Beruflich Dokumente
Kultur Dokumente
SUGAR Review
2010-11
Sincerely,
Paul Rice
President & CEO
Table of Contents
Fair Trade Sugar
Reach
Supply
07 By the Numbers
09 Spotlight on Paraguay
Impact
10 By the Numbers
Producer Spotlights
15 Manduvir, Paraguay
17 Kasinthula, Malawi
Appendix
21 Environmental Standards
Reach
Fair Trade Sugar Origins
All across the world, Fair Trade partners are making a difference by sourcing Fair Trade Certified sugar. There are 64 sugargrowing cooperatives in the Fair Trade system. The producers supplying the U.S. Fair Trade market in 2010 are located in
Paraguay, Malawi, Costa Rica and the Philippines.
Number of Coopertives
Country
Number of Coopertives
Belize
Malawi
Costa Rica
Mauritis
31
Cuba
Paraguay
Ecuador
Peru
Fiji
Philippines
Guyana
Zambia
India
1
Total
64
Supply
The Fair Trade Sugar Supply Chain
Sugarcane must be transported to a sugar mill to be processed
within 24 to 48 hours or it loses its sugar content and value. The
relationship between mills and farmer organizations is very
important: mills must be located near producers to receive the
sugarcane before it starts to spoil. The mills are major industrial
facilities that require large centrifuges and other heavy
machinery to change sugarcane into sugar.
Sugar
Producers
Processor/
Exporter
Importer/
Brandholder
Fair Trade
Certified
Cooperative
Brands
Supply
By the Numbers
Since 2005, Paraguay has been the largest origin for the U.S. Fair Trade Certified sugar market. This trend is not surprising given
the global supply and demand dynamics for organic sugar: 50 percent of the sugar produced in Paraguay is organic and it ships
45 percent of its national sugar production to the U.S. market.
Millions of Pounds
15
The Philippines
Costa Rica
10
Malawi
Paraguay
0
2005
2006
2007
2008
2009
2010
Supply
By the Numbers
U.S. companies began sourcing Fair Trade Certified sugar
in 2005, purchasing over 270,000 pounds from Paraguay,
Malawi, Costa Rica and the Philippines in that first year. Since
then, the market for Fair Trade sugar has grown tremendously.
In 2010, Fair Trade USA certified over 18 million pounds of
sugar, reaching a significant milestone of over 50 million
pounds imported into the United States since 2005. Coupled
with a 60 percent increase from 2009, Fair Trade sugar
continues to make a presence on supermarket shelves and in
the recipes of an expanding list of consumer packaged goods.
Millions of Pounds
50M+
POUNDS OF SUGAR
PURCHASED SINCE 2005
40
20
0
2005
2006
2007
2008
2009
2010
Supply
Spotlight on Paraguay
On The Ground
The story of Fair Trade organic sugar from Paraguay is a
story about market growth, improved livelihoods, and true
partnerships within the supply chain. The many small-scale
10
Impact
By the Numbers
Since 2005, sales of Fair Trade Certified sugar products to the United States have generated over $1.75 million in community
development premiums for farmer cooperatives. With continued growth year after year, this category continues to reliably deliver
tremendous impact to farming families and communities.
$2.0
$1.75 M
$1.5
Millions
paid to farmers
since 2005
$1.0
$0.5
$0
2005
2006
2007
2008
2009
2010
Fair Trade buyers pay sugar cooperatives a Fair Trade premium of $60-80 per ton of sugar purchasedthis is in addition
11
Impact
Price and Premium Support Communities
4
1
2
3
4 ALTER TRADE
Philippines
Income Diversification, Credit Programs,
Infrastructure or Direct Export,
Potable Water System (Planned)
5 Kasinthula
Malawi
Food Security Program,
Food During Drought Season,
Revolving Fund,
New School Construction
12
Producer Spotlight
Caeros Orgnicos Asociados
(CORA), Paraguay
FLO ID
19800
Year Founded
2007
Year Certified
2008
Number of Members
111
Organic Production
100%
sugarcane producers.
13
Producer Spotlight
Caera del Sur, Paraguay
FLO ID
1486
Year Founded
1961
Year Certified
1999
Number of Members
220
Organic Production
100%
Productive Investment
The organization orients producers to the market by
providing training and financing, as well as logistical,
technical and economic support.
Health Care
Two days a week the organization offers free dental
care for cooperative members and subsidized care for
community members. The organization also supports local
schools with free health testing for the whole community.
Environment
Caera del Sur used premiums to pay for an organic audit
and is now certified organic, which ensures a better price
for their sugarcane. The organization practices erosion
control and provides educational trainings that focus on
organic and environmental practices. In 2005, the
organization invested in a tree nursery that began
growing fruit trees and now has expanded to growing
native trees that are used for reforestation. Caera del Sur
gives these trees to its cooperative members to prevent
water and wind erosion.
