1. FLO-Cert GmbH 1 FAIRTRADE CERTIFICATION GUARANTEEING A BETTER DEAL FOR PRODUCERS AND WORKERS

2. FLO-Cert GmbH 2 WHO WE ARE AND WHAT WE DO 1.The Mission of FAIRTRADE Certification 2.FLO-Cert at a glance 3.Facts & Figures 4.Certification System &Fees 5.The FAIRTRADE Standards 6.Long term trade relationships 7.Composite Products 8.2006 at a glance

3. FLO-Cert GmbH 3 ‘Guaranteeing A better Deal for Small Farmers and Wage Workers’ 1. Mission of FAIRTRADE

4. FLO-Cert GmbH 4 2. FLO-Cert at a glance Independent Certification Company, but a member of FLO International Owned by stakeholders in Fairtrade Two internal controlling bodies: GB & CC Head office in Bonn, satellites in Paris, San Jose, Bangalore, Cape Town, Nairobi, Rio Certification Team represents 15 nationalities & 9 languages

5. FLO-Cert GmbH 5  540 Certified Coops and Plantations in 52 countries Representing app. 1 Million farmers and workers  550 Registered Traders  55 regularly trained local Inspectors  Expected Turnover 2005: app. 2,1 Million Euro  Independent Certification Committee meeting 6 times per year  Certified retail value in 2004: app. 1 Billion Euro 3. Facts & Figures

6. FLO-Cert GmbH 6 Process:  Application  Inspection Coordination  Inspection  Certification  Appeal 4. Certification System & Fees ISO 65 Compliant Certification system 2 Certification Processes (Producer & Trade) Fees: Transition from subsidisation to cost effectiveness Transitional fee system 2004-2005 Cost based fee system-2006 Eligibility check: Pre-Assessment Service

7. FLO-Cert GmbH 7 5. Fairtrade Standards (1/3) Organisations, Products & Trade Part A: Generic Standards for SF/HL Part B: Product Specific Standards Part C: Trade Standards & Policies

8. FLO-Cert GmbH 8 5. Fairtrade Standards (2/3) Generic Standards: Requirements for Social Development, Democracy, Non-Discrimination, Health & Safety, Freedom of Association & Collective Bargaining, economic Development, Environment Minimum & Progress Requirements Participative Audit methodology

9. FLO-Cert GmbH 9 5. Fairtrade Standards (3/3) Product Specific Standards Requirements relevant only to specific product realities Trade Standards & Policies Traceability Premium payments to Producers Product integrity

10. FLO-Cert GmbH 10 6. Long term trade relationships “A long term trade relationship is the only guarantee a Producer has for sustained income.” Fairtrade is about sustainable development -Guarding against “bonded contracts” -Helping Producers to be reliable trading partners -Balancing act with the realities of trade

11. FLO-Cert GmbH 11 7. Composite products “all ingredients of a product carrying a FT Label must be sourced from FT Certified Producers…..except…” an exception would make sense and helps the Producer, exceptions should be temporary at least 50% of ingredients have a FT Certified source, or if the “significant ingredient” adds up to at least 20% of the product’s dry weight.

12. FLO-Cert GmbH 12 8. 2006 at a glance New Generic HL & SF Standards ISO 65 accreditation Producer Certification Fund (already active) New Technology to make Fairtrade easier & quicker Exploring cooperation with Other Certification systems

13. FLO-Cert GmbH 13 FLO-Cert The Fairtrade Certifier www.fairtrade.net