OAKLAND, CA - Some come to a fork in the road and choose a path already paved. Others forge a new direction, a new vision—this is the way of Fair Trade USA™.
“We are innovating the Fair Trade USA model to unlock volume growth and scalability. This includes incentivized volume-based commitments with retailers, simplifying our premium pricing, and updates to our Agricultural Production Standard,” Paul Rice, Founder and Chief Executive Officer, tells me as he details the evolution of the program.
As we approach the 2023 International Fresh Produce Association’s Global Produce & Floral Show (GPFS), the excitement around Fair Trade USA’s new program is palpable. Recently, Paul shared with me how sourcing Fair Trade Certified helps the produce company, the brand, and farmers and workers.
In this feature, Paul shares the horizon items at play and how value is evolving under the new Fair Trade USA program. To begin, he tells me about a new element aimed at buyers.
“The Retailer Incentive Program is designed to help retailers and foodservice operators meet their Ethical Sourcing goals by committing to purchase more Fair Trade Certified™ produce. This ultimately helps them reduce risk in their supply chain and adds value for their customers as more consumers are demanding sustainably certified products,” Paul reveals. “By committing to purchasing increased volumes of Fair Trade Certified produce, more farms and farmworkers will experience the benefits of Fair Trade certification.”
In addition, there is an incentivized fee structure that offers a reduced price to all of the retailer’s Fair Trade Certified suppliers.
On top of the progressive new direction for Fair Trade, the organization has also simplified premiums that are designed to make it easier for producers, importers, and retailers to commit to increasing volumes of produce traded and sold on Fair Trade terms, thereby increasing the benefit to workers and their communities.
“Level-setting our pricing and premium model is necessary to achieve scale and address our customers’ concerns about both of these as barriers to growth. This shift will allow broader access to purchasing with purpose across consumer demographics and income levels,” Paul expresses. “We believe these changes will also activate the domestic produce market, enrolling more growers in the U.S. in Fair Trade.”
Each element of the program’s evolution had a specific challenge and goal in mind when it was set into motion. Part of this process kicked off with Fair Trade USA undertaking a thorough review of how to best continue to drive the kind of resiliency producer partners need to navigate these current and future obstacles, as well as stabilizing the way they work with industry partners to give them the ability to forecast and responsibly invest in continued growth through fair trade.
“A rigorous system of certification requirements combined with a complicated premium and service fee pricing structure has been an impediment to greater participation in the program,” Paul adds, pointing to the increased transparency and vision here. “This has limited the ability of suppliers to sell on Fair Trade terms and to create a positive impact for farmers and workers. This has also presented challenges for fresh produce companies to scale and grow with the Fair Trade program.”
Paul continues to share how the nuts and bolts of the program are materializing in value for fresh produce companies. He gives me this breakdown to paint the picture of potential supplier success.
- Simplified Premiums: These are designed to make it easier for producers, importers, and retailers to commit to increasing volumes of produce traded and sold on Fair Trade terms, thereby increasing the benefit to workers and their communities.
- Overcoming Barriers to Growth: Level-setting Fair Trade USA pricing and premium model are necessary to achieve scale and address customers’ concerns about both of these as barriers to growth.
- Mitigating Environmental Risk: Fresh produce companies are at the forefront of climate change impact and the range of consequences inherent in it, so they have the most to lose if they do not lead with sustainable farming to mitigate local challenges and secure their supply.
- Strengthening Supply Chain: The Fair Trade Certified Produce Program will help them strengthen their supply chain through social, economic, and environmental investments that make communities and ecosystems more resilient.
If you can believe it, this is merely the tip of the iceberg for Fair Trade USA. With the GPFS just days away, mark your exhibitor list with an essential stop by booth #2530, and we will see you all at the show!
