Introduction to the Fair Trade system of the World Fair Trade Organization and the opportunities presented though Fair Trade to Indonesian enterprises

Presented by: Christine GentDirector WFTO-Asia

director@wfto-asia.com Bali, 15 January 2016 www.wfto-asia.com

Introductions

• Please introduce the person sitting next to you

Time Session detailsSESSION 1 Introductions9.00 Introduction and welcome

Introduction to the workshop, review expectations Questions, clarification & review of the agenda

10.00 The ten principles of Fair Trade their application Exchange of experience in Indonesia

Break11.00 Benefits of Fair Trade

Fair Trade the movement today

12.30 -1.30

Lunch

SESSION 2 Application Details 1.30 Pre Applicant Expectations and Requirements

Review of the WFTO Guarantee System (GS) Compliance criteria

2.30 Market Trends and Opportunities for Fair Trade products in the international market

3.30 WFTD 2016 and Bangkok 20164.30 Questions and Comments 5.00 pm end

Apikri 15 FTO Audit Due

Arum Dalu Mekar (ADM) 21 FTO Audit Due

Forum Fair Trade Indonesia (FTFI) 909 FTO Provisional

Indonesian People's Handicraft Found’ (Pekerti) 224 FTO Audit Due

Lombok Pottery Centre (LPC) 342 FTO Audit Due

Mitra Bali Fair Trade 194 Guaranteed

Total Indonesia Yayasan 877 FTO SAR Overdue

XS Project 897 FTO Provisional

Article 25 • Everyone has the right to a standard

of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security.

Sustainable Development Goals

Environment

Financial

SocialSustainable • The product lifecycle

• Carbon use• Cradle to grave • Reuse • Disposal• Energy Use

• CSR – Living Wage • Local Employment• Fair Trade• Integration Enterprises

• A bottom line that covers costs including Fair Wages, and also allows for business expansion and investment

What is Sustainable Development?

10

The global FAIR TRADE definition

Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, small and marginalized producers and workers – especially in the South.

Fair Trade Organizations (backed by consumers) are engaged actively in supporting producers, awareness

raising and in campaigning for changes in the rules and practice of conventional international trade.by FINE 2001

Defining the Marginalized

Fair Trade …………….. by offering better trading conditions to, and securing the rights of, small and marginalized producers and workers – especially in the South.

Fair Trade

A CHARTER OF FAIR TRADE PRINCIPLEShttp://www.fairtrade.net/fileadmin/user_upload/content/2009/about_us/documents/Fair_Trade_Charter.pdf

What is a Fair Trade Organization? • Income from trade • Social objectives to work with the

marginalized at the heart of the activities“commitment to improve the social and economic conditions of marginalized producers and suppliers.”

• Follow the ten principles of Fair Trade• Not based around any one product or

one product standard

WFTOGlobal coordinationfrom the Netherlands

WFTO-AsiaRegional supportfrom Thailand

FTOs75 countriesNational Fair Trade Networks

Fair Trade Organizations are able to carry the WFTO Fair Trade Organizational label for recognition in the market place.

WFTO.COM 13

Ten Principles of Fair Trade

Benefits & Advantages of WFTOMarket Access Recognition

Differentiation in the market place

Long term relationships

Solidarity markets: national/regional/

globalCSR reporting

Shared Community

Together in isolation

Annual conference (Asian focus for the

next 2 years)

Access to information Shared tools Local workshops and

training

Potential for change

FTAO in Brussels

Legislation at national level

Bottom up Fair Trade for Fair Trade practitioners

Systematic approach for

greater efficiency

Simple approach

Market Access

• 5.9 Billion Euro global retail sales

• 65 Million Euro sales from WFTO - Asia

Market Access

• Ambiente, February 12-16 2106• WFTO-Asia AGM with BIG fair, October 2016• Delhi November 2017 with IFOAM

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

3.46

3.15

7.66

7.70

8.20

16.20

21.62

17.50

26.21

34.05

41.20

62.90

64.50

70.71

77.09

88.23

93.00

Growth in salesMillion INR

Joined WFTO

Differentiation in the market place

•42 •58•34•67

World Fair Trade Organization Logo

CSR reporting

• Potential Fair Trade /Actual Fair Trade• FLO• WFTO• Equivalent

Fair Trade Organizations are able to carry the WFTO Fair Trade Organizational label for recognition in the market place.

