Towards the end of last year Fairtrade International published the third edition of its annual report on the Fairtrade system 'Monitoring the scope and benefits of Fairtrade Report' (December 2011). So far it has received only limited attention, perhaps being largely overshadowed by developments at Fair Trade USA. But with Fairtrade Fortnight on the horizon (27 Feb - 11 March) it is likely that the public debate about the impact of Fairtrade will be reopened.

Fairtrade is working for producers

The headline data provides strong evidence that Fairtrade is working for producers, who reported a 22% increase in Fairtrade Premium returns in 2010 from the previous report period, and a 24% increase in Fairtrade sales value to producers overall. There is also continued growth in the numbers of farmers and workers participating in Fairtrade. An estimated 1.15 million people benefited in 2010 and it is predicted that this will have exceeded 1.2 million in 2011.

This award recognises the contribution Renwick Rose has made over the last 40 years through his work in civil society development and trade justice. In the 1990s, Rose spotted the value and necessity of organisation and cooperation at a time when the banana trade was entering a downwards spiral. He earned the trust of small-scale farmers who were struggling to make it onto the supermarket shelves and guided them through the process of Fair Trade Certification. The establishment of the Windward Island National Farmers' Network Association (WINFA) has generated security and progress which radiates out into the wider community.

Through their partnership with Fair Trade, the WINFA farmers earn a premium of a dollar for each box of bananas, which is invested democratically back into the community. In this way, the social, educational and trade infrastructure of the islands has begun to bloom. Rose's attempt at retirement in 2010 was thwarted by the devastating impact of the hurricane that destroyed farms across St Lucia and St Vincent. He returned immediately to lead the farming community on the uphill slope towards recovery, and, with his support, Windward Island bananas were back on the supermarket shelves within eight months.

In an historic decision, members of the global Fairtrade system have voted unanimously to increase producer representation in the General Assembly to 50 percent, making producers half-owners of the global Fairtrade system.

The vote has been broadly welcomed as strengthening Fairtrade’s ownership model; networks of certified producer organizations have been co-owners of the system alongside labelling initiatives from consumer countries since 2006. The new shared ownership model means that producers will now have an equal voice in the highest decision-making body of Fairtrade.

Fair Trade USA (formerly TransFair USA) has announced its intention to resign membership of Fairtrade International (FLO) effective December 31, 2011.

Fairtrade International (FLO) and Fair Trade USA issued the following joint statement:

“Fairtrade International (FLO) and Fair Trade USA share a belief in the importance of empowering producers and workers around the world to improve their lives through better terms of trade. However, as we look to the future, we recognize that we have different perspectives on how best to achieve this common mission.

As a consequence, Fair Trade USA has decided to resign its membership from Fairtrade International (FLO) effective December 31, 2011.

As we go our separate ways, both Fairtrade International (FLO) and Fair Trade USA are committed to maintaining the benefits we have achieved for farmers and workers, for business partners and for our supporters, and to growing impact over time. We are working together on transition plans.

This transition planning and the consequent operational changes will take some time for both parties to develop, but we are announcing the decision as early as possible out of respect for our many stakeholders. Further communication will follow in the coming weeks.”

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