Forum Discussions - 5 Percent 4 Farmers2024-03-28T16:35:00Zhttp://5percent4farmers.ning.com/forum/topic/list?feed=yes&xn_auth=noWhat does "sustainability" mean?tag:5percent4farmers.ning.com,2010-10-22:2730777:Topic:7662010-10-22T15:15:16.000ZClay Gordonhttp://5percent4farmers.ning.com/profile/ClayGordon
<p>Demand for sustainable foods and beverages has continued to grow – but many consumers don’t know what the various claims mean, according to market research organization Mintel.<br></br><br></br>Mintel has tracked the launch of more than 13,000 new products making sustainability claims since 2005 in response to increased consumer demand via its Global New Products Database. According to Mintel figures, 84 percent of consumers say they actively seek out sustainability claims on food and…</p>
<p>Demand for sustainable foods and beverages has continued to grow – but many consumers don’t know what the various claims mean, according to market research organization Mintel.<br/><br/>Mintel has tracked the launch of more than 13,000 new products making sustainability claims since 2005 in response to increased consumer demand via its Global New Products Database. According to Mintel figures, 84 percent of consumers say they actively seek out sustainability claims on food and drink.<br/><br/>Senior analyst at Mintel David Browne said: "Packaging claims such as 'recyclable' or 'eco- or environmentally friendly' are fairly well known to consumers, but sustainable product claims such as 'solar/wind energy usage' or 'Fair Trade' have yet to enter the mainstream consumer consciousness. They may have heard of the terms, but they'd be hard-pressed to define them." <br/><br/>So - what does sustainable mean?<br/><br/>Source: <a href="http://www.foodnavigator-usa.com/Financial-Industry/Demand-for-sustainability-is-high-comprehension-is-low-says-Mintel/">FoodNavigatorUSA</a>.com</p> Who are we?tag:5percent4farmers.ning.com,2010-03-11:2730777:Topic:5722010-03-11T21:00:47.000ZDuffy Sheardownhttp://5percent4farmers.ning.com/profile/DuffySheardown
<p><strong>Here's a few thoughts and over-generalisations:</strong></p>
<p>- I should think we (this group) are mainly white males from rich countries</p>
<p>- we want to do something to help those less fortunate, especially perhaps in our chosen field - chocolate</p>
<p>- Fairtrade is now an established brand and as such has more power than it probably realises and could use this to be stronger and introduce a "Fairtrade 2"</p>
<p>- but it won't</p>
<p> </p>
<p><strong>So what can we…</strong></p>
<p><strong>Here's a few thoughts and over-generalisations:</strong></p>
<p>- I should think we (this group) are mainly white males from rich countries</p>
<p>- we want to do something to help those less fortunate, especially perhaps in our chosen field - chocolate</p>
<p>- Fairtrade is now an established brand and as such has more power than it probably realises and could use this to be stronger and introduce a "Fairtrade 2"</p>
<p>- but it won't</p>
<p> </p>
<p><strong>So what can we do?</strong></p>
<p>- why is it us that has to do something?</p>
<p>- will anything we think up work in anything other than a small way?</p>
<p>- any revolution that works has to start from below to be sustainable not handed down from above</p>
<p>- so how do we encourage/allow cacao farmers to have more control?</p>
<p>- how can farmers organise themselves</p>
<p> </p>
<p><strong>What would I propose then?</strong></p>
<p>- I just said "it ain't me babe" (thanks Bob) but maybe we can encourage farmers to organise and do a deal with them</p>
<p>- you promise to treat your workers in a decent fashion</p>
<p>- you organise into a group of farmers all promising to self-regulate how you treat your workforce</p>
<p>- we agree that we will pay extra for these guarantees</p>
<p>- and also announce that we will be checking and have the power to stop dealing with individuals or the whole group if anyone is seen to be taking the piss ('scuse my language)</p>
<p>- this relies on personal contact and sites such as this to disseminate our own findings</p>
<p>- and we make it easy for people to see who is in this rough coalition because we want it to work and we want it to raise awareness and we want to increase the profit margin for farmers</p>
<p>- start a fund to give farmers mobile phones and see just how much that changes their awareness of market prices and the better deals we can offer</p>
<p> </p>
<p><strong>Just thinking aloud - let's get something started!</strong></p>
<p><strong>Duffy</strong></p>
<p><strong>Red Star Chocolate</strong></p> Spreading the wordtag:5percent4farmers.ning.com,2009-03-09:2730777:Topic:3212009-03-09T20:23:24.000ZDuffy Sheardownhttp://5percent4farmers.ning.com/profile/DuffySheardown
Hi All,<br />
Would we (hope that isn't presumptious...) be able to have a link to a web-site that showed some back stories, noted progress, had some real-life stories that will show customers, supporters. cynics et al what this is all about. We should be wanting to spread the word and to an extent bragging a little about what can be achieved if we can convert more people to the 5%4farmers.<br />
In the UK we have a huge "Comic Relief" day to raise funds every year and the great thing they do is tell us…
Hi All,<br />
