QUARTERLY RETURN 102 WINTER 2016/17

BEAUTIFUL HANDCRAFTS THAT DON’T COST THE EARTH

A HARMONIOUS RELATIONSHIP BETWEEN PEOPLE AND PLANET Sustaining a precious relationship in the Peruvian Amazon.

A COMMITMENT WITH NATURE Leading the way in agricultural best practice and high quality production.

WHAT’S UP WITH MAMBO COFFEE? Showcasing speciality coffee in Kenya. WELCOME

Happy New Year to you all New customer, Allpa – which and I hope you had a great means ‘earth’ in Quechua Indian SPEAKING Christmas. We were delighted – is a fair trade handcraft producer OPPORTUNITIES to receive such a positive group in Peru. Read more about response to our Christmas their journey on pages 6 and 7. card, and thank you to Thank you to all who As part of our continued drive to responded to our call everyone who invested reduce our paper usage, instead for volunteers to speak further with us over the of sending you a full copy of the festive period. Annual Review, we have produced in your local area. a summary of both the Society ‘Your actions change lives’ is the and Foundation activities over We continue to receive enquiries and are working hard to deal with these message for this year’s Fairtrade the year, inside this issue of QR. requests. One invitation came from Fortnight and as Shared Interest If you would prefer to read the investors, you are changing lives member Geoffrey Lock, in Bristol, who full version, please contact invited ambassador Chris Fox to speak every single day. [email protected], at the Rotary Club of Clifton’s November or call 0191 233 9103. Alternatively, lunch meeting. Chris delivered a short We hope to see many of you at you can download copies from presentation, including showing one our AGM, at the Northern Design our website. of our customer films, and answered Centre in Gateshead, on Friday questions on various topics including 10th March. Details of the meeting Thank you once again for your customers, risk and regulation. are enclosed with this newsletter. continued support in 2016, and On the page opposite you can read all the best for the coming year. Geoffrey said the event was a great about our upcoming regional success as “The talk clearly set out the aims of Shared Interest and was well member events, which will take I hope you enjoy this issue of QR. illustrated with slides.” place throughout the year. Please continue to let us know of This newsletter includes updates opportunities in your area. We need your on new and longstanding support to continue to spread the word customers. Brazil nut producers, Patricia about Shared Interest and to increase our Candela Peru, started their lending capacity. Please get in touch at relationship with us in 2001. [email protected] You can read more about their or on 0191 233 9103. progress on pages 4 and 5.

2 Front and back page images: Allpa, handcraft producers in Peru. QUARTERLY RETURN 102 WINTER 2016/17 In our last edition of QR we announced the date for this year’s AGM. We can now tell you that the event will be held DATES at the Northern Design Centre on the banks of the Tyne. FOR THE We invite you all to join us in our home region on Friday 10th March. Your voting card and AGM booklet DIARY are enclosed.

FAIRTRADE ‘MAKE YOUR MONEY FORTNIGHT COUNT’ EVENT

Monday 27th February - On Thursday 3rd November, we invited members to join us in Sunday 12th March Edinburgh for an ethical investment debate, as part of Good Money Week. “We need to amplify the voices of marginalised producers as much as Building on the success of our joint event in 2015, we held the event ever in 2017”, is the message from in partnership with Rathbone Greenbank, Triodos, Ethical Futures and ahead of The Church of Scotland. Almost 100 people listened to guest speakers this year’s . discussing key issues around ethical investment and how active engagement with companies and policymakers can make a difference. “When we come together we can change the way people think about trade and the products on our UPCOMING shelves – the Fairtrade movement MEMBER EVENTS is made up of ordinary people This is your chance to meet staff together with members of our Board doing extraordinary things in their and Council. We would love to see you at one of the below events. communities for Fairtrade. Your actions help shoppers to make choices that change the lives Date Venue Location of farmers and workers.” – Fairtrade Foundation. Fri 10th March The Design Centre Gateshead Shared Interest is supporting the campaign by encouraging our staff, Fri 12th May Wales Millennium Centre Cardiff stakeholders and supporters to put Fairtrade in their break. Our Sat 20th May White Cloth Gallery Leeds volunteers will also be getting involved, attending a range of events across the UK. Thu 8th June The Old Library at The Custard Factory Birmingham

Thu 15th June Philharmonic Music Hall Liverpool

Fri 30th June Friends Meeting House, Euston London

SHARED-INTEREST.COM 3 A HARMONIOUS RELATIONSHIP BETWEEN PEOPLE AND PLANET

For over 25 years, Candela has Candela owns the whole process of “Without the support of Shared used Shared Interest finance to production. Members collect nuts Interest, Candela would not be sustain a precious relationship during the harvest period and able to pre-finance harvest in the Peruvian Amazon. Candela buys the raw and peeled activities and many nut harvesters material. The nuts are stored in would have been denied their Castañeros are brazil nut gatherers, their warehouse prior to exporting only source of livelihood.” who live along the Madre de Dios to their buyers. They also have Lupe Lanao, General Manager, River in the Peruvian rainforest. This a nut processing plant in Puerto Candela area is known for having the greatest Maldonado and one in Lima, diversity of plant and animal species where most of the processing Candela’s work goes far beyond the on earth. and packaging is done. nut production process. They have been working tirelessly with fair In 2003, the government granted Since 2001, Candela has benefitted trade organisations and certification a 40-year concession to the from three different types of financial bodies to ensure their farmers Castañeros, allowing them to farm support from Shared Interest. All of receive a fair price for their crop. the brazil nut trees in clearly defined these facilities have contributed to They have also provided water and locations; securing not only the growth and sustainability of the drainage systems for a number livelihoods but the vested interest organisation and impacted positively of indigenous communities giving of the farmers in managing and on the livelihood of nut producers them access to clean water. protecting the rainforest. and harvesters, their families and communities. The graph opposite shows the Candela was established to help sales growth of Candela over Castañeros find markets for their Our Monitoring and Evaluation the last 16 years. brazil nut products. Export of Officer carried out a study with candles, chocolate, and oils, is the Candela to assess the impact of this key to reaping tangible rewards support. Results show that Shared from this harmonious relationship Interest investors have played a between people and planet. pivotal role in the growth and sustainability of the organisation.

4 QUARTERLY RETURN 102 WINTER 2016/17 CANDELA SALES GROWTH SINCE BECOMING A CUSTOMER

2004 – Shared 2007 – Loan 2011 – Sales 2014 – Due to Interest increases received from increase from high demand, Candela’s loan Shared Interest USD 2,839,657 to Candela reach their threefold. to upgrade USD 3,990,916. production capacity. machinery in their processing unit. Candela requests a loan to finance their expansion and technology upgrade project. USD

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2000 – Candela is 2005 – Sales 2010 – Candela 2013 – Sales hit hard by a sudden increase from requests a loan to recover and Candela decline in the world USD 991,664 to improve the production experiences a very prices of the brazil USD 1,530,339. processing plant. high demand for nut, leading to the nuts. heavy loss in the business. 2002 – Shared Interest 2012 – Decline in sales 2015 – A slight decrease provides Candela with a due to a relative price was experienced due to loan to pre-finance their fall of the nuts and a market price volatility. harvest. Sales increase drop in buyer orders. from USD 143,492 to USD 737,498.

SHARED-INTEREST.COM 5 BEAUTIFUL HANDCRAFTS THAT DON’T COST THE EARTH

Allpa is a handcraft rainforest area of Pucallpa, where Artisans selling under the Allpa name are organisation in Peru that takes craft production is one of the few considered luxury designers, constantly sources of income. developing new and cutting-edge its name from a Quechua styles. In return for this expertise, Allpa Indian word meaning ‘earth’. With artisans specialising in jewellery, provides access to the international textiles, ceramics, and wood, Allpa market providing producers with a The organisation came into fruition has benefitted from an export credit reliable source of income. in 1986. Thirty years later, it employs facility from Shared Interest since However, some of the producers are 27 people and benefits hundreds 2014. As less than 10% of their now trading directly with importers after of handcraft producers throughout sales are local, this is a vital facility developing under Allpa’s guidance. Peru, providing marketing assistance, for the organisation. technical help, skills training and tools. Included in Allpa’s list of buyers are Allpa works with families located in , , various parts of Peru, including the and Serrv; all of which are Shared Shipibo people living in the Amazon Interest customers.

6 QUARTERLY RETURN 102 WINTER 2016/17 DANILO A master in stone carving, Many of the local jewellers in San Juan Danilo extracts the hidden de Lurigancho entrust him with the carving of the stones, which they later beauty of the stones. He can use for jewellery that goes to different turn amorphous and opaque markets. Allpa has worked with him for rock into a bright and 10 years. His skill with stones can be precious jewel. expanded to the carving of other natural materials such as shells and tagua nuts.

