Fair Trade is a growing market and offers both opportunities and challenges for the Lao producers. This was the message conveyed during a seminar on Fair trade, organised by the Lao National Chamber of Commerce and Industry (LNCCI) in Lane Xang Hotel last September 9, 2009. The Swiss Agency for Development and Cooperation (SADC), the Royal Dutch Embassy and Netherlands Development Organisation (SNV) co-sponsored the event.
The Fair Trade concept was primarily developed to fight poverty by creating just, honest and transparent trade agreements between producers and buyers. With Fair Trade certification, consumers are assured of buying products and services that have been produced or delivered under fair conditions. Fair Trade principles complement the current policies of the Government of Laos to promote more value adding initiatives and investments in the country.
Sales of Fair Trade products are 70 times larger than ten years ago. Sales of products carrying the World Fair Trade Organisation (WFTO) or the Fair Trade Labelling Organisations (FLO) marks are specially booming. In 2007, certified products sales were €2.381million (46% up from 2006), and non-certified products added up to €265 million (7% up from 2006). Popular products having the Fair Trade marks include coffee, tea, cocoa and cotton.
However, Fair Trade is not for everybody. Getting into the market is not always as easy as it may sound. For a few, becoming Fair Trade certified firms proves a challenge for many small producers. Adjustments and changes are necessary. From their organisation to production and to distribution and logistics must be adjusted to comply with Fair Trade standards and meet international quality standards. On top of this, remaining certified is not cheap!
In Laos, less than ten companies and cooperatives use the WFTO mark or the FLO mark. Many more simply work according to the Fair Trade principles. The Fair Trade Laos (FTL) is an initiative established by a small group of motivated enterprises and NGO’s who recognize the potential of Fair Trade to improve producers’ and farmers’ lives while offering customers high-quality products. FTL aims to become the legitimate representative and a catalyst for change among the Fair Trade producers in Laos.
For the seminar, LNCCI invited Fair Trade specialists and speakers from Thailand, Cambodia, the Philippines and the Lao PDR. They shared their lessons learnt and best practices with about 55 participants from the Government, private sector, NGOs and development agencies. The participants discussed how a Fair Trade sector could be developed in Laos. EDC’s consultant – Phonesavanh Latmany (Ki) moderated the seminar including the group discussion sessions successfully. The seminar yielded fruitful results and recommendations for action.
Following this seminar, the FTL organized a whole day visioning workshop last September 11, 2009. The workshop: (a) formalized the FTL group as an organization, (b) set up its vision and mission statements, and (c) identify and agree on the group’s ways forward. This workshop was facilitated by SNV senior advisor, Rik Delnoie; Helvetas advisor, Andrew Wilson and EDC partner, Somchay Soulitham. The group came up with draft vision, some strategies to tap the existing opportunities and overcome risks and a doable action plan.
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