2014 Annual Report I
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2014 ANNUAL REPORT I. Table of Contents I. Table of Contents 2 II. Letter from the President 3 III. About WFTO 4 A global network of Fair Trade Organisations 4 Our vision and mission 4 A membership organization 5 The Goals of WFTO 5 Credibility & identity 5 Learning 5 Voice 5 Market access 5 Capability 5 I V. Our achievements and activities 6 a. Credibility and Identity 6 b. Learning 7 c. Market Access 9 d. Voice 10 e. Capability 13 V. The WFTO enlarged family: WFTO Regions 16 VI. Our supporters 18 VII. ANNEXES to 2014 Annual Report 18 Financial Overview for 2014 18 Balance Sheet 2014 18 Income and Expenditure 19 List of WFTO members, as of 31 December 2014. 20 List of WFTO individual associates, as of 31 December 2014. 27 2 - 2014 WFTO Annual Report I. Letter from the President Dear WFTO members, provisional Member, Associates and Fair Trade friends, Last year I had the chance prove the ‘FTO identity’ and the compliance of WFTO to encounter again in my members with FT principles. By the end of 2014, more travels around the globe than 2/3 of our member had started their GS process. countless enthusiastic This lets us hope that soon most of our members will promoters of Fair Trade be Guaranteed FTO. Guaranteed members are allowed (FT) principles and Fair to place the WFTO product label on their products and Trade products. I realized many members are asking how the label will be promot- once more that after sev- ed to generate sales. In this context I believe that it is of eral decades of existence, vital importance for the sustainability of the Fair Trade there continues to be an Movement that our FTO members focus their time, money increasing number of peo- and energies on developing their own strong consumer Rudi Dalvai, WFTO President ple which are seeking for brands. At the same time it is also necessary for WFTO greater equity in interna- to develop a strategy to position the label as a valuable tional trade and which are vigorously animated to prove additional tool to support members’ own branding initi- that it is possible to build trading partnerships, based on atives. For those members who do not have their own trust, transparency and respect. There are many values strong branding though, it will be possible to use the which are shared by these people but it is also remark- WFTO label as an initial marketing tool to develop their able and fascinating to realize how national Fair Trade sales and expand their markets. The wide use of the label platforms have developed their FT activity differently in by all interested members will reinforce the credibility of different countries. Building connections, diversity and everyone’s own branding, where it exists, and help some individualism have always been specific characteristics members to begin developing their own brand. of Fair Trade people and the essential basis for critical To promote WFTO membership and the product label, analyses and constructive dialectic in and between Fair resources are required. I am happy to announce that, after Trade Organisations (FTOs) at national and international several years of austerity budget, which were required level. This characteristic was the driving force that 25 to bring WFTO out of negative reserves and back to years ago brought together people in Noordvijk, in The financial stability, that the accounts for the end of the Netherlands, in order to found the global network of Fair year 2014 are showing positive reserves. This allows Trade Organisations then called IFAT (now WFTO). At WFTO to start using resources to promote our common that time Fair Trade was still a niche market mainly known values and identity as the global network of Fair Trade to committed people. There was no need for FTOs to pro- Organisations. I am sure we will have now some exciting mote a common identity at national or international level. years ahead in which we will focus on promoting the This has changed. Now there are more and more organ- beauty of the global Fair Trade society. isations out in the market which claim to practice Fair With warm regards and best wishes for the success of Trade and, in the absence of any public regulation of this your own work, sector, anybody can make such claim, independently from the principles and values which are behind this claim. The need to be recognized as a Fair Trade Organisation, For and on behalf of the WFTO Board, which has small and marginalised producers as its main target group, and which sticks still to the initial Fair Trade values, has become essential for us. Rudi Dalvai The Fair Trade Standard and the Guarantee System WFTO President have been developed into a valid tool which allows to April 2015. 