2009/2010 Impact Report

FairTrade Certified Flowers ™

TransFair USA

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Introduction

on large-scale farms receive fair employment conditions in line with the core International Labor Organization (ILO) Conventions.

The global flowers industry is one of the fastest growing sectors in the developing world. Historically, the Netherlands held the largest market share for exports of fresh and cut flowers. But in the last few decades, South America and Africa have emerged as major providers of the worlds’ flowers: in 2009, the U.S. flower imports from Colombia and Ecuador represented a full 75% of total flower imports. With Americans spending over $1 billion per year on cut flowers from abroad, the flowers export industry provides a significant source of employment and revenue for flower growers in the developing world.1

Through certification, consumers can trust in the Fair Trade label, which requires that workers receive better wages and have safe labor conditions with protective equipment and proper training. In addition, Fair Trade provides vital financial support to flower workers in the form of the Fair Trade premium: buyers pay an additional 10 percent on top of the stem price towards a development fund. Workers use these funds to provide educational opportunities to their children, build homes for their families and pay for doctors visits, which they may otherwise not have been able to afford. Fair Trade certification enables U.S. consumers to positively affect the lives of flower farm workers.

Despite the industry’s great potential for growth and employment generation, the conditions for many workers on flower farms around the world are not ideal. Jobs at large flower farms in East Africa and Latin America are often insecure: many workers do not have labor contracts to guarantee their employment conditions and can be let go at a moment’s notice–something “My primary goal is that may happen to see all my children when female workers achieve university become pregnant and education and I need companies do not want to pay maternity all the help I can get to leave. Additionally, fulfill this dream. I am many workers are grateful for the support exposed to pesticides that I have received and chemicals through Fair Trade. I without proper safety equipment or training. urge the consumers of

our flowers to continue buying more Fair Trade flowers so that we may continue improving our lives and those of our families and communities.” —Hellen Anyango Osiago Oserian, Kenya 1

Thank You for Supporting Farm Workers through Fair Trade Certified Floral Purchases Globally, buyers have sourced 336 million Fair Trade Certified™ stems in 2009 alone from eight countries. Those purchases equate to millions of dollars in funding for community development in flower growing areas across the world. Following on the European market’s great successes with Fair Trade flowers, TransFair USA began its own Fair Trade Certified flowers program in 2007 in order to address the unique issues facing flower growers in South America and Africa. In the past three years, U.S. consumers have purchased more than 20 million stems of Fair Trade flowers; the result is more than $600,000 in community development funds for workers to reinvest in their communities and lives. TransFair USA honors and thanks the consumers and companies who support Fair Trade flower growers. Your commitment to Fair Trade supports significant improvements that will help protect the environment and change the lives of thousands of farming families.

Fair Trade: A Sustainable Solution Fair Trade certification offers a solution to the many of problems that flower industry workers and employers face. It provides independent verification that workers

U.S. Census Bureau, U.S. International Trade Statistics

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The Reach of Fair Trade By the numbers Consumers make a difference all over the world when they choose Fair Trade Certified™ flowers. Currently, there are 50 flower growers in the Fair Trade system. The growers who supplied the U.S. Fair Trade market in 2009 are located in Colombia, Ecuador, and Kenya.

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Fair Trade empowers flower farmers in eight countries throughout Sub-Saharan Africa, Southeast Asia, and Latin America. Consumers throughout Europe, North America, Australia and New Zealand source their Fair Trade Certified flowers from hired labor farms in the highlighted regions.

india

egypt

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1

sri lanka ecuador

10 united republic of tanzania ethiopia

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1 “I have been a worker of the Nevado Ecuador company for the past four years, I’ve seen direct benefits of Fair Trade here in the farm, including raising the value of overtime, providing 6 additional vacation days, and social services.”

kenya

8 #

—Maria Jiménez flower farm worker at Nevado Ecuador

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zimbabwe

number of fair trade growers

Colombia Fair Trade Certified flowers not currently available for purchase and import.

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Fair Trade Sales and Premiums Paid to Workers By the Numbers 2009; the U.S. market accounts for 3 percent of the global Fair Trade total at 9.5 million stems imported. The number of U.S. flowers licensee partners in 2009 continued to rise, doubling from six to 11 companies.

