Q&A on Fairtrade and the Environment Environmental Requirements in the Fairtrade Standards ................................................................... 2   1.   What is the purpose of Fairtrade’s environmental requirements? .................................................... 2   2.   What requirements must Fairtrade certified producer organizations meet on the environment? ..... 2   3.   What benefits for workers and small farmers from Fairtrade’s environmental requirements? ......... 2   4.   Are the environmental requirements the same for all organizations? .............................................. 2   5.   How is the implementation of training content monitored and how does FLO explain that training is enough for compliance? ......................................................................................................................................... 3   6.   How can big producer organizations make sure that all members (e.g. 10.000 and more) have access to necessary knowledge for compliance? ..................................................................................................... 3   Genetically Modified Organisms (GMO)................................................................................................ 3   7.   What is FLO’s position on Genetically Modified Organisms (GMO)? ............................................... 3   8.   Are Fairtrade certified products guaranteed to be GMO free? ......................................................... 3   9.   What about composite products? ..................................................................................................... 3   10.   Why are GMO products banned by FLO?.................................................................................... 4   11.   Does Fairtrade stick to the principle of not allowing GMO? Is this true for all product groups, including cotton? 4   Pesticides................................................................................................................................................. 4   12.   What are the changes in regards to pesticides? .......................................................................... 4   13.   How does Fairtrade International control the allowable pesticides (amount, variety, frequency of usage)? 4   14.   How does the Fairtrade system support environmentally friendly farming? Is there a reward system if allowed pesticides are substituted by biological methods? ....................................................................... 5   15.   What pesticides are banned?....................................................................................................... 5   Climate change ........................................................................................................................................ 5   16.   Do the new environmental requirements support or damage our efforts in measuring, evaluating Co2 and recommendations for Co2 reduction or are they neutral to this topic? ...................................................... 5   17.   FLO has developed a Climate Change Strategy to support producers in adapting to the consequences of climate change. Do the new environmental requirements support this strategy? ..................................... 5   18.   How are the new environmental requirements related to the Carbon Programme being conducted by FLO-CERT?............................................................................................................................................... 6   Questions and Answers on Fairtrade and Organic.............................................................................. 6   19.   What is the difference between Fairtrade environmental standards and organic certification? ... 6   20.   Why are Fairtrade products not automatically organic? ............................................................... 6   21.   How does FLO support producers’ conversion to organic? ......................................................... 7   22.   Is there any advantage for Fairtrade producers in being organically certified?............................ 7   23.   What is the percentage of Fairtrade products that are organic? .................................................. 7   24.   Are organic and Fairtrade complimentary labels?........................................................................ 7   25.   Today Fairtrade Standards encourage planting/producing organic as a source for higher income and for being in general better for human beings and the environment. Is this statement still true with the changes in the environmental requirements? .................................................................................................................... 8   26.   Do the new environmental requirements ensure better cooperation with organic certification systems (e.g. cost reduction for producers)? If yes, to what extent? ...................................................................... 8  

 

Environmental Requirements in the Fairtrade Standards 1. What is the purpose of Fairtrade’s environmental requirements? The key underlying principle is that with Fairtrade, people come first. Good agricultural practices are essential for the well-being of farmers and workers and the future of their communities. The Fairtrade Standards have strong core environmental requirements which are strict on protecting producers’ health and safety, conserving nature and banning the use of GMOs and dangerous chemicals. Then, through the benefits received through Fairtrade, producers are encouraged to work on development requirements of their choice which lead to even greater sustainability. Producer organizations also have the opportunity to report on the activities they are already doing to protect the environment. 2. What requirements must Fairtrade certified producer organizations meet on the environment? • Health protection for farmers and workers, especially in terms of pesticides and hazardous waste. • Genetically Modified Organisms (GMOs) are prohibited. • Existing biodiversity in protected areas and in areas with high conservation values is respected. In addition, both small producer organizations and hired labour plantations are expected to increase biodiversity over time as a way to make farms more resilient to the impacts of a changing climate. • Small-scale producers are trained in water protection, soil conservation, integrated pest management and safety in relation to handling pesticides. • Hired labour set-ups companies are required to implement safety measures that protect the workers, and implement good practices to make rationale use of pesticides and also of natural resources, such as water and soil. 3. What benefits for workers and small farmers from Fairtrade’s environmental requirements? • Fairtrade’s approach puts people first. Health and safety is at the forefront of Standards together with conserving nature and avoiding GMO which contribute to sustainable farms and livelihoods. • Training on good practices such as integrated pest management and efficient use of water gives producers concrete ways to improve their production and reduce pesticide use. • The new division of requirements into “core and “development” gives producers and their organizations the opportunity to set priorities, acting on basic issues first such health, natural resources. • By clearly focusing on this priority and allowing producers to gradually focus on other issues such as sustainable practices, producers with limited resources or capacities can benefit from Fairtrade sales and then work on making their practices even more sustainable. 4. Are the environmental requirements the same for all organizations? The revised environmental requirements cover the same topics for all producer organizations. For small producer organizations there is less emphasis on filling out documents and more focus on taking actions, training farmers and promoting development. The Hired Labour and Contract Production Standards focus on performance results. Strict requirements concerning safety and use of pesticides ensure the protection of farmers and workers.

