Fair Trade Sustainability Alliance FairTSA General Presentation ©Global Innovations for Fair Trade

What makes the FairTSA program unique? FairTSA developed a Fair Trade program with strong requirements regarding environmental and social sustainability. High professional Standard, complying With all ISO requirements Minimizing the Certification and Licensing effort Maximizing the Benefit for Producers and their communities Creating value for Buyers and consumers Goals

FairTSA minimizes Certification & Administration Using the established structure of ISO 65 accredited organic certification agencies Accepting organic and other food quality certification systems as part of FairTSA requirements Tailoring audits to their exact purpose, minimizing certification costs Co-branding with certifiers and licensees

Increased accountability and transparency Low overall system costs No expensive parallel inspections Advantages for Consumers

FairTSA Bio- agricert Biocert India CeresNASAAQC&IAgreco Control Union CCOFBCSMayacert Our collaborating certifiers represent more than 20,000 certified operations FairTSA Cooperating Certifiers

Inspection Players in the FairTSA Program FT Standard License Audit Social Pre./Fair Price FairTSA Licensees Certification Producers Products Community Development Support Training

Advantages of Separation between Standard Holder and Certifier  As FairTSA is only the standard holder, we are free to provide these services and still be in compliance with ISO guidelines, which prohibit certifiers from coaching, consulting and providing of marketing support.  FairTSA conducts independent audits of both cooperating certifiers and certified producers and randomly shadows inspectors We are not in the certification business Our focus is on: Communication with all of our clients Coaching of producers to help them become compliant and remain in compliance with our standard requirements Help with marketing of FairTSA certified products

Assurance of Fair and Above Market Prices  Prices for our certified products are 7% above prices for comparable products in the region (basis: farm gate price)  In addition, engagement in a Community Development Project has to be instituted, and an additional Social Premium of at least 3% of the farm gate price is due for capital investment in the producer community  The price is negotiated between the parties who are required to take the provision above into account, aided by Fair TSA  Additional: FairTSA may institute a Minimum Price if world market prices fall below production cost + reasonable margin

Ensuring Better Wages and Working Conditions

Ensuring Better Wages and Working Conditions by Goal-Oriented Inspections  Inspectors check at least three (or more, depending on number of workers) actual work contracts and attach copies to inspection report for review  Inspectors check if wage documentation is complete for all workers  Inspectors check working and living conditions (if applicable) and document non-compliances via digital photographs  Inspectors conduct informal interviews with workers

Ensuring Sound Environmental and Stewardship Practices (organic operations)  We accept NOP, European, Australian and Canadian organic regulations as basically fulfilling our sound environmental practices requirements  Currently, more than 95% of our producers are certified under the above organic regulations  In addition, we have requirements for:  the treatment of protected species,  the preservation of valuable ecosystems  sustainable waste management techniques

Ensuring Sound Environmental and Stewardship Practices (non-organic operations)  FairTSA require best practices for agricultural operations, including  Crop rotation  Minimization of run-off  Use of compost  Use of non-chemical crop protection practices  Limited use of pesticides with exclusion of most dangerous and persistent ones  The same additional requirements as for organic operations apply

FairTSA Community Development Service  We have developed our own innovative community development service  We regard our cutting-edge participatory community development program as the best way to leverage small farmers’ and workers’ engagement and investment in such projects can multiply the actual investment amount  Our participatory self-evaluation system allows for direct evaluation of the program and as such serves not only the community, but can also serve as a tool to demonstrate project progress and impact

Producer/community projects Collaborative planning and support Social Premium Community Development FairTSA Certifier Licensee Local NGO Project Audit Project Reporting CD Service Fee KDP* *KDP=Key Development Partner, usually a processing facility with highly committed management

Scope of Certification Inspection (Audit): EntityAudit scope and schedule Agricultural producers in country of origin Full scope of standard every year Processing in country of originFull scope of standard every year Traders in country of originLimited Audit very year Traders, processors, manufacturers, co-packers in country of import Limited audit every year, full certification for multi-ingredient products

Scope of Certification & Inspection: Agricultural Production  Fair prices  Appropriate working, living and occupational health & safety conditions  No discrimination because of race or tribal association, gender, sexual orientation etc.  Freedom to unionize or create worker committees  Environmental sustainability (either organic or clearly described agricultural practices with limited pesticide use)  If applicable: Community development project progress Fair Trade

Scope of Certification & Inspection: Processing in Country of Origin  Fair wages  Appropriate working and occupational health & safety conditions  Product integrity:  Audit trail  Check for prohibited ingredients  Prevention of commingling  Labeling

Training  Initial training consists of at least:  Studying of relevant documentation (Standard, Inspection and Certification Guide, System Plans and Inspection Reports, supporting literature)  A 4 hour on-site training session or live webinar  A questionnaire to be successfully answered (85%)  Operation-specific training before first inspection  Review and feedback for first inspection report  We also have a train-the trainers program, where participating certifiers can have especially qualified personnel be trained for training their own personnel.

Types of Certified Products: Fruit, fruit purees, dried fruit, IQF fruit, grains, beans, herbs, seeds, nuts, oils, sweeteners

Double certification (organic/FT) Enhanced Community Development visibility Marketing Social responsibility Double certification (organic/FT) Expansion of audit business Cost-effective for existing clients New clients Receive premium price Community Development resources Summary of Benefits of Engaging in FairTSA Long-term relationship Marketing For Producers For Certifiers For Licensees