2014 WFTO Annual Report - 3 Image: lobOlmo II. About WFTO A global network of Fair Trade advocacy and campaigning for Fair Trade, and serve as Organisations a facilitator and a platform for exchanges between mem- bers, as well as being the focal point for alliances with WFTO is a global network of local Fair Trade Organisa- external stakeholders. tions, national Fair Trade networks and Fair Trade support organisations, including associate organisations and indi- Our vision and mission viduals in around 80 countries across the globe. It has a WFTO has a vision of a world in which trade structures small dynamic Office for global coordination. Five regional and practices have been transformed to work in favour networks in Africa (including Middle East), Asia, Europe, of the poor and promote sustainable development and Latin America and the Pacific Rim support the WFTO. justice. These regional branches have their own respective oper- WFTO’s mission is to enable producers to improve their ational structures and offices and are legally independent. livelihoods and communities through Fair Trade. WFTO is There is also a growing number of (independent) country the global of and advocate for Fair Trade Organisations, networks that coordinate with the WFTO regional net- ensuring producer voices are heard. The interests of pro- works mostly on advocacy and campaigning activities. ducers, especially small farmers and artisans, are the The global, regional and country network structures aim main focus in all the policies, governance, structures and to facilitate core services to WFTO members on mar- decision-making within the WFTO. ket access and market development, capacity-building (Fair Trade compliance and business development) and 4 - 2014 WFTO Annual Report A membership organization The Goals of WFTO WFTO activities focus on achieving WFTO’s strategic By the end of 2014, the WFTO had 359 members and goals. For the period 2013-2017, these are divided into 46 individual associates in 79 countries. The 359 mem- the following: ber organizations consisted of the following: 308 Fair Trade Trading Organizations (FTO), 24 Fair Trade Support CREDIBILITY & IDENTITY Organizations (FTSO), 26 national Fair Trade Networks To be the global membership body for all fully committed 1 (FTN), as well as and 1 Associate Organization (AO). Fair Trade Organisations (FTOs) seeking to empower More than 70% of the members of WFTO were based groups of vulnerable producers, farmers and workers in Africa, Latin America and Asia. through trade. LEARNING Table 1: Membership Types per Region To be a space where members connect with each other 140 – to work together, to cooperate, create synergies, and 120 share innovative ideas and learning. 100 80 VOICE 60 40 To create a common voice that speaks out loudly for Fair 20 Trade and trade justice – and is heard. 0 Africa & ME Asia Europe LA Pacific MARKET ACCESS AO 1 To enable members to access tools and training to im- FTSO 3 6 6 5 4 prove market access locally, regionally and internationally. FTN 1 4 16 2 3 FTO 74 113 56 52 13 CAPABILITY To have the internal leadership, capacity, resources and During 2014, 47 members left WFTO. These departures structure/s for good network governance, which enable from membership can be divided into two categories: the WFTO to be dynamic, flexible and healthy. those choosing to withdraw (11) and those terminated (36) mainly due to unpaid fees dating back to 2012 and 2013. Most of the withdrawals were based on financial considerations. Table 2 : Membership Balance 2014 20 15 10 5 0 Africa & ME Asia Europe LA Pacific NEW 9 19 6 8 3 Image: Shared Interest EX 16 12 7 9 3 WFTO welcomed 45 new members in 2014. Overall membership, thus, kept quite stable, which was a rather positive resukt given that the progressive implementation of the Guarantee System may force some members to leave. 1 Three members had their status suspended. Image: People Tree 2014 WFTO Annual Report - 5 III. Our achievements and activities There were several noteworthy activities and achieve- involving self assessment, peer review and audit, the ments during 2014 within or involving WFTO. The most Guarantee System ensures a high standard for mem- important ones are briefly listed below, per WFTO main bership (more on the GS in section III.c.). working area. Additionally, for those members who require it, the right to a. Credibility and Identity use the WFTO product label is available at no extra cost. To be the global membership body for all fully committed Fair Trade Organisations (FTOs) seeking to empower By the end of 2014, WFTO had 14 Guaranteed Mem- groups of vulnerable producers, farmers and workers bers and the Fair Trade Accountability Watch (FTAW)3 through trade. had already began to be used, proving to be a valuable tool to ensure best practices within the membership.