 

Organizations have to implement good agricultural practices to ensure minimal use of pesticides and good management of natural resources. 5. How is the implementation of training content monitored and how does FLO explain that training is enough for compliance? Small producer organizations have been allowed more flexibility to build capacity through training. The emphasis on training rather than implementation is a reflection of producer reality. Large organizations have limited resources to reach all of their producers and require that they implement. Enforcement or implementation is also difficult for producers with limited resources. SPOs will be audited against the content and participation of the trainings while implementation will be in the hands of the producers. In this way the small producers are allowed more time and freedom to decide on the implementation of requirements, especially those regarding good practices and are empowered by the knowledge gained in the training. They are able to thus dictate their own path to development in terms of how and when implementation will take place. 6. How can big producer organizations make sure that all members (e.g. 10.000 and more) have access to necessary knowledge for compliance? The Production chapter of the Standards includes requirements that are directed particularly at organizations with a large number of members. The requirements acknowledge internal structures within the producer organizations that already exist. The organizations are expected to find the best means to guarantee their members’ continuous compliance. By acknowledging and working with existing structures, this approach is more flexible and less costly for the producers as it does not require a formal internal quality control system.

Genetically Modified Organisms (GMO) 7. What is FLO’s position on Genetically Modified Organisms (GMO)? FLO prohibits the use of GMO, including seeds and planting stock, for Fairtrade producers. The use of GMO materials is checked as part of the FLO-CERT audit process. The GMO ban forms part of the Generic Standards and applies to both hired labour situations and small farmer organizations. GMO crops are not an issue for most Fairtrade products because GMO varieties of most products (tea, coffee, cocoa, bananas, other fruit, etc.) are not yet available. However, GMO varieties of cotton and rice are available. For this reason, Fairtrade producers of rice and cotton must be able to provide written verification from their supplier that seed or planting stock is not GMO. 8. Are Fairtrade certified products guaranteed to be GMO free? To the best of the producers’ and inspectors’ knowledge. However, FLO-CERT does not test harvested crops for GMO traits for two reasons. First, the costs of testing would be too high in relation to the potential risk. Second, if a Fairtrade certified farm is accidentally contaminated by pollen from GMO crops that crop would then have to be excluded from the Fairtrade market. We believe it would be unfair to punish farmers for pollination like this which is out of their control. When the FLO-CERT inspectors are visiting the producers, they check the source of seeds (by checking the documentation of purchase) and initiate a laboratory test as soon as they suspect that gene-manipulated plants are used. This is how Fairtrade can be fairly sure that there are no genemanipulated plants on their market. 9. What about composite products? Fairtrade composite products like chocolate bars and biscuits are eligible to carry the FAIRTRADE Mark because at least 50% of the total ingredients come from Fairtrade certified producers.