Europe is by far the largest market for Fair Trade flowers. But as consumers become increasingly aware of the benefits of Fair Trade, U.S. Fair Trade Certified™ flower imports will continue to grow. Global Fair Trade Certified flower sales reached 336 million stems in

Global Fair Trade Certified Flower Sales Source: Fairtrade Labelling Organizations (FLO) International Annual Reports 2004-2009

2009 U.S. Fair Trade Certified Flowers Imports

9,540,000 stems

U.S. Fair Trade Certified Flowers Imports Source: TransFair USA

Country

2008

2009

Cumulative (2007–2009)

Ecuador

109,932

2,884,711

3,996,942

6,991,585

Kenya

539,700

6,774,638

5,414,182

12,728,520

1,200

175,679

128,735

305,614

650,832

9,835,028

9,539,859

20,025,719

$8,125

$302,835

$295,352

$606,312

Colombia Total Premiums Invested *

2007*

2007 represents a partial year:

U.S. FTC Flowers program initiated in second half of 2007.

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2007–2009 Cumulative premiums paid to workers

U.S. Fair Trade companies have generated more than $600,000 dollars in additional premium benefits to flower farmers in Ecuador, Colombia and Kenya in the last three years. Women on these farms especially benefit as the Fair Trade standards require growers to reduce the amount of pesticides used and employ alternative methods of pest control including natural extracts of chili pepper and garlic.

2009

Ecuador remains the top receiver of Fair Trade premiums largely because of its high-quality and high-value flowers, which receive a higher price per stem than Kenyan flowers. Fair Trade producer organizations in both Kenya and Ecuador are doing extensive work to renew their varieties and bring new products to market. Additionally, TransFair USA is currently researching new origin opportunities for different countries to widen our Fair Trade portfolio for new and interesting varieties. If you are interested in sourcing Fair Trade Certified™ flowers and ornamental plants, please contact [email protected]

Cumulative Total

2008

$606,312

2007

2009 U.S. Fair Trade Flowers by Origin

Colombia 1%

“It gives me enormous satisfaction to observe how workers achieve significant benefits in addition to their salaries and social benefits of Fair Trade. The proper handling of the premium has enabled the planning of programs. The final result is successful development that widely met our expectations.”

Kenya 57%

In the past two years, the cut flower industry has blossomed

Ecuador 42%

into Ecuador’s third largest export.

—Joy Gardens Manager, Ecuador 5

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The Fair Trade Premium How does it work? Trade premium uses are decided democratically and communally.

Community development premiums are one of the key pillars of Fair Trade standards. This innovative approach to development gives producers and workers access to capital to fund self-determined development projects in order to raise their standard of living.

Most importantly, through long-term relationships with buyers, the Fair Trade premium allows workers to have continued access to funding for both short- and longterm development projects. Through Fair Trade, producers earn capital to improve their lives, project by project.

Fair Trade buyers pay an additional 10 percent on top of the stem price towards a development fund. These funds are channeled to a separate bank account which is used solely and specifically for Fair Trade projects.

See the Fair Trade Producer

Workers on flower farms organize themselves into a representative committee called a Joint Body to determine the uses for the Fair Trade premium. Members vote on development project ideas to meet a variety of community needs including drilling wells for safe drinking water, housing improvements, scholarships, and microloan programs. No matter what the project, all Fair

Profiles section for examples of Fair Trade premium uses.

“As parents, our greatest desire is to provide the safety and wellbeing that comes along with home ownership. The purchase of this land is the first step to changing our families’ lives.” —Marco Toapanta AGROCOEX farm worker on purchasing land with the help of Fair Trade premium funds and AGROCOEX’s Home Loan Program

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Fair Trade Premiums Contribute to...

free dental care microcredit loans free breast cancer screenings

community sports league hivs/aids education

animal husbandry project

health & safety trainings

emergency loan fund

“Thanks to this [educational scholarship] program, I was able to keep my kids in school and give them everything they need to study: uniforms, enrollment fees, school supplies. In fact, I’ve also benefited from this project, because through it I was able to take a computer course!” —Carlota Garcia Nevado Ecuador worker, Ecuador

