january 21st 2005 copac open forum meeting co-operatives and fair-trade prof. p. develtere drs. i....

January 21st 2005January 21st 2005 COPAC Open Forum MeetingCOPAC Open Forum Meeting

Co-operatives and Co-operatives and fair-tradefair-tradeProf. P. DeveltereProf. P. Develtere

Drs. I. PolletDrs. I. PolletCOPAC Open ForumCOPAC Open Forum

Berlin – January 2005Berlin – January 2005


Lead QuestionsLead Questions

Concepts, common grounds, dividesConcepts, common grounds, divides Involvement of co-ops in practiceInvolvement of co-ops in practice Synergy and mutual benefitsSynergy and mutual benefits Research and policyResearch and policy


Concept “fair-trade”Concept “fair-trade”

OriginOrigin DefinitionDefinition GoalsGoals Representative bodiesRepresentative bodies CriteriaCriteria Related conceptsRelated concepts SignificanceSignificance


RootsRoots

From: alternative trade organisations From: alternative trade organisations (e.g. world shops)(e.g. world shops)

Now: labelling organisations & Now: labelling organisations & regular retail distributionregular retail distribution


Definition of fair-tradeDefinition of fair-trade

A trading partnership, based on A trading partnership, based on dialogue, transparency and respect, dialogue, transparency and respect, which seeks greater equity in which seeks greater equity in international trade. international trade.

It contributes to sustainable It contributes to sustainable development by offering better development by offering better trading conditions to, and securing trading conditions to, and securing the rights of, marginalised producers the rights of, marginalised producers – especially in the South.– especially in the South.


Goals of fair-tradeGoals of fair-trade

Improve livelihoods of producersImprove livelihoods of producers Promote development opportunitiesPromote development opportunities Raise awarenessRaise awareness Partnership in tradePartnership in trade Campaigning for changes Campaigning for changes Human rightsHuman rights


Representative bodies in fair-tradeRepresentative bodies in fair-trade

FLO (incl Max Hav.; Transfair USA)FLO (incl Max Hav.; Transfair USA) IFATIFAT NEWSNEWS EFTAEFTA

FTFFTF FTAFTA


Coffee commodity chainCoffee commodity chain


Labelling system & commodity chainLabelling system & commodity chain


Criteria of fair-trade (FLO)Criteria of fair-trade (FLO)

Decent wages (price + premium)Decent wages (price + premium) Housing, health & safetyHousing, health & safety Right to join trade unionsRight to join trade unions No child or forced labourNo child or forced labour Environmental sustainabilityEnvironmental sustainability Democratic structureDemocratic structure


Related conceptsRelated concepts

Overall term: equitable trade?Overall term: equitable trade? Ethical trade – corporate social Ethical trade – corporate social

responsibility – cause related responsibility – cause related marketingmarketing• International labour standardsInternational labour standards• Carrefour, Sara Lee, Philip MorrisCarrefour, Sara Lee, Philip Morris• MingaMinga


Related concepts (2)Related concepts (2)

Alternative tradeAlternative trade• World shopsWorld shops• Café directCafé direct• Day chocolate companyDay chocolate company• World cafés and coffee shopsWorld cafés and coffee shops• Roasters and retailers (Human Bean, Roasters and retailers (Human Bean,

Just Us, Café Campesino, One Village)Just Us, Café Campesino, One Village)


Ethical Trade


Ethical Trade

Alternative Trade


Ethical Trade

Alternative Trade

Fair Trade


Significance of fair-tradeSignificance of fair-trade

500 mio Euro (FLO + IFAT)500 mio Euro (FLO + IFAT) 0.01% of all goods exchanged0.01% of all goods exchanged Number of people involvedNumber of people involved

• + 100.000 volunteers in Europe+ 100.000 volunteers in Europe• 400 producer organisations400 producer organisations• 800.000 producer families 800.000 producer families

Indirect effectsIndirect effects*pro-competitive effect*pro-competitive effect*awareness raising*awareness raising


Where do co-operatives come in?Where do co-operatives come in?


Co-operatives involvement in Co-operatives involvement in practice practice

Many producer co-operatives in the Many producer co-operatives in the South (often North-induced)South (often North-induced)

New fair-trade co-operatives in the New fair-trade co-operatives in the NorthNorth

Co-operative movement: distribution Co-operative movement: distribution networknetwork

Also: technical assistance and access Also: technical assistance and access to credit (Rabo; Socodevi)to credit (Rabo; Socodevi)


Co-operatives involvement in the Co-operatives involvement in the North: examples North: examples

Cooperative coffees (US): import of Cooperative coffees (US): import of fair-trade coffeefair-trade coffee

Equal exchange (US), La Siembra Equal exchange (US), La Siembra (Can), (coop-to-coop)(Can), (coop-to-coop)

Out-of-this World (UK)Out-of-this World (UK) Co-operative Group (UK), Seikatsu Co-operative Group (UK), Seikatsu