CELESTINO

A modern weaver in the Today he lives on the outskirts of Andes, Celestino was born Huancayo and employs many men and women who weave with improved in Huancavelica and spent looms. What is more, he makes time in different activities beautiful finishes with innovative and villages. In 2001, he equipment made with the support started weaving for Allpa of Innovate Peru. in his backyard with a very rustic loom. Celestino is proud to say that his textiles travel around the world and reach homes in Europe, North America, Japan and Australia.

FERMIN As a descendant of several Fermin has also trained his workers at generations of silversmiths, his facility; they have become a new generation of jewellers, and some of Fermin has been making them have set up their own workshops. handmade silver jewellery for 28 years, and Allpa is his main customer.

You can find out more about Allpa and their artisans at www.allpaperu.com

SHARED-INTEREST.COM 7 Each year we compile a set of externally SOCIAL audited Social Accounts, which detail our ACCOUNTS social, economic and environmental impact. There are three main aims to the accounts, by which we measure our performance: Impact 2016 ImpactImpactImpact 201 201 201666 2016 2015 Aim 1: Provide financial Impact20162016 20162016 201520152015 services and business Producers Permanent Individuals Women Collective revenue support that make ProducersProducersProducers PermanentPermanentPermanent IndividualsIndividualsIndividuals WomenWomenWomen CollectiveCollectiveCollective revenue revenue revenue borrowingborrowingborrowingborrowing moneymoney money money employeesemployeesemployeesemployees producersproducersproducers producers livelihoods and living 161631633 6,646 361,576 106,028 £250.7m£250.7m£250.7m standards better for 163 6,6466,6466,646 361,576361,576 361,576 106,028106,028 106,028 £250.7m 151515001500 6,0396,0396,0396,039 247,348247,348247,348 247,348 93,47893,47893,478 93,478£226.3m£226.3m£226.3m £226.3m people as they trade their way out of poverty.

Activities: • Provide lending directly to 46.2%46.2%46.2% Impact 201producer6 businesses increaseincreaseincrease • Enable more producer businesses 8.7%8.7%8.7% 10%10%10% 46.2% 7.2%7.2%7.2% 10.8%10.8%10.8% to access finance by providing increaseincreaseincrease increaseincreaseincrease increase increaseincreaseincrease increaseincreaseincrease 2016Beneficiaries2015 of swift project financial services to their buyers 8.7% 10% 7.2% 10.8% ProducersandBeneficiaries by delivering trainingPermanent of swift project Individualsincrease Women increaseCollective revenue increase increase borrowing• Build money sustainable supportemployees In In2016In 2016 2016 we we welent lent lent money money money to to163 to 163 163 producer producer producerproducers groups groups groups with with with 6,645 6,645 6,645 permanent permanent permanent employees, employees, employees, representing representing representing 361,576 361,576 361,576 individuals, individuals, individuals, including including including 106,02 106,02 106,028 women.8 8women. women. BeneficiariesBeneficiaries of of swift swift project project BeneficiariesBeneficiariesfor16 fair3 trade businesses of of swift swift project project6,646 343 361,576 106,028 £250.7m Key150 6,039 In 2016 we lent money247,348 93,478 £226.3m to 163 producer groups BeneficiariesMale ofSWIFT of Project swift projectIn 2016 we lent money to 163 producer groups with 6,645 permanent employees, representing 361,576 individuals, including 106,028 women. 34with3 6,645 permanent BeneficiariesFemaleKey of swift project 343 343 KeyKey Male 4061 343 employees, representing Key 343 361,576 individuals, KeyMale indirect 3718 MaleMale Female MaleFemale beneficiaries including 106,028 women. MaleFemale 40614061 34Impact3 2016 FemaleKey indirect 343 3718 46.2% FemaleKey 4061indirect4061 3718 increase Male beneficiaries4061indirectbeneficiaries 4061indirect 3718 Male 8.7% beneficiaries 10%3718 7.2% 10.8% Femaleincrease beneficiariesindirect increase3718 2016 2015 increase increase Female beneficiaries4061 4061indirect 253718 Producers Permanent Individuals Women Collective revenue indirectbeneficiaries Beneficiaries of swift project 25 3718 borrowingImpact of Financial money Managementemployees Training producers In 2016 we lent money to 163beneficiaries producer groups with 6,645Impact permanent of Financial employees, Management representing Training 361,576 individuals, including 106,028 women. 25 163 6,646 361,576 106,028 £250.7m 25 150 6,039 247,348 93,478 £226.3m 343 100 25 Key 100 25 Male individualindividual artisans Female artisans 100 4061 trained trained 25 indirect 3718 individual75 2575 beneficiaries 100100 100individualartisans individual100 artisanstrained individualartisans 75 Peru Colombia Malawi trained 5 46.2% artisanstrained100 75 increase 25traine100dindividual 75 5 individualartisans 75 Businesses taking8.7% part in 10% 7.2% 10.8% increase 15 increase 10 8 increase increase 77artisanstrained 5 training and mentoring 100 peetrainer d 75 individual educators 5575 artisans trained 77 5 trained 72 5 Individuals that 75 peer In 2016 we lent money to 163 producer groups with 6,645 permanent employees, representing 361,576 individuals, including 106,028 women. educators received training 82 100 47 77 5 trainepeedr 5 7777 5 72 77peeeducatorsr 77peer Staff members of local educatorstrained support networks that educatorspeer 72 33 1 77 trained received training peer 40educatorstrained 77 educatorsbusinesses received businesspeer 7272 skills trainingtraine and77 mentoringd 72 trained 72 peeeducatorsr 72 educatorstrained 72 traine40d 72 businesses received business hours of training delivered 40 skills training and mentoring 256.5 (28.5 days training x 9 hours per day) businesses received business 40 businesses received business skills training and mentoring skills40 training and mentoring businesses40 received business businesses40 received business businesses received business skills training40 and mentoring businessesskills training received and mentoring business skills training and mentoring 8 40 businesses40 received business QUARTERLY RETURN 102 WINTER 2016/17 businessesskills trainingreceived and business mentoring skills training and mentoring Membership

