Starting today, 15 July 2020, the new version of the Fairtrade Coffee Standard is officially launched. Its updates aim at a stronger stance when it comes to unfair trading practices, and reflect the direction human rights and environmental due diligence is increasingly taking.
The standard applies to small-scale producer organizations and traders. As usual, there will be a transition period for both actors to adjust their practices and ensure compliance with the latest developments:
- The transition period for criteria impacting trading practices starts on 15 July 2021 and lasts six months, meaning it is effective as from 15 January 2022
- The transition period for criteria related to Human Rights and Environmental Due Diligence, starts on 15 July 2021 and lasts one year, meaning effective as from 15 July 2022
Please note criteria on entry requirements to the Fairtrade system will become effective as of today, 15 July 2021, since they supersede temporary measures already in place since 2020.
Tighter trading practices
In order to strengthen better trading practices, such as the creation of non-existing producer organizations and timely compliance of contracts, several updates have been made, including:
- More robust information to be provided as a producer organization or exporter applying to enter the Fairtrade system, as well as having mechanisms in place to monitor producer production and sales information.
- Clearer roles for exporters and sturdier contract criteria according to national and industry regulations
- Explicit clauses to ensure that the Fairtrade Minimum Price and premium benefits are maintained, and that where certified organisations sell both on Fairtrade terms and conventional terms, that conventional terms are always kept at least at market level and without a discount.
Bolder steps for the environment and human rights
To respond to market needs and upcoming legislation, we have now included sturdy criteria on human rights and environmental matters.
For example, when it comes to human rights, producers are now required to carry out mandatory assessments, and develop proactive policies and procedures for the prevention of child labour, forced labour and human trafficking.
As stated in our new strategy, we believe environmental action is critical. Including criteria related to environment and climate is therefore an imperative step in this direction. By implementing the standard, producers will count with a methodology to better assess their risks and adapt improved practices, becoming more resilient to the effects of climate change. The standard states that:
- Producers are required to carry out Environmental Risks assessments and record them on an annual basis
- The need to have a climate adaptation plan where risks are properly priortised
- Finally, adopting sustainable agricultural practices accordingly
Given the wider scope of topics included in the Coffee Standard, several measures will be put in place to support Fairtrade Producer Networks and producers themselves in this transition. This will include capacity building via training sessions and webinars, in addition to providing material and templates to facilitate the change. Producer Networks will begin training with producer organizations in January 2022