Fair Trade is good for the environment Social...

fair tradef r e e

January 2013

C a n a d a’ s v o i C e f o r s o C i a l s u s t a i n a b i l i t y

Fair Trade is good for the environment

Social entrepreneurs innovate to empower

Behind the Fairtrade Mark

Explore the deep roots of produce supply

c f t n .c a | 3

on the ground6 Cooperative Solutions Cooperatives and profit-sharing are an integral part

of social sustainability.

7 Fair for the Environment Fair Trade offers the means to protecting people as well

as the environment.

8 The Complexities of Supply Produce supply chains represent a complex means

of distribution that don’t always favour growers.

10 A Case For Fair Trade Chocolate What are some of the issues facing producers involved in

growing one of the world’s most popular ingredients?

growing change18 Taking Fair Trade to the Consumer The social sustainability movement has changed a lot

over the years. Read more about what it looks like today.

19 Fair Trade Business Consumers are demanding more from their products,

and businesses should listen.

20 Students of Change Student communities across the country have been

a hotbed for issues of social sustainability.

label profile22 The Fairtrade Mark What’s guaranteed by the figure in blue, green, and black?

features

Transforming Rural UgandaJohn Nuwagaba belongs to a new wave of social entrepreneurs who aim to empower producer communities.

The Story of TeaCertification of this ancient beverage represents a contentious shift in Fair Trade.

Hats Off to Fair TradeATMA is a cooperative in Ecuador, run entirely by women. See what goes into making their famous panama hats.

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on the cover

Fair Trade is good for the environment .....................................................7

Social entrepreneurs innovate to empower...........................................11

Behind the Fairtrade Mark ............................................................................22

The deep roots of produce supply ..................................................................8

4 | fa i r t r a d e m a g a z i n e c a n a d a’ s v o i c e f o r s o c i a l s u s ta i n a b i l i t y c f t n .c a | 5

PublisherSean McHugh

Editor-in-ChiefBryce Tarling

Assistant EditorErik Johnson

DesignWade Stewart

Cover image courtesy of Éric St. Pierre: Harvesting Fair Trade organic tea leaves

at the Makaibari tea garden in Darjeeling India.From Fair Trade: A Human Journey.

We want to hear from you!514 – 207 West Hastings Street V6B 1H7

1-604-785-0084 | [email protected]

BE HERE.

VENEZ.

MUSEUMFORHUMANRIGHTS.CA MUSEEDESDROITSDELAPERSONNE.CA

BE TRANSFORMED.

SOYEZ TRANSFORMES.

congratulates the winners of the first annual Canadian Fairtrade Awards

for their outstanding commitment to Fair Trade.

Café, Restaurant or Food Service(Chain)

Café, Restaurant or Food Service(Independent)

Grocery or Supermarket(Large Chain)

Grocery or Supermarket(Independent or Small Chain)

The Camino brand is ownedby La Siembra Co-op

Co-operative

Natural or Health-Food Store

Manitoba Liquor Marts

Provincial Liquor Board

“Canada’s Favourite Fairtrade Certified Product”

(Consumers’ Choice)

FEDERATEDCO-OPERATIVESLIMITED

Encourage your favourite Fair Trade retailer to participate in 2013,

submit nominations this spring at

fairtrade.ca

cftn •rcdceCanadian Fair Trade Network

Réseau Canadien du Commerce Équitable

A Growing Movement

T he world faces many challenges: expanding populations, increased education needs, continued health and

environmental concerns, and widespread social and political turmoil—all contributing to a future of uncertainty. What’s more, many of our global systems are based on past needs that are out of touch and ill-suited to a world that is constantly evolving. Fair Trade represents a systemic shift toward social sustainability, supporting the rights of individuals, families, and communities around the globe. As a grassroots, consumer-led movement, it offers a vision of cooperation for the betterment of our global community. We as consumers, and as world citizens, have the power to make choices that demand greater accountability and transparency. By purchasing Fair Trade products we encourage a more responsible vision for the future while supporting the development of sustainable communities. In just over one year, the Canadian Fair Trade Network has worked to strengthen this movement in Canada by connecting stakeholders across various sectors—from public and private institutions to businesses and non-profit organizations. This publication represents an extension of that conversation for social sustainability. It aims to provide readers with a greater understanding of the issues that face communities around the world and the tools to embrace a system of equal opportunity and social responsibility.

Sean McHughPublisher, Executive Director Canadian Fair Trade Network

publisher’s note

Fair Trade Magazine is published by the Canadian Fair Trade Network. Copyright 2013. All rights reserved. No part of this magazine may be reproduced without publisher’s written permission. Not responsible for unsolicited editorial material.

The information provided in this magazine is for educational and informational purposes only. Fair Trade Magazine makes every effort to ensure the accuracy of the information it provides, but cannot be held responsible for any consequences arising from errors or omission.

on the ground


fair for the environmentWhat’s good for the environment tends to be good for people.