Food Security
An on-site grocery store has been created with produce
sourced from some of the cooperatives members. Local
community members can purchase food at affordable
prices and finance food by subtracting the cost from their
sugarcane payments.
Communication
Caera del Sur has invested in a radio station to facilitate
communication, news and education amongst its
members.
14
Producer Spotlight
Asociacin Agrcola Caera
Orgnicos de Iturbe, Paraguay
FLO ID
3592
Year Founded
2004
Year Certified
2005
Number of Members
430
Organic Production
100%
Environment
Orgnicos de Iturbe organizes trainings for its members on
organic farming and crop diversification. In addition, the
cooperative also runs a reforestry program to grow and
plant native trees and fruit trees to protect soil and
improve productivity.
Office Supplies
Office supplies have been bought to support
administration and accounting.
Organic Certification
Orgnicos de Iturbe invested in organic certification for
their sugarcane.
Until now, the mill and exporter of our sugar held the organic
certificate. The ownership of our own organic certificate will
enable us to do business directly with importers abroad and this
is thanks to Fair Trade.
15
Producer Spotlight
Manduvir, Paraguay
FLO ID
1480
Year Founded
1975
Year Certified
1999
Number of Members
1,358
Number of Women
443
Organic Production
100%
Education
All cooperative members children under the age of 15
are required to attend school. In Paraguay, education is
free for children up to the age of 16 years old, but without
the necessary materials children cannot participate
actively in lessons. The school year begins in February,
which is a time of year when producers have no income
from sugarcane and it can be difficult to find the means
for even the most basic classroom materials. In order to
support the education of members children, Manduvir
pays for books, uniforms, supplies and backpacks.
Health
The cooperative built a health center, complete with a
dental clinic and laboratory, which is available to the
whole community, offering subsidized rates for cooperative
members. The laboratory is the only one available in the
area. Test results are now available within a day, rather
than sending to the capital city with a three-day wait. This
means patients are more likely to be able to afford the time
and money for diabetes, cholesterol or HIV testing. In cases
where medication is urgent, the laboratory saves lives.
Three professionals provide dental and medical
consultation to cooperative members. The services are
offered to all villagers, but cooperative members pay only
20 percent of their consultation fees; the rest is covered by
Manduvir.
When the center was built, there were no state health
services in the town. The journey to the nearest services
in the capital was three hours on a bus, down a road that
was impassable after heavy rains. The health center also
hosts an optician once a month, a service that is otherwise
unavailable.
Productive Investment
Ninety-nine percent of Manduvir members are smallscale producers with an average of 7 acres of land. For
these producers, the purchase of their own farm machinery
would be uneconomical. Fair Trade premium funds were
used to purchase a tractor for shared use and a platform
scale. Fair Trade premium funds were also used to
subsidize the construction of 32 sugar collection centers,
a transportation system for transporting sugarcane to the
mills, a demonstration project for organic soil improvement,
and maintenance of the tractor.
16
Producer Spotlight
Coopecaera, Costa Rica
FLO ID
1488
Year Founded
1972
Year Certified
2000
Number of Members
360
Number of Women
45
Technical Assistance
Coopecaera provides a credit system whereby farmers may
apply for loans to improve the quality of their sugarcane. The
cooperative also provides special assistance to its members
during the harvesting season. This additional technical
assistance helps farmers increase and maintain their level of
production. The cooperative invests over 30 percent of its Fair
Trade income in technical assistance programs for smallscale farmers.
Financial Program
Sugarcane producers receive regular cash bonuses for
their production. Because sugar prices tend to be low,
sugarcane farmers often must rely on other forms of income
to supplement their sugar revenues. Fair Trade has given
Coopecaera farmers the opportunity to invest all of their
time in sugar production because farmers receive cash
bonuses that supplement the local market prices for sugar.
The cooperative allocates 20 percent of its additional income
received through Fair Trade sales to this bonus program.
17
Producer Spotlight
Kasinthula, Malawi
FLO ID
2191
Education
Year Founded
1988
Year Certified
2003
Number of Members
282
Number of Women
90
Productive Investment
Kasinthula is investing in replanting and improving the
productivity of their cane crops in several cycles. With this
investment, farmers will be able to earn more money in the
future from the same plot of land.
Health
The cooperatives first project was to drill wells to provide
safe drinking water to two villages. Since working with Fair
Trade, they have been able to expand that project and have
now drilled 10 wells for regional villages. Before the wells, the
unsanitary water supply frequently caused diseases such as
bilharzia, cholera and dysentery.
