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Fairtrade Sugar
Status as at 22/11/2009
Mauritius.
22 November 2009
Soleau. 22 Nov 2009
Page 2 of 20
The Consultants
O.I.M (MAURITIUS) LTD - Consultancy Division
ISOLAB (OIM) LTD - Training Division
La Caverne 2, Vacoas, Mauritius
T/F: +230 6962414
M: +230 2598906 Veekash Calleea, +230 2522425 Samantha Wood
E: isolab.oim@gmail.com
Soleau. 22 Nov 2009
Page 3 of 20
Who’s who?
OIM - The Fairtrade Consultants
The Local Sugar Packer
Subcontractor of the buyers
The Buyer
Importer
The Buyer
Importer
The Trader
Exporter and Conveyor
Training Service Porvider
The Sugar Cooperative Societies
Soleau. 22 Nov 2009
Page 4 of 20
Contents
Genesis 5
HACCP 5
The threat 5
Phase 1: The start of the new era 6
The road map to Fairtrade compliance for Mauritius Sugar 6
An unexpected support 6
Drawback 1: Drop-outs 7
Promises kept 7
Phase 2: Confirmation of the support of Traidcraft and Fair Trade Original 7
Drawback 2: The Gramoxone issue 7
Certification timing jeopardised 8
Optimism 8
The bad surprise 8
Reaching the light at the end of the tunnel 9
Impatience 9
Conclusion 9
Acknowledgement 10
The Role Models 10
Reaching out for more 11
The Future 12
The Mauritius Sugar Syndicate 13
Quote 13
Our role 13
Annexes 14
Soleau. 22 Nov 2009
Page 5 of 20
Welcome to Sweet Fairtrade Sugar Mauritius.
Genesis
It all started with Gabriel Kamudu with his vision to fight exclusion of
handicapped people through trade. It was then that Craft Aid was born
in 1982. From modest starts, Craft Aid has slowly and consistently
grown to become a significant player in the provision of work to the
handicapped as described in their mission statement.
Living up to their policy and cherishing their values, Craft Aid has now 40% of handicapped
as employees for its sugar packaging unit.
HACCP
OIM was appointed by Craft Aid to implement HACCP in the sugar packing unit in 2004.
Being openly exposed and closely confronted to handicapped people for the first time of my
life induced a paradigm shift in my faith and made me very grateful to God for being blessed
with a good physical condition.
Implementing HACCP in an organisation employing handicapped people was the challenge
that Gabriel entrusted upon us. It took us time to establish the food safety system but after
less than a couple of years of hard work, sheer dedication together with significant changes
in the infrastructure (which took the most time in their case), Craft Aid was certified to
HACCP with flying colours. Over the years, they have claimed their rights and are now
acclaimed and acknowledged as a reliable and trusted partner in the supply chain.
Together with the dynamic marketing of Gabriel and the HACCP certification, Craft Aid
grew steadily with the support of their clients in Europe including Fair Trade Original (FTO
- The Netherlands) and Traidcraft (TC - UK).
The threat
Meanwhile, FTO and TC started to feel the pressure of their clients who were demanding a
Fairtrade label for the sugar they were marketing. To cope with this, Martin Boon of FTO
and Joe Osman of TC together with Gabriel initiated a vast campaign to bring the Mauritius
sugar to Fairtrade standards by appointing the secondary organisation MCAF, the local
federation of the agricultural cooperative societies of Mauritius, as facilitator. Unfortunately,
the coops did not have the necessary level and the whole project dramatically failed in July
2006 when the first audit was carried out by Alix Audibert. This was a cold shower for Craft
Aid, FTO and TC and the initiative was temporarily “abandoned”. FTO and TC managed to
pursue their activities with Craft Aid in spite of the market pressure for Fairtrade sugar.
However, the market pressure for Fairtrade sugar never faltered and consistently grew up to
such a level that the supply chain started shaking and employment threatened at the other
end: Craft Aid and directly the handicapped people there.
Soleau. 22 Nov 2009
Page 6 of 20
Phase 1: The start of the new era
In December 2007, upon recommendation of Gabriel, OIM was introduced to Martin Boon
of Fair Trade Original. A few days later, Samantha and Veekash were in Port Louis to attend
a presentation, organized and presented by Martin, about Fairtrade to reach for the
cooperatives. A few coops attended the workshop and two of them showed interest to
proceed towards certification. These two coops were Medine Camp de Masque CCS and
Union Park CCS. It was then that OIM was appointed by Fair Trade Original to carry out
the ground work for the profiling of the planter-members of the cooperative societies.
The road map to Fairtrade compliance for Mauritius Sugar
In May 2008, an in-depth review of the status of two interested coops
and the results of the survey were presented by OIM in a “Fairtrade
whole-day seminar” held in Quatre Bornes. All representatives of the
sugar industry had been invited. I remember that we had (a crowd of
50 persons) representatives from the Mauritius Sugar Syndicate, The
Mauritius Cooperative Agricultural Federation, a few cooperative
societies and the millers. The Fairtrade standards were presented by Sandra Kruger (from
SA). Gabriel, Martin and Monica (Monica Philbrick from Traidcraft) also had a few words to
the delegates to share their experience and hopes for Fairtrade Sugar for Mauritius. The
workshop was concluded by drawing a critical path towards certification of Mauritius Sugar.
At the end of the session, Gabriel declared that Craft Aid shall pay for the initial fees for the
first 4 coops that would commit to the project hoping that this incentive would prompt the
cooperative societies to speed up their decision making process. Besides they were all
informed that the Fairtrade Premium was set at 60USD per ton of sugar certified.
