• Ingen resultater fundet

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1. Parreno, Earl (2013), Interview conducted by Jacqueline Hansen, Transcription 2. Padong, Gomer (2013), Interview conducted by Jacqueline Hansen, Transcription 3. More, Betty (2013), Interview conducted by Jacqueline Hansen, Transcription 4. Haagen, Anders (2013), Interview conducted by Jacqueline Hansen, Transcription 5. Social Entrepreneurship Bill (2013), Senate Bill no. 1026

6. 10 Fair Trade Principals, WFTO Asia

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Thesis: “Agricultural Social enterprises in the Philippines” by Jacqueline Hansen 100! Appendix 1: Earl Parreno

Former!president!of!Alter!Trade!Corporation!!

Founding!member!of!PRESENT!Coalition!

2013!

Interview"by"Jacqueline"Hansen"

J:!Introduction!about!my!self!and!thesis!subject.!We!have!met!before!in!a!course!

at! Ateneo! and! have! common! connections! in! the! social! enterprise! academe! in!

Manila!

!

J:! I! would! like! to! talk! about! your! experience! with! Alter! trade! and! Fair! Trade!

internally! and! externally,! your! experience! with! Japan! as! a! solidarity! market.! I!

know!a!little!bit!about!Alter!Trade!from!Lisa!Dacanay’s!case.!Buy!maybe!a!short!

introduction?!

!

E:! Actually,! Alter! Trade! is! a! unique! case! because! we! started! not! with! the! local!

market!but!with!the!export!market.!So!unlike!other!companies!in!the!Philippines,!

social!enterprises!especially,!they!start!with!a!domestic!market!and!the!logistical!

needs!and!the!requirements!of!the!local!market!is!very!very!different!form!the!

export! market.! So,! the! barriers! of! quality,! quality! specifications,! and! market!

expectations! are! actually! very! different! and! certifications! are! just! guarantee!

systems! for! the! export! market.! The! local! certifying! bodies! here! is! not! actually!

recognized! internationally.! Its! is! not! recognized! yet,! it! is! still! in! the! process! of!

being!recognized!internationally,!but!as!of!the!moment!is!not,!so!if!you!want!to!

export!your!products!to!the!niche!market,!of!Europe!for!instance,!organic!niche!

market! or! the! fair! trade,! you! have! to! have! certifications! from! internationally!

recognized! bodies! such! as! ecocert! or! naturland,! which! complies! with! US!

standards,!and!Japanese!standards,!so!eh,!the!local!certifying!bodies!here!are!still!

in!the!process,!So!even!if!Betty!More’s!social!enterprise!is!certified!locally,!it!still!

could! not! automatically! be! accepted! in! Europe,! so! they! have! to! get! ecocert! or!

other!recognized!internationally.!!

!

Alter! Trade! is! being! expected! by! Netherland,! it! is! under! the! IMO,! is! the!

International! Marketing! Ecology..something,! it! is! based! in! Switzerland.! And! it!

inspects,! not! just! food! or! compliance! of! organic! specifications,! OrganicI Agricultural!specifications,!But!also!fair!trade!standards,!so,!we!actually!hit!two!

birds! with! one! stone.! Just! one! inspection! and! we! get! both! the! fair! trade!

certification!and!the!organicIagricultural!certification.!!

!

Thesis: “Agricultural Social enterprises in the Philippines” by Jacqueline Hansen 101! J:!When!Alter!Trade!first!started!up,!and!Japan!was!the!solidarity!market,!can!you!

explain!a!little!bit!about!this!and!how!it!started?!

!

E:!Actually!it!was!Japan!who!proposed!a!“trade!not!aid”!track!towards!developing!

the! communities,! so! we! searched! for! a! product! that! is! symbolic! also! of! the!

peoples!struggle!in!Negros!(*Negros!is!famous!for!sugar!plantation!but!the!hay!

days! are! long! gone)! and! originally! we! came! up! with! that! Muscovado! sugar.!

