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2008 ANNUAL REPORT Certifying a Sustainable Future Our Dreams Are Big and Our Undertaking Is Ambitious

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2008 ANNUAL REPORT Certifying a Sustainable Future Our Dreams Are Big and Our Undertaking Is Ambitious Celebrating Years10 TRANSFAIR USA 2008 ANNUAL REPORT Certifying a Sustainable Future Our dreams are big and our undertaking is ambitious. We are a nonprofit, mission-driven organization that tackles social and environmental sustainability with an innovative, entrepreneurial approach. We are the leading independent, third-party certifier of Fair Trade products in the United States, and the only U.S. certifier accredited by Fairtrade Labelling Organizations International (FLO). With the help of a growing movement of conscientious consumers, NGOs, philanthropists and partner companies, we have achieved measureable progress in the fight against poverty and environmental degradation. We license companies to display the Fair Trade Certified™ label on products that meet our strict international standards. These standards foster increased social and economic stability, leading to stronger communities and better stewardship of the planet. Our goal is to dramatically improve the livelihoods of farmers and their families around the world. Our Mission TransFair USA enables sustainable development and community empowerment by cultivating a more equitable global trade model that benefits farmers, workers, consumers, industry and the earth. We achieve this mission by certifying and promoting Fair Trade Certified products. Contents 10 2008 Accomplishments 12 The Gold Standard of Sustainability 16 Empowering Farmers and Farm Workers 18 TransFair USA on the Ground 24 Fair Trade and Environmental Sustainability 30 Industry Momentum 36 Segment Trends and Volume 42 Our Community of Supporters 44 Your Donations at Work 48 Financial Summary Letters from the Chairman & CEO Dear Friends, Dear Friends, TransFair USA celebrated its 10th anniversary in 2008, When I opened TransFair’s one-room “national a major milestone in the development of the Fair Trade headquarters” in a downtown Oakland warehouse in movement. TransFair has grown from humble origins October 1998, most industry leaders thought Fair Trade into a respected NGO with a team of nearly 70, all would never succeed. But over the past ten years, we focused on one thing: transforming international trade have built a powerful model for change, thanks to the so that it empowers small-scale farmers and workers, partnership of companies, philanthropists, grassroots with fairer prices than ordinary markets deliver and activists and consumers. I am proud to see the Fair Trade concrete contributions to their own efforts to stimulate movement going mainstream and uplifting millions of local development. And it is working! From imports hardworking farmers in the developing world. of a few thousand pounds of coffee in 1998, we have grown to tens of millions of pounds of coffee and other In 2008, the global economy experienced its worst agricultural products. Better yet, total cumulative decline since the Great Depression, making Fair Trade benefits for farmers from higher prices and the social more necessary than ever for farmers and workers premium exceeded $100 million this year! around the world. Remarkably, the U.S. market for Fair Trade Certified products grew dramatically. Over We celebrate this 10th anniversary by recognizing 150 companies joined us in 2008, introducing exciting the pioneering work of many others in the Fair Trade new products. Established partners expanded their movement who paved the way for TransFair USA and offerings, too. Consumers responded: retail sales of Fair serve as our partners in this great global effort. They Trade products increased 20% for the year, topping an include SERRV, Ten Thousand Villages, Fair Trade estimated $1.25 billion. This growth bears testimony to Federation, Fair Trade Resource Network, and the the commitment of companies, consumers and farmers mission-based Fair Trade companies. to a more equitable and sustainable planet. None of this would have been possible without the As we celebrate the accomplishments and blessings of energy and dedication of TransFair’s management and ten years of service, we must also take stock and evaluate staff. I join the rest of the Board of Directors in saluting lessons learned. The most important challenge and them. Each and every one is a Fair Trade Hero for us. It is opportunity of the next decade: find innovative ways to they who give us the greatest encouragement as we look improve the Fair Trade model to create greater scale and forward to the next decade! positive impact. I believe the best is yet to come. To all our supporters, I send my heartfelt thanks. Together, we are changing the world. Michael E. Conroy Chairman of the Board Paul Rice President & CEO 4 TransFair USA Annual Report 2008 Empowerment “Fair Trade helped us gain control of our harvest and our export business. We get a stable price for our coffee, and we have strong, transparent relationships with our buyers. We feel respected.” – George Pirie, AGOGA Coffee Cooperative, Papua New Guinea TransFair USA