FLO_Standards_announcement_Soybeans and Pulses_EN

FLO_Standards_announcement_Soybeans and Pulses_EN

FAIRTRADE LABELLING ORGANIZATIONS INTERNATIONAL
To/Para: FT-certified soybeans and pulses
producers and traders / Productores y
comerciantes certificados de soja y
legumbres.
All LI directors / Todos los Directores
de las Iniciativas de Sello.
cc:
FLO Board/Junta Directiva de FLO
Standards Ctee/Comité de Criterios.
FLO International e.V.staff/Personal de
FLO International e.V.
FLO-Cert staff/Personal de FLO-Cert
Andreas Kratz
Standards Director/Director de la
Unidad de Criterios Fairtrade
Labelling Organizations International
(FLO)
December
5, 2008
Bonner
Talweg 177
53129 Bonn, Germany
Tel. +49 228 949 260
Fax +49 228 242 1713
[email protected]
December 5th 2008,
El 5 de Diciembre del 2008,
Subject: FLO Standards announcement: standards, minimum prices and premiums for soybeans
and pulses.
Tema:
Anuncio de la Unidad de Criterios de FLO: criterios, precios mínimos y primas para soja y
legumbres.
Dear all / A quien corresponda,
FLO Standards Unit has decided on new product-specific standards for soybeans and pulses for
Small Farmer Organizations. Mandated by the FLO Standards Committee to do so, these new
standards are presented below.
In the weeks to come, the English version of the standards on the FLO server and website will be
adapted to include the new standards mentioned above. The Spanish version will be included as well.
This version may nevertheless be published later than the English version because of time needed for
translation. For more information, please contact Isabelle Fragnière at: [email protected].
--------------------------------------------------------------------------------------------------------------------------------------La Unidad de Criterios de FLO ha decidido sobre nuevos criterios para soja y legumbres para
Organizaciones de Pequeños Productores. Por mandato del Comité de Criterios de FLO, los nuevos
criterios se presentan aquí abajo.
En las semanas siguientes la versión en inglés de los criterios será disponible en nuestra página de
Internet, con la finalidad de incluir los nuevos criterios mencionados arriba. La versión en español
también será incluida. Sin embargo esta versión puede ser publicada más tarde que la versión en
inglés debido al trabajo de traducción necesario. Para más información, por favor entre en contacto
con Isabelle Fragnière: [email protected].
FAIRTRADE LABELLING ORGANIZATIONS INTERNATIONAL
Fairtrade Trade Standards for Soybeans and Pulses
For Small Farmer Organizations
1. Product description
Fairtrade Soybeans and Pulses are all varieties of soy (Glycine max.) and pulses (dried grains of
leguminous crops) for which Fairtrade prices exist.
2. Scope
These standards cover the purchase and sale of pulses and the purchase and sale of soybeans fit for
human consumption.
3. Contracts
3.1 All international customary conditions apply unless overruled by any of the special FLO
conditions as specified in the FLO standards.
3.2 Buyers must sign binding purchase contracts with producers. Contracts must as a minimum
clearly indicate the:
- agreed volumes
- quality
- price
- payment terms
- delivery conditions
3.3 For soybeans, contracts between buyers and producers must indicate that accidental and
technically unavoidable GMO contamination is tolerated up to the levels defined by the applicable
national or international regulations, whichever is stricter. Contracts must specify which regulation
applies.
4. Sustaining trade
4.1 Buyers and sellers will procure to establish a long term and stable relationship in which the rights
and interests of both are mutually respected. Buyer and seller will sign a sourcing plan which
stipulates basic conditions such as: volume, quality, procedures to establish differentials and fix
prices, shipment schedules, etc.
4.2 Sourcing plans must cover each harvest. Renewals must be given as a minimum 3 months before
the expiry of the previous sourcing plan.
5. Prefinance
5.1 On request from the producer, the buyer must make available up to 60% of the value of the
contract in favour of the producer at any time after signing the contract.
5.2 As a minimum, prefinance must be made available at least six weeks prior to shipment.
FAIRTRADE LABELLING ORGANIZATIONS INTERNATIONAL
5.3 Interest charges on the pre-financed value must be mutually agreed on in a separate credit
contract. Interest charges shall be covered by the producer at the buyer’s current cost of borrowing or
on better terms for the producer.
7. Pricing, premium and payment terms
7.1 Buyers shall pay the producer at least the Fairtrade Minimum Price as set by FLO. The Fairtrade
Minimum Price for a product is the lowest possible price that the Fairtrade buyer must pay to the
producer and is the lowest possible starting point for price negotiations between producer and buyer.
7.2 When the relevant market price (where it exists) or the negotiated price for a product is higher
than the Fairtrade Minimum Price, then this higher price must be paid.
7.3 In addition to the price, the buyer shall pay a Fairtrade Premium as set by FLO. The Fairtrade
Premium is paid in addition to the price, whether this is market price, the negotiated price or the
Fairtrade Minimum Price. The level of the Fairtrade Premium is fixed and independent of the
minimum, market or negotiated price for the product.
7.4 For soybeans and pulses, the Fairtrade Minimum Prices and Premiums are given in the table
below.
Product
Minimum Prices
Producer
Type
Specify
whether
Organic or
Conventional
Origin
Currency /
Unit
Ex Works
Small
farmer
organiza
tion
Small
farmer
organiza
tion
Small
farmer
organiza
tion
Small
farmer
organiza
tion
Premium on
top of the
price
Validity
1
Soybean
conventional
Worldwide
USD/MT
355 USD/MT
35 USD/MT
12-11-2008
Soybean
organic
Worldwide
USD/MT
510 USD/MT
50 USD/MT
12-11-2008
Pulses
conventional
Worldwide
USD/MT
430 USD/MT
65 USD/MT
12-11-2008
Pulses
organic
Worldwide
USD/MT
540 USD/MT
80 USD/MT
12-11-2008
7.5 Payment terms:
For purchases made at ex-works level, payment must be made upon receipt of the product.
Best regards / Saludos cordiales,
Andreas Kratz
1
Ex-Works means on the premises of the Producer Organization