Naturland Fair

Trading Values for those who care!

www.naturland.de

Organic. Social. Fair.

This was the fi rst principle of the conclusions reached by heads of state and government at the fi rst UN world summit in Rio de Janeiro in 1992. Today their declaration is more relevant than ever before. It is up to each and every one of us to do our bit to allow our planet to remain habitable for future generations too. This starts with the protection of our climate and of our water, air and soil, which are crucial to our survival, to world food security and the preservation of bio-diversity.

No matter where these declarations are made, be they in Rio or in the conclusions arrived at by the International Assessment of Agricultu-ral Science and Technology for Development (IAASTD) the experts see organic agriculture as the key to combating global environmental problems, hunger and poverty.

Organic – more than a question of good taste

As a consumer, fi rst of all, you can enjoy the sense of security which this form of agriculture provides -which manages to do without gene-tic engineering, synthetic chemical pesticides and mineral fertilisers to produce top quality, healthy foodstuffs. Species-appropriate animal husbandry, the exclusion of many additives, the encouragement of local economies and the creation of further jobs are other good reasons to opt for organic produce.

However, organic agriculture has its advan-tages even where it is not so obvious. Did you know that billions of tons of topsoil, which are crucial to our food production, are lost to

“Human beings are at the centre of concerns for sustainable development. They are entitled to a healthy and productive life in harmony with nature.”1

erosion every year? Organic farmers preserve this valuable resource by interfering as little as possible with the natural equilibrium, and by fostering the formation of humus. And this is just one of many examples of how they tackle persistent problems in harmony with nature.

Naturland, an internationally active organic association, is one of the pioneers which have been championing the development of organic agriculture throughout the world. From the very beginning we focussed not only on the organic but also on the social quality of our products. To Naturland, sustainability has meant, for almost 30 years now, accepting responsibility for people, animals and the environment.

1 REPORT OF THE UNITED NATIONS CONFERENCE ON ENVIRONMENT AND DEVELOPMENT (Rio de Janeiro, 3-14 June 1992), Principle 1

The EU Eco-regulation is the legal basis governing organic produce for imports to Europe.

Naturland has produced more stringent standards with much higher criteria for crop production, animal husbandry and for processing.

Besides these, all the Naturland farmers and processors must comply with social standards which are also examined in the course of regular organic inspection.

Naturland and GEPA start their international co-operation.

The fi rst tea garden in the world is converted to organic, with the help of Naturland.

Further fair trade organisations, such as dwp and BanaFair, become partners of Naturland.

Naturland introduces binding social standards for enterprises.

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Our three pillars of sustainability: Organic. Social. Fair.

There is much amiss in the farming policies worldwide: workers and suppliers are ex-ploited, producers have become dependent on industry, and global purchasing policies focus solely on procuring raw goods as cheaply as possible. All these evils generate immense ecological and social costs which you, the consumer, are in the end expected to bear.

Those most grievously affected are small-holders, and it is they who produce 70% of the world’s food supply. Since 1986 Naturland has been helping co-operatives in Asia, Africa and Latin America to convert to organic agriculture. By combining this with fair trade, they can achieve greater yield stability and reduce their dependence on expensive means of production such as synthetic chemical fertilisers and pesticides.

However, it is not only in economically disadvantaged regions that organic, social and fair trade aspects need to be amalgamated to form a strong whole. Even in Germany, the fall in prices is endangering the livelihoods of increasing number of farmers. Between 2007 and 2010 alone, 20,900 farms had to be abandoned. This is why Naturland is cam-paigning for a globally sustainable production and trading system based on three supporting pillars: organic, social and fair trade.

In 2006 we introduced the “Naturland Criteria for Fair Partnerships” and began presenting awards to companies managed in an exemplary manner. Our criteria were not only fair producer prices, which enable organic farmers to cover their production costs and earn an appropriate profi t. From the Naturland point of view, ”Fair” means more than that: for example social responsibility, long-term trading relationships, local procurement and consistent organic quality.

“Organic agriculture only has a future if farmers can live off it. That is why we need fair partnerships – both in southern countries and here in Germany.”Hans Hohenester, organic farmer and chairman of Naturland board of directors

Start of Naturland Criteria for Fair Partnerships

Further development of these criteria in co-operation with fair trade organisations and members

First “Naturland Fair” certifi cation standards

Naturland assembly of delegates passes the “Naturland Fair” standards.

