ETHICAL SOURCING

Ethical Sourcing Breadth and Scope

The global movement toward ethical sourcing, decades in the making, was buoyed by political tides and growing outcries to end exploitation of workers in third-world countries. Fairtrade International was established in 1997 by a group of ethical sourcing organizations to synchronize standards and approaches to drive global strategy. Fairtrade America, started in 2012, is a related offshoot. The movement to protect worker rights and dignities continues to expand in breadth and scope across borders, company infrastructures, and commodities from its original roots in coffee, cocoa and banana production at small-scale farmer co-ops and plantations, where it is most widely known and associated with both retailers and consumers.

“We want to support the development of Fair Trade in ag production and other areas, regardless of the commodity, geography or farming structure,” says Nathalie Marin-Gest, director of produce & floral, Fair Trade USA, Oakland, CA (an independent entity from Fairtrade International and Fairtrade America).

“Over the years, we’ve learned where there are gaps, and as we’ve updated our programs and standards we’ve been able to address those workers that had not been included in our programs,” she says. “Our approach is continuous improvement. We really care about working with all kinds of partners, wherever they are on a continuum, to eliminate poor working conditions, forced labor and child labor, bettering health and safety protocols and equipment, medical care, and training,” she says.

“We decided in 2014 to look at this domestic space more seriously. What we saw was concern about farm workers wherever they are regardless of what side of the border they’re on, even if there is different infrastructure, impact could still be had. Wholesum Harvest, based in Amado, AZ, indeed was the first farm to get Fair Trade certified in the United States. They were great partners that had already been Fair Trade-certified in Mexico, and encourage other growers and farms to get certified, and push that Fair Trade movement,” says Marin-Gest.

The program is not just for local workers but also helps seasonal migrant workers. “The Campo Borquez Asparagus Farm in Northern Mexico has workers from Veracruz, an area in the Southeast of Mexico,” Marin-Gest says. “Women had to walk six hours a day collecting water. Now through a premium-funded water project, everyone has a house with running water.”

Demonstrating workers’ selfless support of each other at another farm, “there was a natural disaster in an area of Mexico, where some of the workers were from, and together they decided, ‘we’ll put our plans on pause, and we’re going to use our premiums to send supplies down to our colleagues in the South,’ she says.

It is important to educate consumers so they know the value of their purchase, says Marion Tabard, vice president of marketing, North America for Fyffes. For instance, impact envelops the Corporacion Rosalba Zapata Cardona, one of the banana cooperative’s Uniban associated farms, and one of the first Fair Trade-certified farms in Uraba, Colombia:

From 2009 through 2016: More than $5 million was invested for housing development; more than $1 million in funds to students to support their education through scholarships, loans and school supplies; and more than $1.1 million of funds to build a community center with auditorium and recreational facilities.

“While we’ve grown a lot, we still don’t see that many Fair Trade products as a percentage of the total produce department in the United States; it’s a challenge,” acknowledges Kyle Freund, media manager of Fairtrade America. “Whole Foods in the United States really ushered in the concept of responsibly grown, but operates differently in that it accepts Fair Trade-certified products as part of its Whole Trade private label program,” he adds.

“It comes down to knowing your consumer as the motivation for carrying [ethically sourced] products and assuring shoppers of the heavy impact their purchase has on the workers and the producer countries,” he says.

Companies are building their ethical sourcing programs in many ways. Divine Flavor’s Alta Foundation serves employees in Mexico; the seasonal workers who travel to Grupo Alta and Divine Flavor’s farms and work in the fields, explains Alan Aguirre Camou, head of marketing at Divine Flavor, headquartered in Nogales, AZ. “Through the Alta Foundation, we give back to employees in many ways: we provide healthcare and healthy food at our company cafeterias, and we offer scholarship programs to those who wish to gain new skills.”

Adds Batard, “retailers and suppliers have the opportunity to work together to empower consumers and help them make a difference, simply through the purchase of [ethically sourced products].”

The question now: will the industry band together to require a restrictive, ethically sourced supply chain for the well-being of the industry; and more importantly become a collective conscience for the well-being of its workers?


