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>View discussions about this entry País: United States
Organization: TransFair USA
Sector Focus - Business
Year the initative began (yyyy) - 2002
Positioning in the Mosaic of solutions
What is your signature innovation, your new idea, in one sentence? - TransFair USA prevents child slavery by enabling smallholder West African cocoa farmers to obtain higher prices for their products, and promoting greater supply chain transparency.
Describe your innovation. What makes your idea unique and different than others doing work in the field? - TransFair USA’s work with Fair Trade Certified cocoa is unique in that it combines internationally-respected regulation and regular inspection of cocoa farms with guaranteed financial resources and technical support for farmers to make compliance possible. Poverty and geographic isolation are the roots of many of the West African cocoa sector’s most serious social problems, including human trafficking and child slavery. Farmers faced with low market prices are often forced to expand the land they cultivate, exacerbating labor shortages and increasing the demand for child labor. Poverty also decreases educational opportunities available to cocoa farmers’ children. TransFair USA tackles these issues by guaranteeing farmers higher prices for their cocoa with Fair Trade.
Fair Trade gives farming cooperatives more direct links to their international clients, and allows them to earn higher prices. Through Fair Trade premiums, TransFair USA also provides cocoa cooperatives with resources to invest in education and local development. Finally, Fair Trade’s annual inspections of cocoa farms ensure that labor laws are met. Delivery Model: How do you implement your innovation and apply it to the challenge/problem you are addressing? - TransFair USA brings the supply and demand ends of the cocoa supply chain together, forging direct linkages between farmers, industry leaders, and an international network of technical assistance providers. We provide supply-chain auditing to U.S. companies sourcing Fair Trade cocoa, to increase transparency and guarantee that Fair Trade criteria are met. Finally, by promoting Fair Trade Certified cocoa, we connect farmers and industry to a growing network of conscientious consumers and advocates eager to reward them for their commitment to ethical production.
How do you plan to grow your innovation? - More than 48,000 small cocoa farmers in West Africa currently take part in the Fair Trade system, but there is enormous room for growth. TransFair USA is working to develop new opportunities for West African cocoa farmers to sell their products on value-added markets, and to build their agronomic and business capacities. This will enable current farmers to sell more cocoa on Fair Trade terms, and create opportunities for farmers who are not currently participating in Fair Trade to join the system. We are also dedicated to working with U.S. industry leaders, consumers, and advocates to educate the public about the hidden challenges of the global cocoa industry, and the benefits guaranteed by the Fair Trade alternative.
Do you have any existing partnerships, and if so, how do you create them? - Our partners are found throughout the cocoa supply chain, among producers, industry representatives, consumers, and advocates. Unlike many traditional development organizations, we view farmers’ cooperatives not as passive beneficiaries but as active partners, and cooperative leaders in Côte d’Ivoire and Ghana play key roles in designing and guiding our efforts to develop the market for their products and provide technical assistance to their communities. Other key partnerships include conscientious consumers and Fair Trade movement leaders. A global network of advocates in the NGO community, on campuses, and in communities of faith has played a leading role in raising consumer awareness of the need for Fair Trade in cocoa, and we continue to be grateful for these partnerships. Industry partners such as importers, manufacturers and retailers who take part in the Fair Trade system play an equally central role. We also work with allies in the international development and technical assistance communities to provide direct capacity-building services to our producer partners on the ground.
Provide one sentence describing your impact/intended impact. - TransFair USA’s work makes cocoa farming in West Africa more profitable, and cocoa supply chains more transparent, eliminating the need for forced or child labor.
How many people have you served or plan to serve? - TransFair USA’s work directly serves cooperatives in Côte d’Ivoire and Ghana representing nearly 50,000 smallholder farmer families. Many of these organizations are eager to expand their membership, and all are looking to sell more of their cocoa on Fair Trade terms. In addition, cooperatives elsewhere in the region, in Cameroon, the Democratic Republic of Congo, and other neighboring countries, will be entering into the Fair Trade network in coming years.
Please list any other measures of the impact of your innovation? - TransFair USA has provided additional income and new business opportunities for cocoa farmers since the beginning to Fair Trade Certification of cocoa on the U.S. market. Farmers have made more than $6.5 million worth of cocoa sales on Fair Trade terms to date, and earned more than $450,000 in funds specifically dedicated to development projects. In 2007, TransFair USA worked with 57 U.S. cocoa companies, nearly twice the number that participated just two years earlier. Each new partnership provides African farmers with additional opportunities.
Exactly who are the beneficiaries of your innovation? - The beneficiaries of Fair Trade in West Africa are farming communities, consumers and industry. Fair Trade helps farmers and farming communities become sustainable and increase their opportunities. Consumers can have confidence that the Fair Trade Certified chocolate they enjoy was produced responsibly, with a positive impact on the developing world. Our industry partners are key allies in developing market opportunities for the smallholder farming communities we serve, and we are proud to provide them with a credible means to ensure their social responsibility.
