Boonjira Tanruang, Green Net Co-operative, Thailand
Mrs Boonjira Tanruang, 41, has been General Manager of Green Net Cooperative since 2000. Green Net exports 800 tonnes of organic Fairtrade certified rice to Europe each year and also sells a wide range of organic produce in the domestic market.
Boonjira is responsible for exports, for international liaison and for the smooth running of the organisation as a whole. Her qualifications – a degree in Mass Communication and a masters degree in Operation Management – took her first to the Tourism Authority of Thailand and then to a local advertising agency, before she moved to her current role at Green Net. Boonjira has spoken at events and trade fairs across Europe, but Fairtrade Fortnight 2008 will be her first experience in the UK.
Green Net Co-operative
Green Net Co-operative was established in 1993 in Bangkok by a group of producers and consumers. Farmers were suffering rises in their production costs and at the same time a decline in the prices of agricultural products. Meanwhile, Thai consumers were becoming increasingly conscious of the impact of pesticides on their health and on the environment. Green Net was set up in response to this demand for organic and equitable produce and now comprises five farmers’ organisations totalling 996 members, as well as 81 consumer members.
In 2002 Green Net was certified by Fairtrade Labelling Organisations International (FLO) and it now exports Fairtrade rice to Switzerland, Belgium, Germany, France, Italy, Austria, the Netherlands and Sweden. It was the first – and is still the largest – wholesaler of fresh organic produce in Thailand and plans to expand its exports to other Asian markets. It produces a wide range of products including mango, longan, pineapple, coconut, baby corn, soybeans, peanuts, sesame, teas, cosmetics and naturally dyed textiles. The farmers also produce vegetables, fruits, chilli, tapioca and sesame to sell on local markets and for home consumption.
Green Net’s goal is “to serve as a marketing channel for small-scale organic farmers with fair trade principles in its marketing activities.” It aims to do this in four ways:
1. Promoting the organic way of life through marketing and producing high quality organic and natural products
2. Conducting trade with a fair price for producers and buyers
3. Campaigning for the environment and fair trade
4. Being a model organization of “social business” and encouraging other business bodies to be more concerned with consumer safety, environmental conservation and social responsibility.
Green Net has been a pioneer in organic agriculture, founding a national organic certification body (now the Organic Agriculture Certification Thailand or ACT). In 2000, it founded Earth Net Foundation to consolidate its work in research and development of organic products and the promotion of community enterprises. Earth Net Foundation provides a number of services to the farmers including forums, quality assurance, farmer field schools and organic farming technology as well as promoting consumer awareness. Meanwhile Green Net is focused on bringing the values of Fairtrade into farming groups: capacity building, gender equality, transparency, sustainability and respect.
Rice production
Green Net farmers produce organic long grain red, white and brown jasmine rice. They are small-scale paddy farmers, relying on rainfall to irrigate the crop. Jasmine rice is not high yielding but it is well adapted to the local dry conditions and low input systems, and is a high quality, fragrant long grain type.
During April the land is prepared, then in May and June paddy nurseries are started and towards the end of July, transplanting starts. The harvest is in November and December. Most of the cultivation is done manually or with the help of two-wheeled tractors known as “iron buffalos”. Work is done by family members and sometimes some temporary labourers.
Of the five farmers’ associations which are members of Green Net, three own a rice mill. All Green Net members, from eight provinces of Thailand, transport their rice to these mills, sometimes working there for a while in return for some milled rice to take home. The milling process removes the husk, after which the rice is taken to the packaging unit.
The low profitability of paddy farming in general and absence of alternatives for income in the rice growing region is leading to a high level of migration. Farming families depend on income from family members working outside the area, perhaps as construction workers or taxi drivers in Bangkok or in the tourist industry in coastal areas. The average debt is more than 20,000 Thai Baht (£328) per household, whereas income from farming is on average 80,000 Thai Bhat (£1,269) per year.
Fairtrade premium use
In the first years, Fairtrade premiums at Green Net were spent on investments at the rice mills and on equipment for the offices, including a computer. Some of the money was also given to farmers as a cash premium. In 2005 the mills made large losses after buying the rice from the farmers but having to sell it at a lower price. The premium was used to keep the mills running.
Since 2006 the members have decided to divide the income from the Fairtrade premium as follows:
– 70% to be kept for revolving fund to support sustainable agriculture
– 10% for community and public facilities such as road repair, supporting activities in the villages etc
– 15% for welfare of organic farmers e.g. insurance, other cultural and socioeconomic reasons
– 5% for administrative expenses.
Fairtrade in Asia
In 2006, the President of Green Net, Mr Vitoon Panyakul, was elected to the Board of the Network of Asian Producers in Fairtrade. The Network brings together producers from India, Sri Lanka, Pakistan, Nepal, China, the Philippines, Indonesia, Papua New Guinea, East Timor, Thailand, Laos, and Vietnam and is their voice within FLO. The network is still young but is already a powerful force in the governance of FLO, working to improve the process of certification and strengthen communication.
Fairtrade products originating in Asia include cotton, tea, coffee, rice, footballs, flowers, cocoa, fruit juice, sugar, honey, dried fruits, nuts, and many spices including vanilla, peppercorns, cardamom, turmeric and ginger.
Rice in the world market
Historically, escalating tariffs on imported rice have made it uneconomic to process rice in developing countries. Although this situation has improved recently, the problems of rice farmers world wide have been compounded by the USA heavily subsidising its farmers and then dumping their surplus rice on developing country markets, undercutting local farmers and driving them out of business. In this context, rice is often quoted as a classic example of double standards, with the EU and USA protecting their domestic rice farmers while forcing developing country governments to stop subsidising their farmers and to lift any protective barriers – with disastrous consequences.
Where can I buy rice from Green Net?
Look for the FAIRTRADE Mark on products. It’s your guarantee that disadvantaged farmers and workers in the developing world are getting a better deal.
• Infinity Foods Thai Jasmine Rice
• Crazy Jack Organic Fairtrade Thai Jasmine White Rice and Jasmine Brown Rice
• Essential Trading Organic White Jasmine Rice, Brown Jasmine Rice and Fragrant Thai Rice
All available in independent health food stores.
Look for the FAIRTRADE Mark on products. It’s your
guarantee that disavantaged farmers and workers in the developing world
are getting a better deal.