010
Standards “New Standards Framework” launched July 2011 response to a clear call from producers to make the Fairtrade
Standards work for them. supports disadvantaged producers to enter Fairtrade and
continuously develop over time. easier to understand. allows producers to choose their own development path
Through the new division of requirements into core and development ones, producers now have more flexibility
Producers also write their own development plans The NSF offers a better cost-benefit ratio for producers
© Fairtrade 2010
Standards example
© Fairtrade 2010
Standards Compliance Criteria Keep the same format known today 2 types: Core and Development
Core Requirements Based on a Compliant/Non-Compliant approach
Development Requirements Ranks are used for clarity and harmonization of interpretation to
audit each requirement. The auditor chooses a rank from 1 – 5 to grade the CC. Scale: 5 (best practice) – 1 (no action) average of all scores is calculated
© Fairtrade 2010
Standards example: SPO standard
4.12.0 : Disadvantaged / minority groups have been identified.
Ranks: 5 The organization has developed criteria for this in writing and has
identified all possible groups. 4 The organization has analyzed this before the audit. 3 During interviews directors or managers are able to identify
minority/disadvantage groups. 2 During interviews directors or managers are not able to identify
this OR there are obvious groups missing. 1 Organization opposed strengthening the position of minority
groups of any/some kind.
© Fairtrade 2010
Standards Generic Trade Standard (july 2011)
Key changes: reorganization of the Standard into 4 chapters (General
Requirements, Trade, Production and Business & Development) inclusion of a chapter regulating composite products and
ingredients inclusion of new sections defining physical traceability, single site
mass balance and group mass balance. addition of requirements on the use of the Fairtrade trademark
© Fairtrade 2010
agenda > Introduction : the scope of Certification & Licensing
> New Standards Framework, what’s new ?
> Are You Compliant ? strenghened controls
> The Product Certification Process
> Food Composite Product Policy(discussion)
> Traceability & Mass Balance(discussion)
> Labeling Fairtrade Products, how and when ?
> Support & Tools(discussion)
14.30 15.1514.45 15.00
© Fairtrade 2010
Standards Are you compliant ?
statistics
strenghened controls onboarding Matilde sanctions close follow-up of non-conformities support towards compliance
2010 2011 2012Licensees not compliantLicensees 100% Compliant
2010 2011 20120
20
40
60
80
100
120
140
number of minor NC`snumber of MAJOR NC,s
(in 2010 less licensees were audited)
© Fairtrade 2010
Sanction Framework
Audit Report First communication
1/3 month(s) later 1 month later
> 1 major NCrNC = 1.2.1.1.1
Warning letter +1 month for CAR
NC solved by OEorSuspension + 1 month for CAR
NC solved by OEorDecertification
1 major NC (+ regular NC)
1 month for CAR NC solved by OEorWarning letter +1 month for CAR
NC solved by OEorSuspension + 1 month for CAR
≥ 1 regular NC 3 months for CAR
NC solved by OEorWarning letter +1 month for CAR
NC solved by OEorSuspension + 1 month for CAR
© Fairtrade 2010
Major Non Conformities
1.1.0.03 The operator allows announced and unannounced audits at all premises including subcontracted premises and provides all requested information needed to demonstrate compliance with the Fairtrade standards.
►Subcontractor contract required
2.1.1.01 The trader has clearly identified all certified products as Fairtrade in all purchase and sales documentation (e.g. invoices, delivery notes and purchase orders).
► FLO-ID of both parties + Faitrade ref. on article level
2.2.1.5 The operator must ensure that volumes sold as Fairtrade do not exceed the volumes purchased as Fairtrade.
► Begin & end stock registration required for balance exercise
© Fairtrade 2010
Minor Non Conformities
1.1.0.11 Keep FLO-CERT updated with contact details and any other relevant information that affects FLO-CERT certification (new company structure, change in legal status, etc.)
1.2.0.04 Submit all promotional artwork bearing the FAIRTRADE Certification Mark for approval, prior to use
2.1.1.02 Purchase and sales documentation for unfinished Fairtrade products state both FLO ID’s of the seller and the buyer and display which products are Fairtrade and the applicable dates of transaction.
2.1.1.07 Keep record of all entries, processing and sales of Fairtrade products.
8.3.1.2 Submit all packaging of consumer ready Fairtrade products for approval, prior to use.
> Submit through Product Database!
© Fairtrade 2010
agenda > Introduction : the scope of Certification & Licensing
> New Standards Framework, what’s new ?
> Are You Compliant ? strenghened controls
> The Product Certification Process
> Food Composite Product Policy(discussion)
> Traceability & Mass Balance(discussion)
> Labeling Fairtrade Products, how and when ?
