“That’s at the root of human interaction: Fair trade” – Billy Corgan
The once celebrated fair trade pioneer in Negros island that markets its “organic” mascobado sugar is now hounded by allegations of malpractice. But what comes as a surprise is that after a few years of increasing noise of allegations its decades of fair trade partnership in Europe, Japan and Korea remain silent. What catches the interest and curiosity of many is the complete silence of partners abroad, and including their inaction.
ALLEGATIONS OF MALPRACTICE
The allegations stemmed from malpractices in mascobado production that potentially undermines fair trade principles and ethics. This violates international standard and compliance requirements set by fair trade and organic certifiers that could damage not only of Alter Trade’s reputation but that of the province of Negros as the center of rural development and the livelihood of the small producers. This is the main ingredient of the fair trade and organic market partnership built by Alter Trade among its partners with the latter’s firm belief that organic and fair trade principles and practices are genuinely observed.
TAMPERED AND ‘DOCTORED’
The Asian market of Alter Trade started with Japanese consumers in the late 1980’s as an offshoot of the sugar crisis in Negros. Children went hungry and undernourished as economic and political crises exacerbated creating a widespread insurgency problem as sugar workers took to the streets or went underground. With deep concern over the worsening situation, Japanese volunteers started a fund drive to help sugar workers and their families, guided by a “Trade not Aid” paradigm. What followed is an alternative trading relation that started with mascobado sugar. After a couple of years partnership with Europe emerged but not without compliance requirements due to the European policy, especially in Germany.
After 40 years of trading relationship Alter Trade continues to ship mascobado sugar to Japan, Europe and later Korea without improving its technology in production. Its mill remained “backward” and uses a labor-intensive system of production and, worse, was alleged to mix the production with locally bought brown sugar and documentary requirements were allegedly tampered and “doctored”. According to some farmers who severed ties from Alter Trade this has been going on for more than 20 years to this day.
EUROPEAN & JAPANESE TOLERANCE
There is no doubt that the bond built along this alternative trading partnership has become solid and strengthened but it is quite intriguing that after a few years of allegations dedicated and serious actions from the consumers’ end abroad of Alter Trade is nowhere in sight. Some observers argue that they have overlooked these alleged malpractices in order to maintain the supply chain because this may also hamper the trade facilitators in their respective countries. Some leaders of the small producers and agrarian reform beneficiaries who severed ties from Alter Trade have already made a unified position and informed the European, Japanese, and Korean partners, especially the leaders of the respective states’ cooperative groups, but they have remained mum.
Independent international certifiers that set the standards for organic and fairtrade certification have been provided by the farmer groups with significant information but their actions were observed to be snail-paced. At the local front, the Sugar Regulatory Administration has initiated a couple of investigations, but small producers and critics still await their findings. This perhaps necessitates that farmer groups aligned with Alter Trade knock on the doors of SRA.
Be that as it may, the heavier burden now lies not only in the hands of Alter Trade but on the shoulders of its partner-consumers, if indeed, the malpractice of mascobado production lacks basis, they too must issue official statements. Needless to say, the credibility of Alter Trade is at risk even if consumers abroad continue to disregard the noise of allegations, as may be perceived as tolerance. This does not make a difference then to conventional trading practices hounded by anomalies – it now disregards fair trade principles and organic certification process set by certifiers.
IMPLICATIONS
Should this continue, the consequences are crystal clear – eroding trust and confidence by the consumers, socio-economic welfare of the small producers will be at stake if all the remaining small producers that continue to partner with Alter Trade adhere to organic and fair trade principles. Over all, an undesirable economic, social and political setback will be absorbed by the province of Negros Occidental and the national government in doing business with international partners, much more if it is within the realm of fair trade.*