An unexpected support
The next day Martin, Samantha and Veekash met with the Management of the
Farmers Service Corporation (FSC), the acting arm of the government with
closest relationship with the sugar cane planters. We did not know it then, but
this meeting will prove to be of critical importance afterwards. Soon after that
meeting, Mr. Vijay Kumar Caulloo, Manager of Riviere du Rempart FSC at that
time, asked OIM to do a presentation on Fairtrade to the cooperative societies
located in the area under his responsibility. He made the necessary
arrangements for the presentation and we were able to share with the audience the spirit and
benefits of Fairtrade. Among the participants, many coops of the May 2008 seminar were
also present.
It was then that 4 cooperatives from L’Amitié, Plaine des Roches, Piton and L’Espérance
showed their interest to join into the process. Ironically these 4 cooperative societies had
been unheard of since the very beginning.
Everyone was glad that the sensitization campaigns were finally reaping their fruits. At that
time we had Medine Camp de Masque, Union Park, L’Amitié,Plaine des Roches, Piton and
L’Espérane on board together with the MCAF on board.
Soleau. 22 Nov 2009
Page 7 of 20
Drawback 1: Drop-outs
Unfortunately, Union Park dropped out later when confronted to the costs involved
although being informed that the buyers Fair Trade Original and Traidcraft would support
them. Another blow was suffered later when the MCAF pulled out from the process. This
would be confirmed later in a meeting between MCAF and Jean Philippe Zanavelo of FLO
e.V. The consequences were dramatic financially as losing the MCAF as an umbrella
organisation for the coops implied significant additional costs to the certification process. As
at today, the MCAF is still identified by FLO-CERT under the FLO ID 4367 and their
status still defined as “not certified producer”.
Promises kept
In spite of all these drawbacks, Craft Aid, Fair Trade Original and Traidcraft firmly
maintained their support and we were then left with 5 coops still motivated. Gabriel kept
more than his word. Initially he promised Craft Aid would pay the application fees for the
first 4 coops. They finally paid for all 5.
Phase 2: Confirmation of the support of Traidcraft and Fair Trade Original
The agreement between Traidcraft, Fair Trade Original and
OIM to assist Medine Camp de Masque, Piton, L’Espérance,
L’Amitié and Plaine des Roches in the FLO Fairtrade
certification process was finalized in The Netherlands in a
meeting held at Woudschouten, The Netherlands in October
2008. At that time we were expecting the project to be
completed within 3 months.
Drawback 2: The Gramoxone issue
Unfortunately, the reality of the field work proved otherwise. The use of a
particular chemical, namely Paraquat also known as Gramoxone, in the
agricultural sector was a major blow which almost killed the project. Luckily,
this product (banned in Europe as it is known to cause Alzheimer to the users
in the long run) was not available on the local market since June 2008. This implied that
none had been used in the 2008-2009 crop. Yet controls had to be put in place to restrict
access of that chemical for the planter members of the 5 coops. We tried to convince the
planters that the use of that chemical was harmful to the users and in fact quite ineffective
because of it very low remanance. However, coupled with the drastic loss in market price of
sugar and increasing production costs, the planters were inclined to stick to that low cost
product. This aspect was definitely a Damocles sword over our heads and was jeopardizing
all our efforts. We then imagined and designed a control at source by requesting the FSC to
cease the issue of purchase permits of that product to the planter members of the
cooperatives by special resolutions voted by the respective Board of Directors. The FSC
readily collaborated and the action is still in place today thanks to the support of the
Director Mr. B. K. Sujeewon.
Soleau. 22 Nov 2009
Page 8 of 20
Certification timing jeopardised
While initially targeting December 2008 for certification, the certification process of the 5
coops was postponed for March 2009.
FLO-CERT rightly wanted to have local auditors to
alleviate the certification costs in the long run. Therefore
they planned to have a local auditor trained to audit small
farmers’ organisation in Madagascar. That trained auditor
would then use his competence under the supervision of
the Lead Auditor to audit coops and qualify as an auditor
for subsequent audits.
Unfortunately, the political instability that prevailed in Madagascar early 2009 jeopardised the
strategy of FLO-CERT. The certification process was again delayed. After a lot of work and
abnegation, we resolved to fly an auditor from Europe. The audits of the 5 coops were
finally conducted end of May and beginning of June.
Optimism
From the discussions with the first 4 coops that went through the audits end of May, we
gathered that there were “only” a few issues to clear while the fifth coop would be audited
beginning June. I flew to the Netherlands to participate with Fair Trade Original in a Fair
Trade workshop beginning of June with my mind at peace since the identified weaknesses
would be easily resolved.
The bad surprise
The final report of FLO-CERT was a massive blow for all of us. In addition to the non
conformances identified by the auditors another significant issues cropped up: the
environmental plan wasn’t comprehensive enough, there were no agreements with the
millers so that Fairtade activities could be assessed during an audit and lastly and perhaps
most critical, the ownership of the sugar was questioned. Section 9 of the contract between
the millers and the coops drawn up under “The cane planters and millers arbitration and
control board Act 1973” could be interpreted as a transfer of ownership.
Taking legal ownership of the sugar would imply that the millers too would then need to be
certified. Since it is common, generally and conventionally accepted that the sugar remains
the ownership of the planters throughout the chain until sales to the buyers, this aspect had
never been questioned “ever”.
OIM had a few meetings with the Mauritius Sugar Syndicate with Mr. Jean Noël Humbert
and Mr. Devesh Dukhira respectively CEO and Marketing Officer to clarify the ownership
issue. The MSS sought the opinion of “The cane planters and millers arbitration and control
board”. Their appreciation was to our opinion as confusing as the ACT itself.
Soleau. 22 Nov 2009
Page 9 of 20
Reaching the light at the end of the tunnel
As required by FLO-CERT, we resolved to write an annex to the original contracts between
the millers and the coops clarifying any grey areas regarding ownership of the sugar and
handling of proceeds. Together with a covering letter from the MSS, the agreements were
sent to the millers who quickly acknowledged the content and sent back signed copies to the
MSS.
