Fairtrade certification system is designed to allow consumers identify goods which meet agreed Fairtrade standards. The certification is overseen by a standard-setting body known as Fairtrade Labelling Organisations International (FLO). The system involves independent auditing of producers and traders to ensure the agreed standards are met. (www.fairtrade.org). Fairtrade makes provision for what is referred to as Fairtrade social premium. This is an annual payment made to farming communities valued at 5% of their sales. The Premium is described by Fairtrade as an additional percentage price paid by consumers on top of each box of Fairtrade labelled products sold by FLO certified producers in developed countries. (www.fairtrade.org.)
Cocoa products from Ghana
Ghana’s Fairtrade chocolates have made in rolls into the world retail market and are making impact on the market. Currently Ghana’s Fairtrade cocoa products such as chocolates are marketed by major retail shops in the UK and the USA via Divine Chocolate Inc. Divine Chocolate Inc is a chocolate manufacturing company based in the UK. This company is partly owned by a Ghanaian farmers’ group Kuapa Kokoo. The company has direct access to cocoa beans grown by Ghanaian cocoa farmers. In 2007 alone Divine Inc used 1420 tons of Ghanaian cocoa beans to make a variety of chocolate products.
Divine has its own Fairtrade brand names which are sold by supermarkets like TESCO, Sainsbury and ASDA in the UK. One brand of the chocolate is the Dubble which is reported to be the only Fairtrade chocolate created specifically for the youth market. The Dubble range includes a crunchy milk chocolate 40g bar made with caramelised crisped rice, a Dubble Easter Egg and Dubble Mini Speckled Eggs. Some of these chocolates have wrappings adorned in traditional Ghanaian Adinkra symbols. It is worth noting that the Co-op, UK has converted all its own-label chocolate to Fairtrade, through Divine and Kuapa Kokoo. Divine Inc Fairtrade brand is also sold in the USA and other countries. In the USA the company has a branch of which Kuapa owns 33% shares. (www.divinechocolate.com)
The most important thing is Ghanaian farmers have a huge share in any profit made by the company because they own 45% of the company. Kuapa Kokoo receives four income streams from Divine Chocolate. These are a Fairtrade price (this is minimum $1600 per tonne, but if world price is higher Divine pays the world price). It also receives a Fairtrade premium payment of $150 per tonne and a producer support & development which is usually 2% of Divine turnover. Finally it receives dividend payments from Divine.
Kuapa’s stakes in Divine has definitely given the farmers group a solid financial base with very good growth prospects. It has also raised the group’s status in the world market, and given it 'a seat at the table' in international cocoa forums. Through owning Divine Kuapa Kokoo has been able to develop the skills, expertise and knowledge it needs to engage with the world market. (www.divinechocolate.com)
Cocoa price stability
The cocoa farmers are paid guaranteed prices for their products due to this a drop in cocoa price on the world market will not have adverse effect on their income. The guaranteed price has therefore stabilized the market for the farmers. In most developing countries, the terms of trade for primary commodities are very volatile and unpredictable. Attempts by Fairtrade to curb this situation have really served as boost to stakeholders in the industry. For instance a fall in price of cocoa will not only affect our cocoa farmers but also have diverse implications for the economy. One could agued that the presence of Fairtrade in Ghana has contributed significantly in bringing some stability to a very volatile and unpredictable market.
The introduction of Fairtrade in Ghana has contributed in creating a ready market for our cocoa farmers. Unlike the past when access to the market was very lengthy the farmers can now sell their beans directly to Kuapa, the farmers’ coops. Kuapa has really done a good job by training the farmers on how to use the scale in weighing the beans. This means they do not have to depend on the purchasing clerks to do this job. These purchasing clerks were alleged to be using inaccurate scales which denied the farmers of receiving the right amount for the cocoa.
The environment
One positive impact of Fairtrade in the farming communities is the creation of awareness on the need of saving the environment. The farmers and their families depend largely on fire wood as their source of energy. Cutting down of trees for fire have negative effects on the environment and contributes to global warming. One of the principles of Fairtrade among other things is to protect the environment and to safeguard natural resources. Destroying the environment is definitely against this principle (www.ifat.org). The good thing is that the payment of end of year bonuses to farmers from Fairtrade premium will make it possible for the farmers to switch to LG gases and other environmentally friendly sources of energy.
Conclusion
Currently a lot of cities in the UK have been declared as Fairtrade cities in support of the poor farmers in developing countries. For instance New Castle, Liverpool, Kingston – Upon -Hull have receive Fairtrade status Apart from that most of the big retail shops like TESCO, Sainsbury, Waitrose etc sell Fairtrade labelled products. In fact products from Divine which is partly owned by Ghanaian farmers are available in all major supermarkets in UK. (www.divinechocolate.com)
No comments:
Post a Comment