Over 300 products bear the “Naturland Fair” logo.

2006 2008 2009 2010 2011

Naturland Fair: A logo for organic agriculture and fair trade

The know-how accrued by the fair trade or-ganisations and our long years of experience as an international association of organic farmers have been combined to produce the next stage to follow on the Naturland Fair

trade Criteria for Fair Partnerships. In 2010 this resulted in the passing of our “Naturland Fair” standards,

which establish the link between organic agriculture and fair trade the

world over.

They were drawn up to create new opportuni-ties for economically disadvantaged regions. Products bearing the “Naturland Fair” logo contain, wherever possible, nothing but fairly traded raw goods. This applies to milk or wheat from Germany as well as to products such as coffee or tropical fruit. In this way synergies are created which advance both organic agriculture and fair trade alike.

Since 2010, all the Naturland growers and processors can be certifi ed according to both organic and “Naturland Fair” standards at the same time. The “Naturland Fair” standards establish new criteria for visionary partnerships and trading relationships throughout the world:

1. Social responsibility– for example with respect to fair pay, right of association, observation of human rights and the prohibition of exploitative child labour

2. Reliable tradingrelationships – in the sense of long-term co-operation characterised by respect and trust between all trading partners

3. Fair prices for growers – by means of co-operative determination of prices which cover actual production costs and allow an appropriate profi t to be made

4. Local procurement of raw materials – by adopting a purchasing policy which gives preference to means of production and raw materials from the vicinity

5. Collective quality assurance – with the aim of establishing a co-operation of trust between all the partners, even and especially when problems occur

6. Social involvement with respect to jobs, environmental, social, health, cultural and educational projects

7. Corporate strategy and transparency – by creating a mission statement which includes the concept of fair trade, and by recording its implementation in writing

Convincing added value: the “Naturland Fair” logo is placed on organic produce which are made of organic and fair trade ingredients.organic and fair trade ingredients.

“The maintenance of existing jobs and the creation of new ones are also aspects of social responsibility. Today our co-operative processes and packs its own produce. The resulting savings are passed on to the growers.”Frauke Weissang, Naturland farmer from Italy and member of the TerraBio co-operative

“The effort and love of the small-holders’ families go into all of our products. We are committed to our children being able to inherit fertile soil from us, and to live in social peace and in harmony with their environment.”Noel Galindo, coffee grower and member of the Union de Productores Mexicanos Tierra Nueva S.P.R. de R.L.

Naturland Fair No. 1 Social responsibility

Naturland understands sustainability as accepting responsibility for people, animals and the environment. Our holistic approach therefore also includes our social relation-ships with all those who work and live on the farms. Long ago we drafted binding social standards which have now been incorpora-ted in the “Naturland Fair” standards.

It goes without saying that the observation of human rights specifi ed in these standards is in accord with those described in the UN conventions, the ILO International Labour Organisation Conventions and Recommenda-tions and the UN Convention on the Rights of the Child. These include the prohibition of exploitative child labour and forced labour as well as the assurance of the right of assembly and of access to trade unions.

However, social responsibility also extends to the constitution of working conditions and guarantees fair contracts, regular working hours, payment at or above the statutory minimum, equal treatment, social benefi ts and further education. Health and safety at the work place are likewise duties which fall within the scope of responsibility of every Naturland enterprise.

Fair trade is not just a question of price. It also applies to the quality and durability of the trading relationships between the growers and the processors. A spirit of fair co-operation, regular communication and the greatest transparency possible also play an enormous role. Another important aspect is the joint planning of the quantities required each year, something which gives the farms long-term stability and security.

“Long-term security of supply is very important to us, because we in turn want to be able to rely on supplying our own customers with Naturland fl our. It goes without saying that we pay fair prices and guarantee our farmers dependable demand for their products.”Michael Hiestand, management of Meyermühle, Germany

On the basis of this trust, it is possible to commit to advance fi nancing for the procure-ment of seed or agricultural equipment. The purpose of such relationships is specifi cally to benefi t growers in economically disadvantaged regions who have few fi nancial reserves or little access to bank loans. They make it possible even for smallholders to get a foothold in the market.