In the whole process, we forgot to consider Mon Loisir Sugar Mill which was initially
planned to be closed down and inactive, and yet running for the current crop. This issue was
quickly resolved too thanks to the diligence of the MSS.
On the 13th
of September 2009 at 03:30 AM local time, after a long and extensive
preparation work, we were able to send the last of a comprehensive and very thorough set of
documents to FLO-CERT as objective evidences for the required corrective actions.
Impatience
There has not been a single week whereby Martin and/or Devesh and/or Gabriel and/or
Joe and/or Monica and/or Jean Noël have enquired about any progress. It goes without
saying that all the stakeholders had been on their toes during the whole process which
started in October 2008.
Conclusion
One year later, Médine Camp de Masque Cooperative Credit Society, Piton Agricultural
Produce and Cooperative Credit Society, L'Amitié Cooperative Produce & Credit Society,
L'Espérance Cooperative Credit Society,
Plaine des Roches Multipurpose Cooperative
Society were all certified on the 2nd
of
October 2009.
This certification process had been very
challenging and OIM is privileged to have
been associated to it. Being certified to FLO
Fairtrade Standards and Policies is indeed a
well deserved distinction for the 5
cooperatives and a pride for Mauritius at
large.
Soleau. 22 Nov 2009
Page 10 of 20
Acknowledgement
We would like to put on records our gratitude to the following people for their support in
different aspects and along the whole compliance process to FLO requirements.
In alphabetical order:
Jack K. W. Chang Omnicane Milling Operations Ltd. (Mauritius)
Devesh Dukhira The Mauritius Sugar Syndicate (Mauritius)
Jean Noël Fayolle La Compagnie Sucrière de Mon Loisir (Mauritius)
Jean Luc Harel Flacq United Estates Ltd. (Mauritius)
Jean Noël Humbert The Mauritius Sugar Syndicate (Mauritius)
Christian Marot Deep River-Beau Champ Ltd. (Mauritius)
Denis Pilot Belle Vue Milling Co. Ltd. (Mauritius)
Babu Khooseeramsing Sujeewon Farmers Service Corporation (Mauritius)
Jean Francois Rault The Medine Sugar Milling Co. Ltd. (Mauritius)
Jean Philippe Zanavelo FLO e.V (Madagascar)
A special mention to our generous donors who have spared no resources in this enterprise
and whose indefectible support has proven instrumental in making this certification today an
achievement that puts Mauritius on the “World Map of Fairtrade Sugar”.
In alphabetical order:
Martin Boon Fair Trade Original (The Netherlands)
Gabriel Kamudu Craft Aid Mauritius Co. Ltd. (Mauritius)
Joe Osman Traidcraft ( The United Kingdom)
Monica Philbrick Traidcraft (The United Kingdom)
I wish to pay a special tribute to my partner Samantha Ann Wood for her
significant contribution since the beginning of the involvement of OIM in the
Mauritius Fairtrade Sugar Project. During the whole process, Samantha has
demonstrated exceptionally high levels of professionalism. Her insight and
decision making skills have been instrumental in this success. Working with
such a wonderful colleague like Samantha is a pride indeed.
The Role Models
In this whole process, lost in all these words, we must not forget that the exceptional work
of 5 outstanding Secretaries of 5 cooperative societies needs to be underlined.
No. Secretary Name of cooperative society
1 Mr. Chabeelall (Sen) DABYDOYAL
Médine Camp de Masque Cooperative Credit
Society
2 Mrs. Rita PUNCHU
Piton Agricultural Produce and Cooperative
Credit Society
3 Mr. Swaraj SOOJHAWON
L'Amitié Cooperative Produce & Credit
Society
4 Mr. Sooriadeho PUNCHU
L'Espérance Cooperative Credit Society
5 Mr. Kamless SEEAM
Plaine des Roches Multipurpose Cooperative
Society
Soleau. 22 Nov 2009
Page 11 of 20
Reaching out for more
The strategy has always been to reach all the small sugar planters of Mauritius capable to
sustain Fairtrade.
Initially planned by and under the blessings of Fair Trade Original and Traidcraft for January
2010, the Fairtrade Reach-Out Event was held on the 12th
of November 2009. Traidcraft
and Fair Trade Original have been very elegant to allow the event to happen although they
knew they could not make it to travel to Mauritius at such short notice to celebrate this
unprecedented event. They certainly deserved to be present to share the success of an
innovative project which was instigated by them.
Following several discussions, the first preparation meeting of the event (that included MSS
Representatives Jyoty Soomarooah, Devesh Dukhira and Jean Noel Humbert on the one
hand and OIM representatives Samantha Wood and Veekash Calleea on the other) was held
at Plantation House on the 8th
of October. The tasks list that came out from that meeting
would be brilliantly handled by all those present. The final programme of the event would be
maintained and fulfilled as follows:
Fairtrade Certification event
Date 12th November 2009
Time 10.00hrs
Venue Boname Hall, MSIRI, Reduit
Master of Ceremony Jean Noel Humbert, CEO, Mauritius Sugar Syndicate
Programme
10.00hrs Welcome by Mr. Jean Noel Humbert, CEO of the Mauritius Sugar Syndicate
10.10hrs Presentation on Fairtrade labeling by Mr Veekash Calleea,
Management Systems consultant, O.I.M (Mauritius) Ltd
10.25hrs Clip on the Mauritius Fairtrade story
10.30hrs Address by the Hon. Mahendra Gowressoo MP
Minister of Business, Enterprise and Cooperatives
10.40hrs Address by the Hon. Satya Veyash Faugoo, MP
Minister of Agro-Industry, Food Production and Security
10.50hrs Refreshments
11.15hrs Sharing of experience by the Fairtrade certified cooperatives, the Mauritius Sugar Syndicate and the
company Craft Aid as a packer of Fairtrade sugar.
