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WHAT IS FAIRTRADE

FAIRTRADE IN SA

WHAT WE DOFAIRTRADE LABEL SOUTH AFRICA

SUPPORTING AFRICAN TRADE

SUPPORTING LOCALCOMMUNITIES

FROM FARM TO TABLETHE FAIRTRADE PRODUCT JOURNEY

MAKE FAIRTRADE POSSIBLE

PRODUCER STORIES

HEIVELD COOPERATIVE

STELLAR ORGANICS

BEAN THERE

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what

isfai

rtrade

?

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FAIRTRADE is the mostinternationally recognisedand trusted social andethical certificationsystem. Spanning over22 consumer countriesand over 900 producergroups, FAIRTRADE isa rapidly growing globalphenomenon.Its successes are mostevident in the thousandsof empowered small-scalefarmers and farm workersacross the developing worldas well as its wide-spreadsupport base, mainly inEurope and America.

Ensuring better prices to small-scale farmers

Providing a Fairtrade premium for communitydevelopment projects

Enforcing decent working conditions in farms Supporting sustainable production and protection of

the environment

FAIRTRADEseeks greater equity ininternational trade by:

FAIRTRADE actively tacklesunderdevelopment in

marginalised producergroups, by enabling small-

scale farmers and farmworkers to take action to

better control their own lives,improve their knowledge andskills to create more choices

for themselves, and lay thefoundations for a better future

for their entire communities.

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South Africa has been

a producer of Fairtrade

goods, such as wine, fruits,

vegetables, rooibos tea and

nuts, for over a decade.

These were all mainly for

export, with few products

being available in the local

market. This situation

changed in 2008 with the

establishment of FAIRTRADE

LABEL SOUTH AFRICA,

whose main objective is to

promote Fairtrade and its

products to local consumers

and stakeholders.

Over the past 2 years,

FAIRTRADE has grown

dramatically in South Africa,

with sales reaching ZAR 5.7m

in 2009. There are 15 labelled

brands selling locally in the

product categories of wine

and coffee and soon other

products like bananas, tea,

oranges, chocolate andcotton will be available

to consumers. Major

national retailers have also

pledged their commitment

to FAIRTRADE and are

increasingly stocking labelled

products.

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fairtradeinsa

3WHATWE

DO

WHATTo increase awareness

of FAIRTRADE amongst

South African stakeholders

To increase the

FAIRTRADE product range

available in South Africa

To increase the availability

of FAIRTRADE in the local

market

FAIRTRADE LABEL SOUTH

AFRICA (FLSA) is the ofcial

Marketing Organisation for

FAIRTRADE in South Africa.

We are a team of motivated

and diverse people, who work

together with local market

actors in order to bring

FAIRTRADE closer to African

consumers.

HOWWe participate in local

events and organise

promotion activities to

bring FAIRTRADE to

businesses and

consumers

We work with trading

businesses in South Africa

and Africa to encourage

the creation of regional

FAIRTRADE supply chains.

To do that, we assist

businesses in obtaining the

license to sell

FAIRTRADE labelled

products

We work with local traders,

retailers and the hospitality

industry to assure that

that FAIRTRADE products

are made available to

consumers.

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FAIRTRADE has traditionally relied on

export business for many years, due

mainly to the wide support it received

from importers, retailers and consumer

groups in Northern countries. This model

has however come to a change, given thatan increasing number of businesses and

consumers in the South are demanding to

actively support FAIRTRADE in their day-

to-day activities. FLSA is the driver of this

change in Africa.

By creating all-African supply chains,

value-adding activities occur within these

countries, keeping the benets and prots

generated by FAIRTRADE in the continentand ultimately encouraging African

development.

At the same time, this brings local

consumers closer to those communities

that produce FAIRTRADE products,

fostering solidarity and a shared

vision of a better future.

SUPPORTING

AFRICAN

TRADE

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COMMUNITIES

Sustainableand equitabledevelopment has tofocus on increasingliving standards,

apart from better income. The

FAIRTRADE premium is meant

to address the lack of servicesand infrastructures faced in manyrural areas by many small-scalefarmers and farm workers.

Paid on top of the produce anddedicated exclusively to small-farmers and farm workers, the

FAIRTRADE Premium is a keytool to generate developmentthrough investing in socio-economic projects that farmingcommunities feel important fortheir lives.

In South Africa, the FAIRTRADEpremium is spent mostly oneducation and training (26%)and infrastructure improvement(23%), followed by investments injob creation and health services

(22%). The remaining goes mainlyto recreational programs, suchas organising spot activities obuilding community halls.Over half of the projects targetthe whole community, whilethe remaining are specicallydedicated to the children andthe youth.

