FLO DEVELOPMENT PREMIUM AND THE MACEFCOOP DEVELOPMENT TARE

The FLO development premium and Macefcoop development tare deductions and plan of work are approved by the General Assembly following proposals from the premium committee and the Board of Directors.

Fairtrade

Fairtrade Standards


Fairtrade visit to the MACEFCOOP factory


Discussing Fairtrade at the AGM

A number of supermarket chains and other retailers in the countries that consume MACEFCOOP cocoa and coffee have adopted a policy of sourcing raw materials from Fairtrade suppliers, leading to the prospect of further increases in the proportion of fairly trade supplies in these countries.

Principles of Fairtrade

Direct Trade - Fair trade organisations (FTOs) buy directly from cooperatives (or other FTOs). Producers and FTOs are equal commercial partners and treat each other with mutual respect and support. They share information freely and help each other in the pursuit of their respective goals. The number of intermediaries is reduced.

A Fair Price - Producers and FTOs together fix a price that accounts for both the needs of Southern producers and the realities of Northern markets. Producers must plan to cover their costs of production, as well as make enough profit to pay for their daily needs. As for the FTOs, they must sell their product at a reasonable price. FTOs pay a higher price for organic coffee.

Long-term Commitment - Cooperatives can rely on FTOs to buy their product on a regular basis, allowing them to plan their operations on a long-term basis.

Credit - FTOs offer low-interest credit to producers. This may be as a cash advance of a percentage of the total value of the order.

Democratic Management - Producers must divide the profits equitably. All workers must have a voice in the decision-making process and the way in which the group is organized.

Public Information - FTOs supply consumers with information concerning producers and the need to support fair trade. The financial records of FTOs must be open to the public.

Environmental Conservation and Community Development - FTOs support producers who practise sustainable agriculture and who have a community development plan.

A more comprehensive description of the applicable range of Fairtrade standards for cocoa development is available in the following document from Fairtrade Labelling organisations International: Fairtrade Standards for Cocoa.

The difference made by Fairtrade minimum pricing of $1.26/lb (for Arabica coffee) has been particularly dramatic during periods of low world market prices.

The Fairtrade cocoa price is $1600 per tonne plus $150 premium for business or social investment. When the New York futures market price rises to $1600 or above, the Fairtrade price is the world market price plus $150 premium....

The Fairtrade Labelling Organisation guarantees small-scale coffee producers a minimum price for quality coffee, regardless of how low the world market price drops. This ensures growers can cover the cost of production, in order to make a living. These prices are as follows:

Arabica coffee Fairtrade price: 126 US cents/lb

Arabica organic coffee Fairtrade price: 141 US cents/lb

Robusta coffee Fairtrade price: 106 US cents/lb

Robusta organic coffee Fairtrade price: 121 US cents/lb

Cocoa Fairtrade price: US$1600.00/tonne, plus US$150.00 Social Premium

The Fairtrade system guarantees that, if the world market price is lower than the set minimum price, then buyers will pay the minimum price. If, however, the world market price is above the minimum price, Fairtrade buyers will pay an additional US$ 150.00/tonne above the prevailing market price.

The Cafédirect Gold Standard coffee price

While Cafédirect adheres to the same minimum price as other Fairtrade buyers, the company's Gold Standard policy stipulates that a Social Premium of an additional 10% is added on top of the market price. If the addition of 10% always still means the total is below the minimum price, Cafédirect will nevertheless pay the minimum price. If, however, the new figure is above the minimum price, then the company will always pay the new higher price.

How growers use the Social Premium

All co-operative members contribute to a collective decision on how to spend the Social Premium. It could be used to establish farming initiatives or spent in the development of local communities, or invested in production schemes such as control systems, new buildings and equipment, organic production and certification. For some co-operatives, the emphasis is on future generations and funds are put towards education initiatives, enabling more children to go to school. For others, improvements in healthcare, communications and transport infrastructures are a priority. You can find out more about some of the projects the Social Premium has funded in the Growers section of this site.

to improve the living conditions of people - especially in countries of the 'Third World' - suffering economically and socially for regional, national and international structural reasons. It wishes to work as a reliable partner of the producers, to make it possible for them to take part in national and international marketing and to secure a decent living for them out of own efforts
a primary gepa objective



Emmanuelle LeDrian, speaking about MACEFCOOP's commodities used within the UK Fairtrade products Cafédirect and Cocodirect at the AGM

Fairtrade is the key to sustaining long-term improvements for MACEFCOOP. Fairtrade standards ensure a fair return for well-regulated businesses undertaken in compliance with Fairtrade standards: these help to ensure that management of the cooperatives is democratic and in the best interests of producers and consumers.


During a FLO inspection of MACEFCOOP


Concluding remarks by Chris Newell of Twin (UK) after a week of workshops


The Managing Director, Schwarz Agbor, during the annual evaluation


A member presenting the results of his workshop


Members singing and dancing during a break


A MACEFCOOP member leading the singing and dancing during a break in the workshops