Certified Operator (Certification Applicant)La Grama - Hired Labour3 stars

Place, CountryLince, Lima, Peru


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
Hired Labour
ChapterContent of the Fair for Life - Social & Fair Trade ProgrammeNormRating
2.1.1No Forced Labour1212
2.1.2Freedom of Association and Right to Collective Bargaining2828
2.1.3No Child Labour and Protection of Young Workers22
2.1.4Transparent and Human Disciplinary Practices1010
2.1.5Equal Treatment and Opportunities1216
2.1.6Health and Safety6060
2.2.1Contracts and Good Relation between Employer and Workforce1414
2.2.3Social Security and Social Benefits2424
2.2.4Working Hours and Paid Leave3232
2.2.5Regular Employment1011
2.3.1Commitment and Management of Social Responsibility1413
2.3.2Community Relations611
2.3.3Respecting Rights of Indigenous and Local Peoples66
2.3.4Animal Rights66
2.5.1Accountable Trade Relations with Buyers1212
2.5.2Fair Trade Policy and Worker Empowerment87
2.5.3Fair Trade Pricing88
2.5.4Fair Trade Development Premium Administration and Use43
Total Score Hired Labour297
Points Reached Last Year (Hired Labour): 251
Environmental Criteria
ChapterContent of the IMO Environmental ProgrammeNormRating
2.4.1Water Conservation and Water/Air Polution1212
2.4.2Energy Management and Climate Change89
2.4.3Ecosystem Management1817
2.4.4Waste Management66
Total Score Environmental Criteria44
Points Reached Last Year (Environmental Criteria): 46
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
Percentage102 %

Date of Certification
Last Update24.05.2017

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