Unfortunately!muscovado!is!not!so!much!consumed!in!the!Japanese!market.!So,!it!

has! limited! market! and! it! has! also! very! little! application,! during! that! time,! 25!

years! ago.! So,! a! year! or! two! after! we! searched! for! a! product! and! its! was! the!

balagong!banana,!so!the!balagong!banana,!you!know,!Japanese!is!a!banana!loving!

crazy!country,!so!they!get!most!of!the!bananas!from!Mindanao,!so,!that’s!how!it!

started.!We!shipped!out!first,!a!few!hundred!tons,!about!twoIthree!hundred!tons!

a!year,!and!it!picked!up!around!twoIthousand!tons!a!year.!!

!

J:!how!did!you!connect!your!suppliers?!You!worked!as!the!trader..!

!

E:!the!suppliers!for!the!banana?!We!are!the!only!banana!company!actually,!who!

goes!to!the!producers.!These!are!native!mountain!bananas,!we!have!to!go!there,!

near! their! area,! to! collect! the! bananas! and! at! first! we! where! met! with! stiff!

competition,!from!traditional!banana!buyers,!the!local!traders,!so!we!competed!

in!terms!of!price,!although!we!have!quality!standards,!its!much!stricter!compared!

to!the!local!buyers,!but!because!of!our!price,!they!up’ted!to!sell!to!us.!That’s!how!

it!went,!but!there!where!problems!of!course!we!encountered,!because!these!are!

jungle!bananas!and!the!supply!is!just!not!enough,!and!to!be!frank!about!it!and!to!

be! transparent! about! it,! because! of! overIharvest,! the! bananas,! the! banana!

supplies! fast! depleted,! and! the! area,! because! of! the! cultural! management,! how!

the! farmers! cultivated! their! banana,! it! was! prone! to! diseases,! and! there! where!

areas! in! Negros,! that! was! totally! devastated! by! the! “??””! disease,! a! banana!

disease,!so,!in!order!for!us!to!meet!the!demand,!we!expanded!to!other!areas,!we!

went!to!Northern!Philippines,!Cadilliera,!then!Mindanao,!just!to!look!for!supply.!

!

These!are!backyard!banana!farmers,!we!have!to!approach!them!per!household,!

initially! we! tried! to! organize! them,! then! thought! them! how! to! cultivate! the!

bananas! to! meet! the! standards,! give! them! proper! training! founded! by! the!

foundation,! but! there! is! always! a! conflict,! especially! if! it’s! a! day! to! day! trading!

operations,! there! is! always! a! conflict! between! capacity! building! of! the!

communities!and!the!demands!of!trade,!of!how!to!get!the!supply.!So,!for!several!

years,! actually! the! organizing! and! capability! building! activities! of! the!

communities!lacked!much!much!behind,!it!was!unlike!the!sugar!cane!community,!

because!sugar!cane!is!only!harvested,!eh,!its!an!annual!crop,!we!harvest!months!

after!planting,!so!there!is!always!enough!time,!to!develop!the!capability!not!just!

on!agriculture!technology,!but!also!on!organizational!matters,!to!really!bind!them!

Thesis: “Agricultural Social enterprises in the Philippines” by Jacqueline Hansen 102! and!for!them!to!act!as!one,!so!that!they!have!more!power!to!negotiate!prices,!to!

negotiate!with!the!market.!So,!that’s!what!happened,!in!the!banana…eh,!the!only!

organization!that!lacked!behind,!so!the!capability!was!quite!low,!so!in!2009,!we!

actually! tried! to! remedy! the! situation,! by! putting! the! capability! building!

component! of! the! banana! trade! to! the! Alter! Trade! foundation,! because! then! it!

was! handled! by! the! same! trading! arms! as! Alter! trade! corporation,! eh,!

unfortunately,! it! did! not! really…??! And! in! 2010! I! actually! resigned,! so! I! don’t!

know! whats! happening! now,! but! I! know! its! still! with! the! trading! arm! and!

community!building.!

!

J:!You!where!there!from!the!beginning,!right?!

!

E:!not!really!the!beginning,!but!I!was!deeply!involved!starting!in!1999.!Just!a!few!

years!after!it!was!established.!!