Annual Report 2008 5 Environmental Protection “We converted our coffee fields to organic cultivation about 15 years ago. This protects the environment and our own health from the terrible effects of toxic chemicals. Next year we begin a reforestation program in the mountains around our villages.” – Esperanza Castillo, Pangoa Coffee Cooperative, Peru 6 TransFair USA Annual Report 2008 Poverty Alleviation “In Nicaragua, many families don’t earn enough to put sufficient food on the table. Malnutrition among children is common. But our coopertive’s farmers are different; they’ve been getting the Fair Trade price for years. They can provide a healthy diet for their kids and keep them in school longer. That’s the key to a better future.” – Mario Torres, Prodecoop Coffee Cooperative, Nicaragua TransFair USA Annual Report 2008 7 Women’s Rights “As secretary of our Worker Council, I help plan and manage development projects that benefit our workers. I feel proud because I can see that my co- workers are confident in me. I don’t think that I could have a leadership position at another farm because I am a woman. I would only be a worker.” – Wambui Gikenye, Oserian Flower Estate, Kenya 8 TransFair USA Annual Report 2008 Celebrating 10 Years 1999 2000 2001 2002 2003 TransFair USA launches Fair Trade Certified™ Millions of Americans TransFair USA produces The Ford Foundation Fair Trade Certified™ becomes the fastest are alerted to a public service awards TransFair USA coffee at the Specialty growing segment of pervasive poverty in announcement about almost $3 million in Coffee Association of the U.S. coffee industry. the coffee industry Fair Trade, featuring grants and Program America exposition. when USA Today runs Emmy Award-winning Related Investments Paul Rice is elected an article on Fair Trade actor Martin Sheen, over a six- year period, TransFair USA and to the prestigious Certified coffee. which airs nationally. spurring the growth SCAA sign an agree- international Ashoka of our innovative ment to promote Fair Fellowship for his In its first expansion TransFair USA begins model for global Trade in the specialty pioneering work as a beyond coffee, certifying chocolate poverty alleviation. coffee industry. social entrepreneur in TransFair USA launches after world cocoa prices the Fair Trade Fair Trade Certified tea. hit record lows and the United Students for movement. media exposes rampant Fair Trade is born, child labor on West galvanizing a national African cocoa farms. student movement to support Fair Trade on campus and beyond. TransFair USA Annual Report 2008 9 2004 2005 2006 2007 2008 At the World Economic TransFair USA is Paul Rice is featured After Media, PA’s 2006 Paul Rice addresses the Forum in Switzerland, honored by the Skoll on the cover of Fast declaration, Amherst, Clinton Global Initiative Paul Rice advocates for Foundation with a Company. TransFair Milwaukee and annual meeting, Fair Trade amongst Skoll Award for Social USA receives the Brattleboro declare closing with a public hundreds of business, Entrepreneurship. publication’s annual themselves Fair Trade commitment to launch government and civil Social Capitalist Award Towns and the national Fair Trade cotton and Fair Trade Certified™ society leaders. over four consecutive campaign officially apparel. sugar and rice hit the years. launches. TransFair USA U.S. market for the first TransFair USA begins introduces Fair Trade time. Vanilla is soon to According to National U.S. retail sales of certifying flowers, wine Certified bananas. follow. Coffee Association Fair Trade Certified™ and honey. Demand for USA Today reports the research, consumer products hit $1 billion new products takes off. launch in a front-page awareness of Fair Trade for the first time. feature article. reaches 27 percent, an increase of 400% in four years. 10 TransFair USA Annual Report 2008 2008 Accomplishments TransFair USA Annual Report 2008 11 Fair Trade Certified Now Available Fair Trade on the World Stage at a Store Near… Everyone Paul Rice joined President Bill Clinton, Queen Rania of Jordan, Walmart, the nation’s largest retailer, began selling Fair Trade musician and philanthropist Bono, and other prominent world Certified™ coffees in early 2008. Also in 2008, Starbucks, the leaders at the Clinton Global Initiative’s 2008 annual meeting. And world’s largest coffeehouse chain, announced plans to double at the 2008 World Economic Forum regional summits in Mexico, its purchases to 40 million pounds of Fair Trade Certified coffee, Egypt and Dubai, Paul advocated for Fair Trade amongst hundreds making Starbucks the largest buyer in the world. While creating of business, government and civil society leaders. unprecedented opportunities for countless farmers around the world, this expansion also gives millions of consumers the power Fair Trade in the House to vote for a better world with their everyday shopping choices. Fair Trade Certified landed in the cups of national lawmakers in February 2008 when, through a taste test, Pura Vida Coffee won Farmers Thrived the right to serve its coffee in dining halls at the U.S. House of In 2008, 50 new producer organizations became certified, and Representatives.
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