“Urocal, a smallholders’ organisation, is an important partner of BanaFair. We have had a reliable trading relationship with them since 1998, thereby helping to guarantee their food sovereignty and contributing to the sustainable development of their local environment.”Rudi Pfeifer, general manager of BanaFair e.V., Germany

Naturland Fair No. 2Reliable trading relationships

“Long-term security of supply is very important to us, because we in turn want to be able to rely on supplying our own customers with Naturland fl our. It goes without saying that we pay fair prices and

“Long-term security of supply is very important to us, because we in turn want to be able to rely on supplying our own customers with Naturland fl our. It goes without saying that we pay fair prices and

“The trade tends to strengthen its market power by lowering prices, something which it passes on back down the chain. Certifi cation to “Naturland Fair” standards protects the farmers and processors from this and guarantees them earnings which cover their costs and allow them to make a profi t.”Georg Schlickenrieder, Naturland farmer from Otterfi ng, Germany

Naturland Fair No. 3 Fair prices for growers

The future of organic agriculture depends on whether the farmers can make a living from their work. The current cheap purchase policy has led to a dramatic increase in the number of farms which have had to be abandoned. Just think of the dairy farmers who for years have had to contend with dumping prices to survive.

A price can only be described as fair if it is calculated to ensure a farmer can earn a livelihood from it. This means that, for one, it has to cover the going rate of production costs in the farmer’s vicinity. Besides this, it also has to produce adequate profi t to allow the farmers a margin suffi cient for investments to ensure the continued existence of their farms.The “Naturland Fair” standards encourage growers and processors to pursue a policy of co-operative and transparent determination of the asking price so that it complies precisely with these crucial aspects.

Development premium

All enterprises purchasing products or raw materials from ”economically disadvantaged regions” to produce goods certifi ed “Naturland Fair” commit themselves to pay an additional fair trade premium. This is charged with the aim of making long-term improvements to the economic and social conditions of producer groups, the quality of the smallholders‘ families lives and the organic status of the area. Annual reports include descriptions of how the fair trade premiums have been used to help the members and employees of each producer group.

„Our workers say one of the decisions to support the education of their children with fair trade premium in the form of stipends, scholarship etc. has been very rewarding as this has directly contributed in the reduction of school drop-out rates, more students doing well in the school examinations and going for higher education.“Prem Tamang, responsible for organic and fair trade in the tea production at Tea Promoters India

Naturland Fair No. 4: Local procurement of raw materials

Global substitutivity contradicts the basic principles of fair trade. These dictate that it is more important for fair trade to be based on structures which have evolved over time, and lively relationships between the indivi-dual links of the value chain. Consequently Naturland gives priority to local cultivation, processing, marketing and food supply.

Every processor who wishes to have products certifi ed to the “Naturland Fair” standards is encouraged to procure ingredients locally. Ideally at least 80% of the ingredients come from neighbouring regions, always supposing they are available in suffi cient quantities and the desirable quality. Exceptions can be made if raw materials are required from economically disadvantaged regions or if the growers of these raw materials should be given inducements according to the “Naturland Fair” principles.

“Real fair trade link must start with the most disadvantaged local farmers and acquisition all raw materials. Respecting minimum price structures is the key factor for the sustainability of the local community.” Dr. Sarath Ranaweera, BioFoods, Sri Lanka

“For us it is important to have reliable trading partners. We treat each other with respect, set great store by conscientious co-operation, and are able to plan our production quantities jointly with them.”Sabine Sichler, Naturland farmer from Grossrachlhof farm, Germany

Naturland Fair No.5Collective quality assurance

In truly fair trade relationships, the growers and processors work hand in hand in order to place their goods on the market in the best quality possible. To do so, close and trusting co-operation is necessary. Under the “Naturland Fair” standards, the partners are required to defi ne jointly how they can guarantee product quality long-term and even introduce improvements to it.

Should there be an instance where quality or supply problems occur, they join forces in devising plans for rapid and uncomplicated crisis management. This includes mutual as-sistance and support – be it in the cultivation, the harvest or in the processing. For both have a common aim: the production of top quality organic produce which wins the customers’ approval both for its taste and for its quality.