Shared Community

Together in isolation

37

Networks

Provide access to knowledge and resources that are not otherwise available to the organization (Powell & Brantely)

Seoul 2014

Milan 2015

Regional Conference 2016

• Bangkok• Market focus• Promoting Fair Trade

Organizations by market segment online to global audience

IFOAM conference Delhi 2017

WFTO conference Delhi 2017

Fair Trade Towns

2015 International Fair Trade Towns Conference

November 20th 2015 Launch of Twin Fair

Trade Towns Campaign Puducherry and

Auroville

Access to information

The VIP primarily intends to build a pool of Fair Trade advocates through volunteerism.

vip@wfto-asia.com

Danielle D’Silva with member Villageworks Cambodia

FT and GS Workshops

• Philippines 28th July to 31st July• Korea 6th August• Cambodia 6th, 7th August• India 10th to 15th August• Pakistan 11-21 November• Sri Lanka 22 – December 3• Vietnam 3-6 December • Indonesia 15 January• India 22 January

twitter

On average 1 post reaches +3,155 individuals

Social Media

Potential for change

• Philippines - PRESENT Bill • Korea - Social Enterprise Bill• Vietnam - Social Economy Bill

“Social Enterprise is an emerging

force in Pakistan” The Guardian, 2015

•

World Fair Trade Day14 May 2016

Systematic approach for

greater efficiency

The Guarantee System (GS)

Self Assessment as the basic monitoring obligation for trading organizations.

The GS guarantees the compliance of members with the WFTO Standard.

The GS label guarantees the organization, not the product.

The emphasis is on the Internal Monitoring System the FTOs use to monitor their supply chains.

Created by & for Members!

By the Members!

The Ten Principles of Fair Trade

‘Working on the GS and IMS is essential to making SAFFY’s

future secure’

Rad SaringanSAFFY, Inc.2611 Lamayan St., Sta. Ana, Manila 1009 Philippines

Credible

Accessible

Affordable

Clear

Application Process

Elise Hawley sustainability@wfto-asia.com www.wfto-asia.com

Download necessary

forms from

WFTO.com

www.WFTO.com

WFTO Fair Trade Standard

Fair Trade Network

FTN

Trading Organization

FTO

1. Trading2. Non Trading3. Some Trading

Fair Trade Support

OrganizationFTSO

FTN and FTSO with

minor tradingTy

pes o

f M

embe

rs

FTO50% of

turnover from Sales

FTNFT network,

membership org. sales <50% of

turnover

FTSO Advocacy, Support, Research,

Promotion,

sales <50% of turnover

* Must comply with trading

requirements *

Applicant

Applicant REQUIREMENTS:

3 stages to become a member

Guaranteed

Registration Document + Mission

2 Years of legal existence w/ accounts

Commitment to 10 Principles

List 3 references

Provisional

Completed Profile (TBC)

“The _________strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed

to continuously strengthening our brands and products to improve our competitive position.”

“__________ provides dignified training and employment opportunities for vulnerable young people, empowering them with the personal and professional skills to overcome socio-economic limitations and inspire community regeneration.”

Adidas Group

JW Productions

Mission Statement

• How are you registered?

• What is an acceptable legal process?

Registration Document

• Two years of Audited Accounts

• When does the financial year end?

Accounts

ReferencesCountry Network | In-Country Comments | 3 References

Dear WFTO Members of Pakistan,

The WFTO-Asia office is emailing you regarding an applicant to WFTO, XXX. Based in XXX, India is a private company founded in 2000. The reason behind their foundation was XXX. They have 35 primary producers that work on site, but mainly works with producer groups off site, of which there are 4 groups. XXX has 1 store. If you would like more information please request it or visit their website at www.website.com

As a member of WFTO this is your opportunity to share any comments you wish to make regarding the applicant's reputation with regard to WFTO principles and ethics. If possible, please send a response within the next 7 days. If you would like to know who this email was sent to please see the organizational list below my signature.

Lastly, please let the WFTO-Asia office know if you would like to seethese in country comments delivered in another way. We are always open toreceiving feedback on the effectiveness of this process.

Thank you for your participation.

Role Play:Christine = Reference

One national WFTO member

In Country Comments

WFTO network member

Handling fee

• Handling Fee – 1 time only

• Annual Membership Fee: 500-2,500 Euros• Audit 1x per 4 years: 500-1,500 Euros

Sales/income in Euros Handling fee in Euros

< 135,000 100

135,000-1,000,000 250

1,000,000-5,000,000 500

> 5,000,000 750

ProvisionalApplicant

Step 3:APPROVAL

(or rejection)• WFTO Global Board makes final decision

Step 4: Pay WFTO fee

•WFTO Global sends membership fee invoice

Result: PROVISIONAL MEMBERNo Use of Label/Logo

• Assessment of compliance against standard

• Self-rating: OK / Improve / Not Compliant

• Evidence to support what you claim

Principle 10 Environment

Applicant Provisional

Self Assessment

Report (SAR)

To improve performance against FT Standard over next 2 years

Peer Visit

• FTO proposes peer• Peer can be a trading partner, WFTO

member, from a Network, or local NGO, etc.