In addition, Kasinthula invested in the expansion of the local
health clinic and supplied the clinic with 20,000 tablets of
Praziquantel, a medication required for the treatment of
bilharzia. Though this is a common disease in the area, the
government clinic had operated without the medicine for over
three years.
Finally, the cooperative has invested in four bicycle
ambulances that allow the clinic to reach emergencies in
remote villages that are not accessible by motor vehicle.
Additional Investments
Kasinthula has also financed the installation of electricity
in the village of Chinangwa, as well as five villages from
Salumeji to Ntondeza, which previously had no access to
electricity.
Fair Trade has been so helpful to us small-holder farmers. Using Fair Trade
premiums, we have completed projects for the benefit of the communities to which
we belong, thereby spreading the benefits of Fair Trade to a larger group.
Patrick Khambadza, Kasinthula, Malawi
18
Producer Spotlight
Alter Trade, Philippines
FLO ID
1482
Year Founded
1997
Year Certified
2004
Number of Members
707
Number of Women
318
19
Appendix
Fair Trade Principles
Fair Trade standards provide the foundation for our sustainable development model. Both buyers and sellers of Fair Trade products
agree to uphold fair and rigorous social, economic and environmental standards. The standards level the playing field for the
Global South and empower businesses and consumers in the Global North to make every purchase matter. When you buy Fair
Trade Certified products you give farmers fair prices for quality products that improve lives and protect the environment. Each
year, Fair Trade business partners improve the lives of approximately 1.2 million farming families in 70 developing countries.
Heres how
Access to Credit
Environmental Sustainability
Child Labor, Forced Labor and
Community Development
Environmental Sustainability
Fair Trade standards require environmentally sustainable
farming methods that protect farmers 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 (62 percent) of all Fair
Trade imports in 2010 were also certified organic.
Fair Trade farmers and workers can count on more than just
better prices. Fair Trade standards require freedom of
association and safe working conditions. Child labor, forced
labor and discrimination are strictly prohibited. When
standards are breached, we take immediate action to protect
children and forced laborers to ensure fair treatment for all on
the farms and factories that carry the Fair Trade mark.
Community Development
Access to Credit
20
Appendix
Frequently Asked Questions
What is Fair Trade?
Fair Trade is a global movement to alleviate poverty in
farming communities around the world in ways that are
socially and environmentally sustainable.
21
Appendix
Environmental Standards
In order to improve producers living and working conditions,
their environment must also be clean and healthy. Strong
environmental standards are therefore integral to Fair Trade.
Only products that meet strict international environmental
standards earn the right to display the Fair Trade Certified
label. These standards support our mission to foster increased
social and economic stability, leading to stronger communities and better stewardship of the planet.
Environmental Stewardship
An estimated 30% of producer organiztions
In order to obtain Fair Trade certification, producer organizations are required to adhere to core Fair Trade environmental
standards. Additionally, they must assess the environmental
impacts of members operations, develop plans designed to
mitigate those impacts and monitor the implementation of
those plans. Through this environmental impact assessment,
organizations are encouraged to progress toward higher standards and to increase their sustainable production.
Standard
core requirement
Biodiversity and
Carbon Emission
Report current benefits to ecosystems and current methods of carbon emission reductions
Report new methods to improve biodiversity or limit carbon output
May choose to focus on specific targets by incorporating goals into a development plan
GMOs
Agrochemicals
22
23
Appendix
Services and Funding
U.S. Fair Trade 2010*
Beneficiaries: 1.2 million farmers
and workers
Services
Fair Trade USA offers a comprehensive range of services
that support our industry partners efforts to source Fair Trade
Certified goods, receive credible verification of responsible
sourcing practices, and help hard-working men and women
throughout the developing world retain more value from their
crops and products.
24
Resource Development
By securing philanthropic funding, we create a multiplier
effect to make your investments in Fair Trade work harder and
go farther each year. In fact, for every dollar we receive from
partners, we raise an additional 43 cents from foundations,
individual donors and government sources. We also receive
significant sources of in-kind funding from foundations and
corporations for technology, legal counsel, public relations
and marketing support. For instance, in-kind SAS
contributions from Salesforce.com enable us to collect and
report vital certification data.
These funds also support our Research and Development
activities to expand the range of services we offer our clients
and the impact we can generate for producers. Philanthropic
donations have created stronger sources of coffee supply in
Brazil thanks to U.S. AID and Walmart; enabled Fair Trade
Towns USA thanks to Green Mountain Coffee and the Green
Mountain Coffee Roasters Foundation; and allowed Fair Trade
to expand into new categories like sugar and apparel thanks
to a number of venerable and gracious philanthropic
organizations.