January 21st 2005 COPAC Open Forum Meeting Co-operatives and fair-trade Prof. P. Develtere Drs. I. Pollet COPAC Open Forum Berlin – January 2005

January 21st 2005 COPAC Open Forum Meeting Lead Questions Concepts, common grounds, divides Concepts, common grounds, divides Involvement of co-ops in practice Involvement of co-ops in practice Synergy and mutual benefits Synergy and mutual benefits Research and policy Research and policy

January 21st 2005 COPAC Open Forum Meeting Concept fair-trade Origin Origin Definition Definition Goals Goals Representative bodies Representative bodies Criteria Criteria Related concepts Related concepts Significance Significance

January 21st 2005 COPAC Open Forum Meeting Roots From: alternative trade organisations (e.g. world shops) From: alternative trade organisations (e.g. world shops) Now: labelling organisations & regular retail distribution Now: labelling organisations & regular retail distribution

January 21st 2005 COPAC Open Forum Meeting Definition of fair-trade A trading partnership, based on dialogue, transparency and respect, which seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalised producers – especially in the South.

January 21st 2005 COPAC Open Forum Meeting Goals of fair-trade Improve livelihoods of producers Improve livelihoods of producers Promote development opportunities Promote development opportunities Raise awareness Raise awareness Partnership in trade Partnership in trade Campaigning for changes Campaigning for changes Human rights Human rights

January 21st 2005 COPAC Open Forum Meeting Representative bodies in fair-trade FLO (incl Max Hav.; Transfair USA) FLO (incl Max Hav.; Transfair USA) IFAT IFAT NEWS NEWS EFTA EFTA FTF FTF FTA FTA

January 21st 2005 COPAC Open Forum Meeting Coffee commodity chain

January 21st 2005 COPAC Open Forum Meeting Labelling system & commodity chain

January 21st 2005 COPAC Open Forum Meeting Criteria of fair-trade (FLO) Decent wages (price + premium) Decent wages (price + premium) Housing, health & safety Housing, health & safety Right to join trade unions Right to join trade unions No child or forced labour No child or forced labour Environmental sustainability Environmental sustainability Democratic structure Democratic structure

January 21st 2005 COPAC Open Forum Meeting Related concepts Overall term: equitable trade? Overall term: equitable trade? Ethical trade – corporate social responsibility – cause related marketing Ethical trade – corporate social responsibility – cause related marketing International labour standardsInternational labour standards Carrefour, Sara Lee, Philip MorrisCarrefour, Sara Lee, Philip Morris MingaMinga

January 21st 2005 COPAC Open Forum Meeting Related concepts (2) Alternative trade Alternative 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, Just Us, Café Campesino, One Village)Roasters and retailers (Human Bean, Just Us, Café Campesino, One Village)

January 21st 2005 COPAC Open Forum Meeting Ethical Trade

January 21st 2005 COPAC Open Forum Meeting Ethical Trade Alternative Trade

January 21st 2005 COPAC Open Forum Meeting Ethical Trade Alternative Trade Fair Trade

January 21st 2005 COPAC Open Forum Meeting Significance of fair-trade 500 mio Euro (FLO + IFAT) 500 mio Euro (FLO + IFAT) 0.01% of all goods exchanged 0.01% of all goods exchanged Number of people involved Number of people involved volunteers in Europe volunteers in Europe 400 producer organisations400 producer organisations producer families producer families Indirect effects Indirect effects *pro-competitive effect *awareness raising

January 21st 2005 COPAC Open Forum Meeting Where do co-operatives come in?

January 21st 2005 COPAC Open Forum Meeting Co-operatives involvement in practice Many producer co-operatives in the South (often North-induced) Many producer co-operatives in the South (often North-induced) New fair-trade co-operatives in the North New fair-trade co-operatives in the North Co-operative movement: distribution network Co-operative movement: distribution network Also: technical assistance and access to credit (Rabo; Socodevi) Also: technical assistance and access to credit (Rabo; Socodevi)