By j en n i F er ga na paT h y

W ith a strong focus on people and communities, many consumers don’t realize that environmental issues are

key components to social sustainability. In fact, environmental issues often go hand in hand with social issues. Pesticides have been linked to soil and water contamination, soil erosion, biodiversity issues, and climate change, but the cost to human health is often overlooked. It is estimated that between one and three percent of agricultural workers worldwide (25 to 77 million workers) suffer from acute pesticide poisoning, with at least one million requiring hospitalization every year. Additionally, the use of pesticides often affects people living in communities bordering farms. Health risks associated with pesticide use include birth defects, cognitive impairment, brain cancer, autism spectrum disorders, attention deficit disorder, and hormone disruption. According to Health Canada, children may also be more susceptible to these chemicals, which they can be exposed to through minute residues on fruits and vegetables or residues in breast milk or formula. For farmers using pesticides in developing countries, many aren’t able to take the proper precautions due to issues of illiteracy or a lack of resources. Many farmers can’t read the safety labels and are not trained in their proper use. Others can’t afford proper safety equipment, much of which isn’t practical in hot and humid climates. Fair Trade certification ensures that farms avoid work-related injuries by following the correct health and safety measures, such as avoiding pesticides where possible, and using minimal amounts with proper precautions where necessary. Fair Trade certification also requires proper waste management, water and soil maintenance, and the avoidance of genetically modified organisms. Farmers who abide by the Fairtrade Labelling Organizations International environmental and safety standards receive premium rates for their products. These practices ensure both the protection of the environment and the health of workers and local communities. Additionally, we can be assured as consumers that the products we buy will not pose health risks to us or our children. As a society, we are slowly realizing that protecting the health and rights of others also protects ourselves. 2

Jennifer Ganapathy is the Lead Research Developer for Fair Trade Vancouver.

C ooperatives are owned and run by, and for, their members. They are businesses driven by values and motivated by

more than just profits. While membership structures can include customers, employees, and other supporting organizations, different models share the primary principle that each member has an equal say in decision making and earns a share of profits. Prior to my work with CoopCoffees, while living and working in Central America and Mexico with small-scale farmers, I learned about the countless obstacles these small farmers face and the importance of their being united in well-organized and economically viable cooperatives. An estimated 70 percent of the world’s coffee is produced by 10 million small-scale farmers, each typically cultivating less than 10 hectares of land in 80 coffee-producing countries in Africa, Asia, and Latin America. The vast majority of them lack access to clean water, basic education, decent housing—and all too often—adequate food. To add to the mix, most coffee-producing countries have economic policies that favour large-scale production and traders. This leaves small-scale farmers struggling for market share on a very uneven playing field, left to compete without access to adequate credit, proper supplies, or technology. Meanwhile, small-scale farmers form the backbone of the coffee industry. Yet the industry does little to support these farmers and their organizations. Even for us who support Fair Trade, it’s easy to talk about “changing the world one cup at a time,” but we must remind ourselves that purchasing coffee at fair prices is only the first step on a very long road. The transformative work has only just begun in farmer communities, and the possibility for that work to continue

depends on our collective capacity to support locally based cooperatives—both in producer countries and at home. In Canada, four of every 10 Canadians belong to at least one cooperative. Meanwhile, according to the International Co-operative Alliance, worldwide membership in 98 registered countries represents close to one billion members working together to create sustainable solutions. 2

Monika Firl is Cooperative Coffees’ Producer Relations and Communications

Manager. She has worked with a variety of development projects while living in

Central America and Mexico from 1991 to 2000.

Cooperative PrinciplesCooperatives represent valuable organizational structures in

Fair Trade and share these seven basic internationally agreed

upon principles:

• voluntary and open membership

• democratic control of decision making by members

• equitable financial contribution to cooperative capital funds

• autonomy and fiscal independence

• offering ongoing education, training, and information

to members

• cooperation among cooperatives to strengthen

the international movement

• concern for community

the Case of CottonCotton offers the most startling example of the widespread use of

chemicals on crops that are used in everyday consumer products.

The cotton industry uses US $2 billion worth of chemical pesticides

every year, accounting for 16 percent (more than any other single

crop) of global insecticide use. Of this amount, US $819 million is

spent on products that have been classified as hazardous by the

World Health Organization.

toxins in teaChildren and adolescents with little to no literacy levels are

sometimes used as casual daily workers for tea production in

developing countries, and they are often unable to read the warning

labels on chemicals such as Aldrin 20E, Carbofuran 30, Endosulfan

35 EC, Malathion 50 EC, Tetradifon 8 EC, and Calixin 80 EC.

Plantation owners sometimes disregard the mandatory eight to

10 day gap between spraying crops and harvesting them. Not only

does this endanger workers, but it also poisons the soil and water,

destroying fish and aquatic life and contaminating drinking water for

the local population.

unfair bananasIn West Africa and Latin America, banana bunches still

hanging from trees are wrapped in plastic coated with the

organophosphate Chlorpyrifos. A recent study shows that children

in a community in Costa Rica have been exposed to potentially

harmful doses of the chemical, which can cause health risks that

include suicidal thoughts, respiratory problems, and birth defects.

Houses within the community are located as close as 15 metres to

the nearby plantations.

Cooperative Solutionsin today’s cyber-sonic lifestyle, where one person’s contributions can get lost in a sea of

products and information, cooperative business structures offer “people-centred” solutions.

By Mon i k a F i r l

on the ground


P r o u d t o b e a

F A I R

TRADEc a m p u s

W O R K I N Gto overcome poverty C R E A T I N Ga b e t t e r w o r l dI N S P I R I N Go t h e r s E N G A G I N Gt h e w o r l d

I t’s good that more people are asking where their food comes from. We want to feel connected to our food, right back to

the hands that grew it—whether the farmer lives down the road, or on the other side of the world. But very few consumers understand how their food, especially fruits and vegetables, come to be sold in the marketplace.

The producer’s perspectiveWhile we might think prices affect us as consumers, they don’t affect us nearly as much as they do farmers. Take Rosa, for example. Rosa and the people in her village grow mangos near Motupe, in northern Peru. They work all year building drainage to get the most from their irrigation water. They compost and mulch, and they plant flowering plants to attract pollinating bees. But Rosa is in her 50s. She and the rest of her community can’t do all the work on their own. Instead, many people are involved in delivering fruit from her orchard to a store in Saskatoon, for example. The produce industry is really about transportation and logistics. The global distribution of fruits and vegetables represents an unimaginable ballet of trucks, aircraft, and container ships that delivers the means to create those beautiful produce displays in our local stores. In fact, the combined costs of trucking, customs, inspections, and sea-container transport can account for more money than the fruits or vegetables themselves. Grading, packing, boxing, and placing

those annoying stickers can also account for 20 to 30 percent of the product’s value.

Delivering the goodsThe long process of delivery starts with a local trader who brings a harvest crew to take Rosa’s crop. No money changes hands—just a promise or meaningless handshake. In the industry, we call them coyotes. The coyote gives the fruit to a packing company that washes and boxes the fruit, has it inspected, and sends it to port. The fruit then goes to an importer, or broker, in Los Angeles, or Philadelphia, who passes it to local wholesalers or supermarket distributors across the United States and Canada, who then deliver it to the store you shop at. Many hands pass the fruit along, but ultimately, the selling price will be based entirely on what those wholesalers and retail chains are willing to pay. Only part of this price will trickle back to Rosa—and only if prices are good and all her mangos sell. Rosa may also get nothing. She may never see that coyote again, or she may get paid months or even years later.

Breaking it downWhat does this look like in terms of dollars and cents? When you pay $1.99 for a mango, after everyone else has taken their share, and all shipping and packing costs are covered, Rosa might get five or six cents per unit. That’s all folks. And that’s

only if she is dealing with people who are honest all the way down the chain. What can also be an issue, according to the United States’ Perishable Agricultural Commodities Act, which is often enforced by Canada’s Dispute Resolution Corporation, is that fresh fruit and vegetables belong to the farmer until they are paid. The produce is never owned by brokers, distributors, or anyone else involved in-between. Until the farmer gets paid, they’re the ones with the most at stake.

More fair for everyoneFair Trade is not completely about money—it’s also about direct trade. A Fair Trade importer will pay enough money up front for harvesting and packing, so someone like Cleida Garcia, general manager of the Asociación de Productores de Mangos del Alto Piura cooperative in Peru, and her fellow producers don’t need to hand their fruit to a coyote or a packer. Instead, it stays in their control until it’s on the boat. In Canada, direct imports by sea avoid trucking costs from the United States, and the additional markups of an American importer. Garcia will be guaranteed timely payment and a price that will be profitable. Garcia will also receive 30 cents for each mango, plus another 10 cents to pay for harvesting, packing, and boxes. We also build an additional premium of 14 cents per kilogram

“The combined costs of trucking, customs, inspections, and

sea-container transport can account for more money than the fruits

or vegetables themselves.”

The Complexities of SupplyPrices for fruits and vegetables aren’t set until they reach retailers.

uncertainty can be a farmer’s worst enemy.

By r a n dy hooper

into the price we pay her cooperative to be used for community projects. In other words, when her town sends away 600,000 mangos—enough to fill six sea containers—they receive money that will to pay for things like eye cataract operations or an adapted room for students with special needs at a local school. 2

Randy Hooper is owner and CEO of Discovery Organics

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on the ground feature

A Case for fair Trade Chocolate

D espite being popular worldwide, cocoa requires specific growing conditions that are generally found within 20

degrees north and south of the equator. For many countries in Africa, Asia, and Latin America, cocoa represents a significant portion of their national economies. Côte d’Ivoire and Ghana, the two largest cocoa-producing countries in the world, respectively produced 1,242,000 and 632,000 tonnes of cocoa in 2010. But as the chocolate industry grows, farmers have been unable to reap the benefits. Harvesting cocoa is still done by hand. Farmers collect cocoa pods one by one with the use of a machete or a long-handled gaff. This process requires knowledge and experience to tell which pods have ripened, and skill to carefully avoid damaging the delicate trees, which can take years to mature. Cocoa growers are typically small-scale family farmers, often facing issues such as low prices, high costs of production, and a lack of diversification. Many small-scale crops don’t meet volume requirements for world trading, so farmers must rely

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on intermediaries. Since many farmers also lack access to current market prices, they are left at a disadvantage when selling their crop. What’s more is that most small-scale farmers have difficulty obtaining financing, which prevents them from expanding their operations. Poverty is a significant issue. Many farmers struggle to meet basic needs, and many cocoa-producing areas lack access to basic education. And while it’s long been a tradition that children help with work on the family farm—particularly during harvest season—many youths work long hours, perform hazardous tasks, and are prevented from attending school. In worst-case scenarios, farmers will resort to using trafficked children. In these situations, children as young as eight are smuggled across borders to work in cocoa fields for little to no wages. These children endure dangerous working conditions such as carrying heavy loads and working with pesticides and chemicals without receiving proper garments or training. In March, 2011, the Payson Center for International Development at Tulane University conducted a study covering initiatives aimed at improving labour standards in the chocolate industry. The report not only identified that child labour is still an issue in the industry, but that ethical sourcing standards such as Fairtrade designation are important strategies in solving the problem. 2

“In worst-case scenarios,

farmers will resort to using

trafficked children.”

By S A SH A CA l DER A

Transforming rural UgandaSocial entrepreneurs harness creativity, imagination, and vision

value addition in action – faQ coffee (bottom) and ripened red cherries (top).


feature

than those faced by start-up businesses in Canada, and the cooperative’s success will be realized through a combination of pragmatism, perseverance, and creativity. When I ask Nuwagaba to describe his vision for the ACPCU, he replies, “Seeing farmers transformed into a middle class instead of living from hand to mouth.” Long-term sustainability for this cooperative will not come to fruition through the charity of others. Instead, active consumer support is needed to promote the growth and livelihood of these Ugandan coffee farmers. Once Canadian consumers understand how their choices in the grocery aisle affect worldwide communities, they can begin to make these choices in ways that support a fairer global marketplace.

Sasha Caldera is the co-founder of Fair Trade Vancouver, and a Professional Fellow

with Engineers Without Borders Canada.“The challenges are enormous for

this country, as Ugandan coffee is

on the verge of being rejected by

international markets”

The rain pours amid the rolling green hills and lush vegetation. It’s the middle of Uganda’s second rainy

season, known as “the little wet season.” Raindrops spatter against the tin roof, and thunder booms; I sip hot chai across from John Nuwagaba—managing director of the Ankole Coffee Producers Cooperative Union (ACPCU)—at his office in Bushenyi District. Nuwagaba’s office resembles a typical workplace in Canada. The telltale whir of printers and ringing telephones fills the air as the staff, dressed in business attire, go about their day as usual. Sitting relaxed in his office chair, Nuwagaba calmly explains his role in a new wave of social entrepreneurs seeking to empower Ugandan producer communities. “The challenges are enormous for this country, as Ugandan coffee is on the verge of being rejected by international markets,” he says. Uganda’s coffee industry has survived decades of violent conf lict and a tumultuous shift from centrally-planned production to a liberalized, or market-driven, model. Still, smallholder farmers remain under-appreciated and vulnerable in the coffee value chain, where the vast majority of coffee production relies on household plots ranging from a half hectare to two hectares in size.

Across the country, these farmers face many issues such as coffee yields plagued by wilt, bollworm infestations, and coffee berry disease. Moreover, knock-off insecticide and herbicide products are commonly sold within villages, giving farmers a false sense of security in fighting pests and disease. Seasonal weather patterns also present uncertainties, as daily thunderstorms during the wet season make it difficult to dry recently harvested cherries—or “kiboko” in Lugandan dialect—to optimal moisture levels for hulling. Farmers are often tempted to sell un-dried coffee to processors, which results in lower volumes after hulling and perpetuates the production of low-quality coffee circulating within the country. When farmers sell their coffee at farm gate, unscrupulous middlemen routinely take advantage of producers by tampering weighing scales and colluding with processors. Chains of agents and sub-agents take small, undocumented commissions from each other in pyramid-like fashion. Due to the number of hands involved, it’s impossible to know how much money smallholders will eventually receive for each harvest. In effect, a typical coffee value chain is complex. Highly-contextualized non-market conditions go beyond the farmers’ control and consequently make earnings less predictable. Entrepreneurs like Nuwagaba are working with smallholder producer organizations as part of a country-wide effort to increase producer bargaining power and to change the reputation of Ugandan coffee. The ACPCU represents 15 democratic primary societies and about 6,500 farmers within the district. In just over five years, the cooperative has increased its working capital from US$10,000 to US$2 million. A major goal of the cooperative is to help its primary societies increase their production volume of fair average quality coffee (FAQ)—a classification used to describe clean, hulled beans. One primary society has already invested in a hulling facility and now offers quality-differentiated prices to farmers. Nuwagaba emphasizes that providing options for smallholders beyond just selling dried cherries can make Uganda’s coffee more competitive within global markets. This is because the new pricing mechanism provides an incentive to practice better harvesting and post-handling techniques. Nuwagaba also seeks to increase earning opportunities for farmers by diversifying operations to include washed arabica coffee beans, honey, and eventually, single-origin fine robusta. Beyond this, he wants to empower producers within the existing value chain by soliciting investment for an onsite grading facility; this would save the cooperative from having to transport it to Kampala, the country’s capital. Discourse regarding agricultural development in Africa often invokes telegenic imagery, but in reality, rural livelihoods are quite ordinary. Nuwagaba’s challenges are no different

rolling hillsides of bushenyi district, uganda

field officer akikire ambrose and coffee farmer bitanako stephen

enjoy a day in the gardens at Kashekuro primary society.

John nuwagaba and sasha Caldera working at the

aCPCu office.


fair trade plantations

Fair Trade is an important development for

plantation workers, as it requires owners to

adhere to strict labour standards that guarantee

safe working conditions and prohibit the use

of child labour. Further, all workers receive fair

wages and have the right to unionize.

Not only are producers guaranteed fair prices

that will cover the costs of production, but they

also receive additional social premiums. Certified

plantations are required to form a Joint Body,

where representatives are elected from the

workers and management to make decisions

on how those premiums are spent.

feature

I t makes no difference how many mythological hypotheses surround its origins, from a quasi-divine emperor to the

Gautama Buddha; one thing is certain: tea is from Asia, and for a long time, its cultivation was under the monopoly of China. This was before 1840, when a British doctor planted the first tea seeds in his garden in Beechwood, Darjeeling, India. Tea became an integral part of the world’s economies and cultures. Age-old India welcomed it into the Hindu pantheon like a new god. There, tea became a cultural symbol, a national beverage that shaped various aspects of life. Conversion to tea knew no borders: next to water, tea is now the world’s most consumed drink. In the time it takes to read these words, tens of thousands of cups will be swallowed worldwide. It also makes no difference how many colours it comes in—white, black, green, blue, red, and even yellow. All tea comes from one kind of tree, Camellia sinensis, with two varieties,

sinensis and assamica, found naturally all over Asia, but historically concentrated in China. In its natural state, Camellia sinensis can grow up to 20 metres tall, which is not very practical for harvesting. Domesticating tea trees restricts them to a height of 1.2 metres, to maximize production and make picking the leaves easier. The science, if not the art, of harvesting, lies in a strategy that has to take into account the time of day (tea picked in the morning is higher in tannins) and also the conditions necessary for growth and quality. For the most delicate flavour, only the first leaf below the bud is picked. To encourage growth, several leaves, sometimes including the bud, are collected. Then there are the decisions concerning the fermentation of the leaves—light, medium, full, or simply not at all—to produce the different types, or colours, of tea. The Japanese have made green tea (not fermented but roasted) their sole

passion, whereas semi-fermented teas (oolongs) are Chinese in origin. Black tea, allegedly the result of accidentally prolonged fermentation during a delayed delivery in the 17th century, became so popular with the subjects of the British Crown that they thenceforth demanded tea produced only by this method. Nowadays, the conventional tea market is controlled by a small number of multinationals that greatly influence the prices at regional auctions. The overproduction of tea in recent years has pushed prices down, and as a result, there has been an attempt to encourage higher consumption in producing countries (India and China), whose citizens are already among the most avid tea drinkers. On the other hand, per capita, Indians drink only 650g per year, compared to 2200g for the English. The Fair Trade market includes green, black, and oolong teas, as well as herbal infusions such as camomile, mint, and South African rooibos. After a recent explosion in demand at

The Story of TeaT e x T a n d phoTo By É r ic ST-pi e r r e

Patali Sarki picks organic Fair Trade tea

in the Ambootia tea garden, located in the

mythic Darjeeling region.

From Fair Trade: A Human Journey.

the end of 2007, the Fair Trade tea market has now stabilized. It saw a growth of only eight percent in 2011 compared to 112 percent between 2007 and 2008. Fair Trade tea is also significant in that it represents the first product imported from Fairtrade certified plantations that use hired labour. The inclusion of Fair Trade tea plantations caused a shockwave of resistance within the Fair Trade movement—most significantly from the democratic cooperatives of small-scale producers that were, until that moment, the emblem of Fair Trade. At the heart of the debate is the capacity of smallholder cooperatives to compete with these large-scale businesses. There are 16 product sectors in the Fairtrade International certification system that are limited to democratic small-scale producer organizations (coffee, cocoa, sugar, rice, cotton, among others), while seven (fruit juice, fruit, bananas, tea, wine, flowers, and sports balls) also allow for private enterprises, such as large plantations, that use hired labour. Debates around the issue of plantations versus small-scale producers will likely continue to shape the system of Fair Trade certification in the future.

Éric St-Pierre is a Canadian photojournalist specializing in Fair Trade. He is

the author of three photography books, which include his latest, Fair Trade: A

Human Journey. He was elected president of the board of directors of the Quebec

Association of Fair Trade in 2012. www.ericstpierre.ca


feature

a hat. It stood about three metres high and 10 metres wide and was really a circular table that could also be used as a stage. I made my way into the main working area, where a thrum of activity was already underway. The workroom was open and well lit by the large windows that stretched the length of the room. This was not some factory-style operation. The women worked busily at their own stations, but the atmosphere was relaxed. Most of the noise came from a mix of machines and children. Eight to 10 women typically work here, eight hours per day, Monday to Friday. During busier times, they’ll work Saturdays too. On the edges of the clean, tiled floor, the walls were lined with shelves and cupboards full of hats in various states of completion. Tables were piled high with materials. The panamas are made from palm-like grass from the Pacific coast. The style was originally named after the coastal city of Montecristi, but they became known as “panama hats” when they were given international visibility during the construction of the Panama Canal in the early 20th century. The women use many different dyes to colour the grass straw and then hang them in bunches to dry. The traditional hat weaving, an important traditional local skill, is meticulously completed by hand. The women continued to work while I visited. Their sewing machines rattled as they stitched labels onto the finished hats.

I tried to set up an appointment beforehand but was told that the workers were busy and might not have time to talk. I

took my chance anyway. I knocked on the heavy double door of the former hospital building. When the door opened, Rosa, the stalwart matriarch of the co-op, welcomed me. She wore one of the cooperative’s panama hats with a black cardigan and red skirt. Her braided hair gave her a traditional Ecuadorian look. She welcomed me with a smile and insisted that I join the workers for a home-cooked meal. It was yet another example of the hospitality and generosity of time I experienced on my travels. I was nine months into my Fair Trade journey, riding my bicycle from Vancouver to South America, visiting as many cooperatives as I could. I wanted to learn more about the people living in producer communities, and how Fair Trade plays a role in their lives. The Asociación de Toquilleras de María Auxiliadora (ATMA) is a women’s Fair Trade cooperative that produces artisan crafts, and in particular, panama hats. It is located among the beautiful Andean highlands of southern Ecuador, on the edge of the dusty, patchwork town of Sigsig, a 90-minute bus journey from the colonial city Cuenca. Inside the old building, there was a central courtyard, almost filled by a wooden structure with a wide central column, which was decorated with a colourful ribbon to make it look like

Every minute or so there was a loud hiss of decompressed air, as a woman named Maria moulded hats into different styles. Another woman helped to shape the hats with an iron. Meanwhile, a group of children ran in and out of the room, playing games. The women sell their products directly to Pachacuti, a relationship that has been established for many years. Pachacuti is a Fair Trade certified fashion retailer that in 2009 became the first company in the world to complete a pilot study for the new World Fair Trade Organization certification process. It was the first international Fair Trade organization allowed to put “Fair Trade Certified” on its full range of products, certifying the organization as a whole rather than specific items. ATMA provides many benefits for its employees. It offers them fair wages and provides health benefits and educational assistance for their children. Because of ATMA, important cultural knowledge will be maintained and transferred to younger generations. What’s most important is the sense of empowerment. The women here have created their own business, invested in training and equipment, and are earning their own incomes. The cooperative also has its own shop that sells hats, bags, and crafts. It felt good buying a hat straight from its source. I was satisfied, knowing my money went directly to the women here. It might be a small contribution, but it’s important. 2

Kieran Smith is a member of the Fair Trade Vancouver Board of Directors. In June,

2011, he travelled from Vancouver, B.C., to South America by bicycle to learn about

Fair Trade producers. www.fairtradebikeride.org

Purchase these hats from www.pachacuti.co.uk

The women of the ATMAhat making co-operative

By K IER A n SMITH


in conscious decision making, the opportunities for a more sustainable and equitable world can be truly life changing. 2

Jennifer Williams is the CEO of La Siembra Co-op, a worker-owned co-op based in

Ottawa, Ontario. La Siembra is the creator of Camino, a Canadian line of Fairtrade

and Organic certified cocoa, sugar, and coffee products. www.lasiembra.coop

growing change

Taking fair Trade to the ConsumerBy Z ack groS S

F air Trade in Canada has come a long way in the last 25-or-so years. In the late 80s, the organization I worked for,

the Marquis Project, began selling those not-particularly-tasty bricks of Bridgehead ground coffee, along with crafts we brought in from partners in East Africa. In those days, you’d often see me carrying large hockey bags full of goods across borders and through airports. Fair Trade was in its infancy, and few consumers took the long walk down our dark office hallways to purchase our products. We probably sold only a few dozen bags of coffee each year. Our dedicated buyers were often members of the church community, people with strong political motivations, or folks living alternative lifestyles. Most consumers had no idea Fair Trade existed. Now, Fair Trade products can be found in most grocery stores across the country. More than six million kilograms of Fair Trade coffee alone was sold in Canada in 2011. A major issue we seek to address with Fair Trade is the ineffectiveness of conventional foreign aid programs—many of which haven’t been able to reduce poverty in less-developed communities. Even now, for every dollar of aid we send to developing countries, we take back more through exploitive trade policies, debt repayment schemes, and other measures. Often, these practices exacerbate issues such as child slavery, resource extraction and conflicts, environmental destruction, and the abuse of women. Our challenge is to create awareness of these issues and to establish a means for effective trade that encourages a fairer model of support for social development. Twenty-five years later, Manitoba has made significant inroads in consumer awareness and purchasing. According to a recent telephone study that surveyed 1,000 participants, 64 percent of respondents were likely to purchase Fair Trade products even though they may cost an average of 10 percent more. Also, 47 percent said they buy Fair Trade products on a monthly basis. Demand in general is strong, as 52 percent of respondents wanted more Fair Trade available in local eateries, and 44 percent supported more Fair Trade products in their staff rooms. The study also showed that students, young people, urban shoppers, and women are more likely to buy Fair Trade products. Other support for Fair Trade comes from people with higher education, higher income, and younger families. While these trends are promising, they also show that there is

