Natural Raw Materials - 17.09.2014

Five years of Fairtrade in Sri Lanka

The Fairtrade label offers numerous advantages for farmers from Third World countries. In 2009, Worlée supported a new project in Sri Lanka – what has happened since then?

Dedigama is a small town in western Sri Lanka. Here in the Indian Ocean, a remarkable agricultural project has been under development since 2009. Local farmers joined together five years ago to create a producer organization, and since then they have been growing raw materials for the world market under the Fairtrade label. Along with ginger, pepper and cinnamon, regularly cultivated products include cloves, mace and nutmeg leaves as well as gota kola and turmeric. The farmers of Dedigama, having already received organic certification for their farming in 2002, made the decision in 2009 to add Fairtrade certification to their credentials. As a long-standing partner, Worlée has supported and financed this project.

Fairtrade certification offers many benefits to the farmers. In order to provide protection against price decreases on the international market, the “Fairtrade Labeling Organizations International e.V.” sets minimum prices and premiums for each individual product. Likewise, the Fairtrade association supports sustainable production through additional payments to the farmers, who then decide for themselves about the allocation of these premiums to appropriate projects. The Fairtrade mark is awarded and regulated by the independent certification organization FLO-Cert, which operates according to the requirements of the accreditation standard ISO 66.

In 2013, Worlée was able to generate approximately 35,000 euros in Fairtrade premiums from the sale of products from Dedigama, and these funds were channeled directly to the “Dedigama Maha Parakum Export Agriculture Development Society“ (DEMEADS). This money particularly benefits social services and education for the families of the farmers. As a result, many children received new books, uniforms and shoes during 2013, while a medical camp was established to provide access to free medicine. Further, in recent years the community has organized regular workshops focusing on the sustainable cultivation of herbs and spices. Water pumps were also purchased to prevent farming interruptions during drier seasons and to ensure a regular income. Since the beginning of the project, savings accounts with monthly fixed deposits have been set up for 40 girls from impoverished families. On their 18th birthday, they will receive the money as start-up capital for their futures.

During the last five years, there have been many developments in this little corner of Sri Lanka, and Worlée is proud to have contributed to these results. The north German company’s involvement is not limited to this part of the world, however. Worlée plays an active role in Fairtrade projects in India, Egypt, Madagascar and Burkina Faso as well. Throughout the world, more than 1.4 million people in 70 countries work under the purview of the Fairtrade label. About 94 million euros in direct income was generated for producers in this way during 2013. This was made possible by sales of 654 million euros for Fairtrade products. According to the 2013 GlobeScan Study, FLO Fairtrade is the world’s best-known label in the fairly traded product category. In Germany alone, this quality mark is recognized by around 80% of consumers, and 98% of these trust the name. Fairtrade is a good thing that is clearly set to grow more and more quickly.



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