Lombok of Indonesia Peer Visit, October 2015

Monitoring Audit

Independent auditors approved by WFTO Global. They will

check compliance against the requirements of the

Standard through field visits and document review.

Step 3: Monitoring Audit

(cont.)

Step 4: Approval

(rejection)

Result: GUARANTEED

FAIR TRADE ORGANISATION

GuaranteedApplicant Provisional

External Audit

SAR within 24 months

Peer 2 months

SAR within 24 months

SAR

12

Peer 12

External Audit12

Annu

al F

eeTurnover / income Membership

feeRegional

feeTotal

annual payment

In Euros

FTO - Trading

< 135,000 400 100 500

135,000 - 400,000.003 x turnover 175

calculation based on turnover

400,000 - 1 million.003 x turnover 250

calculation based on turnover

> 1 million 3,000 + 350 for every extra million 250

* Max 2,600

calculation based on turnover

FTSO

< 135,000 400 100 500

135,000 - 400,000 1,250 175 1,335

400,000 - 1 million 1,250 250 1,500

1 million – 5 million 2,000 250 2,250

> 5 million 3,000 250 3,250 FTN

Flat cost: 400

Other Costs:• Payment of Audit & Peer Visit (transportation, accommodation)• Handling Fee 100-750 Euros

Internal Monitoring System

Fair Trade Accountability

Watch(FTAW)

Label Example

**Please fill out + return the reflection handout

Q & A

Social Media• Facebook – we are missing being able to tag you, please set a

user name for your page• On Facebook, only pages that have a special 'clean' URL. For

example, www.facebook.com/wftoasia can be tagged• • Many of you have not set a user name for your facebook page.

We found this while trying to tag Maya Organic recently @MayaOrganic . Even though we see the page titled as Maya Organic, the URL has many different numbers and letters in it. This is very easy to change using these instructions: https://www.facebook.com/help/203523569682738

…second only to oil

2016 and 2017 Trends1990s plus 1970s bohemian chic

Multifunctional| Energetic | Contrasting

2016 and 2017 TrendsAppreciation of World Cultures - Artisanal

Traditional | Specializing in unique technique | Handmade| Smaller-made | Articulate

• Products with an identity• Products that show their origin

• Products with a story• Hand-made productsAuthenticity

AlternativesVegan

Recycled Organics

Fabric + Lace + Silk + Recycled + Synthetics + Soft + Plush + Translucent + Velvet

Gold Tinted| Metals | Rustic| Silver | Minimalist |Dramatic | Cuffs | ArticulateCultural references: Fringes, tassels

Up-Cycle

• Sophisticated Recyling

Branding

• Branding has become obligatory

• It is an expression of confidence and commitment to your products and your business concept

• It signals professionalism

• Adds value to your product offer

UK online retail sales to reach £52.25bn in 2015

Increase in direct importing retailers

• Niche Market• Lower Volumes• Higher prices• Shorter order frequency• Long term relationships• Investigate opportunities of new online-economy (Fulfilment services, online payments etc.)

Next Documentary Screening ?

05/03/2023 106

포장포장을 통하여 소비자들에게 스토리텔링과 흥미로운 경험 제공

↑ 개봉 과정 포장박수의 입구를 반으로 쪼개는 것에서 오는 즐거움

CACAO TREE OF HOPE

6. Exclusive- its only available to WFTO members.

1. Differentiate you from others who claim to be selling fairly or ethically. This difference is based on commitment and values that make it extremely difficult for others to compete against.

2. Reinforces the strategic relationship you have with the Fair Trade movement.

3. Supports a price premium.

4. Complements your brand strategy.

5. It will provide regulatory acceptance.

GUARANTEED MEMBER TRAID AID, WHY DO WE WANT THE LABEL?

A journey of a thousand miles begins with a single step

Here to helpWorld Fair Trade Organization-Asia

Website: http://www.wfto-asia.com

Christine Gent director@wfto-asia.com

SAR, Profile and Application questions and supportElise Hawley sustainability@wfto-asia.com

Thank you