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Hoja Verde Farm Cayembe, Ecuador Situated directly on the equator in the Ecuadoran Andes, the mountain town of Cayambe is home to a booming flower industry that provides jobs to thousands of Ecuadorian women. This region in the center of the world is blessed with twelve hour days of sunshine, fertile soil and near-daily rainfall–ideal conditions for growing flawless, vibrant flowers for export to North America and Europe. Unfortunately, these ideal growing conditions do not always translate into ideal working conditions. But, Fair Trade certification helps institute practices that protect workers. Workers now find it possible to earn wages that are as much as 21 percent higher. They also receive benefits like paid maternity leave, mandated breaks and scholarship opportunities. Fair Trade Certified™ flower farms must also follow strict safety and environmental guidelines for handling chemicals, and farm management must provide fumigation workers with protective clothing. Sexual harassment is prohibited, and grievance procedures are in place for workers to file complaints in a safe way. In addition, Fair Trade Certified flower farms receive a premium from importers that goes directly into a fund managed by the farm’s Joint Body, which enables the establishment of numerous projects that benefit employees, their families and the community of Cayambe.

Producer Spotlight

Take, for example, the Joint Body at Hoja Verde, one of nine Fair Trade Certified flower farms in Ecuador. Silvia Mariana Cualchi Rojas is a single mother who has worked on the Hoja Verde Flower Farm for seven years. Divorced, life on her own has been tough for Silvia and her son, but she believes that her future is brighter thanks to the benefits she now receives from Fair Trade at Hoja Verde.

A Better Life is Blooming for Silvia Mariana Cualchi Rojas

Hoja Verde’s programs, such as a discount grocery store, pediatric assistance, free eye exams and cervical cancer screenings, have made it possible for Silvia and her son to get by without support from her former husband. Most

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importantly, Hoja Verde provides free childcare for her son that allows Silvia to work full time.

“When I separated from my husband, my son and I had no place to go. Hoja Verde’s Housing Maintenance Program put a roof over our heads and pride in our hearts.”

Yet, of all these benefits, none were as significant to Silvia as the ability to provide her son with the most of basic of human needs—a home. When Silvia separated from her husband, she and her son were left with no place to live. Despite multiple attempts, she was unable to qualify for a loan because of her income—until Fair Trade.

—Silvia Mariana Cualchi Rojas

In 2008, Silvia, along with 17 other employees, was granted a low-interest loan from Hoja Verde’s Housing Maintenance Program. With a $540 loan, she was finally able to obtain the title to the land that had once belonged to her parents. With another loan of $3,000, she began construction on a home to call her own, one paid for entirely by her hard-earned salary.

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Worker packing roses at an Ecuadorian flower farm

Hoja Verde, Ecuador Producer Profile

about the organization FLO ID Year Founded Year Certified Number of Members Percent of Women Members Structure Total Production Area

Hoja Verde is a flower farm located in Cayambe, Ecuador, a region that has one of the best climates in the world for growing roses, due to its rich, fertile volcanic soil. The area is located at the center of Ecuador’s flower industry. It is home to many indigenous people, some of whom trace their ancestry to the Kayambi people that predated and fought against the Incas. The farm is family owned, and it has been Fair Trade Certified™ since 2002. Currently, Hoja Verde has over 60 varieties of roses in production.

4410 1998 2002 206 47% Plantation 15 hectares

The Fair Trade premium has enabled workers at Hoja Verde to establish various social and productive programs. Education Hoja Verde’s Joint Body uses part of its Fair Trade premium to maintain and support the Convenio Escuela Nasacota Puento, which serves 380 children, 90 teens and 28 farm workers’ children. In addition to providing the school with materials and financial support, there are computer classes available for students. These classes not only benefit the farm workers’ children, but benefit all the children that attend the school.

“Owning a house is a family’s dream and we were able to achieve that through Fair Trade. Before the house, we paid rent and we didn’t have any money saved for school; and now we don’t pay rent and we have saved for our children’s education.