!

J:!so,!the!conflict!bertween….!

!

E:!The!trade?!Between!the!business!side!and!community!capability?!

!

J:!it!sounds!like!that!there!are!challenges!with!fair!trade?!

!

E:!there!is!always!a!conflict.!Especially!if!the!business!is!growing,!!You!have!to!

choose.!Its!not!really!about!choosing,!there!will!always!be!tension!between!the!

two!major!components.!

!

J:!yes,!the!tension.!My!question!is!did!you!actually!see!the!social!impact!the!years!

you!worked!with!them?!I!know!fair!trade!is!a!minimum!price,!but!what!about!the!

whole!community?!

E:!well,!yes,!you!know,!if!we!look!at!sugar,!the!sugar!cane!communities,!it!really!

worked,!and!I!think!the!key!there!is,!developing!the!community,!empowering!the!

community! actually,! so! that,! they! them! selves! as! a! collective! force,! could!

negotiate! with! the! market,! and! could! independently! decide! for! their! own!

interest,! I! think! that! how! it! worked,! but! without! the! organization! and! without!

capacitating!them,!it!could!not!be!done,!and!that’s!what!happened!to!the!banana!

actually,!the!empowerment!was!quite!low,!the!level!of!empowerment!was!very!

very!low.!When!you!look!at!our!banana!communities!now,!I!mean!the!sugar!cane!

communities,!they!already!reached!that!level,!where!they!could!decide!on!their!

Thesis: “Agricultural Social enterprises in the Philippines” by Jacqueline Hansen 103! own! investment,! and! that’s! multi! mio.! Peso! investment! on! behalf! of! the!

community,!but!you!can!not!find!it!yet!in!the!banana!areas.!!

!

J:! Can! you! help! me! point! out! why! the! challenges! has! been! different! from! the!

sugar!cane!and!the!banana!growers?!

!

E:!yes,!as!I!said,!the!banana!because!their!need!of!the!daily!work!for!the!business,!

the! capability! building! effort! lacked! behind,! so! it! was! lacking! behind! that! they!

could! not! even! organize! the! banana! communities,! so! they! where! dealing!

individually!with!these!people,!and!because!its!individual!these!individuals!just!

don’t! have! the! power! to! negotiate,! compared! to! a! people! in! compassing! a!

community,!in!terms!of!volume!the!company!will!just!be!dealing!with!how!many!

bunches! of! banana,! if! they! just! organize! themselves,! with! tons! and! tons! of!

banana! and! that’s! just! one! issue,! volume.! And! capability,! the! organizational!

capability! is! also! very! very! low.! There! is! no! conscience! amongst! them,! it’s! so!

much….!Before!I!resigned!we!tried!to!remedy!the!situation!but!it!was!not!really!

implemented.!I!don’t!know!what!happened!now.!

!

The!sugarcane!is!a!very!different!story,!the!organization!is!intact,!and!in!fact!they!

have!already!federated!into!the!Negros!organic!and!fair!trade!association.!

!

J:!did!the!sugar!cane!have!export!organization?!

!

E:!yes,!the!muscovado,!first!Japan,!eventually!the!European!market!became!the!

biggest! market! for! sugarcane,! especially! the! German! market! and! Switzerland,!

more!than!half!I!think!of!the!total!production,!about!2400!tons!goes!to!Europe.!!

!

J:!when!the!clients!order!sugar,!would!they!order!with!their!own!brand?!

!

E:!For!instance,!Alter!eco!France,!they!have!their!own!brand.!But!in!their!label!

they!would!usually!put!‘produced!in!Negros’,!Alter!Trade!Corporation!etc.!But!it!

is!an!Alter!trade!eco!brand.!Gepa!is!the!same,!Gepa!is!in!Germany,!the!fair!trade!

shops,! it’s! a! network! of! fair! trade! shops! in! Germany! ,! and! chocolate! brand!

Maureen?,! in! Switzerland,! they! produce! chocolate! with! Moscovado! sugar! and!

other!products!with!muscovado!and!they!put!in!their!label!that!the!muscovado!

that!they!put!in!is!fair!trade,!fairly!produced!in!the!Philippines,!in!Negros.!

!

Thesis: “Agricultural Social enterprises in the Philippines” by Jacqueline Hansen 104! J:!Your!general!thoughts!about!fair!trade,!in!agriculture!in!the!Philippines,!what!is!

the! status! right! now?! What! do! you! think! about! the! fair! trade! situation?! Is! it!

working?!Is!it!growing?!Is!it!decreasing?!!

!

E:! Fair! trade,! I! think,! in! the! Philippines,! has! not! yet! reached! the,! it! has! not! yet!

reached!a!critical!mass!of!consumers,!for!it!to!become!really!a!significant!player!

in! the! market.! We! still! have! to! improve! in! organizing! the! consumers! for! fair!

trade.!So,!if!we!are!talking!about!fair!trade!consumption!in!the!Philippines,!there!

is!no!conscious!segment!yet!of!fair!trade!consumers!in!the!Philippines.!But!there!

are! fair! trade! producers! and! most! of! these! Fair! trade! producers,! are! eyeing!

markets!abroad.!In!Negros!for!instance,!late!last!year,!our!group,!I!have!a!group!

in! Negros,! im! still! with! Alter! Trade! foundation,! im! no! longer! with! Alter! Trade!

Corporation.! Alter! Trade! foundation! with! Social! Enterprise! and! empowerment!

for!rural!development!seed,!along!with!NOFTA,!initiated!a!Fair!trade!campaign!in!

Negros,!and!we!where!able!to!establish!a!big!fair!trade!federation!of!producers,!

its! called! Negros! Island! Fair! Trade! Federation,! it! is! composed! of! NOFTA! and!

another! big! farmers! organizations,! in! the! whole! province! of! Negros! Occidental!

and!we!are!expanding!to!Negros!Oriental,!that’s!another!province,!and!they!are!

quite!excited!about!it,!because!in!2015!there!will!be!a!! 0!tariff!on!sugar.!And!we!

are!expecting!the!foreign!sugar!to!flood!the!local!market,!Sugar!from!Australia,!

sugar!from!Brazil,!sugar!from!these!countries!are!produced!very!efficiently,!they!

could!produce!sugar!say!6!cents!a!pund,!where!we!produce!our!sugar!at!12!cents!

a!pound.!

!

J:!So!what!will!happen!then?!

!

E:!of!course!we!can!not!compete!with!them,!that’s!why!we!set!up!that!fair!trade!

federation,!so!that!these!sugar!producers,!could!compete!in!that!niche!market,!it!

some! sort! of! safety! net,! these! small! sugar! producers! will! be! targeting! the! Fair!

trade! niche! market! in! Europe,! Japan! and! Korea,! at! least! id! the! whole! sugar!

industry! will! be! affected,! we! could! still! have! the! safety! net! for! the! small! sugar!

producers,!that’s!how!important!for!us!in!Negros,!the!sugar!sector!is!the!biggest.!

We!produce!more!than!60%!of!the!sugar!in!the!Philippines.!So,!because!of!that!

niche!market,!we!believe!that!the!sugar!prices!in!the!1980’s,!it!could!caution,!it!

could!soften,!the!impact!on!0!tariff!on!sugar,!we!could!only!do!that!through!that!

fair!trade!market!and!Fiji!is!already!doing!it,!they!have!special!relation!with!the!

European!union!of!course,!because!the!where!former!colony!of!Britain!I!think,!so!

they! have! special! relations,! the! Eu! is! helping! them,! our! market,! we! are! still!

actually!searching!for!a!European!and!a!US!market,!for!this!Fair!trade!sugar,!so!

one!step!at!the!time,!we!federated!the!small!sugar!producers,!and!then!we!are!

now!at!the!stage!of!helping!them!establish!an!internal!control!system!so!that!they!

could! pass! the! Fair! trade! system! and! be! certified! Fair! trade,! by! international!

bodies.! That’s! where! we! are! now,! after! which! we! already! negotiated! the!

government! sugar! regulatory! they! SIA! (I! think,,),! they’ve! already! agreed,! ! that!

Thesis: “Agricultural Social enterprises in the Philippines” by Jacqueline Hansen 105! they!will!issue!a!special!kedan,!that’s!Fair!trade,!so!that!they!could!identify!the!

sugar! produced! the! Fair! trade! way,! it! will! mixed! with! the! regular! sugar,! the!

certification! can! be! actually! given,! to! this! specific! sugar,! the! Fair! trade!

specification,!that’s!what!we!are!doing,!that’s!the!concrete!impact!of!the,..!and!the!

concrete!importance!of!Fair!trade!market!for!us.!

!

J.!you!said!you!are!still!searching!for!a!solidarity!market!for!the!Philippine!sugar!

in!Europe!or!US,!do!you!know!how!they!are!doing!with!that?!

!

E:!yes,!they!do!actually!have!buyers!here,!we!already!initially!discussed!this!with!

a!big!buyer,!from!England,!its!one!of!the!network!chains,!like!SM!malls!here,!but!

in! England,! but! they! specialize! in! Fair! trade,! so! they! have! a! counter!

representative!here,!so!we!have!already!talked!with!them.!!

J.!I!have!read!an!article,!that!despite!the!finance!crises!the!fair!trade!market!is!

increasing!in!Europe,!they!are!still!buying..!

!

I! wanted! to! ask! on! the! 0! tariff! on! sugar,! is! that! something! only! here! in! the!

Philippines?!

!

E:! It’s! the! world! trade! organization! that! is! imposing! that.! It! should! had! been!

imposed!in!2010,!in!that!last!round!of!the!Euro!X!talks,!but!the!Philippines!filled!

for! an! extension,! so! after! that! there! will! be! no! more! extension! on! the! tariff!

barrier,!everything!will!be!0.!!

III!

J:!in!the!case!of!M’am!Betty,!we!suggested!that!the!5!interested!buyers!from!the!

North!would!go!together!and!pay!up!her!Fair!trade!certificate!and!she!could!pay!

back!in!a!years!time!with!sugar…!

!

E:!Yes,!but!the!problem!with!that’s!is!that!it!an!annual!inspection.!In!Alter!Trade!

we!spent!around!1!mio.!Peso!on!inspections!alone.!

!

J:! How! would! you! advice! smallImedium! sized! enterprises?! How! can! the!

overcome! it?! How! many! organizations! are! there! like! Alter! Trade! to! support!

them?!

!

Thesis: “Agricultural Social enterprises in the Philippines” by Jacqueline Hansen 106! E:!It’s!only!Alter!Trade!that’s!been!inspected,!consistently,!according!to!European!

standard,! and! now! we! are! helping! others! to! comply! with! the! standards.! Teach!

them! how! to! establish! their! own! internal! control! systems,! so! that! the!

productions! process! will! be! consistent! all! throughout,! so! they! have! internal!

inspections,! also! before! the! external! inspectors! arrive.! So,! that’s! how! we! teach!

them! to! do.! There! is! a! checklist! actually.! Actually,! the! most! difficult! part! is! the!

documentation.! You! have! to! document! everything,! and! a! small! farmers!

organization! with! a! very! low! level! literacy,! could! hardly! do! it.! So! it! takes!

organizations! such! as! Alter! Trade! foundation! to! help! them! do! it.! For! instance,!

they!have!to!have!minutes!of!their!meetings,!they!have!to!have!records!of!when!

they!planted,!when!they!took!out!the!weeds,!when!they!applied!organic!fertilizer,!

all! those! records! which! farmers! has! a! very! low! level! of! education,! could! not!

actually!comply,!so!we!have!to!teach!them.!I!think!Betty,!she!could,!but!it!would!

be!more!expensive!for!her,!is!she!is!the!only!one!inspected,!if!she!spread!the!cost,!

she! has! to! broaden! her! organization,! so! that! so! the! cost! per! capita! would!

decrease.!

!

J:!She!ahs!to!look!into!partnerships?!