(Jap): promotion & campaigning(Jap): promotion & campaigning Legacoop (Ita), Migros (Sui) a.o.: Legacoop (Ita), Migros (Sui) a.o.:

large retaillarge retail


Ethical Trade

Alternative Trade

Fair Trade

Cooperative Trade


Co-op and fair-trade: common Co-op and fair-trade: common featuresfeatures

Participative organisationsParticipative organisations Price should reflect equitable incomePrice should reflect equitable income Other spheres of lifeOther spheres of life Double-targeting: business and Double-targeting: business and

solidaritysolidarity


Devides: 1. agenciesDevides: 1. agencies

CO-OPERATIVESCO-OPERATIVES Primeraly: agentsPrimeraly: agents Legal personnalityLegal personnality

Different types of Different types of co-opsco-ops

Gathered into an Gathered into an established social established social movementmovement

FAIR-TRADEFAIR-TRADE Primeraly: processPrimeraly: process All sorts of All sorts of

societiessocieties Outlets, NGOs, Outlets, NGOs,

certifiers, Co-ops certifiers, Co-ops and associationsand associations

Network and new Network and new social movementsocial movement


Devides: 2. drive and rationaleDevides: 2. drive and rationale

CO-OPERATIVESCO-OPERATIVES Producer-Producer-

originatedoriginated Target group: Target group:

producer and producer and consumers, N + Sconsumers, N + S

Means to an endMeans to an end Justice by Justice by

ownership ownership

FAIR-TRADEFAIR-TRADE Consumer-Consumer-

originatedoriginated Target group: Target group:

producers in the Sproducers in the S

An end in itselfAn end in itself Ownership by Ownership by

justicejustice


Devides: 3. organisation culture Devides: 3. organisation culture and valuesand values

CO-OPERATIVESCO-OPERATIVES

Market forces with Market forces with self-helpself-help

Good managementGood management GrowthGrowth

Private interests Private interests acknowledgedacknowledged

FAIR-TRADEFAIR-TRADE

Support logicSupport logic

CommitmentCommitment Human Human

developmentdevelopment Public interestsPublic interests


Devides: 4. economic activitiesDevides: 4. economic activities

CO-OPERATIVESCO-OPERATIVES All types of All types of

activities, goods activities, goods and servicesand services

North-South link North-South link still margin for still margin for progressprogress

FAIR-TRADEFAIR-TRADE Limited range of Limited range of

goodsgoods

North-South link = North-South link = key (reason for key (reason for existence)existence)


Synergy? bottlenecksSynergy? bottlenecks

1. Organisational culture1. Organisational culture 2. No meeting point2. No meeting point


Synergy: “fair deal” (1)Synergy: “fair deal” (1)

Fair-trade could mean for co-ops:Fair-trade could mean for co-ops: Fair trade versus donor grant: Fair trade versus donor grant:

efficiency of co-operatives in the efficiency of co-operatives in the South?South?

Ethical added value for co-operatives Ethical added value for co-operatives in the Northin the North


Synergy: “fair deal” (2)Synergy: “fair deal” (2)

Co-ops could mean for fair-trade:Co-ops could mean for fair-trade: South-South networking between South-South networking between

fair-trade producers’ co-operativesfair-trade producers’ co-operatives Mainstream fair-trade in the NorthMainstream fair-trade in the North Widen the range of fair-trade Widen the range of fair-trade

products and servicesproducts and services


Research groupsResearch groups

Co-operative college, ManchesterCo-operative college, Manchester FT Research Group, Colorado StateFT Research Group, Colorado State CRISES, Uty. of QuebecCRISES, Uty. of Quebec Social Economy Centre, Uty. LiegeSocial Economy Centre, Uty. Liege HIVA, LeuvenHIVA, Leuven Chr. Michelsen Institute, Bergen Chr. Michelsen Institute, Bergen


Policy recommendations (1)Policy recommendations (1)

1. Fill up the information gaps, 1. Fill up the information gaps, e.g.e.g.

Co-op impact in countries with Co-op impact in countries with strong/weak co-op retail sectorstrong/weak co-op retail sector

Methods to overcome divides in Methods to overcome divides in organisation culture & valuesorganisation culture & values

Potential of co-ops for ethicizing Potential of co-ops for ethicizing effect & reaching a larger public?effect & reaching a larger public?


Policy recommendations (2)Policy recommendations (2)

2. Create institutional bridges 2. Create institutional bridges

3. Make a joint agenda3. Make a joint agenda

4. The future is now: start regional 4. The future is now: start regional co-op networking in the Southco-op networking in the South

january 21st 2005 copac open forum meeting co-operatives and fair-trade prof. p. develtere drs. i....

Documents

copac open forum meeting

copac open forum meeting

ethical trade slide

pollet copac open forum

trade campaigning

trade partnership

policy slide

international trade