Credit Program

—Silvia Sanchez & Aladino Vera Hoja Verde Workers

The Joint Body provided Fair Trade premiums to fund the microcredit program, where farm workers may obtain $5,000, 10-year loans at 1 percent interest for purchasing land or a home. With financing help from the Joint Body, workers can purchase a home; for many families, homeownership is a lifelong dream. Since April 2007, $245,000 has been invested back into the community through this program. Health A portion of the Fair Trade premium from Hoja Verde flowers, allocated by the Joint Body, supports medical services for specialized preventative care and urgent care. Each farm worker is given six tickets and pays $6 for each child, per year. Children and youth who attend school may receive a refund for medicine, which also includes vitamins. The refund is 85 percent of funds paid, maxing out at $60. This project includes vaccinations that benefit 100 workers and 150 children. 10 10

Shalimar, Kenya Producer Profile

about the organization FLO ID Year Founded Number of Members Percent of Women Members Structure Total Production Area

Shalimar Flowers is a cut-flower and vegetable farm located on the northern shores of Lake Naivasha in the Nakuru District in the Rift Valley Province of Kenya. A major concern for the flower workers in this region is better access to the market, and developing the surrounding community. Due to Fair Trade certification, market regulation has allowed employees to achieve economic independence and has improved the living standards of the workers and the surrounding community.

3598 1998 721 43% Plantation 25 hectares

Fair Trade premium funds have enabled the Joint Body of Shalimar Flowers to create a variety of social, economic and community development programs. Educational Programs In 2007, Shalimar Flowers began construction of two primary school classrooms that included the installation of water fountains and storage tanks. In 2009, Fair Trade premiums allowed for more expansion with the purchase of 10 acres and the construction of three classrooms for a secondary school. The scholarship program was developed in late 2009 to develop skills for those workers who wish to advance their education. The scholarship’s pilot program includes courses to learn to drive and tailor clothing.

“The construction of the secondary school made it easier for the community and workers’ children to access education.” —Mr. S.Thirumalai Group General Manager

Women’s Empowerment Programs The Fair Trade premiums allocated by the Joint Body also fund workshops to empower women and encourage participation in community activities, such as the community development committee. Sports Programs With assistance from the Fair Trade premiums, the Joint Body also oversaw the creation of local sports leagues for football, netball and other indoor games in 2009. Many workers and people of the community participate after their workdays. The sports program also participates in the nation-wide league. The Fair Trade premium sponsored sports programs opens doors for more community development and participation. 11 11

Scholarship recipients; courses are offered in skills such as driving and tailoring.

Jardines Piaveri, Ecuador Producer Profile Piaveri Gardens is located near the town of Latacunga, in a valley surrounded by volcanoes and snow-capped peaks like that of volcanic Mt. Cotopaxi, one of Ecuador’s prime tourist sites. Jardines Piaveri LTD was established in 1996 by the Davalos Diaz family. The strength of Piaveri lies in its cooperative work. They have developed an environment where the relationship between management and workers is based on trust, respect and communication.

about the organization FLO ID Year Founded Number of Members Percent of Women Members Structure Total Production Area

4409 1996 129 51% Plantation 12.5 hectares

The Fair Trade premium has enabled workers at Piaveri to establish various social and productive programs. Microcredit Program The Joint Body of Jardines Piaveri allocated Fair Trade premiums for a low-interest loan program for workers and their families who want to start their own small businesses. The participants must formulate business and loan repayment plans to be eligible. To date, twelve participants received loans to help manage businesses including bakeries, artisan workshops and clothing stores. Educational Scholarships The Joint Body of Jardines Piaveri designates a percentage of the Fair Trade premiums for school scholarships. The scholarships are awarded annually to children and young adults based on a rating system that was developed by the Joint Body. The total amount awarded in 2009 benefited forty threestudents.

“I am proud to have achieved my dream of owning my own business. Now my income will help with the costs to maintain my family. “ —Julia Ramírez wife of worker Juan Ramirez

Community Development Programs Each year, the Joint Body of Jardines Piaveri designates a percentage of the Fair Trade premiums for community programs. In 2009, the Joint Body collaborated with the church in Guaytacama, a town in which 85 percent, of Jardines Piaveri’s workers live—to donate chairs for use in the church and schools. Health Programs for Women Funded by Fair Trade premiums, the Joint Body created and maintains breast cancer screenings for women each year. This program benefited 102 women—60 of whom are workers and 12 42 are spouses or daughters of workers. 12

Education is highly valued by the workers of Jardines Piaveri. Here children are receiving awards for their good work.

AGROCOEX, Ecuador Producer Profile

about the organization FLO ID Year Founded Year Certified Number of Members Percent of Women Members Structure Total Production Area

AGROCOEX S.A (Compania Agropromotora del Cotopaxi) is a rose plantation located in Cotapaxi province, 3.5 kilometers south of Rumipamba in Ecuador. AGROCEOX was founded by two brothers in 1988 and became Fair Trade Certified™ by Fairtrade Labelling Organization International in 1998.

