Fair Trade Premiums

During 2010 we continued to generate significant resources and to facilitate worker social & community initiatives through the allocation of fair trade premiums.

We have found a great opportunity to bring information, know-how, best practices, and technology to multiple producer groups. Growing producer involvement has increased efficiency and economies of scale creating better opportunities to maximize social and environmental impact.

Research and work have revealed that the primary needs of producers and workers are the following:

1. Infrastructure
   1. Improvements in the social and environmental impact of producer operations
   2. Improvements in environmental conditions for workers
2. Health
   1. Need for access to affordable medicine
   2. Need for better health insurance and services
   3. Need for first aid equipment in emergency rooms that depend on state financing
3. Education
   1. Need for better access to basic and higher education
   2. Need for materials, supplies, and resources in local schools
   3. Need for complementary schooling to build capacity
4. Community service
   1. Need for investments to solve specific community problems
   2. Need for investments for school infrastructure
   3. Need for investments in civil services for communities

These needs come directly from the statements and participation of the workers and producers. These concerns are consistent with the economic, social and environmental issued that Argentina faces as a country.

Investments provide producers and workers with economic benefits and interrupcion seeks to provide social and environmental solutions that can be easily replicated, easy to understand, and guarantee honesty in the management of funds.

The job of interrupcion is not to interfere with and take control over the decisions of workers and producers, but to facilitate and in some cases carry out those decisions. Many times those who make the decisions do not have the knowledge or the time to perform the necessary steps for the execution of the projects. We work to empower those members so that in the future they can make the decisions and carry out the corresponding tasks themselves.

The following table demonstrates the accomplishments of the individual groups in making decisions for investments of their premiums

Committee of Workers from Berries del Aconquija S.

Producer Information

Permanent Workers	7
Temporary Workers	658
Affected Communities	Monteros
Commitee of Investment of Premiums	Cristian Lazarte Ivana Palavecino Fabián Villagra
Fair Trade Premium 2009	AR$ 23.532
Consolidated Fair Trade Premiums (2008-2010)	AR$ 76475
Funds for social and environmental investment chosen by the workers	-       Education Fund -       Community Service Fund -       Infrastructure and environment Fund

The Committee of workers from Berries del Aconquiha S.A are committed to the communities in which they are involved. With great enthusiasm, which is worth noting, they decided to use their funds to provide new computers for families of workers and other families in the community of Soldado Maldonando.

This investment has been divided into two stages due to the high cost of the necessary computers. The workers have decided to provide one computer per family in the community of Soldado Maldonado. With investment of the 2010 premiums, the objective is near 100% completion, with only two computers missing. There was mutual benefit in that each family agreed to install the internet and take computer courses.

The following table shows a detailed summary of the 2010 fair trade premium investments:

Providor	Tranaction #	Purachse	Import	Check	Status	Date
Carlos Bossini	793	13 Computers	$23437	678	Paid	26/07/2011

2. Committee of Workers Berries Del Noa 2005 S.A

Producer Information

Permanent Workers	32
Temporary Workers	500 contracted directly and 3000 contracted by contractors
Affected Communities	Soldado Maldonado
Committee of Investment of Premiums	-       Liliana Acosta -       José Gomez -       Manzillas Aguilera Jesús Vivanco Daniel
Fair Trade Premium 2009	AR$ 16.738
Consolidated Fair Trade Premiums (2008-2010)	AR$ 93.129
Funds for social and environmental investment chosen by the workers	-       Education Fund -       Community Service Fund -       Infrastructure and environment Fund

The workers of Berries del Noa 2005 are committed to fair trade and the development of unity within their group. We are proud to point out the motivation they have manifested in being able to carry out their projects.

The group has acknowledged the importance of education and awareness. Thus, they have found that computers are a necessary tool to provide them with the ability to flourish.

The following table shows a detailed summary of the 2010 fair trade premium investments for Berries del Noa 2005:

Providor	Tranaction #	Purachse	Import	Check	Status	Date
Carlos Bossini	702	11 Computers	$21340	676	Paid	23/07/2011

3. Comité de Trabajadores de Berries del NOA 2007 S.A.

Permanent Workers	8
Temporary Workers	500 contracted directly and 2800 contracted by contractors
Affected Communities	Soldado Maldonado
Committee of Investment of Premiums	-       Mario Cahuasiri -       Gauna Ramón Sarmiento Héctor
Fair Trade Premium 2009	AR$ 14.187
Consolidated Fair Trade Premiums (2008-2010)	AR$ 44.067
Funds for social and environmental investment chosen by the workers	-       Education Fund -       Community Service Fund -       Infrastructure and environment Fund

The committee of workers of Berires del Noa 2007 has been created recently as a result of a split between the committee of Berries del Noa 2005 and 2007. The high level of commitment is evident in that the division was based on the fact that they could not come down to one decision regarding their needs. According to what has been discussed, they have decided to invest their 2010 fair trade premiums in two completely different ways:

-       Materials for the construction of houses for 21 families

-       Jackets and shoes for work

The materials will be provided for permanent and temporary workers.