Participants:
Mr Sooriadeo Punchun, L’Esperance Cooperative Credit Society
Mr Kamless Seeam, Plaines des Roches Multipurpose Cooperative Society
Mr Swaraj Soojhawon, L’Amitié Cooperative Produce & Credit Society
Mr Chabeelall Dabydoyal, Medine Camp de Masque Cooperative Credit Society
Mrs Rita Punchu, Piton Agricultural Produce & Cooperative Credit Society
Mr Devesh Dukhira, The Mauritius Sugar Syndicate
Mr Gabriel Kamudu, Craft Aid (Mauritius) Co. Ltd
11.40hrs Questions from the Floor
12.00hrs Concluding remarks by the Mauritius Sugar Syndicate and the way forward
12.10hrs End of function
Soleau. 22 Nov 2009
Page 12 of 20
We need here to acknowledge the significant role of The Mauritius
Sugar Syndicate in the realisation of the Fairtrade Reach-Out
Event. Mr. Jean Noel Humbert acting as the Master of Ceremony
brilliantly fulfilled his role. He managed to keep the audience alert,
disciplined and participative.
The Fairtrade Presentation and the video clip on the History of the
Fairtrade Project for Mauritius were warmly welcomed. The Fairtrade Project was also
acclaimed by the 2 Ministers present in their respective speeches. The panel discussion that
followed the refreshment break drove a lot of passion and yield high hopes for the future.
The Future
The sugar producers in Mauritius are now at a turning
point.
Because prices of sugar have been dropped by 36
percent since 1st
October 2009; farmers, factory
owners and institutions in the sugar industry have had
no alternatives but to reform their practices and be
innovative to remain competitive in the now
“customer driven world sugar market”. While
everyone is geared towards the reduction in
production costs, Fairtrade poises itself as a
significant and unexpected ally providing small sugar
producers the Fairtrade premium (60USD/Ton of
sugar) to be invested into development projects that
will promote the sustainable socio-economic
development of the small planters’ community.
Based on their production estimates , the first five cooperative societies certified to FLO
Fairtrade will be deriving a FT Premium of around Rs. 5M..
If other cooperatives do not join the movement, the loss would amount to:
30,000 Tons sugar x 60 USD premium x Rs.30 = Rs 54,000,000 loss
If individual planters do not join the cooperative movement, the loss would amount to:
65,000 Tons sugar x 60 USD premium x Rs.30 (per USD) = Rs. 117,000,000
Total loss if the small sugar producers do not take advantage of the FT Premium
= Rs. 171,000,000 loss yearly
Losing or winning: The future lies in our hands.
Soleau. 22 Nov 2009
Page 13 of 20
The Mauritius Sugar Syndicate
The MSS is now playing a significant role in the Mauritius Sugar
Fairtrade Project. Their recent input, coupled with the support
obtained from the Minister of Agriculture and the Minister of
Cooperatives during the Fairtrade Reach-Out Event has led to
the support of the Mauritian Government as publicised in
section 144 of the Budget Speech 2010 - Shaping Recovery,
Consolidating Social Progress and Sustaining Green Mauritius.
To support the Sugar Cooperatives in the second phase of the
Mauritius Sugar Fairtrade Project, MSS has set up a Fairtrade
Information Desk to address any query.
Quote
Arvin Boolell: Mauritians "should stop looking back. We have to move forward and
change our mindset. We need everybody in this industry to not only save the sector but to
transform sugar into green gold." (PORT LOUIS, Nov 9 (IPS))
The role of OIM
We are honoured to have contributed in putting Mauritius Sugar on the “World Map of
Fairtrade”.
We thank Craft Aid, Fair Trade Original and Traidcraft for:
• their financial support to the 5 cooperative societies
• for entrusting the Mauritius Fairtrade Sugar to OIM GROUP.
We assure all our stakeholders of our best endeavours to keep the Fairtrade movement on
the high side and hope that this empowerment initiative will provide a boost for
entrepreneurship in the cooperative movement of the Mauritius Sugar Industry.
Phase 2 of the Mauritius Fairtrade Sugar Project has already started.
Veekash Calleea
22nd
November 2009 Second edition
3rd
of October 2009 First edition
All persons reproducing, redistributing, or making commercial use of this information are expected to adhere to the terms
and conditions asserted by the copyright holder. Transmission or reproduction of protected items beyond that allowed by
fair use as defined in the copyright laws requires the written permission of the copyright owners.
Although all due care has been taken to ensure fair reporting, neither O.I.M (MAURITIUS) LTD nor ISOLAB (OIM)
LTD warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information
contained therein.
Soleau. 22 Nov 2009
Page 14 of 20
Annexes
Certificates of Conformity
Contact details of the first 5 cooperative societies certified to FLO Fairtrade Standards and Policies
No. Name of cooperative society
FLO
ID
Address Title Secretary Tel Mob Email
1
Medine Camp de Masque
Cooperative Credit Society
20766 Royal Road, Mont Ida Mr.
Chabeelall (Sen)
DABYDOYAL
4164642 7335332 medineccs@yahoo.com
2
Piton Agricultural Produce and
Cooperative Credit Society
20765
Maurice Martin Rd.,
L'Esperance Piton
Mrs. Rita PUNCHU 2641161 7674081 ritapunchu@yahoo.com
3
L'Amitie Cooperative Produce &
Credit Society
20806
Royal Road, Belle Vue
Maurel
Mr.
Swaraj
SOOJHAWON
4124639 7545217 soojhawons@yahoo.com
4
L'Esperance Cooperative Credit
Society
20763
Maurice Martin Rd.,
L'Esperance Piton
Mr.
Sooriadeho
PUNCHU
2641161 7444408 ritapunchu@yahoo.com
5
Plaine des Roches Multipurpose
Cooperative Society
20764
Sookha Road, Plaine
des Roches
Mr.
