Filipino farmers secure their livelihoods via fair trade
CEBU CITY—The so-called Fairtrade movement might have been around for more than 20 years, but it still has to gain much ground in the Philippines.
A survey conducted by the Sustainable & Inclusive Growth Network for Asia Foundation Inc. here (SIGN Asia) showed only five percent of the respondents had a clear understanding of fair trade, while only 40 percent have heard of it.
This is expected to change with the establishment of the Fairtrade Marketing Organization of the Philippines (FMO Philippines).
Based on the Fairtrade International website, fair trade “contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers—especially in developing countries.”
Faitrade
The tag “Fairtrade,” on the other hand, refers to the product certification system or the activities of organizations connected to the Germany-based Fairtrade International.
In collaboration with Sign Asia, Fairtrade International launched FMO Philippines, which it said had recently fulfilled the requirements to become a Fairtrade marketing organization.
Alejandro Florian Alcantara, president of Fairtrade Philippines, says FMO Philippines’ role is to promote market presence and increase sales of fair trade products in the country to benefit small farmers and businesses.
However, farmers have to organize themselves and become Fairtrade-certified so they could avail themselves of the benefits.
The benefits include assured stable prices for their produce and a Fairtrade premium to be paid to their organization.
Andrea Richert, Fairtrade International new markets manager, says farmers belonging to Fairtrade-certified organizations will be guaranteed payment for their production costs even if world market prices for their particular produce fall.
The Fairtrade premium, on the other hand, can be used by the organization to improve productivity or put up processing facilities for members, Richert says. The members of each organization are allowed to take part in making decisions on how the premium will be spent, she says.
Certification
Alcantara says they have been working with commercial partners to expand the market reach of local Fairtrade products.
At present, two supermarket chains and a global brand store are selling Fairtrade products while a coffee chain serves Fairtrade coffee.
He says they will be encouraging Philippine companies and processors to acquire Fairtrade certification so their products can carry the Fairtrade mark.
Alcantara says businesses can take advantage of the growing demand for Fairtrade products in the global market, which is estimated to grow by 27 percent each year. In Switzerland alone, 53 percent of the total sales of banana are Fairtrade-certified, he says.
Ramer Rivera, president of Negros Organic Fairtrade Association (Nofta), welcomes the establishment of FMO Philippines to support their marketing efforts.
He says the Negros federation has been a member of Fairtrade for seven years, but they still find it difficult selling their products without marketing support. Nofta members comprise of 13 people organizations with a total of 730 individual members who are based in the municipalities of La Castellana, La Carlotta, Murcia and Salvador Benedicto and the cities of Bago and Talisay.
He says almost 80 percent of members are engaged in the sugar industry, but since it takes about a year before they could harvest their produce, some have to resort to leasing their farmlands or using them as collateral for loans. Some five years ago, many members have also decided to diversify and plant other crops so they could support their families, he says.
He says they have been selling most of their produce in Bacolod City, Negros Occidental, but stresses it would be better if they can expand their market.
On the other hand, Richert says the integration of the Philippines in the Fairtrade movement would take time.
So far, there are three Fairtrade-certified small farmer organizations that are all based in Negros Occidental, Alcantara says. Besides Nofta, Dama Farm Workers Agrarian Reform Beneficiaries Association (Dafwarba) based in La Castellana and Nakalang Padilla Farm Workers Association (Napfwa) based in Bago City are also certified.
Fairtrade Philippines intends to increase Fairtrade-certified farmer groups from the present three to 15 in 2017 and 33 in 2020 and Fairtrade-certified traders from the existing two to 14 in 2017 and 32 in 2020.
Consumer awareness
It is also aiming to increase the number of supermarkets carrying Fairtrade products from three to 15 in 2017 and 30 in 2020. It also wants the number of Fairtrade products sold in the Philippines increased from less than 100 today to 300 in 2017 and 500 in 2015.
Fairtrade Philippines also aims to increase consumer awareness of Fairtrade products from almost zero percent to 10 percent in 2017 and 30 percent in 2020.
Sandy de Veyra, Fairtrade Philippines general manager, says the Philippine market is ready to embrace the Fairtrade concept.
“It has all the essential components: there is a rise in the number of retail stores selling Fairtrade, there are small producer organizations and hired labor organizations wanting to sell their products locally, mature commercial partners, and a rising middle class who are socially aware and has the buying capacity and growing awareness of ethical consumerism,” De Veyra says.