4407 1988 1998 200 60% Plantation 24.4 hectares

AGRCOEX became Fair Trade Certified because the fairer prices helped cover the cost of sustainable production. Applying production practices that are environmentally sustainable is important to the workers of AGROCOEX. With the help of Fair Trade, AGRCOEX can reach consumers that agree with their values and principles. The Fair Trade premium has enabled AGROCEOX to establish various social and productive programs. Scholarships “Knowing that my parents could not give me an education because of their financial hardship, Luis was eligible for a scholarship. I worked hard in the classroom and at the workplace, in hopes to set a good example for my son. I received my diploma from Colegio Jose Maria Velez in 2009 and decided to continue studying towards a degree in engineering.”

The Joint Body created scholarships paid for by Fair Trade premiums. The scholarships are for workers that have not finished either grade school or college. The Joint Body has an agreement with the education board Instituto Radiofónico FE y ALEGRÍA that guarantees a quality education. Workshops and Trainings

—Luis Casa AGRCOEX worker

The Joint Body approved the creation of workshops for information systems and internet access training for workers, worker’s children, relatives and other interested members of the community. There is a Systems Engineer responsible for the trainings and workshops. Each participant is evaluated weekly to guarantee their academic and personal success. Housing Plans Fair Trade premiums have funded the first phase of housing for the Community Development Committee San Francisco-La Victoria. The Joint Body approved the purchase of five hectares of land in Latacunga, Cotopaxi. Health Center The Joint Body funded a dentistry center with Fair Trade premiums.

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Luis Casa, AGRCOEX worker, in the midst of the rose farm.

Oserian, Kenya Producer Profile Founded in 1969, the Oserian Development Company is a flower farm located in the Rift Valley province, 30 km from Lake Naivasha. Seventy-percent of Kenya’s flower production for export is done in this area. The climate is hot and dry with ample sunshine and an unpredictable rainy season spanning from May to October that creates the ideal climate for growing flowers.

about the organization FLO ID Year Founded Number of Members Percent of Women Members Structure Total Production Area

2763 1969 3132 49% Plantation 200 hectares

Kenyans in this region often do not have access to clean drinking water. Poverty is rampant. Food prices are expensive for most workers. The lack of good infrastructure makes it difficult to access distant markets or jobs. In addition, there is a lack of proper housing for those who live off the farm. For these reasons and as a commitment to the good practices of the company, Oserian decided to become Fair Trade Certified™. The Fair Trade premium has enabled workers at Oserian Development Company LTD to establish various social and productive programs. Workshops Oserian invests a portion of the premium into a variety of workshops and trainings. Trainings have been provided to promote equal participation among men and women. In 2009, a new workshop was developed to teach sign language to thirty six members.

“On behalf of Oserian High school’s Board of Management, The P.T.A, Administration, parents and entire school fraternity, I sincerely wish to register our heart-felt appreciation for your continued funding of the physical infrastructure and the latest bursaries to our students.” —Mr. F. Nyawade Deputy Principal of Oserian High School

Infrastructure and Equipment A portion of Fair Trade premiums are invested into local schools. To help prevent erosion at Oserian High School, the Joint Body approved the use of Fair Trade premiums to construct a proper drainage system. The Joint Body authorized the purchase of a vehicle, video camera, and computers for the collective use of the farm workers and their families. Health A lump sum of the earned Fair Trade Premium was donated to the health center to pay for general costs. Part of the premium was also donated to support people living with HIV/AIDS. Other sums of money were donated to organizations such as the Aids 14 Awareness Campaign. 14

An Oserian Hilltop Primary School computer class. Premiums are invested in upgrading such classrooms.

Nevado Ecuador, Ecuador Producer Profile

about the organization FLO ID Year Founded Structure Total Production Area

Nevado Ecuador takes special care to produce their flowers in harmony with nature and mankind. Nevado Ecuador holds one of the largest number of quality, social and environmental certifications in the world. With this in mind they created a slogan, “Roses with a Conscience”.

