CEBU, Philippines – The newly launched Fairtrade Marketing Organization of the Philippines (FMO) has claimed that "zero awareness" among Filipinos on the economic and social role of fair trade is its biggest challenge.
Lawyer Alejandro Florian O. Alcantara, president of Fairtrade Philippines (FP), said they want to promote fair trading in the country.
The idea of fair trade is that farmers in developing nations like the Philippines get an agreed and stable price for the crops they grow as well as the so-called fair trade premium used to invest in social projects and enterprise development of farmers' groups.
Fair trading offers producers a better deal with the minimum price — a price floor to protect them if market prices fall — and the premium which is an extra fund for producers to invest in community projects.
In an interview, Alcantara pointed out the organization's big challenge is the consumers' lack of understanding on the social impact of fair trade on the life of poor farmers.
Efforts to create Fairtrade Philippines started in 2013 and the move comes now after two years of collaboration with producers, traders, consumers and after fulfilling all the requirements of Fairtrade International to become an FMO, which was launched in Cebu last Friday.
Fairtrade Philippines aims to increase sales of fair trade products in the country and bring more farmers, businesses and consumers into the system.
The Philippines currently has three fair trade producer organizations: the Dama Farm Workers Agrarian Reform Beneficiaries Association and Nakalang Padilla Workers Association, which both produce cane sugar; and Fairtrade Farmers Credit Cooperative which grows oil seeds and coconut.
The country also has two traders that hold fairtrade certification namely Alter Trade Corp. and Global Organics Livelihood Development. At present, only three supermarket chains sell fair trade goods — Rustans, Metro and SM — and specialty stores such as Healthy Options and Duty Free.
To support the fair trade movement, Alcantara said FP wants to work with established food manufacturers because they have existing domestic and export markets as well as suppliers of their raw materials.
Sandy de Veyra, FP general manager, said: "The market here is ready to embrace," citing the rise in the number of retailers selling fair trade goods.
Alcantara said the organization wants to achieve the long-term goal of enjoining 33 small farmers groups, 32 fair trade certified traders, and 30 supermarkets into the system, 500 fair trade goods sold and 30% consumer awareness, all by 2020.
"Less than 100 out of the 30,000 fair trade products available globally are sold in the Philippines or 0.003% only," the official said.
Although fair trade goods are priced higher, he said consumers who buy them are helping small farmers get out of poverty through the premium paid to them.
Andrea Richert, manager at Fairtrade International, said that in 2014, consumers around the world spent 5.9 billion euro on goods carrying the Fairtrade mark. Farmers in 74 countries are now benefiting from increased sales of these products. They received an estimated 105 million euro in fairtrade premium to invest in business and social projects.
Alcantara said ethical consumerism is key to drive demand for fair trade goods in the Philippines and eventually helping farmers earn better income. (FREEMAN)