!

E:!yes,!within!the!same!area.!

!

J:!we!talked!about!the!North!market!as!a!potential!and!the!Local!market!here!in!

the!Philippines.!Is!there!a!strategy!for!the!local!market?!

!

E:!A!local!Fair!trade!market?!

!

J:!yes,!I!only!know!of!small!initiatives,!that!Ateneo!has!their!SE!market,!there!are!

small! organic! markets! in! Manila! and! its! getting! a! little! bit! more! popular,! but!

that’s!more!on!organic!than!actually!fair!trade.!

!

E:!yes,!that!correct.!

J:!do!you!think!there!is!a!potential!for!that!to!move!forward?!To!help!the!farmers!

to! market! and! up! scaling! them?! To! have! a! market! here! instead! of! the! North?!

Maybe! it! would! be! easier! on! focusing! on! local! markets?! Maybe! having! social!

entrepreneurs!helping!them!along!to!brand!them!to!local!markets?!

!

E:!Yeah,!but!socially!conscious!consumers!and!socially!conscious!consumption!is!

actually!also!a!function!of!income,!if!you!only!have!a!few!families!who!have!the!

Thesis: “Agricultural Social enterprises in the Philippines” by Jacqueline Hansen 107! capability!to!pay!premium!to!a!socially!produced!product,!then!you!can!only!have!

a! very! limited! market! for! Fair! trade,! but! like! in! Europe,! or! more! or! less,! the!

income!level,!even!the!middle!class!is!quite!high.!Here!we!are!talking!about!the!

AMB,!the!AMB!actually!afford!the!Fair!trade!premium!on!the!products,!but!they!

are! not! a! large! market,! AMB! is! just! a! very! limited! market,! so! when! its! just! a!

limited!market,!the!absorption!of!these!fair!trade!products!could!not!be!absorbed!

by! the! limited! market.! There’s! a! dysfunction! actually! between! the! Fair! trade!

producers! and! the! fair! trade! consumers! in! The! Philippines.! This! is! a! personal!

estimate!but!maybe!its!1!to!20,!The!Fair!trade!producers!growing!20!folds,!the!

Fair!trade!consumers!is!growing!very!very!slowly,!so!how!could!you!match!the!

market,!the!demand!with!the!supply.!We!will!also!have!over!supply,!that’s!why!

we! look! at! the! export! market,! but! then! again,! if! you! export! your! fair! trade!

products,!it!should!be!environmentally!conscious!as!well,!it!should!be!produced!

in!consideration!to!the!environment.!But!how!much!carbon!footprint!will!there!

be!if!you!export!this!product,!that’s!a!lot!!That’s!why!for!me,!we!should!produce!

locally! and! consume! locally,! but! the! problem! again! is! matching! the! supply! and!

demand.!!

!

J:!My!Personal!experience!is!that!it!has!grown!a!little!bit!since!I!was!here!in!2009.!

Buy! local! is! becoming! more! popular.! But! I! realize! that’s! within! student! groups!

and!artist!groups!who!are!socially!conscious.!

!

E:!yes,!not!within!the!mainstream!market.!!

!

J:!So,!this!is!like!a!grassroots!stage?!

!

E:!Yes,!especially!the!production!side,!but!the!consumption!side!is!growing!very!

very!slowly.!And!how!to!hasen!and!broaden!the!development!of!this!consumer!

segment,!actually!we!have!been!contemplating!about!it!years,!years!ago.!!

!

J:!Seen!with!eyes!from!Denmark,!Fair!trade!is!a!trend,!but!its!also!a!label!of!good!

quality.!At!the!end!of!the!day!people!are!not!gonna!buy!something!just!because!

its!Fair!trade!but!because!its!good!quality!and!because!they!like!it.!

!

E:!yes,!of!course,!yes.!But!people!here!are!not!really!conscious!about!quality!and!

traceability!!

Especially!related!to!food,!because!most!consumers!would!hardly!survive!so!they!

would!buy!the!cheapest,!they!would!like!to!stretch!their!peso,!so!its!still!really!a!