> Support & Tools(discussion)
14.30 15.1514.45 15.00
© Fairtrade 2010
Product certification
no product is allowed on the market without prior approval by the Licensing Initivative (Max Havelaar)
the reality we still come across products that were not approved we receive packaging approvals before recipes… supplied information is incomplete
responsibility the “License Holder”
advice implement procedures for product development
© Fairtrade 2010
Product certification
1. submit product composition check against GTS standard for compliance
2. submit direct supplier of ingredients check certification status
3. submit full supply chain information producers intermediates (no currently implemented)
4. submit availability countries, dates, distribution
5. submit packaging artwork check against Certification Mark Guidelines
6. submit promotional artwork check against Certification Mark Guidelines
approval process
© Fairtrade 2010
Product certification
how ? online product database
when ? before production !
why ? compliance to Fairtrade standards Certification Mark credibility clear communication towards consumers
what’s in it for you ? know supply chain > secure supply, mitigate risks (wkp 3) link consumer > product > producer impact match offer and demand (challenge today) promote products
© Fairtrade 2010
agenda > Introduction : the scope of Certification & Licensing
> New Standards Framework, what’s new ?
> Are You Compliant ? strenghened controls
> The Product Certification Process
> Food Composite Product Policy(discussion)
> Traceability & Mass Balance(discussion)
> Labeling Fairtrade Products, how and when ?
> Support & Tools(discussion)
14.30 15.1514.45 15.00
© Fairtrade 2010
Food Composite Products
What it is Mandates the conditions under which a food composite product
may carry the Fairtrade Mark and which food composite ingredients can be considered Fairtrade
Valid from 1 July 2011
Where to get a copy Under section “2.2 Product Composition” of the Generic
Fairtrade Trade Standard
Applicable to all new products (since 1 July 2011) existing products after transition period of 2 years
(1 July 2013)
© Fairtrade 2010
Food Composite Products
Previous Standard All that can be Fairtrade should be Fairtrade « Defining ingredient » minimum 50% Fairtrade
New Standard : Golden rules “All that can be Fairtrade should be Fairtrade”
Fairtrade standard exists including minor ingredients
Minimum Fairtrade percentage 20%
Products with > 50% added water/dairy 20% of dry mass
© Fairtrade 2010
Food Composite Products
Exceptions defined in the standard only concerns ATCB (not minimum %)
Type I exceptions Supply shortage Inadequate quality New standard (transition) Unavailable ingredient (list)
Type II exceptions Transitioning ingredient (insufficent volumes) Provenance (AOC, AOP,..)
no product is approved unless it conforms to the standard or a formal exception is logged
© Fairtrade 2010
Food Composite Products
Discussion
What is your experience with the new standard ?
Are you aware of the unavailability list ?
What is your opinion on the FCP ?
Should an exception be granted for minor ingredients (<1%, <2%?) that are available as Fairtrade ?
14.30 15.1514.45 15.00
© Fairtrade 2010
agenda > Introduction : the scope of Certification & Licensing
> New Standards Framework, what’s new ?
> Are You Compliant ? strenghened controls
> The Product Certification Process
> Food Composite Product Policy(discussion)
> Traceability & Mass Balance(discussion)
> Labeling Fairtrade Products, how and when ?
> Support & Tools(discussion)
14.30 15.1514.45 15.00
© Fairtrade 2010
Traceability what is Physical Traceability of Faitrade products? Fairtrade products shall be marked and kept separate from non-
Fairtrade produce at each stage of the supply chain
why is it important? most consumers believe FT products come from FT producers trend towards requesting phTr in food certification schemes:
food safety, food quality and credibility or the label
what do the standards say ? Physical traceability required for all products Exception for sugar, juices, cocoa, tea
volontary traceability long term goal : full traceability
© Fairtrade 2010
Traceability Fairtrade: 50MT Non-Fairtrade: 100MT
Fairtrade: 50MT Non-Fairtrade: 100MT
Physical Traceability
Mass Balance
© Fairtrade 2010
Traceability Exceptions Sugar
Physical traceability lost in producing countries Whole year activity run by families Different varieties are planted > harvest is prolonged during
the whole year FT and non FT inputs are mixed for cost-effective production
Highly perishable product, Producers sell product to the closest processing unit Processing units with big capacities
Juices Physical traceability lost in producing countries
80% of producers cannot segregate Tea
Physical traceability lost in producing countries 50% tea volume is mixed at producer level At collecting points or transport, During processing, and at storage
© Fairtrade 2010
Traceability Exception : Cocoa
All producers claim physical traceability is possible
65% of northern operators segregate
Mainstream cocoa industry: Same recipe for most products > single continuous line Huge volumes are processed avoiding halts Segregation requires shifting 100% of the production to the FT
Requesting phtr could cause great damage to: Mainstream partnerships Producers receiving their premium 35% of operators with no segregation
But … volontary certification against Fairtrade with Physical Traceability
© Fairtrade 2010
Traceability Mass Balance requirements Documentary traceability requirements: invoices, delivery notes,
contracts Calculation of conversion ratio’s & recipes FT ingredients should be purchased prior to selling FT volumes sold should not exceed FT volumes purchased FT quality purchased equals FT quality sold FT sugar sold cannot contain 100% beet sugar
Applicable only on ingredients ! example : not box of pralines
> different statement on packaging :[Name(s) of ingredient(s)]: traded in compliance with Fairtrade standards. Total xx%.