4412 1998 Plantation Hectares

Located 140 km south of Quito, at an elevation of approximately 10,000 feet, Nevado Ecuador has practically perfect growing conditions for long stem, large-bud roses. With support from Fair Trade, Nevado Ecuador workers receive better working conditions, fairer prices for their product and are able to implement social programs that benefit the workers and the community. The Fair Trade premium has enabled Nevado Ecuador to establish various social projects. Scholarships

“I am a worker of the Nevado Ecuador company for the past four years. I’ve seen direct benefits of Fair Trade here in the farm. It has raised the value of overtime, 6 additional vacation days, and social services of which we are the only ‘winners’.”

Workers are supported to continue with their elementary, high school and technical education. Fair Trade premiums have been invested in rewarding workers with scholarships that enable them to continue their educational goals. Workers also have access to scholarships for managerial trainings. Education

—Maria Jimenez

The workers have established training programs in accounting and household financial management. Also, the workers funded the implementation of an educational program at their day care center. Loans Nevado Ecuador has established an emergency loan fund. The fund is set up for workers to cover any unexpected or medical expenses. Home Improvement Nevado Ecuador created an initiative that offers credit for home improvement. More than 400 workers have benefited from this initiative

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Agroganadera, Ecuador Producer Profile Agroganadera Espinosa Chiriboga is a flower plantation located in the south of Ecuador in a sector called Piedra Colorada. Agroganadera produces approximately 20,000 stems a day of roses for export to the United States, Western Europe and Russia.

about the organization FLO ID Number of Members Structure Total Production Area

4408 145 Plantation 13 Hectares

Since their start in the late 1990s the workers have kept environmental and worker concerns in the forefront. Fair Trade Certification™ enabled Agroganadera to participate equally in the international market and establish long term relationships with buyers. At the same time, they maintain their goals of fostering a sustainable environment and better working conditions. The Fair Trade premiums enabled Agroganadera to implement various social and environmental projects. Education Fair Trade premiums funded a computer class for thirtyworkers. Agroganadera’s Joint Body purchased school supplies and uniforms for the workers’ children. The Joint Body also funded an English course for children. Also, Fair Trade premium was spent to help elementary schools in neighboring communities purchase desks and renovate restrooms. Productive Investment

“My daughters, thanks to Fair Trade, are taking Reading and English classes. This is helping them be more successful at school. I think it’s a good opportunity for all the children of workers. It’s important that the FT Premium funds keep coming, that consumers keep buying our flowers, and that you keep trusting us, so that these programs we’ve started can continue in the long term.”

—Agroganadera Worker

Workers at Agroganadera created an animal husbandry project and a home gardening project in which workers receive chickens and pigs and start small gardens for home consumption and sale at the local market. Also, in 2009, the Joint Body helped thirty five of its workers expand their horizons and increase their work options by enrolling them in a driving course that enabled them to obtain drivers’ licenses. Women’s Health In partnership with a local hospital specializing in cancer treatment, a medical team was brought to the farm to perform cervical cancer (pap smears) and breast cancer 16 screenings for 45 women associated with the farm. 16

Agroganadera workers presenting a bouquet of Fair Trade roses

Valentine Growers, Kenya Producer Profile

about the organization FLO ID Year Founded Structure Total Production Area

Valentine Growers is a Kenyan agricultural business that specializes in growing roses, coffee and tea. It was established in 1996 as a family business with just one farm. It is based in the Kiambu District, approximately 15 km from Nairobi City. Today, the company has two farms that occupy a total of 26.7 hectares: the Kibubuti farm and the Karura farm.

4040 1996 Plantation 26.7 Hectares

The farm aims to cherish its employees and surrounding community, give equal employment opportunities, allow freedom of association, adhere to corporate social responsibility, and to produce within a framework of sustainable environmental practices. Fair Trade premiums have enabled the Joint Body of Valentine Growers to invest in a variety of social and educational programs. Education Workers of Valentine Growers are eligible to seek funding for technical training courses. Children of workers receive scholarships if they maintain outstanding grades. The Joint Body has also used Fair Trade premium funds to purchase and donate over 100 desks for four local schools. Supplies such as chairs and notebooks have also been donated to local schools. Training Skills training is important for many workers; learning new skills allows workers to increase their earning power and potential for bettering their families’ lives. The Joint Body dedicated premium funds to training courses for plantation workers. Health Kasphat Dispensary was built to service workers and members of the community at large. In 2009, the Joint Body allocated almost four million Kenyan schillings in Fair Trade premium funds towards trainings for the Workers’ Labor and Health and Safety Committees. 17 17

Paul Mwaniki and Milco Rikken at Valentine Growers Source: proverde.net

Fair Trade Standards a closer look Fair Trade standards are the backbone to this system of farmer- and worker-led development. Both buyers and sellers of Fair Trade products agree to uphold a set of standards in order to create a more just method of trade that takes into account the “triple bottom line”–economic, social and environmental gain.

