Certified Operator (Certification Applicant)La Grama - Producer Group4 stars

Place, CountryLince, Lima, Peru

Contact http://www.lagramaperu.com

Certified Productsginger, ginger dried, ginger flakes dried, curcuma, avocados, passion fruit, granadillas, star fruit, tamarillosfair for life logo
Certification ProgrammeFair for Life - Social & Fair Trade Certification
Group Operation
ChapterContent of the Fair for Life - Social & Fair Trade ProgrammeNormRating
3.1.1Transparent Adminstration and Relation with Producers2424
3.1.2Pricing and Producer Payments1415
3.1.3Non-discrimination and Gender Aspects1212
3.1.4Internal Control System2221
3.2.1Child Labour and Young Workers on Producer Farms66
3.2.2Working Conditions on Producer Farms2623
3.4.1Commitment to and Management of Social Responsibility88
3.4.2Community Relations68
3.4.3Respecting Rights of Indigenous and Local Peoples44
3.6.1Fair Trade Policy and Producer Empowerment109
3.6.2Fair Trade Pricing1414
3.6.3Fair Trade Development Premium Administration and Use66
3.6.4Accountable Trade Relations to Buyers1212
Total Score Group Operation162
Points Reached Last Year (Group Operation): 144
Environmental Criteria
ChapterContent of the IMO Environmental ProgrammeNormRating
3.5.1Internal Monitoring of Environmental Aspects46
3.5.2Environmental Performance of Producers2426
Total Score Environmental Criteria32
Points Reached Last Year (Environmental Criteria): 32
Social Impact
Social Impact & Special AchievementsSince they arrived in the area in 2006, La Grama has been a company committed to the material and human development of its environment, which is manifested in the generation of about 1,400 direct and indirect jobs, and the benefit this generates for all families involved. Teaching and transmitting values to its workers, accustomed to living in extralegality, has been one of their priorities. Through ongoing talks, trainings and assistance, both workers and farmers have learned to insert themselves into the financial system, understand the value of savings and access to credit, learn their civil and labor rights, and so on. La Grama radically changed the landscape of ginger agribusiness in the area, which was governed by collectors who monopolized all market information and paid according to their convenience, tying farmers with advances without encouraging any improvement for the farmer. In this way, a vicious circle closed for them. The company then decided to empower the farmers by providing more information on the behavior of the markets and the functioning of the ginger export chain. As a consequence, producer prices have increased significantly: the increase per kilogram of ginger from 2006 to 2010 has been in the order of 500 % and since the take-off of the price in 2006 the minimum in successive years has never reached less than 250 % of the original price. On the other hand, Peruvian inflation in those years has remained on average 3 % per annum, with only a peak of 7 % in January 2009, as a consequence of the international economic crisis. This situation charts the new positioning that farmers took with respect to the traditional situation before the arrival of La Grama: the income per hectare is much higher, while the costs are basically the same, so their profitability is higher, which allows them to improve their quality of life by acquiring goods, improving their homes, accessing more and better services, and so on.
As mentioned, the situation of ginger production in the area is environmentally and productively unsustainable. However, many important steps to overcome this have been achieved, such as the introduction of simple adoption technologies by farmers which increased the yields and quality of their crops. The company also introduced a system of incentives according to a scale of compliance criteria, ranging from good agricultural practices to choosing plantings on land that is not of high conservation value. In parallel, another price system was developed for good yields by hectare, a factor that has contributed to the improvement of this indicator. The agro forestry technology is the next bet of the company in search of better conditions of culture, care and conservation of the environment and improvement of the conditions of life of the farmers. As Enrique Toledo mentions: "These kinds of systems help farmers out of poverty, since teaching them to implement them implies inclusive measures without creating dependency".
Use of Fair Trade PremiumThe premium has not yet been used.

Reached percentage of the applicable Total Norm Points for the overall performance
Percentage101 %

Date of Certification
First29.01.2014
Last Update24.05.2017

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