Focus Media (Kigali)
Sam Ruburika
4 November 2009
column
In a move to ensure that Rwandan producers attain better prices at international trade, a group of producers in collaboration with Rwanda Development Board have launched the Fair Trade movement / Rwanda chapter with the aim of sensitizing the producers on the benefits accrued from being Fair Trade certified.
Fair Trade concept has been around for four decades though a formal labeling scheme didn't take off until 1988 where the first trade label was launched under Solidaridad a Dutch labeling company.
The first Fair Trade coffee saw coffee from Mexico into Dutch supermarkets under Max Havelaar brand, a fiction Dutch character who opposed exploitation of coffee pickers in Dutch colonies.
Rwanda currently has 12 coffee cooperatives and one tea estate which are already Free Trade certified.
According to John Rebero, the chairman of Misozi coffee, a group of 9 coffee cooperatives which are already Fair Trade certified, it ensures that farmers maximize returns from the sale of their produce.
It further allows Rwandan companies to access markets of Europe, the Far East and the Americas with United Kingdom, United States of America and Japan being the main markets for Free Trade products.
Goods with Fair trade labels get a specific premium higher than the market value of the products which is in part used for social development activities such as building schools, hospitals and other basic infrastructure.
Moreover, there are initiatives to help cooperatives meet the Fair Trade standards: the Dutch development Agency (SNV) offers grants to companies solely for capacity building, while RDB offers an export facilitation fund such as the Rwanda Coffee Export Fund (RWACEF).
To be FT certified, there are certain standards that a company has to adhere to. For example, the company has to be transparent in its operations, keep proper records, have accountability, observe safety, payment of salaries, observe environmental requirements, avoiding genetic modified goods and have general managerial skills.
Membership fee
On top of that, to be a member of FT, there is a membership fee that a cooperative has to pay however, the less the members the higher the membership fee.
For instance, one cooperative was charged €3250 for membership and when nine cooperatives were registered, the charged was approximately €5000 which was by far cheaper.
"The more we join, the less the fees and it would go as far as ensuring we get our own supervisor," Rebero told participants at the launch.
However some of the already certified participants highlighted physical traceability problems which meant that coffee from certified cooperatives should not in any way mix with that one that is not certified, a requirement that participants said was impossible.
On the other hand members of some cooperative accuse people responsible for helping them in getting certified of intruding in cooperatives' affairs since they have to check that everything ranging from books of accounts to quality is done in a proper way
Currently companies in Rwanda are being inspected by a national liaison officer from Bonn, Germany the headquarters of Fair Trade.
However, once registered the companies have to keep consistency on the standards or else their certification is disqualified since there are regular supervisions.
Meanwhile, Rebero is looking to have more companies become Free Trade registered. "It's very important since it gives us a strong voice not only in Free Trade but also within the region," Rebero stated.
He pointed out that Rwanda being a land locked country puts it in a position where it cannot afford to remain behind since inter competition within the EAC is expected.
"Whereas the rest of the EAC members can walk we are required to run if we are to be able to compete on the regional level," Rebero added.
He hinted at the set up of East African Community Fair Trade Network which would ensure that accessing of foreign markets as a region which would give the EAC a comparative advantage.
Apart from certifying Rwandan products Rebero thinks that it would be possible to certify Kigali city if all quality and standards are adhered to. The move would in turn ensure not only increase in number of visitors in the country but also in terms of consumed products.
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