Fairtrade Labelling Organizations International
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FAIRTRADE LEADING THE WAY Fairtrade Labelling Organizations International Annual Report 2008-09 Fairtrade leading the way Table of contents THE LEADER IN FAIRTRADE Global strategy in place 5 Fairtrade sets the standard 6 Rob Cameron, CEO of Fairtrade Labelling Organizations International (FLO), speaks at the 10th Annual World Export Development Forum 2008 organized by the International Trade Center. Partnerships with more producers 8 Encouraging environmental sustainability 9 Welcome to our 2008-09 annual report In such circumstances, the need for Such success is due to the dedication SUPPORT GROWS FOR FAIRTRADE in which we highlight the progress we Fairtrade is greater than ever. The of the FLO staff and management and Consumers demand Fairtrade 11 have made to strengthen the position impact on producers in the South I must thank each and every one of Global companies commit to Fairtrade 12 of producers in this most challenging can be so much more threatening. them in Bonn and out in the field. And Global partners work with Fairtrade 13 environment, and to adapt Fairtrade our Board, including the producer Grassroots spread the word about Fairtrade 14 to the global market in which we now A Year of Growth representatives, has continued to offer operate. the support and guidance that we need. In any crisis, working together is the key I am grateful to all for their commitment. to survival. We intend to lead the way FAIRTRADE REACHES MORE PEOPLE Strengthen, Broaden by working more closely with producers, And finally, at the end of 2008, after and Deepen Fairtrade traders, business partners, governments Global presence of Fairtrade 17 three years of dedicated service, Barbara and others for the benefit of producers Producer empowerment 18 These two measures are the major Fiorito, our Board chair, stood down worldwide. Stability in insecure times 19 features of Fairtrade’s new global as her term of office expired. Barbara strategy. We are taking a bold and was, and continues to be, a tireless We have much to be proud of in 2008. ambitious approach to strengthen, campaigner for Fairtrade and trade Despite the difficulties of the year, broaden and deepen our impact and justice. I warmly thank her for her FACTS AND FIGURES sales of Fairtrade products grew by an improve our effectiveness in the immense contribution to Fairtrade and impressive 22%. This growth, coupled Highlights in 2008 21 struggle against poverty. her leadership through a time of great with the coordinated Fairtrade donor Sales in volume and retail value 22 change. We all owe her a debt of consortium which became fully FLO summarized accounts 24 2008 was a year like no other and it gratitude and we look forward to operational in 2008, means that our FLO Board 26 is to be hoped that we will never see her continuing friendship. another like it in our life times. The financial position is stable and robust. Members and donors 27 financial crisis is reported to be the Thank you for reading and your During the latter part of 2008 we worst since the 1930s and maybe even continued support for Fairtrade conducted the largest ever survey of worse than that. Now, in the late spring and the principles we stand for. of 2009, we hear hopes of a recovery – consumer attitudes to Fairtrade and a recovery that is badly needed by us ethical labeling. This in-depth survey of all, especially the producers in the 1,000 consumers in each of 15 countries shows the strength of support for our Rob Cameron developing world who have been so Chief Executive Officer hard hit by the consequences of the work and the sound platform upon crisis. which we can build for the future. 2 — EDITORIAL TaBLE OF CONTENTS — 3 Global strategy in place The new global strategy for Fairtrade is designed, above all, to scale up the benefits for producers. After a year of development and consultation with stakeholders, the new strategy was approved by the Fairtrade General Assembly in December, 2008. Ambitions for the new strategy Fairtrade’s new strategy is bold and An introductory pamphlet on the new ambitious, and it will bring lasting global strategy for Fairtrade, called benefits. Its overall objectives are to Making the Difference, is available on the strengthen, broaden and deepen the FLO website: www.fairtrade.net Fairtrade system. The implementation plan will do this through: A unified approach to international markets Global positioning for Fairtrade products Producer empowerment luhm B Introducing new producers and products and encouraging diversity New partnerships Photo – Eduardo Abraços THE LEADER IN FAIRTRADE The vision of Fairtrade is of a world in which all producers can enjoy secure and sustainable livelihoods, fulfil their potential and decide on their future. Fairtrade Labelling Organizations International (FLO) works to help alleviate poverty by providing leadership, tools and services that enable producers to benefit more from their labour. Photo – Malin G. Kundi Banana packing station of one of the members of the Fairtrade producer organization El Guabo in Ecuador. FLO leaders in Bonn from left to right: Louise Luttikholt – Director of Strategy and Policy / Kimberly Easson – Director of Producer Services and Relations / Rob Cameron – CEO / Tuulia Syvänen – Chief Operating Officer / Andreas Kratz – Standards Unit Director / Not pictured: Simon Hunt – Director of Finance and Central Services. 