Kamless
SEEAM
4129582 7891408 kamless.seeam@gmail.com
Soleau. 22 Nov 2009
Page 15 of 20
The FAIRTRADE REACH OUT EVENT – 12 Nov 2009
Soleau. 22 Nov 2009
Page 16 of 20
Soleau. 22 Nov 2009
Page 17 of 20
Soleau. 22 Nov 2009
Page 18 of 20
Soleau. 22 Nov 2009
Page 19 of 20
Soleau. 22 Nov 2009
Page 20 of 20
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01 Welcome to Sweet Fairtrade Sugar Mauritius v2

  • 1. Soleau. 22 Nov 2009 Page 1 of 20 Fairtrade Sugar Status as at 22/11/2009 Mauritius. 22 November 2009
  • 2. Soleau. 22 Nov 2009 Page 2 of 20 The Consultants O.I.M (MAURITIUS) LTD - Consultancy Division ISOLAB (OIM) LTD - Training Division La Caverne 2, Vacoas, Mauritius T/F: +230 6962414 M: +230 2598906 Veekash Calleea, +230 2522425 Samantha Wood E: isolab.oim@gmail.com
  • 3. Soleau. 22 Nov 2009 Page 3 of 20 Who’s who? OIM - The Fairtrade Consultants The Local Sugar Packer Subcontractor of the buyers The Buyer Importer The Buyer Importer The Trader Exporter and Conveyor Training Service Porvider The Sugar Cooperative Societies
  • 4. Soleau. 22 Nov 2009 Page 4 of 20 Contents Genesis 5 HACCP 5 The threat 5 Phase 1: The start of the new era 6 The road map to Fairtrade compliance for Mauritius Sugar 6 An unexpected support 6 Drawback 1: Drop-outs 7 Promises kept 7 Phase 2: Confirmation of the support of Traidcraft and Fair Trade Original 7 Drawback 2: The Gramoxone issue 7 Certification timing jeopardised 8 Optimism 8 The bad surprise 8 Reaching the light at the end of the tunnel 9 Impatience 9 Conclusion 9 Acknowledgement 10 The Role Models 10 Reaching out for more 11 The Future 12 The Mauritius Sugar Syndicate 13 Quote 13 Our role 13 Annexes 14
  • 5. Soleau. 22 Nov 2009 Page 5 of 20 Welcome to Sweet Fairtrade Sugar Mauritius. Genesis It all started with Gabriel Kamudu with his vision to fight exclusion of handicapped people through trade. It was then that Craft Aid was born in 1982. From modest starts, Craft Aid has slowly and consistently grown to become a significant player in the provision of work to the handicapped as described in their mission statement. Living up to their policy and cherishing their values, Craft Aid has now 40% of handicapped as employees for its sugar packaging unit. HACCP OIM was appointed by Craft Aid to implement HACCP in the sugar packing unit in 2004. Being openly exposed and closely confronted to handicapped people for the first time of my life induced a paradigm shift in my faith and made me very grateful to God for being blessed with a good physical condition. Implementing HACCP in an organisation employing handicapped people was the challenge that Gabriel entrusted upon us. It took us time to establish the food safety system but after less than a couple of years of hard work, sheer dedication together with significant changes in the infrastructure (which took the most time in their case), Craft Aid was certified to HACCP with flying colours. Over the years, they have claimed their rights and are now acclaimed and acknowledged as a reliable and trusted partner in the supply chain. Together with the dynamic marketing of Gabriel and the HACCP certification, Craft Aid grew steadily with the support of their clients in Europe including Fair Trade Original (FTO - The Netherlands) and Traidcraft (TC - UK). The threat Meanwhile, FTO and TC started to feel the pressure of their clients who were demanding a Fairtrade label for the sugar they were marketing. To cope with this, Martin Boon of FTO and Joe Osman of TC together with Gabriel initiated a vast campaign to bring the Mauritius sugar to Fairtrade standards by appointing the secondary organisation MCAF, the local federation of the agricultural cooperative societies of Mauritius, as facilitator. Unfortunately, the coops did not have the necessary level and the whole project dramatically failed in July 2006 when the first audit was carried out by Alix Audibert. This was a cold shower for Craft Aid, FTO and TC and the initiative was temporarily “abandoned”. FTO and TC managed to pursue their activities with Craft Aid in spite of the market pressure for Fairtrade sugar. However, the market pressure for Fairtrade sugar never faltered and consistently grew up to such a level that the supply chain started shaking and employment threatened at the other end: Craft Aid and directly the handicapped people there.
  • 6. Soleau. 22 Nov 2009 Page 6 of 20 Phase 1: The start of the new era In December 2007, upon recommendation of Gabriel, OIM was introduced to Martin Boon of Fair Trade Original. A few days later, Samantha and Veekash were in Port Louis to attend a presentation, organized and presented by Martin, about Fairtrade to reach for the cooperatives. A few coops attended the workshop and two of them showed interest to proceed towards certification. These two coops were Medine Camp de Masque CCS and Union Park CCS. It was then that OIM was appointed by Fair Trade Original to carry out the ground work for the profiling of the planter-members of the cooperative societies. The road map to Fairtrade compliance for Mauritius Sugar In May 2008, an in-depth review of the status of two interested coops and the results of the survey were presented by OIM in a “Fairtrade whole-day seminar” held in Quatre Bornes. All representatives of the sugar industry had been invited. I remember that we had (a crowd of 50 persons) representatives from the Mauritius Sugar Syndicate, The Mauritius Cooperative Agricultural Federation, a few cooperative societies and the millers. The Fairtrade standards were presented by Sandra Kruger (from SA). Gabriel, Martin and Monica (Monica Philbrick from Traidcraft) also had a few words to the delegates to share their experience and hopes for Fairtrade Sugar for Mauritius. The workshop was concluded by drawing a critical path towards certification of Mauritius Sugar. At the end of the session, Gabriel declared that Craft Aid shall pay for the initial fees for the first 4 coops that would commit to the project hoping that this incentive would prompt the cooperative societies to speed up their decision making process. Besides they were all informed that the Fairtrade Premium was set at 60USD per ton of sugar certified. An unexpected support The next day Martin, Samantha and Veekash met with the Management of the Farmers Service Corporation (FSC), the acting arm of the government with closest relationship with the sugar cane planters. We did not know it then, but this meeting will prove to be of critical importance afterwards. Soon after that meeting, Mr. Vijay Kumar Caulloo, Manager of Riviere du Rempart FSC at that time, asked OIM to do a presentation on Fairtrade to the cooperative societies located in the area under his responsibility. He made the necessary arrangements for the presentation and we were able to share with the audience the spirit and benefits of Fairtrade. Among the participants, many coops of the May 2008 seminar were also present. It was then that 4 cooperatives from L’Amitié, Plaine des Roches, Piton and L’Espérance showed their interest to join into the process. Ironically these 4 cooperative societies had been unheard of since the very beginning. Everyone was glad that the sensitization campaigns were finally reaping their fruits. At that time we had Medine Camp de Masque, Union Park, L’Amitié,Plaine des Roches, Piton and L’Espérane on board together with the MCAF on board.