Would we (hope that isn't presumptious...) be able to have a link to a web-site that showed some back stories, noted progress, had some real-life stories that will show customers, supporters. cynics et al what this is all about. We should be wanting to spread the word and to an extent bragging a little about what can be achieved if we can convert more people to the 5%4farmers.<br />
In the UK we have a huge "Comic Relief" day to raise funds every year and the great thing they do is tell us where the money went, what it did, what a difference it has made so that we the donors don't think all the money is sitting in an off-shore tax haven some place.<br />
It would be nice if the web-site was kind of organic and home-grown - maybe only the farmers can contribute to it? Make it their web-site? Selling the systemtag:5percent4farmers.ning.com,2009-02-26:2730777:Topic:2232009-02-26T19:39:57.000ZDuffy Sheardownhttp://5percent4farmers.ning.com/profile/DuffySheardown
Hi All,<br />
A huge and potentially great development: congratulations to everyone and if I can help in any way please feel free to ask.<br />
As you may know I am a newcomer to this chocolate thing and my question is this:<br />
<br />
- How does Mr/Ms Average find out who the companies are supporting this initiative?<br />
<br />
I write this partly because of my own experience - I have tried to find a way of buying beans from as close to the farmers as I can get. The Fairtrade website is all geared the other way and seems to…
Hi All,<br />
A huge and potentially great development: congratulations to everyone and if I can help in any way please feel free to ask.<br />
As you may know I am a newcomer to this chocolate thing and my question is this:<br />
<br />
- How does Mr/Ms Average find out who the companies are supporting this initiative?<br />
<br />
I write this partly because of my own experience - I have tried to find a way of buying beans from as close to the farmers as I can get. The Fairtrade website is all geared the other way and seems to ignore the consumer altogether. It seems a wasted opportunity because people do buy Fairtrade - that is the point of the whole thing. Maybe there is a way to find out - I guess there must be - but it must be for those in the know or those who accidentally trip over it. Or for people with better search questions than those I dream up! All I find are retailers selling me stuff, not the people in the middle - another step in the way.<br />
I suspect I might just not have been trying hard enough but if I have given up for sure others will have too and it as an opportunity (ie someone with money actively trying to spend it) missed each time.<br />
<br />
Regards,<br />
Duffy Where does the money come from - and go?tag:5percent4farmers.ning.com,2009-01-23:2730777:Topic:2042009-01-23T02:53:43.000ZClay Gordonhttp://5percent4farmers.ning.com/profile/ClayGordon
5P4F takes a different approach to collecting money from licensees who support the organization.<br />
<br />
Two of the primary differences are to:<br />
<br />
a) collect money from as many different links in the supply chain as possible<br />
b) collect money higher in the supply chain to capture as much added value as possible<br />
<br />
In this respect, 5P4F acts more like a VAT (value added tax) or GST (Goods and Services Tax) than a licensing fee/royalties system.<br />
<br />
The 5P4F approach also recognizes that there may be…
5P4F takes a different approach to collecting money from licensees who support the organization.<br />
<br />
Two of the primary differences are to:<br />
<br />
a) collect money from as many different links in the supply chain as possible<br />
b) collect money higher in the supply chain to capture as much added value as possible<br />
<br />
In this respect, 5P4F acts more like a VAT (value added tax) or GST (Goods and Services Tax) than a licensing fee/royalties system.<br />
<br />
The 5P4F approach also recognizes that there may be individuals and/or companies higher up in the supply chain that would like to support the organization but that have no ability to trace the source of some or all of the raw materials they use in the production of their products to the grower. There is no good reason not to devise a means to capture these sources of potential revenue.<br />
<br />
Specifically:<br />
<br />
A "direct supply chain link' (e.g., a cocoa buyer, broker, or chocolate manufacturer buying directly from a farmer or co-op) that is a 5P4F licensee agrees to follow certain guidelines, for example, paying a price for cacao that is based on the world market price and pays a quality-based premium that provides incentive for the farmers to improve (for example) post-harvest processing techniques and therefore the quality of the cocoa they buy and to engage in sustainable agricultural practices. The buyer reports to 5P4F the amount of cocoa they purchased, the price they paid, and the farmer/co-op they brought the cacao from. This buyer turns around and sells their cacao to an "indirect supply chain link," and pays 5P4F 5% of the sale price. It is up to the seller to decide if they want to mark the price up to cover this cost or to absorb the cost.<br />
<br />