4 — The LeaDer IN FaIRTraDE The LeaDer IN FaIRTraDE — 5 Fairtrade sets the standard One of the most important objectives for Fairtrade’s new strategy is to enable more producers to benefit. In 2008 we introduced new and revised standards to expand the range of Fairtrade products, enabling more producers to enter the system. New and revised Greater transparency standards in standards In 2008, new standards were ratified A new set of generic trade standards for olives and olive oil, and for soybean provides harmonized standards for all and other pulses such as haricot beans, traders, ensuring greater transparency chickpeas and lentils. Several revised and trust among the public. standards allowed more farmers of mangoes, bananas, pineapple and Fairtrade standards are set in accordance vanilla to enter the system for the first with the requirements of the ISEAL* Code time. of Good Practice for Setting Social and Environmental Standards. Innovative new standards for small * ISEAL is the International Social and Environmental producers’ organizations give them more Accreditation and Labelling Alliance. control over improving their livelihood icolas Gauthy – for example, enabling them to prepare N A child enjoying a school lunch at a program supported by Fairtrade premium money from the sale their own development plans. of Fairtrade bananas at the organization, Bananos Ecologicos de la Linea Noroeste (Banelino) in the Photo – Dominican Republic. Fairtrade prices The Fairtrade Premium The minimum price paid to Fairtrade Most members of Ankole Coffee The Fairtrade Premium is an additional producers is determined by the Fairtrade Producers Cooperative Union in sum of money that goes into a communal standards. This price acts as a safety net Uganda are subsistence farmers. fund for workers and farmers to improve for farmers at times when world markets They are self-sufficient in food and social, economic and environmental fall below a sustainable level. sometimes have enough surplus to conditions. The use of this additional sell into the market. Coffee prices income is decided upon democratically are notoriously volatile, making by producers in the farmers’ organization, planning ahead difficult for growers, or by workers in a joint body. Typical uses but the Fairtrade price the Ankole include improvements to infrastructure, farmers get for their coffee means schools, healthcare and the quality and that, relatively speaking, they are methods of production. prospering. John Nuwugaba, chair of the Union, Fairtrade growers picking olives in Jenin, The Palestine Fair Trade Producers It also prevents the abandonment of explains: “Fairtrade gives us a West Bank. Company (PFTPC) is the first cooperative land and spreading desertification. guaranteed price whatever happens. to be Fairtrade certified for olive oil. This means more consistent income. PFTPC, based in Jenin, West Bank, has Farmers can conduct their business Olive oil production provides many a membership of about 265 farmers, but better by planning ahead.” Palestinian farmers with as much as the aim is to bring as many as possible 50% of their annual income. of the area’s 1,700 growers into the Fairtrade system. 6 — The LeaDer IN FaIRTraDE The LeaDer IN FaIRTraDE — 7 Partnerships Encouraging with more producers environmental sustainability FLO has stringent environmental standards for all producers. The use of genetically modified organisms (GMO) is prohibited. Likewise, certain pesticides are banned from use. Many of the biggest chocolate companies FLO’s Generic Standards documents Protecting the natural environment Furthermore, FLO encourages small worldwide, such as Cadbury (UK and for small farmers and for hired Making environmental protection producers to work towards organic Ireland), Verkade (Netherlands) and labour situations detail a number of part of farm or company practices where socially and economically Toms (Denmark) made significant new environmental development management practical. In 2008 over 48% of Fairtrade commitments to Fairtrade this year. requirements. Producers must adhere certified coffee was also certified as Developing, implementing