 

Composite products may also contain ingredients such as milk and eggs that are not part of the Fairtrade system. These ingredients are not covered by Fairtrade standards or certification and we do not specify or check that they are GMO free. The only way consumers can be fully assured that products are GMO free is through organic certification. 10. Why are GMO products banned by FLO? The biotech industry claims that farmers will benefit from growing GMO crops through larger harvests and a reduced need for pesticides. But there is also widespread public concern about the long-term effects of GMO crops: contamination of conventional crops and wild plants, potential damage to wildlife, and the uncertain effects on human health of eating these foods. FLO believes that the dependence of producers on GMO seeds and the companies that market them is against their longterm interests of producers and outweighs any benefits the crops may bring. FLO has concluded for the moment that GMO crops are incompatible with Fairtrade and therefore has adopted strict environmental standards and guidelines forbidding their use. Not allowing GMOs in Fairtrade production is based on recommendations from a FLO policy paper from June 2003. This paper includes the study of scientific data on GMOs and feedback from a workshop of FLO stakeholders in September 2001. The recommendation concludes that there are too many uncertainties regarding GMO technology. It also notes that scientific arguments should not be the sole factors in determining the policy on the use of GMO. A survey of European consumers showed that only 22% supported GMO foods. This indicates that the use of GMO technology in Fairtrade products is a barrier to increased market share. Similarly, as GMO patented technology is largely owned by multinational companies, the use of GMO crops is likely to increase dependence on these companies. The paper concluded that the interests of the producers are best safeguarded by a prohibition of the use of GMO crops. 11. Does Fairtrade stick to the principle of not allowing GMO? Is this true for all product groups, including cotton? Yes, Fairtrade does not certify GMO cotton or any other crop as the consideration is that GMO crops are not contributing to sustainable livelihoods in the long run given the dependencies on external inputs on one hand and because it is necessary to follow with GMO a precautionary principle as the risks of this technology are still unknown. For areas and crops, like cotton in India, where there is a high risk of contamination with GMO Fairtrade establishes stricter controls and at the same time enforces that producers take preventive measures to avoid contaminated crops.

Pesticides 12. What are the changes in regards to pesticides? The new environmental requirements improve and make stricter those requirements related to the protection of health and safety for all producers in relation to pesticides and hazardous chemicals and hazardous waste. The new requirements address conventional farming in its full reality 13. How does Fairtrade International control the allowable pesticides (amount, variety, frequency of usage)? Through certification techniques such as evaluating records, making inspections and interviews. An auditor is trained in linking information from different sources or processes within a farm and identifying the risk of non-compliance.

 

14. How does the Fairtrade system support environmentally friendly farming? Is there a reward system if allowed pesticides are substituted by biological methods? Environmentally friendly farming is promoted by following the direction of the requirements of the standards and going beyond. Requirements promote the use of integrated pest management in order to reduce quantities of pesticides used. The requirements also promote safety measures aiming to reduce exposure to dangerous pesticides. There is no reward system as such, although producers can report on their environmental activities as a way to promote the good work they are doing. by introducing strategies to reduce the amounts of pesticides used, for example requirements regarding integrated pest management and knowledge of pests. The standard acknowledges limitations of producers and prioritizes the topics in such a way that producers can first focus on accomplishing health protection and then moving forward into good practices that make farming more sustainable. 15. What pesticides are banned? The new pesticide list prohibits all the worst pesticides, which are those included in the two main international agreements, Stockholm (POP) and Rotterdam (PIC) Convention. It also includes all of PAN (Pesticide Action Network) dirty dozen, which is a list of now 18 (and not 12 anymore) of the worst pesticides based on a classification made by PAN, an NGO that has been campaigning for several decades for a cleaner agriculture. Additional to that, the pesticide list retains a unique characteristic that it includes a prohibition on 100% of WHO Ia/Ib with only 9 exceptions, which are allowed for specific crops and only during the following next 3 year transition period. Meanwhile producers are requested to enforce their pest control strategies in order to substitute their use.

Climate change 16. Do the new environmental requirements support or damage our efforts in measuring, evaluating Co2 and recommendations for Co2 reduction or are they neutral to this topic? The implementation and compliance of the environmental requirements at the level of energy and greenhouse gas (GHG) emissions should help producers to progressively measure and reduce their carbon emissions. Producers are asked to keep records on energy consumption in central processing (year 3) facilities and must report on practices carried out to reduce GHG emissions and increase carbon sequestration (year 6). Producers may start working towards these requirements earlier than required. Reduction of CO2 emissions is also achieved through the implementation of good practices on which small producers are trained, such as using only proper amounts of fertilizers (see handling of fertilizers), because this will address the reduction of N20 nitrous oxide emissions. Avoiding destruction of protected and high conservation value areas and restoring buffers zones from water and water shed and protected areas contribute to the sequestration of carbon. Introducing ground covers in order to control erosion and reduce the use of herbicides also contributes to carbon sequestration. 17. FLO has developed a Climate Change Strategy to support producers in adapting to the consequences of climate change. Do the new environmental requirements support this strategy? The Climate Change Strategy aims to support producers to adapt and mitigate climate change as a strategic priority. The new environmental requirements have been developed in line with this strategy as it promotes sustainable agricultural practices that contribute both to climate change mitigation and