If the "indirect supply chain link" is also a licensee of 5P4F, when they sell their (value added) product to the next entity in the supply chain, they also pay 5P4F 5% of their sale price. The seller provides 5P4F a record of their sales to their customer, and the buyer reports their purchases; 5P4F reconciles both sides of the sale as one step in an auditing/verification process.<br />
<br />
This process happens at as many links in the supply chain as it happens. Sometimes, the chain is traceable from the farmer to the ultimate consumer, in which case the farmer is paid the cumulative sum of all of the 5 per cents collected by all the links in the chain.<br />
<br />
In cases where there is a break in the chain (e.g., one or more of the links is not a 5P4F licensee), the monies that are collected are put into a general fund that provides monies for micro-financing and the educational and other programs 5P4F supports.<br />
<br />
In addition to the internal auditing and verification processes 5P4F undertakes to determine whether or not supporters correctly report their contributions, licensees are required to have their accountants independently verify that the amounts being recorded are accurate. This distributes the cost of compliance and reduces the risk that any one licensee can engage in significantly fraudulent behavior.<br />
<br />
To distribute the money 5P4F will work with existing organizations that service farmers and farm families. By working with existing organizations that have already developed broad networks of trust relationships 5P4F moves closer to its goal of distributing the maximum amount of money it collects to the people who deserve it most. Three organizations that 5P4F would like to work with are Kiva.org and The Resource Foundation for "traceable funds," and The World Cocoa Foundation with "untraceable" funds. Ideas for Goalstag:5percent4farmers.ning.com,2009-01-20:2730777:Topic:1612009-01-20T20:12:53.000ZClay Gordonhttp://5percent4farmers.ning.com/profile/ClayGordon
1) To implement a transparent and accountable system for collecting money, reliably distributing it to those to whom it is owed, and for reporting the results of 5P4F's efforts.<br />
a) To implement a system with a minimum of bureaucracy and paid staffing.<br />
<br />
2) To implement a system with zero barriers to entry for farmers.<br />
<br />
3) To engage every level of the supply chain from farmer to ultimate consumer.<br />
<br />
4) To provide a level of income sufficient to:<br />
a) eliminate abusive labor practices irrespective of…
1) To implement a transparent and accountable system for collecting money, reliably distributing it to those to whom it is owed, and for reporting the results of 5P4F's efforts.<br />
a) To implement a system with a minimum of bureaucracy and paid staffing.<br />
<br />
2) To implement a system with zero barriers to entry for farmers.<br />
<br />
3) To engage every level of the supply chain from farmer to ultimate consumer.<br />
<br />
4) To provide a level of income sufficient to:<br />
a) eliminate abusive labor practices irrespective of age or gender<br />
b) eliminate the economic incentive to replace heirloom crop varieties with GMO crops<br />
c) ensure adequate food, clothing, and housing<br />
d) ensure adequate educational opportunities irrespective of age or gender<br />
<br />
5) To foster educational programs:<br />
a) that improve crop quality<br />
b) that reduce the need to use inorganic agricultural inputs<br />
c) that improve wastewater management practices<br />
d) that passes on useful practices and traditions from generation to generation<br />
<br />
6) To provide a source of micro-finance funds for infrastructure projects:<br />
a) improved communication<br />
b) better access to markets<br />
c) improved facilities for post-harvest processing Core ethical goalstag:5percent4farmers.ning.com,2009-01-17:2730777:Topic:672009-01-17T02:32:31.000ZLangdon Stevensonhttp://5percent4farmers.ning.com/profile/LangdonStevenson
In the mission statement I proposed the desired outcomes of the system to be:<br />
<br />
- Reduce the requirement for child labour<br />
- Allow growers to pay more attention to quality<br />
- Reduces pressure on the environment<br />
<br />
How can this system deliver that?<br />
<br />
<b>Reduce the requirement for child labour</b><br />
<br />
There is research showing that the requirement for child labour is directly related to poverty. The better off a family is, the less likely they will be to need their children to work. Therefore, returning…
In the mission statement I proposed the desired outcomes of the system to be:<br />
<br />
- Reduce the requirement for child labour<br />
- Allow growers to pay more attention to quality<br />
- Reduces pressure on the environment<br />
<br />
How can this system deliver that?<br />
<br />
<b>Reduce the requirement for child labour</b><br />
<br />
There is research showing that the requirement for child labour is directly related to poverty. The better off a family is, the less likely they will be to need their children to work. Therefore, returning money to the grower directly will have a direct impact on child labour.<br />
<br />
<b>Allow growers to pay more attention to quality</b><br />
<br />
Growers who are not living hand to mouth will feel less pressure to process their cocoa as fast as possible to earn income. Therefore the core practice of giving growers more money will allow quality to improve. Clearly this must be combined with education.<br />