Aim 2: Develop our community Membership of investors, the support of donors and volunteers, and partnerships with those who share our commitment to fair and just trade. 9,232 Activities: share accountsounts net increase off • Attract and retain investors, donors A 185 on 2015 and volunteers pp s li es cation proc • Act co-operatively, valuing the views of our membership and wider supporters 2,670 908 • Collaborate and innovate with partners online both 7,376 postal Closing Share Capital 2016 OUR VOLUNTEERS Closing Share Capital 2016 Our Volunteers Share capital (£m) Closing share capital £36,431,447 involved in over

37 £3,142,329 net increase from 2015 35 volunteers71 awareness70 33 volunteers awareness raising events 31 29 NEW 27 25 09 10 11 12 13 14 15 16 13 18 13new 18training Year volunteers sessions

Recycling Recycling Aim 3: Manage our resources RecyclingRecycling in line with our principles of RecyclingRecycling love, justice and stewardship.

Activities: • Ensure good financial stewardship of our investments and donations • Encourage staff’s talent and commitment in an environment of mutual respect Staff continue to recycle paper, plastics, and glass. • Practise good environmental StaffStaff continue continue to recycleto recycle paper, paper, plastics, plastics, and and glass. glass. StaffStaff continuecontinue toto recyclerecycle paper,paper, plastics,plastics, andand glass.glass. stewardship

This is the number of wheelie bins we 66,000 66,00066,000 could have filled with our paper recycling. 66,000 sheets of 66,000 sheets sheets of of sheets of paper used paperpaper used used paper sheets used of paper used 5252 decrease in 5252 52 The full document is available paper used to download on our website. 52%for printing www.shared-interest.com/social-accounts 52%decrease in paper This is the number of 52%decrease in paper This is the number of 52%decrease in paper This is the number of decrease52% in paper This is the numberwheelie ofbins we could decreaseusedused for inforprinting paper printingwheelie binswheelieThis we is couldbins the wenumber could of usedused for for printing printing wheelie bins wehave could filled with our used for printinghave filledwheeliehave with filled our bins with we our could have filledhave withpaperpaper ourfilled recycling recycling with our paperpaper recycling recycling SHARED-INTEREST.COM paper recycling 9 A COMMITMENT WITH NATURE