Hearing Their Voices First-Hand

Produce Business visited Wholesum Harvest Fair Trade growing and packing operations, in Amado, AZ, and across the border in Mexico, having the chance to meet with Fair Trade Committee members and workers and see some of the Fair Trade community projects they commandeered through the Fair Trade premiums they received.

The democratic process involves thoughtful and dynamic debates between Fair Trade Committee members and workers on how to prioritize and invest Fair Trade premiums, referred to as Community Development Funds, for housing, medical care, transportation, education and other invaluable community projects. Since all workers get a vote in the process, it involves trade-offs and often excruciating decisions on what to sacrifice or put on hold. The benefits end up balancing out to help everyone over the long term, explains Adriana Alcoverde, WFA packhouse operator at Wholesum Harvest’s Amado Packhouse. She didn’t gain personal advantage from the health insurance program, which won the final majority vote in a tight race over the housing option, with a one-vote margin. It will be life changing for many to offset uncovered medical costs, according to Hazzany Ibarra, WFF re-pack team lead and Committee president. For the next round, there will be an effort to focus on those that weren’t part of the premium disbursements before.

“At first, it was very hard to make workers understand the concept of deciding projects that are affecting everyone as a community versus, ‘Just give us our individual share,’ he says. “I see a difference in people, feeling proud of what they’re doing because they’re able to help each other with projects that have a strong impact,” says Jessica Garcia, WFA GH operator and Committee secretary.

In a bit of serendipitous timing, an important annual training session is underway for all the workers to educate them on employee labor rights, Fair Trade standards, sexual harassment and the company handbook. Jennifer Jackson, supply chain specialist at Fair Trade USA is here, along with the Fair Trade Committee and Wholesum Harvest HR management to help workers understand their rights, and address questions and concerns.

Across the border, a Fair Trade Comercio Justo Mini Market in Los Janos, Sonora, Mexico, was started by Wholesum workers, who are also in charge of running it, explains Ana Fabiola Rodrigez Lauro, Committee president. She took on the responsibility after being nominated and elected by her peers. “We’re not trying to turn a profit; we’re just trying to stay solvent, operating at cost, so that our prices are affordable,” she says, pointing out, other markets in the municipality have price markups that are untenable for the workers. Now, the Mini Market has refrigeration in the back, a godsend, and the store has grown at the same time; they recently installed their first ATM machine, [also offering workers financial training/planning guidance], drawing crowds from neighboring communities, she says.

Nearby is another premium-funded project, a small tortilleria, where Wholesum Harvest workers prepare this staple product in the Mexican diet more economically using equipment to mechanize the process, serving tortillas fresh daily to the community. Other ongoing projects include contributing funds to provide meals for school children and plans for an onsite kitchen at a Mexican government-run elementary school in the area, where the children are in need of supplemental nutrition, according to Jessie Gunn, vice president of marketing at Wholesum. Across from the school, investment in a community soccer field with bleachers at first seemed like a luxury, even with the field of dirt, according to Francisco Landell, WFS general manager. The decision proved glorious, he explains, instilling energy and cheers into the community and providing children with healthy athletic activity, team-building skills, and hope for them and their families.

We sit around a table at the premium-funded community center in Los Janos, Sonora, filled with library books and computers. Gunn and Olga Borguez, sustainability manager, are here to check in with the Committee members and to offer assistance. Magdaleno Sandoval Gonzalez, WFS greenhouse operator, and Committee treasurer is highly proficient at his job, yet he lacks a formal education. “Fair Trade is my school,” he says, noting that his child was able to go to college; something that at one time seemed unfathomable, because of a Fair Trade scholarship. “We do want to thank everyone that’s purchasing Fair Trade-certified products because it’s more than the actual money we need, it’s our ability to learn skills and to advance in our jobs, to have pride and dignity. Fair Trade brings us hope for our future and for our children’s future,” he pauses, as his eyes well up with tears, “Gracias.” Nodding in agreement, the other Committee members repeat his one-word sentiment in an overlapping harmony.