Transcript labelling, certification and fair trade

LABELLING, CERTIFICATION AND
FAIR TRADE
Fabrice Leclercq
October, 13th 2009
What is Fair trade?
• A vision of the world in which all producers can enjoy secure
and sustainable livelihoods
• Producers fulfil their potential and decide on their future
• Trade can be a fundamental driver of poverty reduction and
greater sustainable development,
• but only if it is managed for that purpose, with greater equity
and transparency than is currently the norm.
Means to reach this vision of Fair trade:
Labelling and Certification
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Fair trade Certification Mark
Fair trade Certification
Fair trade Standards
Fair trade Minimum Price
Labels
What is certification?
• A procedure that gives assurance that a product or service is in
conformity with certain standards.
• Can be seen as a form of communication along the supply
chain.
• Demonstrates to the buyer that the supplier complies with
certain standards
• At least, two different kinds of certification schemes:
environmental, and social.
What is labelling?
• Ultimate goal: connect consumers and producers via a label
• A certification label: symbol indicating that compliance with
standards has been verified.
• Use of the label is usually controlled by the standard-setting
body.
• Where certification bodies certify against their own specific
standards, the label can be owned by the certification body.
• The label is a form of communication with the end consumer.
What is branding?
• Added value creation comes from differentiation
• Certification schemes contribute to differentiate producer offers in the
market place
• Double certification (e.g. fair trade and environment ) augment the
power of differentiation amongst exporter offers (e.g. Utz Certified)
• Geographical indicators act as further differenciators alike (proudly
South African, etc.), leading to « country » generic or regional specific
brand developments (e.g. EDENGUI)
• All of the above next to individual (or collective) producer brands
• Brands act as value enhancers for enterprises. They carry the expression
and the unique performance attributes of the firm way beyond the sole
product of services offer, to include the full enterprise performance package:
product quality, service delivery, customer care, etc. As such, brands are the
most proprietary value building asset of an enterprise.
Labeling and Certification: How can they improve market access
for productions? Example of small-scale fisheries (SSF).
Three main questions:
• Regarding Markets: what happens in the marketplace, both
domestic and in terms of export/imports?
• Regarding Resources: what happens to the fisheries
resources – is there a clear linkage to responsible fisheries?
• Regarding People: what happens to those involved –
fishermen, as well as the communities in which they live?
Labeling and Certification: How can they improve market access
for productions? Example of small-scale fisheries (SSF).
Markets
• Positive market-related viewpoints on certification schemes, and
branding:
• Generates increased income, and profits
• All family members have potential to be involved
• Can promote demand for good products
• May improve product profile/image
• Producers obtain a better price if the parameters surrounding that
product are clear
• Quality and food safety may improve as a result of embarking upon
a scheme
• Competitive advantages – development of a niche, at least in the
short-term
• Branding may secure markets
• Branding may have very little cost involved
Labeling and Certification: How can they improve market access
for productions? Example of small-scale fisheries (SSF).
Markets
Negative market-related viewpoints on certification schemes, and branding:
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Many hurdles to tackle before reaching the destination
Very expensive to start for SSF
May result in a reduction in material supply to other markets
Export mainly to the most “politically correct markets”, not necessarily those
who pay the best price
If involving high-quality fish, perhaps beneficial to the trader but the
local/domestic market may suffer
Fishermen who do not get certified become isolated and do not have the
same market access
Increased fishing pressure may result from increased demand
How to tackle illegal or unreported fishing within a certified fishery?
Eco-labelling requires a lot of data
Domestic market gets the reduced-quality fish and become marginalized –
reduces local supplies
Labeling and Certification: How can they improve market access
for productions? Example of small-scale fisheries (SSF).
Impacts on livelihoods
• There is a difference in the power-balance
• Retailers have a tendency to pass on the costs involved to the
fishermen
• Certification can be perceived as an additional burden
• Certification could be confusing for SSF
• Cost of assessing all the people involved in SSF, would not be
met with adequate financing.
Labeling and Certification: How can they improve market access
for productions? Example of small-scale fisheries (SSF).
Conclusion:
• There is a big gap between the international market and many
small-scale fisheries
• It is important for the SSF to be well organized
But,
• There are market advantages to be gained
• Creation of advantages in terms of resource sustainability
THANK YOU