“The future of organic agriculture cannot lie in growth alone. What also is important is that small and medium-sized enterprises get a chance to continue to develop and that we make organic advances in plant and animal breeding and in marketing.”Jörg Große-Lochtmann, general manager of Marktgesellschaft der Naturland Betriebe, Germany

“Where quality assurance is concerned, we co-operate closely with our trading partners. Mistakes in production can be corrected in this way in advance. This is a reassuring factor for the consumer.”Stephan Beck, GEPA, Product Management Food Latin America

Naturland Fair No. 6 Social involvement

Fair partnerships encourage the establish-ment of a healthy welfare system and lively co-operation. Enterprises with products certifi ed “Naturland Fair” therefore need to pay particular attention to the public welfare. This can, for example, take the form of involvement in environmental protection projects, or in small-scale farming, but it also includes support of social, health, educational and cultural projects or charitable institutions.

“Naturland Fair” is in addition the creation of jobs and apprenticeships, wherever possible for handicapped people or those going through diffi cult stages in their lives too.

It also includes catering for employees, primarily using organic and fair trade products, and public relations work in which the public is informed about the background of fair partnerships.

Of particular importance, however, is involvement in economically disadvantaged regions. Under the “Naturland Fair” standards, enterprises in the north support smallholders in the south in three ways: they buy their raw goods; they support grower groups with such measures as further education, staff and organisational development; and they heighten their customers’ and partners’ awareness of the fair trade concept.

“Fair trade is especially successful wherever it is part of a holistic concept. Since dwp has started co-operating with “Bruderhaus Diakonie”, in Ravensburg alone 50 mentally ill people are given a chance to participate in working life.”Martin Lang, public relations speaker for Fair Handelsgenossenschaft dwp eG, Germany

“For us, managing our company in a sustainable manner according to fair trade principles means creating an environment in which all the partners deal with each other fairly and in a spirit of goodwill. This is the concept we propound within our company and in our projects.”Nicole Stocker, management of Hofpfi sterei, Germany Germany

Naturland Fair No.7: Corporate strategy and transparency

“Our vision for the future is that organic produce become an accepted and permanent feature in society, thereby preserving small-structured, extensive agriculture, particularly in mountainous regions.” Bernhard Pointner, general manager, Milchwerke Berchtesgadener Land, Germany

The “Naturland Fair” standards cannot be put into practice from one day to the next. All the seven items of the standards make great demands both of farmers and of processors. The objectives they intend to pursue and how they intend to realise them have to be written down in their corporate strategy. In addition, their operating principles have to be drafted as a policy or mission statement and then made public.

Every entity is part of a social structure in which employees, members, trading partners and, last but not least, the customers play a major role. Transparency is therefore indispensable, all the more so where the implementation of the “Naturland Fair” standards is concerned. This covers internal communication as well as a declaration of how prices are arrived at, the sources of raw materials and details of internal procedures. The public, too, must be addressed directly, so that a new organic, social and fair purchasing pattern of behaviour can become established.

“Our co-operative has 56 members growing rooibos in Suid Bokkeveld. An agrarian reform campaign has helped some of them to become farm owners. Our website informs the public in detail about our history, mission and organisation.”Ragel Hesselman, Rooibos farmer and member of the Heiveld Co-operative in South Africa

United we stand – for Organic, Social and Fair

With over 53,000 farmers and over 500 processors, Naturland is one of the major internationally active organic associations. In all parts of the world we are committed to making organic agriculture, social responsibility and fair partnerships a strong and united concept.

You as a consumer are an important link in the global value chain and can give direct support to work of Naturland. Every time you make a purchasing decision, you exert direct infl uence on the quality of life and of the work of farmers and their families.

So what exactly can I do?You can infl uence the range of products on sale by demanding products demonstrating features of sustainability. Ask in your shop for organic and fair trade products. As you already know: organic, social and fair trade products taste three times as good!

Naturland – Association for Organic AgricultureKleinhaderner Weg 182166 Gräfelfi ng, Germany

Tel +49 (0)89 89 80 82-0Fax +49 (0)89 89 80 82-90naturland@naturland.dewww.naturland.de

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For more information about Naturland and what we stand for, see www.naturland.de.

We thank Naturland partners, who provided us with photos for this brochure.