  • 7. Soleau. 22 Nov 2009 Page 7 of 20 Drawback 1: Drop-outs Unfortunately, Union Park dropped out later when confronted to the costs involved although being informed that the buyers Fair Trade Original and Traidcraft would support them. Another blow was suffered later when the MCAF pulled out from the process. This would be confirmed later in a meeting between MCAF and Jean Philippe Zanavelo of FLO e.V. The consequences were dramatic financially as losing the MCAF as an umbrella organisation for the coops implied significant additional costs to the certification process. As at today, the MCAF is still identified by FLO-CERT under the FLO ID 4367 and their status still defined as “not certified producer”. Promises kept In spite of all these drawbacks, Craft Aid, Fair Trade Original and Traidcraft firmly maintained their support and we were then left with 5 coops still motivated. Gabriel kept more than his word. Initially he promised Craft Aid would pay the application fees for the first 4 coops. They finally paid for all 5. Phase 2: Confirmation of the support of Traidcraft and Fair Trade Original The agreement between Traidcraft, Fair Trade Original and OIM to assist Medine Camp de Masque, Piton, L’Espérance, L’Amitié and Plaine des Roches in the FLO Fairtrade certification process was finalized in The Netherlands in a meeting held at Woudschouten, The Netherlands in October 2008. At that time we were expecting the project to be completed within 3 months. Drawback 2: The Gramoxone issue Unfortunately, the reality of the field work proved otherwise. The use of a particular chemical, namely Paraquat also known as Gramoxone, in the agricultural sector was a major blow which almost killed the project. Luckily, this product (banned in Europe as it is known to cause Alzheimer to the users in the long run) was not available on the local market since June 2008. This implied that none had been used in the 2008-2009 crop. Yet controls had to be put in place to restrict access of that chemical for the planter members of the 5 coops. We tried to convince the planters that the use of that chemical was harmful to the users and in fact quite ineffective because of it very low remanance. However, coupled with the drastic loss in market price of sugar and increasing production costs, the planters were inclined to stick to that low cost product. This aspect was definitely a Damocles sword over our heads and was jeopardizing all our efforts. We then imagined and designed a control at source by requesting the FSC to cease the issue of purchase permits of that product to the planter members of the cooperatives by special resolutions voted by the respective Board of Directors. The FSC readily collaborated and the action is still in place today thanks to the support of the Director Mr. B. K. Sujeewon.
  • 8. Soleau. 22 Nov 2009 Page 8 of 20 Certification timing jeopardised While initially targeting December 2008 for certification, the certification process of the 5 coops was postponed for March 2009. FLO-CERT rightly wanted to have local auditors to alleviate the certification costs in the long run. Therefore they planned to have a local auditor trained to audit small farmers’ organisation in Madagascar. That trained auditor would then use his competence under the supervision of the Lead Auditor to audit coops and qualify as an auditor for subsequent audits. Unfortunately, the political instability that prevailed in Madagascar early 2009 jeopardised the strategy of FLO-CERT. The certification process was again delayed. After a lot of work and abnegation, we resolved to fly an auditor from Europe. The audits of the 5 coops were finally conducted end of May and beginning of June. Optimism From the discussions with the first 4 coops that went through the audits end of May, we gathered that there were “only” a few issues to clear while the fifth coop would be audited beginning June. I flew to the Netherlands to participate with Fair Trade Original in a Fair Trade workshop beginning of June with my mind at peace since the identified weaknesses would be easily resolved. The bad surprise The final report of FLO-CERT was a massive blow for all of us. In addition to the non conformances identified by the auditors another significant issues cropped up: the environmental plan wasn’t comprehensive enough, there were no agreements with the millers so that Fairtade activities could be assessed during an audit and lastly and perhaps most critical, the ownership of the sugar was questioned. Section 9 of the contract between the millers and the coops drawn up under “The cane planters and millers arbitration and control board Act 1973” could be interpreted as a transfer of ownership. Taking legal ownership of the sugar would imply that the millers too would then need to be certified. Since it is common, generally and conventionally accepted that the sugar remains the ownership of the planters throughout the chain until sales to the buyers, this aspect had never been questioned “ever”. OIM had a few meetings with the Mauritius Sugar Syndicate with Mr. Jean Noël Humbert and Mr. Devesh Dukhira respectively CEO and Marketing Officer to clarify the ownership issue. The MSS sought the opinion of “The cane planters and millers arbitration and control board”. Their appreciation was to our opinion as confusing as the ACT itself.