How is your initiative financed (or how do you expect your initiative will be financed)? - As much as 80% of TransFair USA’s income is earned from U.S. companies in exchange for our supply-chain auditing services. This earned revenue supports almost all of our core expenses. We rely on grants and contributions to support technical assistance to farmers and other investments in Fair Trade’s expansion and growth.
If known, provide information on your finances and organization - Annual budget;
Annual revenue generated; Number of staff: Annual Budget: $10,043,860 Annual Revenue Generated: $9,970,066 Staffing 2007-08 Full Time: 65 Part Time: 3-6 Volunteers: 2-6 What is the potential demand for your innovation? - The U.S Fair Trade coffee market demonstrates the growth potential if certified chocolate products are successful. The Fair Trade coffee market has grown an at average annual rate of 55% and Fair Trade Certified coffee has moved from niche, specialty markets into channels as mainstream as Wal-Mart stores. We are confident that similar mainstreaming of Fair Trade cocoa—and more importantly, dramatically expanded benefits for farming communities—is possible.
What are the main barriers to financial sustainability? - TransFair USA’s success in bringing Fair Trade into the mainstream has placed significant pressure on our operations—opportunities to expand Fair Trade are now growing faster than our revenue base. The potential impact of our work has increased exponentially, but so too have the expenses associated with bringing Fair Trade to scale on behalf of farmers. TransFair USA will initiate a growth capital fundraising campaign in 2009 to overcome these challenges and ensure that Fair Trade’s growth continues to bear fruit for farmers.
What is the origin of this innovation? Tell us your story. - Even though Americans spend $13 billion a year on cocoa products, many small-scale family cocoa farmers face tremendous instability. They are often forced to sell their harvest to local middlemen who use rigged scales or misrepresent world prices. Recent media reports of child slavery on West African cocoa estates show the stark contrast between the delicious treat we enjoy and the often difficult working conditions of the people who produce it.
By guaranteeing farmers a fair and sustainable price, Fair Trade allows cocoa farmers to invest in post-harvest techniques that bring out the individual flavors of the particular cocoa-growing region. Fair Trade cocoa beans aren't "faceless" cocoa beans bought on an international exchange, but beans that can be traced back to an individual cooperative and even an individual farmer. TransFair began certifying Fair Trade chocolate and cocoa in 2002, and by 2007, 57 U.S. companies offered Fair Trade Certified chocolate products. Already, Fair Trade Certified hot cocoa and chocolate bars are offered in thousands of retail locations around the US, including a rapidly growing range of mainstream supermarkets and retail outlets such as Trader Joe’s and Costco stores. Please provide a personal bio. Note this may be used in Changemakers marketing material - Paul Rice became TransFair USA’s founding President and CEO in 1998, following eleven years working with smallholder farmers in northern Nicaragua. TransFair USA has now enabled farmers to earn more than $113 million in additional income. Paul’s work with TransFair USA has been recognized by leaders including Ashoka: Innovators for the Public, the World Economic Forum, and the Skoll Foundation. Paul holds an Economics and Political Science degree from Yale University and an MBA from the Haas School of Business at UC Berkeley.
Contact Information:
Daniel Stokes
Development Manager TransFair USA (NGO) dstokes@transfairusa.org TransFair USA 1500 Broadway, Suite 400 Oakland, CA 94612 United States Tel: (510) 663-5260 Fax: (51) 663-5264 Website: www.transfairusa.org Discussions about this entry
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Combating Child Labor through Fair Trade in West Africa
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i need cocoa dealers on here interested firm or companies so pls visit my business website to see few of our many available products......i hope to receive a good responses...here is my web address www.paloo.pa
On July 16, 2008, the judges reviewed the entries for the Changemakers “Ending Global Slavery” Competition and would like to pass on the following feedback for your entry. Thank you for applying and for your hard work in the field. We are excited to archive your entry to serve as a leading solution for the worldwide community of innovators who are exposing, confronting and ending modern day slavery. We wish you continued luck with your sustainable, innovative, and socially impactful initiatives.
All the best, The Changemakers Team
“This project is ambitious in that it is working to address a widespread global issue by encouraging chocolate companies to take responsibility for ending the oppression of children. It addresses the “middleman” issue by working to empower farmers at the local level while also trying to create partnerships with mainstream stores. We should connect them with other businesses to expand their reach: first, Ruth Pojman would like them to link with a chocolate store in Vienna, near the OSCE office.”
“If fair trade becomes widespread and influences the humane manufacturing of products sold globally, this initiative can promote great social impact by a certification program that ensures that other companies are not contributing to the problem. With a significant budget and great potential for sustainability, this is the opportunity to promote large-scale impact with Nestle. If customers insist on only purchasing chocolate produced through fair trade, large cocoa companies will change their practices and follow the lead of TransFair USA.”
- Changemakers “Ending Global Slavery” Judges: United Nations Global Initiative to Fight Trafficking, International Organization for Migration, Design Within Reach, Vital Voices Global Partnership, Organization for Security and Cooperation in Europe, Humanity United.
