Fairtrade SPO Compliance for Farming Areas and Cooperatives

Fairtrade certification can help small-scale producer organisations and agricultural cooperatives participate in supply chains that require Fairtrade products. For Vietnamese farming groups, it provides a framework for democratic organisation, responsible production and transparent trading.

Certification is a voluntary market scheme; it is not a universal legal requirement for exporting agricultural products to the United States, the European Union or Japan.

1. What is Fairtrade SPO?

The Fairtrade Standard for Small-scale Producer Organisations (SPO) applies to eligible organisations such as cooperatives, farmer associations and other groups of small producers. The relevant product standard and trading requirements must also be considered.

Where a processor sources Fairtrade agricultural inputs, the producer and trading arrangements need to meet the applicable certification, traceability and licensing requirements. Certification scope should be checked across the actual supply chain.

2. Main areas of compliance

Organisational development

A cooperative needs transparent, democratic governance and meaningful member participation. Decisions, financial records and the use of the Fairtrade Premium must be documented. Members approve the development priorities and Premium use through the applicable democratic process.

Labour and social requirements

Prevent child labour, forced labour and discrimination. Protect workers' rights and provide safe working conditions. Farmers and hired workers handling chemicals need appropriate training and protective equipment. Age, task and working-condition requirements must be assessed against both the applicable standard and the law.

Environmental protection

Control pesticide and chemical use in accordance with the applicable Fairtrade hazardous-material requirements. Protect biodiversity, soil and water; prevent inappropriate land conversion; and collect and manage agricultural waste, including empty pesticide containers, safely.

Trading practices

Maintain traceability and the required product identification or segregation from harvesting and weighing through storage and delivery. Apply the relevant product-specific rules, including any permitted traceability arrangements. Fairtrade Minimum Price and Premium requirements must be checked for the product, origin and terms of trade.

3. Implementation process

1. Gap assessment: compare the cooperative's current organisation and farming activities with the applicable SPO requirements.
2. Training and awareness: train cooperative management and farmers on safe farming, social requirements and field-record keeping.
3. Internal control: establish responsibilities and an internal control system to monitor member compliance before the independent assessment.
4. Trial audit: review the system, records and field practices and close remaining gaps.
5. Independent assessment: prepare for the certification body's evaluation and respond to findings. Certification decisions remain with the certification body.

4. ITVC Global's consulting support

Common implementation challenges include established farming practices, limited cooperative management resources and complex record keeping. ITVC helps businesses and cooperatives organise a practical programme suited to the supplying farms and processing supply chain.

• Practical assessment: examine local farming conditions, governance and the applicable requirements.
• Accessible documentation: develop understandable procedures, internal-control records and training materials for management and farmers.
• Implementation support: support initial assessment, system development, field training, audit preparation and corrective action.

Contact ITVC with your crop, production area, cooperative structure and customer requirements to discuss an implementation roadmap.

Reference: Fairtrade International standards.