  • 9. Soleau. 22 Nov 2009 Page 9 of 20 Reaching the light at the end of the tunnel As required by FLO-CERT, we resolved to write an annex to the original contracts between the millers and the coops clarifying any grey areas regarding ownership of the sugar and handling of proceeds. Together with a covering letter from the MSS, the agreements were sent to the millers who quickly acknowledged the content and sent back signed copies to the MSS. In the whole process, we forgot to consider Mon Loisir Sugar Mill which was initially planned to be closed down and inactive, and yet running for the current crop. This issue was quickly resolved too thanks to the diligence of the MSS. On the 13th of September 2009 at 03:30 AM local time, after a long and extensive preparation work, we were able to send the last of a comprehensive and very thorough set of documents to FLO-CERT as objective evidences for the required corrective actions. Impatience There has not been a single week whereby Martin and/or Devesh and/or Gabriel and/or Joe and/or Monica and/or Jean Noël have enquired about any progress. It goes without saying that all the stakeholders had been on their toes during the whole process which started in October 2008. Conclusion One year later, Médine Camp de Masque Cooperative Credit Society, Piton Agricultural Produce and Cooperative Credit Society, L'Amitié Cooperative Produce & Credit Society, L'Espérance Cooperative Credit Society, Plaine des Roches Multipurpose Cooperative Society were all certified on the 2nd of October 2009. This certification process had been very challenging and OIM is privileged to have been associated to it. Being certified to FLO Fairtrade Standards and Policies is indeed a well deserved distinction for the 5 cooperatives and a pride for Mauritius at large.
  • 10. Soleau. 22 Nov 2009 Page 10 of 20 Acknowledgement We would like to put on records our gratitude to the following people for their support in different aspects and along the whole compliance process to FLO requirements. In alphabetical order: Jack K. W. Chang Omnicane Milling Operations Ltd. (Mauritius) Devesh Dukhira The Mauritius Sugar Syndicate (Mauritius) Jean Noël Fayolle La Compagnie Sucrière de Mon Loisir (Mauritius) Jean Luc Harel Flacq United Estates Ltd. (Mauritius) Jean Noël Humbert The Mauritius Sugar Syndicate (Mauritius) Christian Marot Deep River-Beau Champ Ltd. (Mauritius) Denis Pilot Belle Vue Milling Co. Ltd. (Mauritius) Babu Khooseeramsing Sujeewon Farmers Service Corporation (Mauritius) Jean Francois Rault The Medine Sugar Milling Co. Ltd. (Mauritius) Jean Philippe Zanavelo FLO e.V (Madagascar) A special mention to our generous donors who have spared no resources in this enterprise and whose indefectible support has proven instrumental in making this certification today an achievement that puts Mauritius on the “World Map of Fairtrade Sugar”. In alphabetical order: Martin Boon Fair Trade Original (The Netherlands) Gabriel Kamudu Craft Aid Mauritius Co. Ltd. (Mauritius) Joe Osman Traidcraft ( The United Kingdom) Monica Philbrick Traidcraft (The United Kingdom) I wish to pay a special tribute to my partner Samantha Ann Wood for her significant contribution since the beginning of the involvement of OIM in the Mauritius Fairtrade Sugar Project. During the whole process, Samantha has demonstrated exceptionally high levels of professionalism. Her insight and decision making skills have been instrumental in this success. Working with such a wonderful colleague like Samantha is a pride indeed. The Role Models In this whole process, lost in all these words, we must not forget that the exceptional work of 5 outstanding Secretaries of 5 cooperative societies needs to be underlined. No. Secretary Name of cooperative society 1 Mr. Chabeelall (Sen) DABYDOYAL Médine Camp de Masque Cooperative Credit Society 2 Mrs. Rita PUNCHU Piton Agricultural Produce and Cooperative Credit Society 3 Mr. Swaraj SOOJHAWON L'Amitié Cooperative Produce & Credit Society 4 Mr. Sooriadeho PUNCHU L'Espérance Cooperative Credit Society 5 Mr. Kamless SEEAM Plaine des Roches Multipurpose Cooperative Society
  • 11. Soleau. 22 Nov 2009 Page 11 of 20 Reaching out for more The strategy has always been to reach all the small sugar planters of Mauritius capable to sustain Fairtrade. Initially planned by and under the blessings of Fair Trade Original and Traidcraft for January 2010, the Fairtrade Reach-Out Event was held on the 12th of November 2009. Traidcraft and Fair Trade Original have been very elegant to allow the event to happen although they knew they could not make it to travel to Mauritius at such short notice to celebrate this unprecedented event. They certainly deserved to be present to share the success of an innovative project which was instigated by them. Following several discussions, the first preparation meeting of the event (that included MSS Representatives Jyoty Soomarooah, Devesh Dukhira and Jean Noel Humbert on the one hand and OIM representatives Samantha Wood and Veekash Calleea on the other) was held at Plantation House on the 8th of October. The tasks list that came out from that meeting would be brilliantly handled by all those present. The final programme of the event would be maintained and fulfilled as follows: Fairtrade Certification event Date 12th November 2009 Time 10.00hrs Venue Boname Hall, MSIRI, Reduit Master of Ceremony Jean Noel Humbert, CEO, Mauritius Sugar Syndicate Programme 10.00hrs Welcome by Mr. Jean Noel Humbert, CEO of the Mauritius Sugar Syndicate 10.10hrs Presentation on Fairtrade labeling by Mr Veekash Calleea, Management Systems consultant, O.I.M (Mauritius) Ltd 10.25hrs Clip on the Mauritius Fairtrade story 10.30hrs Address by the Hon. Mahendra Gowressoo MP Minister of Business, Enterprise and Cooperatives 10.40hrs Address by the Hon. Satya Veyash Faugoo, MP Minister of Agro-Industry, Food Production and Security 10.50hrs Refreshments 11.15hrs Sharing of experience by the Fairtrade certified cooperatives, the Mauritius Sugar Syndicate and the company Craft Aid as a packer of Fairtrade sugar. Participants: Mr Sooriadeo Punchun, L’Esperance Cooperative Credit Society Mr Kamless Seeam, Plaines des Roches Multipurpose Cooperative Society Mr Swaraj Soojhawon, L’Amitié Cooperative Produce & Credit Society Mr Chabeelall Dabydoyal, Medine Camp de Masque Cooperative Credit Society Mrs Rita Punchu, Piton Agricultural Produce & Cooperative Credit Society Mr Devesh Dukhira, The Mauritius Sugar Syndicate Mr Gabriel Kamudu, Craft Aid (Mauritius) Co. Ltd 11.40hrs Questions from the Floor 12.00hrs Concluding remarks by the Mauritius Sugar Syndicate and the way forward 12.10hrs End of function
