Quality markets: Equal chances for small producers
For many small farmers the road to the market is full of hurdles. They often face many trade barriers and inequalities, such as import duties and subsidies extended to competitors. For entrepreneurs and producers it is challenging to find the right gap in the market and to overcome these obstacles to produce goods that meet international social and environmental standards.
Quality markets, for example for organic and fair trade products, are very attractive to small producers of coffee, rice, fruit and other products. Trading on these markets can mean a structural improvement of their economic position. A quality market such as the market for organic produce is often an excellent alternative for the regular market, where privatisation, patenting and import duties block opportunities for farmers in developing countries.
Many farming communities in developing countries have always grown their produce according to methods that we now call ‘organic’. However, they find it difficult to cope with all the paperwork necessary to obtain a quality seal. They also face privatisation, patenting and market developments. Hivos supports these farmers by sharing knowledge and by encouraging certification procedures for a number of farmers at the same time. This allows them to refine and increase their production, which makes it easier to gain access to fair trade markets.
However, support for sustainable products is mainly about respecting human beings and the environment. International standards and quality seals were first introduced to curb deforestation and child labour. Focusing on companies, Hivos encourages them to do business in a socially responsible way, promoting custom-made processes: specific quality systems for each product involving all interested parties.
The plethora of quality systems hinders small producers. For this reason, Hivos attempts to reduce the large number of quality seals. Together with global, regional and national organisations, Hivos works on the harmonisation of quality seals for fair trade and social responsibility.
The Hivos approach:
-Hivos encourages environmentally-friendly and socially responsible alternatives for non-sustainable products;
-Hivos supports initiatives that reduce the cost of quality control and certification;
-Hivos develops modules to train small producers in quality management and in applying production standards;
-Hivos offers support to organisations that increase the productivity and product quality of farmers and improve their negotiating position;
-Hivos encourages organisations that implement and standardise all aspects of sustainability;
-Hivos supports initiatives that put pressure on companies to act according to international agreements;
-Hivos supports local fair trade platforms that change global standards, and it also works together with organisations to make the Dutch general public aware of the importance of social quality, transparency and access to markets.
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