Fair Trade USA to leave FLO system

Twin is concerned about Fair Trade USA’s recent announcement that they are to leave the FLO system. The USA is a significant Fairtrade market and accounts for over 40% of global Fairtrade coffee sales.  Many of the smallholder farmer groups, with whom we work, are dependent on exports to USA Fairtrade markets (up to 80%). The full implications, however, of Fair Trade USA’s decision are not immediately apparent. For many producer organisations these changes have created a significant level of uncertainty. 

We would like to urge Fair Trade USA and the Fairtrade Labelling Organisation to ensure that the interests of all current Fairtrade suppliers to the USA are protected as a matter of paramount importance. This will include providing assurances of continuity of the market in the short and medium term. We encourage both parties to define a period of ‘transition’ in an open and transparent way to help producers make informed decisions about their future. We urge direct communication with producer networks.

Notes:
Twin is a not for profit organisation which works only with democratic smallholder producer organisations. 32 democratic farmer groups are members of Twin and help to define strategy and appoint Trustees.

Prior to Fair Trade USA’s announcement Twin, RedCafe/CLAC and Fair Trade USA signed a tripartite memorandum of understanding to work collaboratively to secure funds to support capacity building efforts for smallholder farmers in Latin America. This was made in good faith without knowledge of the decision to leave FLO and does not represent an endorsement of Fair Trade USA’s decision.