Pachacuti and Fair Trade

Pachacuti was founded in 1992 by Carry Somers, with a vision of using Fair Trade to help traditional artisans in the Andes. Over the past 20 years, Pachacuti has grown to a multi-award winning Fair Trade company operating a retail shop, internet mail order and wholesale business supplying customers around the world.

For 20 years Pachacuti, has blended traditional artisanal skills, environmentally friendly materials and production with contemporary design to find a timeless style which is both sustainable and beautiful. As slow fashion pioneers, we seek to add a twist to what is classic or bring enduring design to seasonal trends to provide our customers with truly sustainable luxury. This commitment is embodied in our name, Pachacuti, which means "world upside-down" in the Quechua language and describes our endeavour to address social and environimental injustices within the fashion supply chain.

Creating opportunities for economically disadvantaged producers

Fair Trade is a strategy for poverty alleviation and sustainable development, which creates opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.

For example, many of our producers now face shrinking local markets due to the rapid westernisation of traditional dress. The opportunities Pachacuti provides to access new markets is extremely important in order to sustain their business and ensure that their traditional skills and cultural textile heritage is not lost. In the village where we make our felt hats, there were 15 different hat makers, but the decline in hat wearing amongst indigenous Ecuadorians means that only two now remain.

Long Term Trade Relations

For Fair Trade to work, producer groups need time to be able to grow, develop their capactities and gain access to markets. To this aim, we have developed long term relationships with our producers based on solidarity, trust and mutual respect. We have been working for more than 14 years with 50% of our producers and some as many as 20 years. In addition, we make regular visits to our producer groups to plan collections, train and develop skills and we always provide prepayment of at least 50% on all orders when they are given.

Paying producers a fair price in return for their work

A fair price in the regional or local context is one that has been agreed through dialogue and participation. Prices are set by exchanging information with our producers in order to achieve transparent and clear pricing structures. Higher wages will help to curb the rural-urban migration which is so prevalent in the Andes region.

In addition, Pachacuti chooses to work with organisations who invest in the Fair Trade social premium we pay by supporting their local community and in projects such as:

Construction of a community, co-operative grocery store
Support of a group of Alcoholics Anonymous through provision of board and lodging for one year
Funds to help poor families to educate their children
Financial assistance to elderly weavers whose houses are in need of restoration.

Gender Equality in Fair Trade means that women's work is properly valued and rewarded

Pachacuti works principally with organisations of women in rural areas, including single mothers, wives of alcoholics, wives of miners, teenage mothers and other socially, economically and geographically marginalised women.

Through our trade and support for training and social programmes, we have helped to increase their ability to have a secure livelihood, while improving their self esteem.

Fair Trade means a safe and healthy working environment for producers

During our baseline assessments and ongoing visits with our Fair Trade producers, we advise on good H&S practice. We conduct inspections of the working premises and give advice with regard to posture, taking breaks, working in good light, chemical use and use of masks and other safety equipment.

In addition, Pachacuti creates an annual action plan which allows producers to direct how Fair Trade will benefit them the most. For example, one embroidery group all complained of poor eyesight. Over the past year, Pachacuti has paid for eye tests, glasses and eye operations for all workers who required them.

Capacity building is a means to develop producers' independence

Due to the marginalised nature of some of our producer organisations, we have often subsidised their errors as we help them to develop their capacity. To correct these issues, we have developed a personalised action plan with each of our producer groups with the aim to improve quality. To accomplish this we are supporting training in design and production skills, and along with our producers, we have analysed the production processes, and underlined points for improvement. We also help finance capital expenditures for new equipment allowing them to further develop their product range.

How do you know this hat is fair trade?

Pachacuti is the first Fair Trade company in the world to complete the Pilot for the new World Fair Trade Organization (WFTO) certification and labelling scheme. Known as The Sustainable Fair Trade Management System (SFTMS) it is the first audited certificaton which verifies that the entire supply chain of an organisation is following fair trade principles and sustainable environmental practises. Consequently, all of Pachacuti's hats delivered since 2010 have been labelled as certified fair trade products. This clears up confusion in the marketplace and makes it easier for retailers to distinguish and sell real fair trade products to their customers.

In 2012 we will be introducing QR codes for our hats. When scanned, they will give the consumer the ability to trace the origins of their hat with GPS coordinates back to the weaver, thus bringing even more transparency to our Fair Trade supply chain.