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September 10, 2008
The Soap that Would Clean Up the World
By Ora Koren

This week Dr. Bronner's Magic Soap will be launching a series of not only organic but also fair trade soaps which means both decent wages and contributing to the community. Israel's industries are ignoring the trend, for the time being.

As dawn breaks over the coconut groves in Sri Lanka 80 laborers from Dr. Bronner's Magic Soap coconut oil factory go to work. Before getting down to business they meet in the dining room where workers and managers sit together, disregarding local customary hierarchic divisions. Gero Leson, the owners' senior representative, also sits with them.

"Not all of them eat before coming to work and they're in my care", explains Leson, who spends half his time in Sri Lanka. Putting ideology into action, he mingles with the workers in an effort to reduce the social barriers between management and workers. "’Fair trade’ means not only a decent salary, it’s a much broader commitment", says Leson, in charge of operating the Bronner Company's Fair Trade policy in the Bronner’s fair trade projects around the world.

Fair Trade is a worldwide trend of recent years intended to prevent the exploitation of Third World farmers and laborers, and to ensure the gradual reduction of the gap between developed and developing countries. European organizations, such as IMO and FLO, which coordinate the process, have established rules of conduct for companies. Those conforming to the standards receive permission to label their products as Fair Trade. The companies involved mobilize world social processes, distinguishing their products, and responding to a growing consumer trend of buying products manufactured without exploitation.

An eligible recipient of the Fair Trade seal must pay fair wages to all workers in the chain of production. The company must ensure that no child labor is involved and that part of the profits is dedicated to the welfare of the local producing community. This development is slowly expanding throughout the world, although Israel's industries tend to ignore the trend of ethical production supervised by independent, international organizations.

Coexistence alongside Fair Trade

The Dr. Bronner Company also prides itself on using only organic products. The work begins with finding toxic free land and continues with fair wages for the farmers who grow the main raw materials used in producing their soap: coconut oil, palm oil, olive oil and hemp oil.

"Fair trade pricing guarantees the cost of production is covered, with an additional 10% to 20% premium, even if the market crash below cost of production", explains Leson. The company purchases at world market prices when they exceed the cost of production, but still contributes a 10% premium to community development projects in the producing regions, particularly in the areas of health and education.

The company's employees in Sri Lanka include 240 farmers who grow coconut trees on 3000 acres. The company provides subsidized, organic fertilizer , which boosts productivity and yield, and an "organic" addition of 10% to pricing. 1000 tons of coconut oil go into a year's production of Dr. Bronner's Magic Soap and the remainder is sold to other industries. To date, the company has invested $2 million in Sri Lanka.

"There's something pioneering in what we're doing", says Leson. “No other company has succeeded in making a product from a compound of organic ingredients throughout the whole supply chain, and paying fair prices and wages to certified fair trade standards as well.” Leson adds, "Fair Trade seals are usually issued for simple single ingredient commodities, such as coffee and chocolate".

Dr. Bronner also supports projects in Israel and Palestine. They buy olive oil from an entrepreneur in Jenin who employs no less than 1,700 farmers; the Straus family (no relation to that of the dairy producers-it was subsequently revealed, though, that they are related to the Bronner family) who have an olive orchard near Yoqne'am; and the organic Kibbutz Naot Smadar in the Arava. The company purchases about 150 tons of olive oil per annum. "We're not so naive as to think that, thereby, the Palestinian-Israeli conflict can be solved, but we are an example of how to contribute to coexistence", says Leson.

The company has a smaller palm oil project in Ghana. Dr. Bronner is responsible for 200 farmers who cultivate 2000 acres of palm trees, and a factory that manufactures the oil that is managed by local women. The NGO Fearless Planet, run by Danielle Gold, an American citizen living in Ghana, supervises the Fair Trade premiums. In addition to fair prices and wages the farmers and employees receive organic premiums and are helped to improve the land for planting new trees.

The Fair Trade premium that Dr. Bronner’s contributes to the Sri Lankan producing community over $100,000 annually. The palm oil project in Ghana contributes about $30,000, and another $100,000 is transferred for the benefit of the olive oil producers in Palestine (primarily) as well as Israel.

According to Leson, the company's Fair Trade involvement provides income on fair trade terms for about 2,500 agricultural farming and farm-worker families. In total, more than 10,000 people benefit from the company's Fair Trade policy. "Not a negligible amount", says Leson.

Pioneers of Liquid Soap

Dr. Bronner is a family business, established by Emanuel Bronner in 1948. The family began producing soap in Germany 150 years ago. Fifth generation David Bronner, company president, and Michael Bronner, Dir. Gen. of Sales, claim their family invented liquid versus bar soap for German washrooms in the late 19th Cent.

The Bronner family's soap factory was confiscated by the Nazis during WWII. A few family members managed to escape to the U.S. and Israel, but the parents were exterminated in Buchenwald and Theriesenstadt.

"We are the third generation of the company in its U.S. form founded by my grandfather, and the fifth generation of soap-makers in oru family", states David. He explains that his grandfather was an ecological pioneer: when everyone else was producing detergent-based cleansers for the body and hair in the “Better Living through Chemistry” modern era, Dr. Bronner made natural sustainable soaps. Dr. Bronner advocated on behalf of solidarity and coexistence among all peoples, sentiments which spoke to the hippy generation of the 60’s in the U.S. Dr. Bonner enjoyed lecturing on his "philosophy of life", at the conclusion of which the audience would receive free bottles of soap. After awhile he realized that people were attending more for free soap and not to hear his speeches. He therefore decided to print a précis of his thoughts on the bottles' labels, including his phone number, should anyone be interested in an explicated version. The mother, Trudy, confirms that people did, indeed, call.

"The soaps are all natural, biodegradable, and environmentally friendly", Michael points out. "Even the bottles are made of 100% post-consumer-recycled plastic". The company employs 58 workers in California, according to David. Annual sales amount to 4.5 million bottles, and 2.8 million bars of soap.

Was the company motivated to enter the Fair Trade market because of policy or because of pragmatic considerations; that the consumer trend would be good for business?
David: "We entered first and foremost out of social philosophical considerations, not out of an opportunity to make more money. Of course, if we saw that it would result in monetary loss, we wouldn't continue because we're a profit making company. We knew there was consumer support, but we weren't sure how much. In going Fair Trade, we had to raise prices 15% which was a risk we were willing to take. It turned out to be a win-win situation, as our customers by and large were thrilled".

Leson: "In the business of agricultural commodities, even in organic, you almost always buy from second and third-hand brokers, with no direct connection to the growers. With fair trade, you're in direct contact with the farms and farmer that provide the raw materials; you can supervise the quality and the production process itself, and reward farmers and farm-workers without paying middlemen suppliers. There is therefore a business advantage".

Michael: "It's mainly a philosophy to benefit the workers, which distinguished the company even before it went Fair Trade. For example, we have a rule that the highest paid position in our company cannot be more than five times the lowest. Our employees receive social security and health insurance, including dental care, with 15% of wages set aside for pension.

Every year the employees receive 25% of their wages as bonus. "The company contributes at least 30% of its profits not invested into the community.

The distributor, "Ecogreen" states that Dr. Bonner's Magic Soap’s products were officially launched last week in Israel, after a successful pilot run in specialty stores. The soap will be sold in health food and chain stores, to be followed by pharmacies.

The End

The Company's Fair Trade Policy provides for about 2500 farmer and farm-worker families, totaling around 10,000 persons – each one benefiting from Fair Trade.

"The soaps are all natural, biodegradable, and environmentally friendly", Michael points out. "Even the bottles are made of post-consumer recycled plastic".

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