SUPPORTINGLOCAL

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Make yourbusinessFAIRTRADE

certied andcommit tothe economicand socialdevelopmentof your farmingcommunities aswell as to theprotection of ourenvironment

Satisfy thedemand forFAIRTRADE

products andassist us inaestablishingcommerciallyviable supplychains forFAIRTRADEproducts

Offer FAIRTRADEproducts andwork with us

in promotingFAIRTRADE toyour consumersegment.Corporate socialresponsibility isnow local morethan ever.

SupportFAIRTRADE andour activities,

use FAIRTRADEproducts in yourofces or at yourevents. We willsupport you in yourcommunicationaround FAIRTRADEand we will includeyou in our alliesdirectory for the

knowledge of thewider public.

Give your gueststhe opportunity tochoose FAIRTRADE

products fromyour menus ornd a FAIRTRADEsurprise in theirhotel rooms,showing yourcommitment tosocial developmentand sustainability.

As the mostpowerful actor inthe supply chain,

your choices candrive changein the industryand support thedevelopment oflocal communities.

7 MAKE FAIRTRADE POSSIBLE.

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Set in the magnicent Suid Bokkeveld area in the Northern Cape, the Heiveld Cooperativewas formed in 2001 to promote social justice and the social and economic development ofthose communities that had faced discrimination as well as lack of services and widespreadpoverty.

Starting off with a group of 14 small-scale rooibos farmers, the Heiveld Cooperative nowrepresents 60 members and exports its rooibos tea all over the world, also thanks to thecommercial links provided by Fairtrade and organic certication, both obtained in 2003.

The founding of the Heiveld Cooperative allowed members to cut down on production costsby establishing a collective tea processing facility. Before, they were all dependent on tea-

making facilities owned by larger farmers, which meant that most of the prots made werespent on transport costs and rentals for use of the facilities.

The Heiveld Co-operative has since then moved steadily towards fullling the dreams ofits members. After renting a tea court from a neighbour for the rst years, it completedthe rst phase of our own tea court in 2005, and processed its rst harvest in 2006 on it.Employment was created for local community members from the Suid Bokkeveld, andespecially business initiatives of women were supported for producing packaging.

FAIRTRADES IMPACT ON THE HEIVELD COOPERATIVEThe economic impact of Fairtrade marketing has been very signicant. By selling rooibos

tea to FAIRTRADE importers, the income of the farmers families tripled from circa R 10/

Kg to currently R 25/Kg plus a R 5/Kg for FAIRTRADE premium. There is a huge difference

from when we sold to the large farmers. In the past the link between buyer and seller wasmissing the buyer just gave whatever price they wanted, it wasnt related to our standardof living, comments Lionel Louw, board member of the Heiveld Cooperative.

Besides improving the farmers standard of living, the main goal from the beginning wasto make the smallholders independent from wholesalers and neighbouring commercial

farms. Due to the FAIRTRADE Premium this became possible. They were able to buy theirown equipment for tea production, such as their own tea-chopping machine, and

subsequently to build their own tea-court, a primary processing facility whereraw green tea is nely chopped, fermented and then dried. The premium is

also used to train staff and members and to support local schools as well asdisadvantaged members of the community.

HEIVELDCOOPERATIVE We are going to complete the second phase o construction othe tea court, including the installation o water storage tanks,

building a store/ofce building, and purchase a second tea

chopping machine. We have also developed a scheme to help

members who experienced especially bad harvests during

the 2003 2006 droughts as well as a training programme or

members in sustainable production o Rooibos.

LIONEL LOUW,

Board Member o Heiveld Coop, 2008

A lot has changed. Now at the end o the week there

is still money let over ater buying groceries

KOOS PAULSEN,

Heiveld Coop member, 2009

Northern Cape,

South Arica

www.heiveld.co.za

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Located in the semi-arid Namaqualand, Stellar Organics is a great

example of a FAIRTRADE pioneer in South Africa because of the extent

to which it has aligned its business with FAIRTRADE standards. The

farming operations for both table and wine grapes obtained Fairtrade

certication in 2003 and 2004 respectively, thus making it the biggest

FAIRTRADE and organic wine farm in the world, processing more than

3millions litres of Fairtrade organic wine each year.

The company opened ownership to its workers in line with the post-apartheid process

of providing economic opportunities to previously disadvantaged people: to this end the

Stellar Employees Trust was set up in 2006. All permanent winery and farm employees,counting up to 150 workers, are allocated shares in the trust, which now owns a 26%

shareholding in the winery and 50% in the farming operation.

