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Alter Eco Tools

Mastering channels and explaining the economic model.

Since its inceptions in 1998, Alter Eco has always been an ambitious and rigorous fair trade company.
We wanted to provide all the necessary safeguards and transparency to build a relationship of trust. As such, from the start we have developed Alter Eco methodological tools that we own, which complement the guarantees offered by the Max Havelaar label, with several objectives:

● Mastering channels, know the needs of producers and the impact of our activities.

● Follow every year the developments of our partners.

● Provide maximum sfaguards and transparency, and meet the expacttions of consumers and distributors.

● Be able to explain and control our business model, and more generally show that fair trade can offer a successful business model.

● Be a benchmark for fair trade, really committed.

These are tools that we have developed, some of them with the cooperation and expertise of Price Waterhouse Coopers®.

They are however available on request and we have full transparency on these tools. They aim to help everyone better understand the model and the impact of Alter Eco fair trade; we wish to disseminate this as widely as possible!

The Alter Eco Charter

By 1999, as part of the creation of the company, all shareholders had signed the charter of the French Fair Trade Platform. Alter eco is still member of the FFTP and signatory of his charter, which is the foundational element of our commitments to fair trade.

We have also developed our own charter, which is intended to ensure a process of continuous improvement related to our mission.

FTA 200 audit reports

FTA 200 is an auditinhg methodology developed in conjunction with PriceWaterhouse Coopers in 2001, and assesses the value of the three streams: economic, social and environmental.

The full audit reports, performed in all producer organizations, provide a thorough knowledge of national, regional and local issues related to production and farmer organization.

AlterEcometres, Alter Eco Value Reporting (AEVR) or Fair Trade Value Reporting (FTVR)

These are analysis tools of the value chain taht can accurately assess the value added paid to producers and cooperatives, compared to traditional channels, from our total volumes of purchases.

It is possible to determine a cost structure of a given product starting from the farmer's production costs until the final consumer price. It is from the Alter Eco FTVR that we build the AlterEcometres, which is present on our product packaging, summarizing key information to help you to determine the impact of your purchases on producers.

AEDI

As opposed to "macro" tools such as FTVR and FTA200 that are interested in the impact of our activities on th eproducer's community, the AEDI was created by Alter Eco to measure the impact of our individual "activity level".

In their cooperative audits, the auditors of Alter Eco randomly choose producers with whom they apply "the methodology of the AEDI. This allows us to draw up "portraits" of some producers, which we update annually. We have the data to measure the long-term impact of our activities on the daily lives of producers, their resources, their ways of production and on their basic needs.

This tool has allowed Alter Eco to create a link with individual producers, beyond the organization of producers. The AEDI allows us to prepare profiles of the producers, to know their history, and to measure the impact of fair trade in tems of human development.

FSE, FTSG, FTBS

Fair Trade Specific Expenses (FTSE) and Fair Trade Specific Gains (FTSG) to our fair trade business; their identification and their comparison allows us to draw the Fair Trade Balance Sheet (FTBS), to explain and confirm the relevance of our business model.

FTSE (Fair Trade Specific Expenses)

These are all costs related to the specific activity of fair trade down the chain. We follow, through our accounting, all of these expenditures to ensure and promote fair trade.

FTSG (Fair Trade Specific Gains)

This measures the specific gains for Alter Eco associated with fair trade. All the costs of developing the industries, supporting the producers, auditing and promoting fair trade exchange (FTSE) are offset by gains accrued to our business.

Examples of FTSG:

✓ Commitment of distributors
✓ PR
✓ Consumer loyalty
✓ Motivation & loyalty of employees

FTBS (Fair Trade Balance Sheet)

Is the ratio between FTSE and FTSG. It measures the difference between expenditure and gains as well as highlighting some of the links between them.