January 21st 2005 COPAC Open Forum Meeting Co-operatives involvement in the North: examples Cooperative coffees (US): import of fair-trade coffee Cooperative coffees (US): import of fair-trade coffee Equal exchange (US), La Siembra (Can), (coop-to-coop) Equal exchange (US), La Siembra (Can), (coop-to-coop) Out-of-this World (UK) Out-of-this World (UK) Co-operative Group (UK), Seikatsu (Jap): promotion & campaigning Co-operative Group (UK), Seikatsu (Jap): promotion & campaigning Legacoop (Ita), Migros (Sui) a.o.: large retail Legacoop (Ita), Migros (Sui) a.o.: large retail

January 21st 2005 COPAC Open Forum Meeting Ethical Trade Alternative Trade Fair Trade Cooperative Trade

January 21st 2005 COPAC Open Forum Meeting Co-op and fair-trade: common features Participative organisations Participative organisations Price should reflect equitable income Price should reflect equitable income Other spheres of life Other spheres of life Double-targeting: business and solidarity Double-targeting: business and solidarity

January 21st 2005 COPAC Open Forum Meeting Devides: 1. agencies CO-OPERATIVES Primeraly: agents Primeraly: agents Legal personnality Legal personnality Different types of co-ops Different types of co-ops Gathered into an established social movement Gathered into an established social movementFAIR-TRADE Primeraly: process Primeraly: process All sorts of societies All sorts of societies Outlets, NGOs, certifiers, Co-ops and associations Outlets, NGOs, certifiers, Co-ops and associations Network and new social movement Network and new social movement

January 21st 2005 COPAC Open Forum Meeting Devides: 2. drive and rationale CO-OPERATIVES Producer- originated Producer- originated Target group: producer and consumers, N + S Target group: producer and consumers, N + S Means to an end Means to an end Justice by ownership Justice by ownershipFAIR-TRADE Consumer- originated Consumer- originated Target group: producers in the S Target group: producers in the S An end in itself An end in itself Ownership by justice Ownership by justice

January 21st 2005 COPAC Open Forum Meeting Devides: 3. organisation culture and values CO-OPERATIVES Market forces with self-help Market forces with self-help Good management Good management Growth Growth Private interests acknowledged Private interests acknowledgedFAIR-TRADE Support logic Support logic Commitment Commitment Human development Human development Public interests Public interests

January 21st 2005 COPAC Open Forum Meeting Devides: 4. economic activities CO-OPERATIVES All types of activities, goods and services All types of activities, goods and services North-South link still margin for progress North-South link still margin for progressFAIR-TRADE Limited range of goods Limited range of goods North-South link = key (reason for existence) North-South link = key (reason for existence)

January 21st 2005 COPAC Open Forum Meeting Synergy? bottlenecks 1. Organisational culture 1. Organisational culture 2. No meeting point 2. No meeting point

January 21st 2005 COPAC Open Forum Meeting Synergy: fair deal (1) Fair-trade could mean for co-ops: Fair trade versus donor grant: efficiency of co-operatives in the South? Fair trade versus donor grant: efficiency of co-operatives in the South? Ethical added value for co-operatives in the North Ethical added value for co-operatives in the North

January 21st 2005 COPAC Open Forum Meeting Synergy: fair deal (2) Co-ops could mean for fair-trade: South-South networking between fair-trade producers co-operatives South-South networking between fair-trade producers co-operatives Mainstream fair-trade in the North Mainstream fair-trade in the North Widen the range of fair-trade products and services Widen the range of fair-trade products and services

January 21st 2005 COPAC Open Forum Meeting Research groups Co-operative college, Manchester Co-operative college, Manchester FT Research Group, Colorado State FT Research Group, Colorado State CRISES, Uty. of Quebec CRISES, Uty. of Quebec Social Economy Centre, Uty. Liege Social Economy Centre, Uty. Liege HIVA, Leuven HIVA, Leuven Chr. Michelsen Institute, Bergen Chr. Michelsen Institute, Bergen

January 21st 2005 COPAC Open Forum Meeting Policy recommendations (1) 1. Fill up the information gaps, e.g. Co-op impact in countries with strong/weak co-op retail sector Co-op impact in countries with strong/weak co-op retail sector Methods to overcome divides in organisation culture & values Methods to overcome divides in organisation culture & values Potential of co-ops for ethicizing effect & reaching a larger public? Potential of co-ops for ethicizing effect & reaching a larger public?

January 21st 2005 COPAC Open Forum Meeting Policy recommendations (2) 2. Create institutional bridges 3. Make a joint agenda 4. The future is now: start regional co-op networking in the South