FAIRTRADES IMPACT AT STELLAR ORGANICS

As part of FAIRTRADE requirements, Stellar Organics meets standards based on core

ILO conventions for the protection of workers rights. They include the right to join a trade

union or others workers organisation, the right to collective bargaining, freedom from

discrimination, decent employment conditions, a safe working environment, and no forced

or child labour. The FAIRTRADE premium is paid into the bank account of the Joint Body

(JB), which is made up of 19 people elected democratically amongst farm workers. The JB

meets regularly to discuss and select which projects to fund with the FAIRTRADE premium

in order to tackle poverty and invest in their communities.

From 2006 to 2010, Stellar Employees Trust received a total of R 2.58 million in Fairtrade

premium from wine sales, and receives around R 160.000 annually from sales of table

grapes. In the past, the premium has been used to improve workers housing and to build a

crche that is now open also to al l the workers from the neighbouring farms. Training and

skills development projects are an ongoing commitment and this is dramatically increasing

the employment opportunities for the most talented workers in the farm. Thanks to

training in media and journalism, some workers have started publishing the Stellar Star,

the company newspaper. Other workers are climbing their way to the wine-making.

Berty Jones is a great example. He started as a handyman and was soon identied as a

fast learner. Stellar OrganicsFAIRTRADE

certication in 2003 gave a nancial boost toits training programmes. This enabled Berty to be retrained as an assistant wine maker,

followed by promotion to cellar master and election to the vice chair of the Joint Body.

Berty has travelled extensively in Europe, the UK and the USA, promoting Stellar Organics

at trade events and being an ambassador for FAIRTRADE . In early 2010 Berty was

appointed as a Director of Stellar Winery.

The workers have a list of upcoming projects to be funded with the FAIRTRADE the

premium, including the purchase of a bus and the establishment of a community centre

in memory of Maria Malan, a much-loved and inspirational employee and FAIRTRADE

advocate who rose from domestic worker to farm manager and who died in April 2010.

WesternCape

SouthAfrica

www.st

ellarorganics.com

Because o the progressive social programmes

o Stellar Organics and the empowerment policies

and unding provided by Fairtrade I have had the

opportunity to ulfl my potential and rise through the

company to my present position

BERTY JONES,

Stellar Organics Cellar Master, June 2010

ST

ELLAR

OR

GANICS

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Bean There Coffee Company is the beginning of a dream realised;

the dream to directly source African coffee, build relationships with

the producers, expertly roast this coffee, and bring top quality coffee

to the people of South Africa while making a significant difference inpeoples lives.

Established in 2005 and the first roaster of Certified FAIRTRADE

coffee in South Africa, Bean There is serious about establishing the practises of

trading fairly, directly, and transparently in all areas of business. For Bean There,

FAIRTRADE is not about special treatment but rather fair treatment, and it extends

beyond farmers and producers to the staff of Bean There, their suppliers, an d their

customers. The company is committed to personally sourcing Fairtrade, organic African

coffee and currently purchases coffee from Ethiopia, Tanzania, Kenya, a nd Rwanda.

Coffee produced and roasted in Africa means a low carbon footprint and minimal

environmental impact.

Bean There Coffee Company takes FAIRTRADE one step further through the

implementation of direct fair trade which involves personally and regularly visiting

their coffee farmers, thus showing its committment to long-term relationships with

the farmers and cooperatives who produce their coffee. FAIRTRADE is not just a

label, certification, or marketing tool; it is a relationship, and we believe that direct

FAIRTRADE is the best way to build this relationship, comments Jonathan Robinson,

the founder and father of Bean There Coffee Company.

Each cooperative (a collection of small-scale coffee farmers) uses its FAIRTRADE

premiums as needed and as democratically determined by the cooperative. Bean

Theres Ethiopian Si damo coffee is produced by the Fero Cooperative. There are over

3100 members representing a total population of over 27,300 people. FAIRTRADE

premiums are paid directly to the farmers and are mainly used for capacity building and

training.

In Rwanda, Bean There purchases from Coopac, located in the town of Gisenyi on th e

shores of Lake Kivu. Coopac consists of 2200 members; coffee farmers living and

growing coffee in the green hills of this small central African country. Coopac has used

their FAIRTRADE premiums to build modern and efficient coffee processing facilities.

This has resulted in a signi ficant increase in quality and th erefore price fetched

per pound. Their FAIRTRADE premiums have also been used to build additional

classrooms at the local school.

BEANTHERECOFFEECOMPANY

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