 

adaptation. Within the framework of the Climate Change Strategy, a Producer Support Programme for Climate Change Mitigation and Adaptation (PSP) has been created. The environmental requirements also put emphasis on producer support and training to help producers fulfill their requirements. The PSP and environmental requirements are therefore complementary in terms of the work carried out and the results achieved – enabling producers to fulfill environmental requirements and to adapt and mitigate climate change. 18. How are the new environmental requirements related to the Carbon Programme being conducted by FLO-CERT? Compliance with the environmental requirements regarding Energy and GHG emissions (requirements for year 3 and 6) should help producers to progressively measure and reduce their carbon emissions and report on practices carried out. The requirements defined in the environmental requirements are to be progressively fulfilled by all Fairtrade producers. FLO-CERT, on the other hand, is carrying out different carbon pilot projects to gain knowledge, test and develop low cost carbon measurement services, available to producers and to all commercial partners within the supply chain. These services are to be provided on a voluntary basis to any producer and/or retailer that might be interested. By complying with the Energy and GHG emission requirements, producers will have carried out substantial work in measuring and reducing their own emissions; however, the opportunity remains open for those interested in having an external body measure their emissions and reductions as a standard requirement to eventually sell their own carbon credits. Fairtrade does not demand producers to measure and reduce their emissions but it provides the opportunity and support needed for those interested. Fairtrade does not demand producers to sell carbon credits but also does not discourage those interested in selling them as a possible source of additional revenue. Questions and Answers on Fairtrade and Organic 19. What is the difference between Fairtrade environmental standards and organic certification? The Fairtrade Certification Mark is a social and development label, not an environmental one. The Fairtrade standards include environmental standards as Fairtrade sees environmental protection as part of its mission to help improve the welfare, health and livelihoods of the people who work and live on the land. 20. Why are Fairtrade products not automatically organic? Fairtrade producers often do not have the resources and the ability to become organic certified. Converting to organic is a process that demands time and money. The process of conversion takes at least six months, in some cases much longer. During this time there is often a loss of productivity and producers must be able to make ends meet during this time. After conversion there is no guarantee that a producer will increase their income. Often the yield of a crop is less in organic. The farmer will receive a higher price in the long run, but finding the market can also take time. A supply chain from the producer to the consumer has to be set up, costs and prices have to be considered and there has to be sufficient demand. For the Fairtrade producers, such obstacles are often too hard to surpass. Moreover, not every producer is able to go organic. For example if chemical pesticides are used in the neighboring fields it could be that the necessary buffer zone between “organic” and “non-organic” is missing. Sometimes soil quality is so bad it might also take too long for crops to bring any harvest with organic methods.

 

