From toothpaste to coffee, babassu nut to mosquito net, Fair Trade, Fair Profit finds out what makes green enterprise work. We find that what the economists call 'externalities' are the catalyst: in Mexico it's ownership of the land; in Tanzania it's the campaign to prevent malaria; and in Brazil it's all about getting the products into the supermarkets.
 

Fair Grind

Chiapas, the most marginalized state in Mexico.  Here, coffee has been traditionally grown by farmers to sell for whatever cash they can get.  The combination of market fluctuations and the lack of roads and transport have meant that the producers have had little choice who they sold the coffee to… but it was usually at rock bottom prices.

However, in 1995 the Union de Ejidos de la Selva fought for collective bargaining power and the right to a secure market for coffee producers.  Now, the coffee growers sell 2/3 of their production for export and the rest to cafes in Mexico City.

A key to the success of the Chiapas operation is that more control is put into the hands of the producers.   A union owned processing plant and a partnership with the Café de Selva chain have cut out the middleman making it possible for the product to be sold at a fair set price.  The high-quality shade-grown organic product is then able to make its way to the cups of coffee lovers in cafes everywhere.

With the income generated, the union was able to build a women's centre, which provides training in making biscuits to be sold along with the coffee… both delicious and ethical end products!
 

No Hole in the Market

In Tanzania malaria is a huge problem.  A single bout of the widespread disease can cause the loss of 10-12 working days.  The solution seems simple  - get insecticide-coated mosquito nets into every home.  The problem has been a lack of affordable effective nets.

But then along came the PSI company, using marketing programs for social change.  In this case, a public/private partnership was created and advertising campaigns produced to get the right product to the public.  With the help from a converted factory, mosquito net production was linked with a well-known brand.  Good knowledge of the product and local production meant prices could be kept at an affordable level.   A comprehensive publicity campaign pushed the brand into the mainstream and soon the nets were a well-known local success, ensuring widespread access to much needed malaria prevention.
 

Danish Delight

Urtekram was founded in Denmark in 1972 as one of the first companies to make organic products its unique selling point.  As organic goods have increased in popularity it has become more crucial than ever to be competitive.

Although specialty health food shops are usually the destination for organics, it is important that the more mainstream markets are reached as well.  And that means getting the goods into the main supermarkets.  It hasn't been an easy task but Urtekram has accomplished just that - its success built on providing reliable quality organic goods combined with clear and detailed information about the products.

The company's commitment to sustainability extends to its factory fuelled by locally grown hay.  This supports other local industries while avoiding the reliance on fossil fuels and shows that this company is willing to walk the 'green' talk.
 

Babassu Breakthrough

Harvesting nuts from the babassu tree has been a tradition in parts of Brazil.  In recent times though, this seemingly innocent nut sparked conflict between rich landowners and landless settlers.  Cattle ranchers, wanting more grazing land, challenged the right of babassu breakers to keep the trees.

In 1986 the courts ruled that the villages had the right to harvest the nuts.  In response, a women's cooperative called Copallj got together to find out how to make the most benefit from the nut.  It wasn't long before the traditional activity of breaking the nuts expanded into a multi-faceted operation.

Now the inner skin is used to make nutritious flour, excellent for porridge and cakes.  Charcoal, created from the outer skin, is used in kitchens and even power stations – it's stronger and has better heating power than other vegetable charcoals in the region.  Babassu leaves are used to make house roofs and paper, which in turn is used to create folders, bags, and soap boxes.

However, the most important part of the babassu is the oil pressed from the nut.  In addition to making soap for local consumption, the babassu harvesters were able to win a contract with a UK company to supply the oil at a set rate.  This guarantees a steady income for the local women and their daughters and ensures their traditional livelihood continues.
 

Community Capital

Urban slums… usually viewed as having little commercial potential.  But with some help, the resourceful spirit in these areas can go a long way to alleviating poverty.

Traditional aid programs don't always work but a new type of fund from the UK Department for International Development (DFID) is targeting street-level success stories.  It is called the City Community Challenge fund, or C3, and is intended to boost the incomes of the poorest people to improve the whole community from the bottom up.

Kawempe is one of the poorest suburbs of Kampala, Uganda, which is why it was chosen as one of the pilots for the C3 fund.  The entrepreneurs in the project have undertaken a variety of enterprises.

Henry Kalema started a handmade brush-making operation and now supplies brushes across Kampala with the help of his six staff.  The C3 initiative meant Nalule Proscouia could buy the necessary supplies for her Brevia drink company.  Since becoming involved with the C3 pilot, John Magala-Mukiibi has been busy keeping up with orders for his speciality tailor service.

The City Community Challenge fund goes further than simple loans and grants as it takes governance beyond local government and into community groups.  Money invested into local entrepreneurs has a knock-on effect as it generates employment and income in the community.  This means there is more money to support other local products and services.  It's all about people doing it for themselves.