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The Changemakers Team
Ashoka's Changemakers
Hello Daniel,
Could you please share a story describing the ways in which a family or a community have benefited from Transfair's work?
Thank you!
Dana Frasz
Ashoka's Changemakers
Hi, Dana,
Fair Trade Certified cocoa's most positive impacts are perhaps best described at the cooperative level---along with individual farmers and their families, entire communities can benefit from the proceeds from Fair Trade Certified cocoa.
Kavokiva, in the Daloa region of Côte d’Ivoire, has seen tremendous growth, from 600 members to over 6,000 members today. The cooperative has publicly acknowledged Fair Trade's power to increase incomes and opportunities while fighting against child exploitation. Kavokiva President Fulgence N'Guessan says, "Fair Trade is a unique solution to improve our living conditions and fight against abusive child labor. We will fight with the help of the Fair Trade network to improve the lives or our members."
Kavokiva has been recognized by the Ivoirian government and by key NGOs as one of the most transparent and effective cooperative organizations in the country, high praise in a region known for extensive corruption. The region’s climate and terrain are also ideal for quality cocoa production.
Protecting children and providing them with opportunities has been among Kavokiva’s most important efforts. The cooperative maintains a very active anti-child-labor education program for members and their neighbors. Kavokiva also identifies families who are unable to afford school, and registers their children for school or vocational training, as well as providing scholarships. The cooperative has also provided health and wellness infrastructure benefiting members and their neighbors.
In Ghana, the Kuapa Kokoo cooperative has been breaking social and economic barriers for cocoa farmers in West Africa through Fair Trade since 1993. Fair Trade premiums from U.S. and European markets provide money to educate farmers’ children, build and maintain health facilities, and provide access to a credit union. Kuapa Kokoo owns 33% of international chocolatier Divine Chocolate, one of the most popular and respected Fair Trade brands in the UK, with a growing U.S. presence as well. Thanks to Fair Trade, Kuapa Kokoo member Francis Bediako-Manu's sons, like those of many neighbors, have been able to attend high school.
The film Black Gold exposes the slave labor in the Ethiopian coffee business, but I'm sure it's quite similar to the exploitation of cocoa farmers in West Africa. Although some stores now offer fair trade chocolate, it would be wonderful to see major industries like Hershey's and Nestle adhering to the Cocoa Protocol (although I've heard that Hershey's is making strides). Great work and keep the pressure up!
Dear Becky,
Thank you for your comments. It is true that coffee farmers around the world--like most smallholder farmers in the developing world who depend on export markets for their livelihoods--often face real struggles in terms of market access and sustainable livelihoods. That represents one of the main reasons TransFair USA and our fellow Fair Trade labeling initiatives in other countries do our work: since 1998, coffee farmers in Ethiopia and dozens of other countries have earned more than $100 million in additional income from the U.S. Fair Trade Certified coffee market alone. Tadesse Meskela, of the Oromia Coffee Farmers Cooperative Union, profiled in Black Gold, is a good friend of TransFair USA's, and a major advocate for Fair Trade internationally. His cooperative plays an important role in the U.S. Fair Trade Certified coffee market.
Fair Trade Certified coffee has made real inroads into some major, mainstream companies' business models in recent years, both in the U.S. and internationally, and we are confident that if TransFair USA and our allies can obtain the proper resources to invest in farmers' business capacities, the quality of their products, and the development of U.S. market opportunities, similar mainstreaming is possible for Fair Trade Certified cocoa in the future.
Dear Mr. Stokes;
The need to address the root causes of child labor and exploitation- mainly poverty- can not be overstated. I commend the efforts of TransFair USA. Though I can see the pathway through which your program would ultimately decrease child labor- by decreasing overall demand- I was wondering if you have systems in place to actually measure and evaluate the impact of your programs on child labor in the areas where you work.
Thanks!
Laura cardinal Public Health and Human Trafficking specialist
Dear Ms. Cardinal,
Thank you very much for your comments. International teams of inspectors visit participating cooperatives on an annual basis, and in cases of suspected non-compliance--either with Fair Trade standards of democratic and transparent governance, or legal requirements--surprise inspections also take place. Violation of child labor laws carries the threat of immediate suspension from participation in the world Fair Trade market.
Cooperatives are also required to provide their colleagues within the global Fair Trade system with written development plans they intend to implement using Fair Trade premiums and revenues, and regular updates on their progress. In West Africa, these plans without exception include education programs, and most co-ops we work with track school attendance among their members' children. In Cote d'Ivoire in particular, cooperative leaders have been very active in creating and implementing awareness-building campaigns for their communities about the threat of child exploitation.
In short, we work in very close partnership with the cooperatives we serve in Cote d'Ivoire and Ghana, and we rely heavily on them to ensure compliance with all applicable labor laws. It is true that many of our anti-trafficking efforts depend in large part on self-monitoring, but we are inspired by the sincere commitment that our cooperative partners have demonstrated in this area, fueled by the additional revenues we help to provide.
Best regards,
Daniel