still work to be done in providing good information to a broader range of consumers and lowering prices to appeal to wider demographics. Fair Trade can still be a back burner issue for many consumers. We want it to be front and centre, where people care passionately—and where intentions lead to actions. There have been consumer paradigm shifts before. For example, less people are buying cigarettes these days. And support for eco-friendly products is much more common. Our ultimate hope is to bring that level of awareness and response to Fair Trade. 2

Zack Gross is the Outreach Coordinator for Fair Trade Manitoba, a program of the

Manitoba Council for International Cooperation. He is also a member of the Fair

Trade Town Committee in Gimli, Manitoba, and the President of the Canadian

Fair Trade network.

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“Fair Trade can still be a back burner issue

for many consumers. We want it to be front

and centre, where people care passionately—

and where intentions lead to actions.”

“Business owners need to be aware

of the shifting consciousness of

consumers, who increasingly seek

transparency and integrity in the

products they purchase”

fair Trade BusinessConnecting consumers and producers through conscious choices

By j en n i F er w i l l i a M S

Business owners must pay close attention to emerging trends, consumer behaviors, and subtle and sustained

shifts in the market. We can make the greatest plans in the world, but if we ignore the big changes around us, we risk finding ourselves quickly off-trend, out-competed, and left behind. Business owners need to be aware of the shifting consciousness of consumers, who increasingly seek transparency and integrity in the products they purchase, and who are more concerned than ever about where these products come from. The rise of ethical certifications such as Fair Trade, Organic, and the-more-recent B Corp demonstrates that a powerful market shift is underway. Fair Trade certified products have been sold in Canada for over 10 years, with coffee being one of the first such products available on the market. Taking coffee as a prime example, consumer expectations in terms of Fair Trade certification have grown significantly since the days of the early adopters. The options for Fair Trade certified coffee in the late 1990s were slim, and the value for producers, while emotionally felt, had little empirical evidence. Today we have data that shows the impact Fair Trade can have for farmers in the global south. Fair Trade has long and deep roots with producer cooperatives of small-scale farmers. In Peru, smallholder farms have seen growth in income and production, increased assets, improved organizational structures and resource usage, and better attitudes toward evaluating risk. It’s also been reported that the number of families involved in Peru’s coffee industry has doubled in less than 20 years, and the export value has grown from US$60 million to US$1.5 billion. We can expect similar trends for other Fair Trade products such as cocoa, sugar, or cotton—to name a few. Fair Trade products make good sense for everyone involved—for the end consumers who can trust the ethics and integrity behind their purchases, for the businesses that maintain a competitive edge while offering ethical alternatives, and most importantly, for the producers who gain access to increased value for their products and an improved quality of life. The impact of Fair Trade for producers speaks directly to the power of what can happen when consumers act with consciousness and when businesses listen closely and respond to consumer demand. With consumers and businesses aligned


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Over 100 products, all strictly fair trade and eco-friendly, finished in the home country, including Farmers’ Dream Coffee, roasted at source by the farmers as partners. We trade directly with 11 fair trade groups in 8 countries worldwide.

Expanding Fair Trade in Canada

growing change

Students of ChangeHow Educational Institutions lead the Way

W hat started in 2002 as a grassroots movement at UBC, gathered momentum and culminated in UBC’s

becoming Canada’s first Fair Trade Campus nine years later. SFU and Guelph received this designation in 2012, which is significant because unlike UBC these universities outsource their food services through major distributors—a common model among educational institutions and other large organizations across Canada. What may be most significant about these developments is the cooperation demonstrated between student bodies and campus administrations. While student groups were able to show significant demand for Fair Trade products, university administrations listened and effectively reassessed their buying practices—becoming their own driving force within the process. The Fair Trade Campus designation is a status awarded by Fairtrade Canada to recognize universities and colleges that are committed to building Fair Trade in their communities. To receive this distinction, campuses must meet a range of criteria, grouped under three categories.

Availability On a Fair Trade Campus, all coffee sold at vendors operated by the school or the student union must be Fairtrade certified, with at least three Fair Trade tea options. Any vendor that sells chocolate must also offer at least one Fair Trade chocolate option. While product-specific criteria don’t yet extend beyond coffee, tea, and cocoa, Fair Trade Campus committees are encouraged to actively search for ways to increase the variety and availability of other Fair Trade products on campus. At UBC, the popularity of Fair Trade banana bread has helped drive demand and encouraged supply amongst growers. This goes beyond standard expectations and shows how the larger market can be affected by one school’s decision to think globally.