© Fairtrade 2010
Traceability Volontary Certification for Physical Traceability
Organic > traceable (?) we will require a statement at product approval (cheked during
audits)
Request traceability from your suppliers !
Documentary traceability requirements: invoices, delivery notes, contracts identify ingredients as "Fairtrade with Traceability"
> different statement on packaging :
[Name(s) of ingredient(s)]: Fairtrade certified and sourced from Fairtrade producers. Total xx%.
© Fairtrade 2010
Traceability Discussion
Do you have traceability ?
Questions ?
14.30 15.1514.45 15.00
© Fairtrade 2010
agenda > Introduction : the scope of Certification & Licensing
> New Standards Framework, what’s new ?
> Are You Compliant ? strenghened controls
> The Product Certification Process
> Food Composite Product Policy(discussion)
> Traceability & Mass Balance(discussion)
> Labeling Fairtrade Products, how and when ?
> Support & Tools(discussion)
14.30 15.1514.45 15.00
© Fairtrade 2010
Certification Mark
objectives consistent usage (avoid consumer confusion) clear and honest communication
applicable to product packaging and promotional material (incl. online)
new guidelines ! applicable from januari 2012 for new products transition period (2 year) for reprinting existing products
© Fairtrade 2010
Certification Mark
Packaging Guidelines
Certification Mark New version Mark on front of pack Respect aspect ratio, colors size (less prominent than brand)
Messaging no overclaiming (Fairtrade biscuit > Biscuit with Fairtrade
ingredients) no overclaiming (if Mass Balance : Fairtrade certified) Identify Fairtrade ingredients Total Fairtrade percentage Minimum text
© Fairtrade 2010
Certification Mark
Messaging
before "ingredients : Cocoa Masso*, Cocoa Buttero*, Sugaro*,
Cranberrieso. o Organic certified / * Fairtrade certified (total xx%) “The Fairtrade Certification Mark is your independent guarantee that the *Fairtrade
ingredients in this product have been certified in accordance with international Fairtrade Standards. The purchase of this product enables the improvement of working and living conditions of producers in developing countries and encourages environmental protection.”
from 2012 identifying Fairtrade ingredients by * is prohibited Mass Balance : “[Name(s) of ingredient(s)]: traded in compliance with Fairtrade
Standards, total xx%. Fairtrade means fairer trading conditions and opportunities for producers in developing countries to invest in their businesses and communities for a sustainable future. www.info.fairtrade.net”
Physical Traceability : "[Name(s) of ingredient(s)]: Fairtrade certified and sourced from Fairtrade producers. Total xx%. Fairtrade means fairer trading conditions and opportunities for producers in developing countries to invest in their businesses and communities for a sustainable future. www.info.fairtrade.net”
© Fairtrade 2010
agenda > Introduction : the scope of Certification & Licensing
> New Standards Framework, what’s new ?
> Are You Compliant ? strenghened controls
> The Product Certification Process
> Food Composite Product Policy(discussion)
> Traceability & Mass Balance(discussion)
> Labeling Fairtrade Products, how and when ?
> Support & Tools(discussion)
14.30 15.1514.45 15.00
© Fairtrade 2010
Support support better follow-up of inspections & assitance towards compliancy enhanced support on ingredient research pragmatic exception handling
tools guidelines, best practices online productdatabase online product reporting
© Fairtrade 2010
Support long term goals
product certification the online productdatabase is user friendly the online submission tool aligns with product validatiion
processes product information is complete
impact & sensitization a consumer can find the producer organisation & impact based
on product EAN code
match offer and demand a consumer can find where products are available a consumer can find proximity product retailers and consumption
areas on google maps an institution, company, or horeca can find suppliers
(wholesalers)
© Fairtrade 2010
Support long term goals
product certification the online productdatabase is user friendly and favours reuse the online submission tool aligns with product validatiion
processes product information is complete
impact & sensitization a consumer can find the producer organisation & impact based
on product EAN code
match offer and demand a consumer can find where products are available a consumer can find proximity product retailers and consumption
areas on google maps an institution, company, or horeca can find suppliers
(wholesalers)
© Fairtrade 2010
© Fairtrade 2010
Traceability Discussion
What is your input ?
If there was only one thing to change, what would it be ?
How can we support you further ?
14.30 15.1514.45 15.00
© Fairtrade 2010