Leading the way in Longer term, as well as being able to agricultural best practice prevent the spread of Roya, they are ROYA also expecting a 48% increase in and high quality production, their coffee production. Roya, or Rust, as it translates UES (Union de Ejidos y in English, is a fungus that Comunidades San Fernando, UES farmers don’t simply look at how originated in Ethiopia. S.P.R. de R.I.) is a group of they can improve the production and 1,379 coffee producers from quality of their coffee. As a social It is thought that the disease, which Chiapas estate, South enterprise, they develop community attacks coffee plants, was first brought projects to fit with the needs of their Pacific of Mexico. to Latin America in the 1970s. During producers. They are even working the 1980s the disease was prevalent with the Government to help farmers throughout the continent; however, In 2014 their coffee plantation was improve their housing conditions. over the last twenty years it has largely affected by Roya disease, causing been under control. extensive damage. UES prepared a UES state: “The commitment we plan to regenerate their crops with a have made with nature and love of The spread of the disease has increased plantation renewal programme and the countryside drives us to keep in since the beginning of 2013. This has applied to Shared Interest for help. organic production, and not only that, caused major problems for coffee but look for alternatives that allow farmers. Experts believe that the disease “We are very grateful to Shared Interest us to give back a little of everything favours lower temperatures and lower for believing in our plantation renewal that the earth has given us. We are in light levels. It is also easily spread during program. The production during the a privileged area, where land, water wet weather when raindrops hit infected last season increased by 29% thanks and climate are supplemented for the leaves and bounce to another. As the to the planned efforts. Our producers production of our coffee.” effects of climate change are increasingly now have healthier farms and Roya is seen and Latin America is faced with finally under control.” Silvia Herrera, frequent, heavy storms, the perfect Assistant General Manager, UES. conditions for Roya are created and maintained.

10 QUARTERLY RETURN 102 WINTER 2016/17 COUNCIL COMMENT

My opportunity to join Shared Interest came through an inheritance I received in 2012. I wanted to use this money in some way that might benefit others and link me directly with an organisation that assisted people to trade their way out of poverty. Shared Interest was exactly what I was looking for.

I am a midwife in the NHS and have spent the last 12 months on sabbatical from my job in order to volunteer overseas, to learn and grow as a midwife and human being. I have WHAT’S UP worked in Uganda, Nepal and a refugee camp in Greece. It has been challenging, especially when faced with maternal WITH MAMBO death in Uganda, extreme poverty in Nepal and the utter despair that is the life of a refugee in Europe. It has been COFFEE? wonderful to become friends with midwives from all over the world and to meet women and families from very different settings to the UK.

Whatever the setting, and no matter According to Mambo, their coffee Taking its name from the how different the needs and disparities roasters have “honed their craft to Swahili slang for “what’s are, the most striking thing is that create four blends of Mambo Coffee up?”, Mambo Coffee is to suit every palate.” anyone can be vulnerable and in need a wholesaler of specialty of assistance at any time. It is easy to grade blended coffee. A Master Roaster travels extensively highlight the differences between people to different coffee regions. He and instil a fear of strangers, but it is They say that the reason behind the looks for farms that grow coffee also easy to reach out and acknowledge brand name is that young farmers in in an organic and sustainable way. the plight of our brothers and sisters East Africa greet each other with this However, the coffee beans must around the world. simple word in the morning before also produce excellent flavour beginning the harvest. once they are roasted to pass the Now is the right time to create stringent quality test. communities and be kind to each other Mambo explain: “In the beginning, we as citizens of the world. I really believe built a little espresso bar to showcase Now based at the foot of Mount that we are doing this by investing with our coffee blends to our wholesale Kilimanjaro, Mambo Coffee is run customers. Word of mouth quickly by a team of 80 staff. They will use Shared Interest. Let us all spread the spread through the area, and soon their Shared Interest loan to buy mission and values of Shared Interest our little space was so crowded every a processing machine and build a by encouraging more of our friends morning with customers, we had to sorting shed. This will help increase and families to become investors too. move to a bigger location.” productivity and boost sales so that coffee farmers are able to increase their income. Elizabeth Murphy Member of Shared Interest Council

SHARED-INTEREST.COM 11 Quarterly Return is the newsletter of Shared Interest Society. Shared Interest Society Ltd is a fair trade lending organisation which is a member of Co-operatives UK. It uses the pooled investments of its members in the UK to affect real and lasting improvements to people’s lives in the developing world.

Shared Interest Society Ltd is registered with the Registrar of Mutual Societies, number 27093R. The Directors decide on what the interest rate payable to members will be. The interest rate since 1 September 2016 has been 0.25%.

CONTACT US

Shared Interest Society Ltd Pearl Assurance House 7 New Bridge Street West Newcastle Upon Tyne NE1 8AQ United Kingdom 0191 233 9100 [email protected] www.shared-interest.com

@SharedInterest