  • 12. Soleau. 22 Nov 2009 Page 12 of 20 We need here to acknowledge the significant role of The Mauritius Sugar Syndicate in the realisation of the Fairtrade Reach-Out Event. Mr. Jean Noel Humbert acting as the Master of Ceremony brilliantly fulfilled his role. He managed to keep the audience alert, disciplined and participative. The Fairtrade Presentation and the video clip on the History of the Fairtrade Project for Mauritius were warmly welcomed. The Fairtrade Project was also acclaimed by the 2 Ministers present in their respective speeches. The panel discussion that followed the refreshment break drove a lot of passion and yield high hopes for the future. The Future The sugar producers in Mauritius are now at a turning point. Because prices of sugar have been dropped by 36 percent since 1st October 2009; farmers, factory owners and institutions in the sugar industry have had no alternatives but to reform their practices and be innovative to remain competitive in the now “customer driven world sugar market”. While everyone is geared towards the reduction in production costs, Fairtrade poises itself as a significant and unexpected ally providing small sugar producers the Fairtrade premium (60USD/Ton of sugar) to be invested into development projects that will promote the sustainable socio-economic development of the small planters’ community. Based on their production estimates , the first five cooperative societies certified to FLO Fairtrade will be deriving a FT Premium of around Rs. 5M.. If other cooperatives do not join the movement, the loss would amount to: 30,000 Tons sugar x 60 USD premium x Rs.30 = Rs 54,000,000 loss If individual planters do not join the cooperative movement, the loss would amount to: 65,000 Tons sugar x 60 USD premium x Rs.30 (per USD) = Rs. 117,000,000 Total loss if the small sugar producers do not take advantage of the FT Premium = Rs. 171,000,000 loss yearly Losing or winning: The future lies in our hands.
  • 13. Soleau. 22 Nov 2009 Page 13 of 20 The Mauritius Sugar Syndicate The MSS is now playing a significant role in the Mauritius Sugar Fairtrade Project. Their recent input, coupled with the support obtained from the Minister of Agriculture and the Minister of Cooperatives during the Fairtrade Reach-Out Event has led to the support of the Mauritian Government as publicised in section 144 of the Budget Speech 2010 - Shaping Recovery, Consolidating Social Progress and Sustaining Green Mauritius. To support the Sugar Cooperatives in the second phase of the Mauritius Sugar Fairtrade Project, MSS has set up a Fairtrade Information Desk to address any query. Quote Arvin Boolell: Mauritians "should stop looking back. We have to move forward and change our mindset. We need everybody in this industry to not only save the sector but to transform sugar into green gold." (PORT LOUIS, Nov 9 (IPS)) The role of OIM We are honoured to have contributed in putting Mauritius Sugar on the “World Map of Fairtrade”. We thank Craft Aid, Fair Trade Original and Traidcraft for: • their financial support to the 5 cooperative societies • for entrusting the Mauritius Fairtrade Sugar to OIM GROUP. We assure all our stakeholders of our best endeavours to keep the Fairtrade movement on the high side and hope that this empowerment initiative will provide a boost for entrepreneurship in the cooperative movement of the Mauritius Sugar Industry. Phase 2 of the Mauritius Fairtrade Sugar Project has already started. Veekash Calleea 22nd November 2009 Second edition 3rd of October 2009 First edition All persons reproducing, redistributing, or making commercial use of this information are expected to adhere to the terms and conditions asserted by the copyright holder. Transmission or reproduction of protected items beyond that allowed by fair use as defined in the copyright laws requires the written permission of the copyright owners. Although all due care has been taken to ensure fair reporting, neither O.I.M (MAURITIUS) LTD nor ISOLAB (OIM) LTD warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information contained therein.
  • 14. Soleau. 22 Nov 2009 Page 14 of 20 Annexes Certificates of Conformity Contact details of the first 5 cooperative societies certified to FLO Fairtrade Standards and Policies No. Name of cooperative society FLO ID Address Title Secretary Tel Mob Email 1 Medine Camp de Masque Cooperative Credit Society 20766 Royal Road, Mont Ida Mr. Chabeelall (Sen) DABYDOYAL 4164642 7335332 medineccs@yahoo.com 2 Piton Agricultural Produce and Cooperative Credit Society 20765 Maurice Martin Rd., L'Esperance Piton Mrs. Rita PUNCHU 2641161 7674081 ritapunchu@yahoo.com 3 L'Amitie Cooperative Produce & Credit Society 20806 Royal Road, Belle Vue Maurel Mr. Swaraj SOOJHAWON 4124639 7545217 soojhawons@yahoo.com 4 L'Esperance Cooperative Credit Society 20763 Maurice Martin Rd., L'Esperance Piton Mr. Sooriadeho PUNCHU 2641161 7444408 ritapunchu@yahoo.com 5 Plaine des Roches Multipurpose Cooperative Society 20764 Sookha Road, Plaine des Roches Mr. Kamless SEEAM 4129582 7891408 kamless.seeam@gmail.com
  • 15. Soleau. 22 Nov 2009 Page 15 of 20 The FAIRTRADE REACH OUT EVENT – 12 Nov 2009
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