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longitudinal impact assessment study of sugar producers in malawi

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The Trad<strong>in</strong>g Cha<strong>in</strong><br />

Farmers grow <strong>sugar</strong>cane<br />

Shire Valley Cane Grower’s Trust<br />

Kas<strong>in</strong>thula Cane Growers Ltd<br />

Nchalo Estate<br />

Illovo (Malawi) Ltd<br />

Includes licensees <strong>in</strong> the UK,<br />

Europe and USA<br />

Include British, French &<br />

German brands and<br />

Supermarket “own labels”<br />

Diagram courtesy <strong>of</strong> , TWIN, Malawi<br />

Farmer organisation<br />

Ref<strong>in</strong>ery<br />

Market<strong>in</strong>g<br />

and export<strong>in</strong>g<br />

Importers<br />

Brands<br />

(manufacture, market<strong>in</strong>g)<br />

Retailer<br />

(Supermarkets, shops, hotels,<br />

restaurants, workplaces)<br />

Consumers buy <strong>sugar</strong><br />

12<br />

Fairtrade<br />

Labell<strong>in</strong>g<br />

Organisations<br />

International (FLO)<br />

FLO Standards sets the<br />

global standards <strong>of</strong><br />

Fairtrade, <strong>in</strong> consultation<br />

with Fairtrade stakeholders.<br />

It authorises the use <strong>of</strong> the<br />

Fairtrade label (above) on<br />

Fairtrade-certified products.<br />

FLO-Cert <strong>in</strong>spects and<br />

certifies the whole trad<strong>in</strong>g<br />

cha<strong>in</strong>. The questions FLO-<br />

Cert is try<strong>in</strong>g to answer are:<br />

Is everyth<strong>in</strong>g <strong>in</strong> the<br />

cha<strong>in</strong> accord<strong>in</strong>g to the<br />

standards?<br />

Are the <strong>producers</strong><br />

really benefit<strong>in</strong>g from<br />

Fairtrade?<br />

FLO-Cert ensures fairness,<br />

transparency and<br />

democracy accord<strong>in</strong>g to the<br />

standards. It guarantees to<br />

the consumer that her/his<br />

decision to buy a labelled<br />

Fairtrade product will help<br />

the farmers who produced it.<br />

Fairtrade standards require<br />

the buyer to pay a premium<br />

for social and economic<br />

development, as well as<br />

provid<strong>in</strong>g other benefits to<br />

the producer organisation,<br />

such as export f<strong>in</strong>ance.<br />

FLO also has standards for<br />

hired labour and the<br />

environment.

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