Select Committee on International Development Written Evidence


Memorandum submitted by Progressio on behalf of our Honduran partner LIDERS

PROGRESSIO'S WORK

  Progressio (formerly CIIR—Catholic Institute for International Relations) is an international development charity[73] working for justice and the eradication of poverty. Our approach combines advocacy work to secure equitable policies with the strengthening of community-based organisations that represent the interests of the poor and work to improve their quality of life. Through our country programmes we place experienced professionals to share their skills with partners in 11 countries. Our work focuses on three main themes: Civil Society Participation, HIV and AIDS, and Sustainable Environment.

  Since 2001 Progressio has been engaged in a Partnership Programme Agreement (PPA) with DFID. DFID's PPA has been key in supporting our work on Civil Society Participation, HIV and AIDS, and Sustainable Environment.

  Although Progressio does not work on fair trade issues, we welcome this opportunity to enable our Honduran partner LIDERS to participate in the IDC's inquiry into fair trade and development. Progressio supports LIDERs with the implementation of agroecological practices.

LIDERS SUBMISSION

1.  What has been the impact of donor funding for fair trade?

  Donor funding has been key in the roll out of fair trade in developing countries. This has been achieved by providing training on the criteria and requirements of this type of market; the trends of the international market and the processes of certification. Donor funding has also made possible the creation of commercial links with organisations, businesses and buyers in countries from the global North and the participation in important European organic trade fairs, thus enabling the country, the producers and their products to gain recognition in some countries. As small producers we are participating in fair trade with our principal crop, namely coffee, and thanks to international co-operation we are already reaping the benefits (capacity building, price increase, social premium, contact with networks). There is still much to do since the international market is ever changing and its norms and its quality control criteria must be fully complied with. New producers are becoming involved in the initiative of LIDERS and its cooperatives in order to expand the social and productivity base.The model has made it possible for organic production to develop in parallel. Currently there is a growing interest in agroecological products, such as organic coffee, and thus every LIDERS' co-operative has a double seal: fair trade and organic coffee.

2.  How best can donors help to develop fair trade consumer markets in both developed and developing countries?

  Lobbying national parliament and international fora for better trade conditions and for the opening of markets in the global North to products coming from developing countries. They can also play an important role in supporting awareness raising campaigns targeting the European public in order to encourage the consumption of fair trade products. In developing countries donors can help strengthen projects or networks that are committed to fair trade (coffee, honey, handicrafts, fruits, etc) so that these type of initiatives can grow at a local, national and regional level.

3.  How can aid be more effectively mobilised to help producers improve the quality of their produce in order to access fair trade markets?

  Being able to compete will depend on producers being able to guarantee volume, quality and regularity of the supply. LIDERS believes that cooperatives, groups or networks must be supported through business management training to enable them to better organise and improve the quality of the whole productive process, including the marketing of their products. It is vital that all stakeholders involved adopt a solid business approach, regardless of their role, in order to succeed. There needs to be teams to monitor the quality of each activity, such as planning/administration/business management, productive processes and marketing. It is important that production is planned; that infrastructure (drying rooms, storerooms, processing plants, collection centres) is improved; and that they strictly comply with the relevant certification criteria (fair trade, organic, etc). They should have their own quality norms and be responsible for complying with these norms; for instance in coffee production they could have their own samplers and small laboratories to this end.

4.  Is there a role for donors in helping to develop the interests of producer communities in developing countries (for example, the Ethiopian coffee trademark dispute)?

  By all means. This can be done through international advocacy campaigns on the issue of origin denomination, which is key to the rights of a region or country. There are examples of countries and products that already have it such as Jamaica and their Blue Mountain coffee. In the case of Honduras, LIDERS has some influence in the region of La Paz, specifically in Marcala where we were able to use the circumstances created by the free trade agreement to reform the legislation on brands and patents because it did not include any aspect of origin denomination. We lobbied congress and succeeded in getting the law reformed. As a result, Marcala coffee is patented and this brand corresponds exclusively to the Montecillos Mountains. A project is now being promoted to create an umbrella organisation that will launch this brand. Of course there is still much to do and when the time comes the support of international co-operation will be key in determining the success of this project.

5.  How does the internacional trade system impact on ethical and fair trade production (for example, the impact of changes in the EU tariff regime for bananas on small developing countries?

  We cannot answer this question because we do not have updated information. However, we would like to point out that as part of fair trade, we can see there are important similarities with other initiatives carried out by some progressive private sectors that are getting involved in socially and environmentally responsible business (World Business Council for Sustainable Development).

6.  Do existing government guidelines on procurement of ethical and fair trade products provide an enabling environment for the development of this market and the opportunities for producers?

  In Honduras SENASA plays merely a governing role ensuring the rules and laws on organic agriculture are complied with. There are no incentives for ecological production or for incorporating small producers into this market. If a fair trade market has been developed it has been thanks to the support of international donors.

7.  What is the role of supermarkets, retailers and businesses in supporting ethical and fair trade production?

  Supermarkets can give space to these products as part of their strategies of diversification. They can include these products in their publicity campaigns; they could hold tastings of these products so that the consumer gets to know them. It is important to take advantage of the growing awareness amongst businesses, distributors and the public, of the marketing and consumption of fair trade products.

8.  In an increasingly crowded ethical marketplace how can consumers be supported to distinguish between different fair trade brands, labels and codes?

  This could be done through awareness raising campaigns for consumers in radio, television, web pages, printed media, fairs, etc, with an emphasis on highlighting the benefits of buying fair trade products: origin, quality, agroecological products, beneficial for producers in developing countries, good for the consumers' health, etc. This will enable them to distinguish one conventional product from one fair trade product, so that whenever possible the consumer prioritises products with the fair trade label, with origin denomination and own brands.

February 2007







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