<br />
<b>Reduces pressure on the environment</b><br />
<br />
Growers (of any crop) who can make a sustainable living from their land will have less incentive to expand their holding, or move to fresh soil. The core practice of giving growers more money will reduce pressure on the environment. Once again, education will be required to back this up and get best effect.<br />
<br />
Langdon Managing operation coststag:5percent4farmers.ning.com,2009-01-17:2730777:Topic:662009-01-17T02:08:36.000ZLangdon Stevensonhttp://5percent4farmers.ning.com/profile/LangdonStevenson
I believe that it should be of the highest priority to keep the costs of operating 5p4f to an absolute minimum. Everything we do should have this aim in mind. Therefore I would like to propose the following:<br />
<br />
- Where ever possible, systems should be "self-serve" allowing the organisation to manage their own involvement. For instance, registration should be entirely automated (just like this forum) with a 5p4f administrator only having to check the validity of the organisation (looking up a…
I believe that it should be of the highest priority to keep the costs of operating 5p4f to an absolute minimum. Everything we do should have this aim in mind. Therefore I would like to propose the following:<br />
<br />
- Where ever possible, systems should be "self-serve" allowing the organisation to manage their own involvement. For instance, registration should be entirely automated (just like this forum) with a 5p4f administrator only having to check the validity of the organisation (looking up a business number, or identification) and confirming their accountant. Where possible even some of these tasks could be automated partly or fully<br />
<br />
- All information should be maintained electronically in a central location to allow distributed access by 5p4f staff<br />
<br />
- All systems should be integrated so that nothing should ever have to be double entered, or handled more than once by 5p4f staff<br />
<br />
- Full use should be made of technology to give organisations who use the label the best possible support and service<br />
<br />
- The organisation should operate open book accounting to help encourage this goal.<br />
<br />
Langdon Cost to organisations to use the labeltag:5percent4farmers.ning.com,2009-01-17:2730777:Topic:652009-01-17T01:53:45.000ZLangdon Stevensonhttp://5percent4farmers.ning.com/profile/LangdonStevenson
I think that this cost should be kept to an absolute minimum. Suggestions so far:<br />
<br />
<br />
- $100 registration fee to ensure that only people who are reasonably serious sign up<br />
- No ongoing fee<br />
<br />
<br />
Why: the comment has been made on The Chocolate Life that Fair Trade etc isn't always fair for the people up the chain. Very low fees and simple compliance mean that it is easy for an organisation to use and benefit from the label without the system inflating their operating costs. Yet they get the marketing…
I think that this cost should be kept to an absolute minimum. Suggestions so far:<br />
<br />
<br />
- $100 registration fee to ensure that only people who are reasonably serious sign up<br />
- No ongoing fee<br />
<br />
<br />
Why: the comment has been made on The Chocolate Life that Fair Trade etc isn't always fair for the people up the chain. Very low fees and simple compliance mean that it is easy for an organisation to use and benefit from the label without the system inflating their operating costs. Yet they get the marketing benefits from the label. It would be difficult to complain about it. Where does the money go?tag:5percent4farmers.ning.com,2009-01-17:2730777:Topic:642009-01-17T01:49:09.000ZLangdon Stevensonhttp://5percent4farmers.ning.com/profile/LangdonStevenson
Based on Clay's suggestions in email to me, here is my proposal for where the money should go:<br />
<br />
1. Funds that are traceable to produce from a specific farmer should go directly to that farmer in total (the whole 5%)<br />
<br />
2. All commissions, organisation expenses etc should be paid for from either donations, or funds that can't be traced to a specific farmer<br />
<br />
3. Remaining funds that can't be traced should be put toward the following projects (starting, where possible, with the communities of growers…
Based on Clay's suggestions in email to me, here is my proposal for where the money should go:<br />
<br />
1. Funds that are traceable to produce from a specific farmer should go directly to that farmer in total (the whole 5%)<br />
<br />
2. All commissions, organisation expenses etc should be paid for from either donations, or funds that can't be traced to a specific farmer<br />
<br />
3. Remaining funds that can't be traced should be put toward the following projects (starting, where possible, with the communities of growers who are recipients of 5%):<br />
<br />
- Grower education in farming practices like soil improvement, crop quality etc using sustainable, organic practices<br />
- Child education<br />
- Improved sanitation through devices like composting toilets which can feed nutrients back into farms and reticulated water<br />
- Communications resource (mobile phones, Internet access etc)<br />
<br />
Langdon