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moveIT 2 powered by Goyello – The Cloud Issue

The second issue of moveIT provides experts’ insights on the benefits and threats related to the cloud, success stories of delivered cloud-based projects and interviews with industry gurus. Goyello is an international IT strategy consulting and software development company. We deliver what we promise: innovative, top quality solutions, on time and within budget. Goyello - Quality Software Solutions - Delivered With Care -


IMPROVE TRANSPARENCY AND PRODUCT TRACEABILITY IN FAIRTRADE Fairtrade was born in the 1980s. The driving force behind it was a priest from the Netherlands working in Mexico who wanted to make sure that poor Mexican farmers had a chance to get out of their poverty cycle, and so invented, together with a trade organization in the Netherlands, 10 10 MOVE MOVE IT IT a direct trading scheme. This has been copied many times and in the mid-90s, these organizations decided to found an umbrella organization, Fairtrade International. FLOCERT is a global certification and verification body, with the main role of independently certifying Fairtrade products. FLOCERT’s Technical Services Director Frank Brinkschneider introduces us to the world of Fairtrade certification.

Increase transparency and credibility Frank : “Around 2003 it became clear that while the Fairtrade initiative was well received by the market and developed well, retailers demanded more transparency. They had doubts whether Fairtrade could certify what it was preaching. To increase transparency Fairtrade International decided to separate the certification department into a new entity. So, by the end of 2003, FLOCERT was founded to serve as an independent, impartial and credible certification body. Assuring a fair price The Fairtrade Minimum Price is a safety net for the producers in times when the market price is below the cost of production. It is defined by Fairtrade International in close consultation with producers and traders and is at least the cost of production. It helps the farmers predict their income and budget for the future. Another instrument is pre-financing, which used to be the core of the direct trading scheme. It allowed every producer organization to apply for prefinancing by a trader to finance the produce. Traders still have to offer this pre-financing and we enforce this through our certification scheme. Stimulating democratic development In addition to the Minimum Price, there is the Fairtrade Premium. The premium, some call it development premium, is paid to the producer organization based on the delivered volume. The more volume sold, the more premium they receive. Normally, the first buyer in the supply chain pays the premium on top of the normal price they negotiate. The buyer reports this to us and we crosscheck during a physical audit. The main principle is that the premium usage has to be decided democratically. If we talk about a plantation where workers are the beneficiaries, they need to have a premium committee this is a body comprised of management and workers, and they have to decide on how to use the premium. We have quite a lot of rules to make sure that the premium is used for the benefit of the workers or the local society. Certification of stable producer organizations only To be able to apply for certification, you need to have a stable, formalized producer organization that is certifiable. Fairtrade International cooperates with organized entities only, not with a loose group of farmers. If an organization is already formally set up, if, for example, they’re organic certified, it is a rather straightforward process. The certification process normally takes between 3 and 12 months. The time involved depends largely on the speed at which the organization provides the required information and its level of compliance. “ Technology will help us achieve our mission in reaching out to farmers and assuring fairness in global supply chains in a better and more efficient way Fairtrade standards “ To comply, producers have to limit usage of chemicals, to take an ecological example - this is part of the Fairtrade requirements. A lot of organizations use pesticides, which are actually on a banned list according to the Fairtrade standards, so they have to demonstrate that they will replace them. They also have to use protective equipment. On the social side, they have to prove, for example, they have regular General Assemblies, i.e. organized meetings of their members. And that is not always as easy as it seems. For example, in some regions, you still have tribal systems where normally the chief takes all the decisions. If an organization wants to become Fairtrade certified, its members have to decide together, democratically, which is a major change. Fairtrade is quite demanding on that. We are very strict regarding child labour. Fairtrade works with Fairtrade producer communities to encourage them to establish a child-inclusive, community-based monitoring and remediation system on child labour. And Fairtrade producers must also become key agents of change so they themselves can identify and address unacceptable child labour practices. #moveITgoyello

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