VisibilityWhile campus-wide availability of Fair Trade products has the potential to influence business trends and sway the market, promoting awareness of Fair Trade is an equally important step. Anywhere Fair Trade products are sold on a Fair Trade Campus, signs and brochures are displayed to inform and educate consumers. This helps promote conversations about sustainable purchasing practices, cooperative business models, and Fair Trade products. Students, staff, and faculty can learn more about Fair Trade by reading the brochures at points-of-sale, checking out the Fair Trade page on their school’s website, or attending annual Fair Trade events, like UBC’s Fair Trade Week—all aspects of the Fair Trade Campus designation.

Fair Trade Campus committeeAll designated campuses have a Fair Trade Campus committee, which formally connects the campus to the wider Fair Trade network. The committee works alongside purchasing managers and student unions to set goals, scrutinize products, ensure compliance, and uphold the campus designation. These committees act as stewards for each campus’s Fair Trade community and aim to include a variety of stakeholders such as independent businesses, societies, and student groups. The recent designations of SFU and Guelph illustrate the potential influence these committees can have, while also proving that large-scale food distributors are willing to become strong partners in these shifts. They also provide an example to other schools, institutions, or businesses that want to reassess their purchasing with a more globally conscious mindset. 2

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for more information on fair trade Campuses,

read the fair trade Campus action Guide

at fairtrade.ca

Photo Credits

bananas on Page 7

Photographer: vassilis Kokkinidis

image id: 1025562 (http://www.sxc.hu)

Chocolate on Page 10

Photographer: zsuzsanna Kilian

image id: 1153249 (http://www.sxc.hu)

study table • Photographer: shho • image id: 1275249 (http://www.sxc.hu)

2 2 | fa i r t r a d e m a g a z i n e c a n a d a’ s v o i c e f o r s o c i a l s u s ta i n a b i l i t y

label profile

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The fairtrade Markmichael zelmer of fairtrade canada explains the ins and outs of

fairtrade certification

T he Fairtrade Mark, that familiar little image that appears on every certified product, is the point of entry for most

people who become involved with Fair Trade. That the Mark appears on more than 27,000 products across 120 different countries should hardly come as a surprise, but how little most people know about the system behind it might—even among those deeply involved with Fair Trade. The Fairtrade system traces its roots back to a partnership between the Oaxaca-based Union of Indigenous Communities of the Isthmus Region (UCIRI) in Mexico and the Dutch NGO, Solidaridad. The members of UCIRI knew their coffee could fetch high prices on the international market, but the prices they received from local buyers were low. In 1988, with the support of Solidaridad, they created the Max Havelaar Foundation to take a simple proposition to Dutch businesses and consumers: buy this coffee and good things will happen. They communicated this message through a simple image on the package, and thus, Fair Trade labelling was born. The success of the Max Havelaar Foundation soon spread. When more products and farming cooperatives became involved, simple labelling gave way to more formal certification involving audits and defined standards. Meanwhile, separate Max Havelaars opened in other countries such as France and Switzerland, while similar organizations such as TransFair emerged in Germany, Canada, and the United States—and the Fairtrade Foundation formed in the UK. In 1998, they united to form the Fairtrade Labelling Organizations International (FLO), now known as Fairtrade International.

Producer benefitsWhen thinking of the benefits Fairtrade certification brings to farmers, most people focus on the fair prices. Here are some other equally important but largely overlooked benefits:

Market access Market access can be a major obstacle for farmers, which is why it’s been at the heart of the Fairtrade system from the beginning.

PremiumsThe Fairtrade Premium is an amount paid on top of a fair price. Co-op members or farm workers can invest the premium however they want, as long as they decide democratically. In 2011, US $84 million was paid in Fairtrade Premiums.

FinancingWhile financing can be a big constraint for farmers, co-ops are entitled to receive advance payment for up to 60 percent of the value of their Fairtrade contracts. Fairtrade International also recently launched the Fairtrade Access Fund to provide additional financing for co-ops.

PowerAlong with the improved position they have gained through Fairtrade standards, farmers have a large say in governing the Fairtrade system itself. With 50 percent control over the Fairtrade International general assembly and strong representation on the board of directors and standards committee, farmers are well positioned to ensure the Fairtrade system works for them.

CertificationIndependent certification is the cornerstone of Fairtrade, but how does it work? While development of standards is a multistakeholder process managed by Fairtrade International, the business of monitoring and enforcing the standards begins with an independent agency called FLO-Cert. Through its network of specially-trained auditors around the world, FLO-Cert physically inspects producers and companies to ensure they’re up to code. Once a Fairtrade certified product comes to Canada, Fairtrade Canada’s certification department takes over. Regular monitoring and often annual audits are conducted to make sure what is sold as Fairtrade certified actually is—and that Canadian companies play by the rules when buying from certified producers. 2

Michael Zelmer has been involved in Fair Trade in research, advocacy, and policy

for more than a decade. Forever preoccupied with building better (metaphorical)

mousetraps, he is also the Director of Communications for Fairtrade Canada.

Available year-round at the following retailers:Thrifty Foods, Choices Markets, Claytons Heritage Market, Olla Flowers,

Flowers on 9th, Awesome Blossom and Whole Foods Market

www.florimex-vancouver.com

Buy Fairtrade Certified Roses

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