Profile of CONTIGO´s partner Allpa

Supply chain

• Trading Partner: Allpa S.A.C., microenterprise
• Function: Exporter, Service Provider for CONTIGO
• Structure: Associated Producers
• Tradeway: Direct import CONTIGO

Products

• Silver jewellery
• Alpaca fashion

Location

Lima (Jesus Maria area), Peru – distance to Europe: 10,800km

Founded in 1986

History

• 1982: Peruvian Institute for Research and Development (IPID – Instituto Peruano de Investigación y Desarrollo) supports projects that combat poverty. IPID aims to improve living conditions of producers by implementing sustainable trade relations between artisans, fishermen, farmers and Fairtrade organisations
• 1986: Nelly Canepa and Maria del Carmen de la Fuente, sociologists, start Allpa with the help of IPID
• 1999: Collaboration between CONTIGO and Allpa begins
• Allpa regularly attends trade fairs (in Frankfurt, Las Vegas, Paris) to expand their customer base
• 2008: restructuring of the company in terms of internal organisation, higher efficiency
• 2011: 25^th birthday of Allpa, organisation of a Fairtrade workshop with participants of international Faitrade organisations
• 2015-2017: Participation in “FYDECOM” Project, introducing innovative technique for weaving of alpaca textiles. Investments in modern technology for textiles finishing processes (washing and ironing machinery)
• 2018: considerable growth as a result of upscaling the textile section, successful approach of international main stream markets
• 2019: Launching of a new brand ALLPA ORIGINS for the alpaca fashion line
• 2019: Introduction of a management system for textile producers in Huancayo, Huancavelica
• 2020: launch of a new website
• 2020: situation under Corona pandemic
  • Lockdown in March, April – office and workshops closed
  • End of April careful reopening
  • Difficult economic decrease situation requires reduction of salaries
  • Coordination of health and security measurements in the associated workshops
  • Implementation of a committee for reactivation management, cost control, emergency budget, support of producer groups

Cooperation with CONTIGO since 1999

Why does CONTIGO work with Allpa:
From the very beginning Allpa has been committed to improving the living conditions of Peruvian artisans and preserving the cultural heritage of Peruvian handicrafts. Allpa understood the importance of innovation, design and quality to enter successfully the international market combined with excellent service for their overseas customers. CONTIGO appreciates the outstanding performance, the passion for handicrafts and the fairtrade commitment of Allpa. During the long years of cooperation, a close and friendly relationship has grown.

Structure of the business

Number of employees:

• 25 employees at the headquarters in Lima (José Maria)
• Partnership with 80 workshops (family-run businesses, artisan groups, cooperatives), representing 1.500 families in the field of ceramics, jewellery, homedecor, textiles

Organisation of workforce:

• Allpa headquarter:
  • Administration, design, product development, marketing, logistics, quality control
  • Regular meetings with staff and artisans to provide up-to-date information
  • Service for associated producers:
    • Support of technical innovation
    • Training of new techniques, processes and abilities
    • Training in management skills, cost control, quality control

Examples of associated producers

Silver jewellery workshop Fermin Villacompa:

• Located in San Juan Lurigancho in the north of Lima
• Founder Fermin grows up in a family of silversmiths and learns the craft from his father. As an 18 years old he establishes the workshop with his wife Madeleine
• Collaboration with Allpa since 2002
• 8 employees (3 women and 5 men)

Knitting workshop Juan Vargas:

• Located in San Juan Lurigancho in the north of Lima
• Collaboration with Allpa since 2007
• Juan Vargas owns his own workshop since 2008
• 20 employees (12 women and 8 men)
  • Women: sewing, attaching buttons, quality control
  • Men: Knitting
• Additional employees hired during high season (up to 25 craftsmen)
• Allpa supports Juan Vargas in building a new workshop

Sales

• Exports (98%) to the U.S., Europe, Asia,
  Sales by market: 80% to conventional market, 20% to fair trade customers

Goals

• To provide support for small producer groups and enable access to the international market
• To improve production conditions in order to increase product quality and productivity
• To expand product ranges to enter the export market
• To improve technical equipment in the workshops according to international demands
• To strengthen the position of Allpa brand in the market

 

Fairtrade classification

FTA = Fairtrade Approved

 

Fairtrade aspects

Allpa complies with the following Fairtrade Principles:

No child labour

No discrimination

No discrimination due to gender, disability, religion, ethnicity, sexual orientation, political orientation, or infection with HIV

Fair wages

• Minimum wage in Peru: 930PEN = US $250/month (2020)
• Average wage at Allpa: US $___/month
• Annual profit share distributed amongst employees
• Higher wages in case of overtime (200% of normal wages on Sundays and bank holidays)

Humane working conditions

Working hours:

• 48 h/week (according to Peruvian guidelines)
• 1 break (45 minutes)
• 5 days/week (Peruvian standard)

Social benefits:

• Health insurance (governmental scheme called “ESALUD” – both employer and employee contribute, employees pay 12% of their wage, everyone has access to hospitals, doctors etc.)
• Suggestions or worries can be expressed anonymously using an employee letter box
• Continued payment of wage in case of sickness or accident
• Paid holidays
• Lunch provided for free

Educational opportunities:

• Allpa offers trainings to employees (some conducted by international experts) such as English, maths, management, organisation, technology, quality control and computer use

Occupational safety:

• All safety standards are met

Transparency

• Work contracts are available
• Payroll is available
• Pay slips are available
• SAR (Self Assessment Report) was duly submitted to CONTIGO
• Regular meetings with employees and craftsmen to provide up-to-date information

 

Monitoring

• Personal visits in Lima (2012)
• Feedback interview during several visits in Germany
• Member of:
  • WFTO (World Fair Trade Organization) since 2008

Country information

See Encyclopaedia Britannica: Peru

 

Photos

Allpa meets Bill Clinton (2014)

Visiting Allpa

• Workshop Juan Vargas

• Workshop Edmundo

• Workshop Fermin

Headquarters in Lima, Peru: administration / shipping / quality control

Allpa visiting CONTIGO

 

Video