To date, Fair Trade has helped approximately five million farming family and community members in seventy developing countries build more sustainable communities through wide-spread implementation of the Fair Trade standards. Here’s how.

Fair Trade Principles We Guarantee a Fair Price Our unique commitment to fair prices and development premiums distinguish the Fair Trade Certified™ label from other sustainability labels. Farmer groups are guaranteed a price that covers the cost of sustainable production, a premium for community selected development projects and an additional price premium for certified organic crops.

health and preserve ecosystems. These standards strictly prohibit the use of GMOs and the most toxic agrochemicals, promote active conservation of soil and water resources and protect surrounding forests. More than half of all Fair Trade farms are certified organic. We Prohibit Child Labor, Forced Labor, and WorkPlace Discrimination

Buyers are required to offer commercial credit to farmers upon request, either directly or in collaboration with financial intermediaries. Access to timely credit on favorable terms allows farmer organizations to increase export capacity and improve product quality.

Fair Trade farmers and workers can count on more than just better prices. Fair Trade standards require freedom of association and safe working conditions. And child labor, forced labor and discrimination are strictly prohibited by Fair Trade standards. If breaches of the standards are found, immediate action will be taken to protect children and forced laborers and to ensure fair treatment for all on the farms and factories that carry the Fair Trade mark.

We Require Democracy and Transparency

We Support Community Development

Empowerment is an essential goal of Fair Trade. Small farmers form cooperatives that allow them to process and export their harvests competitively. Farmers are audited annually for transparency, democratic processes and sound financial management.

U.S. importers and manufacturers agree to pay Fair Trade premiums that allow farmers and farm workers to invest in community development projects. These projects—from clean drinking water, school scholarships and health care services to housing, reforestation and organic certification—benefit entire towns and regions.

We Promote Access to Credit

We Promote Environmental Sustainability Fair Trade standards require environmentally sustainable farming methods that protect farmers’

Find more information here: www.fairtrade.net/standards/ 18 For questions regarding this report, please contact Jenny Ballen at [email protected]

What is Fair Trade and Fair Trade Certified™? Fair Trade is a market-based model of international trade that benefits more than 1.2 million farmers and farm workers in 70 developing countries across Africa, Asia and Latin America. Fair Trade certification enables consumers to vote for a better world with their dollars, simply by looking for the Fair Trade Certified™ label on the products they buy. Fair Trade Certified™ agricultural products including coffee, tea and herbs, cocoa and chocolate, fresh fruit, sugar, rice, flowers, honey and spices and more are currently available at more than 50,000 retail establishments in the United States. Fair Trade certification verifies and acknowledges the commitment of these producers to meet internationally recognized Fair Trade standards. How does Fair Trade certification ensure that the products I buy are fair? Fair Trade producers undergo annual audits to demonstrate that they are implementing Fair Trade standards to ensure that the products consumers buy are traded in the most fair and just manner. Through adoption of Fair Trade standards, farmers strengthen their communities and take their products directly to global markets. In turn, these efforts support dramatic improvements in income and quality of life. About this Report Producer Impact Reports are compiled based on information collected from TransFair USA licensee partners, FLO Producer Audit Reports, and questionnaires designed by TransFair USA and completed by Fair Trade Certified producer groups. Information on specific producer groups featured in this report is included as available.

Our Mission TransFair USA enables sustainable development and community empowerment by cultivating a more equitable global trade model that benefits farmers, workers, consumers, industry and the earth. We achieve our mission by certifying and promoting Fair Trade products.

TransFair USA 1500 Broadway Street, Suite 400 Oakland, CA 94612 Tel: 510.663.5260 | Fax: 510.663.5264 www.FairTradeCertified.org 19

TransFair USA • 1500 Broadway, Suite 400 • Oakland CA 94612 20 • 510.663.5260 • 510.663.5264 fax • www.transfairusa.org