If Fairtrade insisted on organic certification many of the poorest farmers would be barred from Fairtrade. Because of this Fairtrade embarks on a strategy that supports producers with conversion to sustainable agriculture. 21. How does FLO support producers’ conversion to organic? In the Fairtrade Generic Standards for small farmers and for hired labour situations it is stated that: FLO encourages small producers/companies to work towards organic practices where socially and economically practical. FLO, however, also makes sure that producers only take steps to organic conversion if they are aware not only of the advantages but also of the economic risks. They are encouraged to come to this decision after careful consideration. First, FLO informs the producers about the market potential of organic certified products. Additionally, FLO tries to answer the following questions: In which consumer countries would the demand be? What are the related product varieties? In which months of the year is the sale worthwhile? Which supply chains (exporter – importer – wholesaler – retailer) are available and which ones would have to be set up? Secondly, FLO helps with the search for information about a concrete conversion to “organic”. What kind of production requirements are there? How much time does the conversion take? Which biological/organic fertilizers are allowed and how can they be produced or provided. FLO can also connect producers with organizations that can advise them on the conversion to “organic” or can conduct the “organic” certification. As soon as the first organic certified products are available, FLO helps the producers to make contacts, to find consumers and to set up a supply chain. 22. Is there any advantage for Fairtrade producers in being organically certified? There is an organic deferential, constituted by FLO, that is paid to Fairtrade producers who sell organic products under Fairtrade terms The differentials are about 10 to 25 per cent of the Fairtrade minimum price. Organic is also attractive for Fairtrade producers because of the higher prices on the organic market. Most producers sell only a small amount of their harvest under Fairtrade terms. However, being organic, they can also profit from higher prices for the rest of their yield. 23. What is the percentage of Fairtrade products that are organic? Globally, the sales of Organic-Fairtrade products have doubled between 2005 and 2006 whilst overall, Fairtrade sales have increased by about 44%. By volume the organic proportion of sales of Fairtrade products, increased from 24% to 34%. Due to the strong global interest of environmental issues, it can be assumed that the organic proportion of Fairtrade will continue to grow. For figures on the percentage of organic in specific product categories please refer to the Sales Figures Almanac on the FLO internal pages at https://www.internal.fairtrade.net/pages/statistics.html. 24. Are organic and Fairtrade complimentary labels? Both concepts support sustainable development Fairtrade, focuses on social and economic standards with additional environmental standards whereas the focus of organic is more on the environment. Both “organic” and “Fairtrade” consider sustainable development to be a dynamic process. The standards define both minimum requirements and progress criteria. Minimum criteria must be met in order to become certified. The progress criteria have to be fulfilled within one certification cycle, after three or more years.  Fairtrade and organic both rely on the power of the consumer and on the possibility of the market to support sustainable development.

 

 Both concepts have started as civil society movements Both are fast growing social movements which have succeeded within a few years from a small initiative to mainstream trade. The most significant differences between organic and Fairtrade are the following:  Aspect of sustainability: organic concentrates on the environmental aspects of sustainability, whereas Fairtrade focuses on the social and economic aspects of sustainability.  Geographical sphere of action: Fairtrade focuses on disadvantaged producers in developing countries, whereas organic aims at environmental sustainability in both developing and developed countries.  Target group: Fairtrade supports sustainable development of disadvantaged small producers and workers; organic, on the other hand, aims at environmentally sustainable production independent of the size of the company and without special focus on the dependent employees.  Control, Certification and Mark/Seal: Fairtrade is a private social concept, whose activities are exclusively carried out by non-governmental organizations. Originally, organic also was a private social initiative, but is increasingly regulated by the state/government: currently there are “EU-Organic“ standards and government regulations for organic certification. 25. Today Fairtrade Standards encourage planting/producing organic as a source for higher income and for being in general better for human beings and the environment. Is this statement still true with the changes in the environmental requirements? Yes, Fairtrade continues to see organic production as complementary to the GES and strongly supports Fairtrade producers to convert their production to organic. For producers who lack resources, improving their economic situation through Fairtrade can be a prerequisite for converting to organic production. Fairtrade’s unique benefits, such as stable prices and funds for development, bring the stability and investment that is often needed to convert to organic. In addition, producer organizations often use the Fairtrade Premium to train producers in organic and sustainable techniques like composting and integrating recycled materials, or to achieve organic certification. Half of Fairtrade certified operators are certified against organic standards. 26. Do the new environmental requirements ensure better cooperation with organic certification systems (e.g. cost reduction for producers)? If yes, to what extent? The complexity of the organic certification world makes difficult for the Fairtrade system to develop a meaningful cooperation in this field. Contrary to Fairtrade, there is no single organic certification system. 73 countries have organic standards and 16 countries are in the process of drafting public legislation. Certification bodies need to be approved by Member States’ competent authority for the organically labeled product to be imported into that country. In addition the main consumer markets are dominated by private labels such as Label-AB in France, Naturland and Bioland in Germany, Bio Suisse and Demeter in Switzerland and Soil Association in the United Kingdom. There are roughly 500 certification bodies worldwide who are accredited to certify operators on Organic standards (data 2010). There are however, organic certification bodies that already conduct Fairtrade trade audits, reducing the costs of certification for traders.