The following table shows a detailed summary of the 2010 fair trade premium investments for Berries del Noa 2007:

Providor	Transaction #	Purchase	Importe	Cheque	Estado	Fecha a debitar
Josefa M.de Rodriguez S.A.	1321	Materials for Construction	$998.46	686	Paid	18/08/2011
Josefa M.de Rodriguez S.A.	1179/1181/1182/1183	Materials for construction	$20997.7	672	Paid	24/05/2011
Proinsumos S.R.L.	7134	Purchase of Jackets and shoes	$4773.33	683	Paid	05/07/2011
Proinsumos S.R.L.		Purchase of jackets and shoes	$2669.64	685	owed	18/08/2011

In the three cases, the workers have demonstrated, as in the previous season, their interest in the creation of a factory to fabricate blocks and/or a facility in which to make bread.

In the first case, the blocks would be used for the construction of houses and the community at minimal costs.

The second objective would provide easy and inexpensive access to food, a basic necessity.

Both projects are in discussion, and we are working actively on assisting them in order to develop these projects.

4. Committee of workers de Baldones S.A

Permanent Workers	7
Temporary Workers	40 hired directly
Affected Communities	solis
Commitee of Investment of Premiums	All permanent workers
Fair Trade Premium 2009	AR$ 27.164
Consolidated Fair Trade Premiums (2008-2010)	AR$ 27.164
Funds for social and environmental investment chosen by the workers	-       Education Fund -       Infrastructure and environment Fund

The fair trade committee is made up of all permanent workers of the field. It is note- worthy that the current workers have belonged to the same harvest team for several  years. In Baldones the harvest personnel have always been from the Province of Missions.

Unlike the previous year where the fair trade premiums were very low due to problems with weather, this year the premiums have allowed for investments in matters that are very significant. They have decided to focus on two options.

One option is to invest the funds in the renovation of dilapidated houses.

The other option is to invest the premiums in kitchen supplies, clothes, and blankets for the temporary personnel that come during the harvest.

The following table shows a detailed summary of the 2010 fair trade premium investments for Baldones S.A.:

5. Committee Of Workers of Berries Premium S.A.

Permanent Workers	1
Temporary Workers	126 hired directly
Affected Communities	San Pedro
Commitee of Investment of Premiums
Fair Trade Premium 2009	AR$ 48.200
Consolidated Fair Trade Premiums (2008-2010)	AR$ 48.200
Funds for social and environmental investment chosen by the workers	-       Health

Berries Premium is a new establishment that opted for fair trade in 2010. The committee is led by the one permanent worker and his wife, who also forms part of the temporary worker-force.

Thus there have been discussions for investment in a health fund that will benefit all workers in the establishment.

This health fund does not require any investment aside from the social premium capital that is assigned to it. Nearly all of the funds will be able to be kept on reserve for the needs of workers as they arise.

6. Committee of Workers of the San Jose Field

Permanent Workers	1
Temporary Workers	30 hired directly
Affected Communities	San Pedro
Commitee of Investment of Premiums
Fair Trade Premium 2009	AR$ 27.523
Consolidated Fair Trade Premiums (2008-2010)	AR$ 27.523
Funds for social and environmental investment chosen by the workers	-       Infrastructure and environment Fund

The San Jose field, also incorporated in the fair trade program in 2010, is situated near the Tala River in which all of the temporary and permanent personnel reside.  The person then in charge of the plantation solicited a leave of absence because there was a possibility that he would be temporarily elected as the Municipal of Rio Tala. This situation brought awareness to the issues and needs of the community as nearly 30 people attended the various meetings of his campaign; thus, the community was organized into 6 groups of a few people in order for more decisions to be made more efficiently.

Due to the numerous transportation issues of the community, the workers have decided to invest their social premiums in 32 bicycles; this should provide them with an easier way to commute to work and to access their community.

7. Committee of Workers of Telet S.A.

Permanent Workers	3
Temporary Workers	23 hired directly
Affected Communities	Exaltación de La Cruz
Commitee of Investment of Premiums	-
Fair Trade Premium 2009	AR$ 19.983
Consolidated Fair Trade Premiums (2008-2010)	AR$ 19.983
Funds for social and environmental investment chosen by the workers	-       Health

Telet S.A. is another establishment that opted to participate in fair trade in 2010.  The committee is currently comprised of temporary workers, those who have been present for the past several months. In this case, the three are family members. They decided that it was better to wait until both the temporary local workers and the temporary harvest personnel were present before making the final decision related to the allocation.

The primary option under consideration is to to invest in a health fund in order to have access to affordable medicine.

This health fund requires no administration investment thus nearly all of the funds can be kept on reserve.

Tags: