Enabling Compliance of Fair Trade Supply Chains with New EU Regulations

New European sustainability legislation is increasing the requirements placed on companies operating in agricultural supply chains. Small and medium-sized enterprises in particular need practical information, advice and suitable tools to make their supply chains more transparent and sustainable.

These requirements relate in particular to deforestation-free supply chains, corporate due diligence and organic production. Smallholder cooperatives in the Global South face particular challenges in meeting the growing requirements and are concerned that they could be excluded from the European market.

The German Federal Ministry for Economic Cooperation and Development (BMZ) funds the project to support the implementation of EU sustainability legislation. Through SASI, GIZ provides technical support and links the project with other activities promoting sustainable agricultural supply chains.

Fairtrade Germany and the German Fair Trade Forum contribute their expertise in fair trade, sustainable supply chains and cooperation with the private sector. They develop information, advisory and dialogue services for companies and industry organisations.

The project focuses on putting European requirements into practice, sharing experience and developing appropriate forms of support.

The project consists of four coordinated components. At its core is the HREDD Support Fund, which promotes the practical implementation of human rights and environmental requirements in agricultural supply chains.

Component 1: Informing companies and fair trade stakeholders

Fairtrade Germany and the German Fair Trade Forum inform European fair trade companies and other businesses about the latest developments in EU legislation and how to implement the requirements in practice. They do so through webinars, information materials, advisory sessions and specialist events.

Target group: Companies, advisers, ministries and the general public

Component 2: Expanding advisory and training services

The project partners further develop their advisory and training services. In doing so, they address new legal requirements and the specific support needs of companies.

Target group: Smallholder producer organisations, such as cooperatives, and exporting companies

Component 3: Providing targeted support to companies and agricultural producers through the HREDD Support Fund

Through the Support Fund, selected companies and agricultural organisations receive assistance in implementing new sustainability requirements. Support includes advisory services, training, documentation and traceability measures.

Target group: Producer organisations

Component 4: Bringing practical experience into policy and public debate

The project partners feed practical experience into political and public debate. They engage with policymakers and businesses, publish specialist articles and showcase successful approaches from the projects.

The project forms part of BMZ’s engagement in sustainable agricultural supply chains. Through SASI, GIZ pools experience from different projects and makes knowledge, networks and proven solutions available to a wider range of stakeholders.

A selection is available at: Our Projects – SASI

BMZ commissions and funds the project and sets its development policy framework. GIZ implements the commission. Through SASI, GIZ pools its expertise and activities relating to sustainable agricultural supply chains. Fairtrade Germany and the German Fair Trade Forum carry out the project’s information, advisory and dialogue activities.

Fairtrade Deutschland e.V.

For more than three decades, Fairtrade has been making an impact on the way trade works. As a leader in the global movement to make trade fair, Fairtrade supports and challenges businesses and governments and connects farmers and workers with the people who buy their products.

Forum Fairer Handel e.V.

The Fair Trade Forum is the Fairtrade association in Germany. Its aim is to raise the profile of Fairtrade, to push through joint demands vis-à-vis politicians, industry and the retail sector, and to achieve greater expansion of Fairtrade.

Fairtrade Africa (FTA)

Fairtrade Africa, a member of the wider International Fairtrade movement represents Fairtrade certified producers in Africa and the Middle East.

Latin American and Caribbean Network of Fairtrade Small Producers and Workers (CLAC)

The Latin American and Caribbean Fair Trade Coordinating Committee (CLAC) is the oldest network of Fairtrade producers and represents cooperatives of small-scale producers in Latin America and the Caribbean.

Fairtrade Network of Asian and Pacific Producers (NAPP)

Fairtrade Network of Asia and Pacific Producers (Fairtrade NAPP) is a regional Producer Network of Fairtrade Labelling Organizations (FLO) representing and working to secure a fairer deal for Fairtrade-certified producers across Asia and the Pacific region. It is one of the three Fairtrade Producer Networks within the global Fairtrade system, that directly with small-scale farmers, workers, and producer organizations to ensure they benefit from fairtrade practices.

The Fairtrade producer networks have provided training to more than 600 producer organisations in 20 countries across Africa, Asia and Latin America. More than 2,230 representatives strengthened their knowledge of human and environmental rights and of how European sustainability requirements affect their work.

This knowledge is now being applied in practical projects: 17 Fairtrade licensees and 34 smallholder producer organisations are implementing measures in 22 projects across 19 countries in coffee, cocoa and banana supply chains. Together, these projects reach around 108,900 smallholder farmers.

The measures include collecting geospatial data for deforestation-free supply chains, training and organisational development, promoting women and young people, transitioning to agroforestry systems, and adapting agricultural practices to European sustainability requirements.

Fair trade links economic cooperation with development policy objectives and thereby contributes to the new direction of German development cooperation. It strengthens producers and their organisations in the Global South through fair and resilient supply chains and trading structures. It also demonstrates how corporate human rights and environmental due diligence can be put into practice.

Fair trade therefore serves as a benchmark for high standards in corporate due diligence. At the same time, it has for decades shown how global responsibility, development cooperation and conscious consumption are interconnected.

In this way, fair trade can make an effective contribution to the goals set out in the BMZ reform paper “Shaping the future together globally,” including by supporting the EU’s Empowering Consumers Directive (Empowering Consumers Directive – EmpCo) in its aim to strengthen protection against misleading environmental claims and sustainability labels, while also making development policy content understandable and tangible for a broad public.