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FTAO 2012 annual review 1 2012 annual review 02 FTAO 2012 annual review © Beatrice De Blasi © Beatrice Content Foreword ............................................................................................ 03 About us ............................................................................................. 04 What is Fair Trade ..................................................................... 07 What we did in 2012 ............................................................... 09 Who we are ..................................................................................... 20 Financial results ......................................................................... 23 FTAO 2012 annual review 03 Foreword As a citizen and as a consumer, I have been a long-time Second, we need fairer and more sustainable trading supporter of the idea of opening conventional distribution relationships along the food and non-food supply chain. channels to a form of trade respecting the environment Rebalancing the current relation is a question both of jus- and the social rights of small producers around the globe. tice and of efficiency. The European Commission launched a broad consultation on this topic on 31 January 2013. I I am glad that this idea is growing fast. From its fairly mod- trust that the FTAO will actively contribute to this consul- est beginnings more than thirty years ago, the Fair Trade tation, and provide important input, as it did throughout movement has turned into a well-known and successful the process of drafting the Green Paper. economic model, which today benefits more than 6 million producers. And it goes much further than just securing Lastly, innovative economic models promoting green people decent remuneration for their work, since Fair and inclusive growth must be encouraged also here in Trade generally goes hand-in-hand with more sustain- Europe. That is why I attach so much importance to social able agriculture, empowerment of women and an overall businesses, which play a key role in including people far better quality of life for entire families and communities. away from the labour market and small entrepreneurs far away from financial markets. So how can Europe better support Fair Trade? One way is through an appropriate trade policy – I know that the Trade policy, public procurement, unfair trade practices: Fair Trade Advocacy Office (FTAO) actively contributed on all these issues, the FTAO has been very active in to this objective in 2012, while also advocating on the 2012. So let me seize the opportunity of this foreword EU development policy. to thank the FTAO, its team and its Members’ networks and organisations all over Europe for their very useful But Fair Trade is not just about trade and development contribution to our work. I look forward to continuing this policy. If we want Fair Trade to keep on growing in Europe very good cooperation in the future. and make it commonplace for all Europeans, we need to use other available tools to help marginalised producers Michel Barnier and workers from the South to “trade their way” out of European Commissioner responsible for poverty. I think notably of the different dimensions of our internal market and services single market. First, we need to make full use of the great potential of public procurement, which accounts for 18% of EU GDP. In addition to making rules simpler for SMEs and public authorities, our reform proposals aim to ensure greater respect for social and environmental aspects by means of considering life-cycle costing, the integration of vulnerable and disadvantaged people and the production process and commercialisation of products and services, which would in effect allow many fair trade considerations to be taken into account when awarding contracts. 04 FTAO 2012 annual review About us The FTAO, speaking out for Fair Trade and Trade Justice! The Fair Trade Advocacy Office (FTAO) speaks out The FTAO was born in 2004 when the Fair Trade networks on behalf of the Fair Trade movement for Fair Trade and set up an informal advocacy cooperation mechanism. Trade Justice with the aim to improve the livelihoods of In December 2010, the Fair Trade networks formalised marginalised producers and workers in the South. The their commitment and set up the FTAO as a legally- FTAO is a joint initiative of Fairtrade International, the independent foundation “Fair Trade Advocacy Office” with European Fair Trade Association and the World Fair Trade a clear mandate to advocate for EU policies in support Organization-Europe. Through these three networks the of Fair Trade and Trade Justice and to strengthen the FTAO represents an estimate of 2.5 million Fair Trade FTAO and the Fair Trade networks and their members’ producers and workers from 70 countries, 24 labelling capacities to interact and have an on-going dialogue initiatives, over 500 specialised Fair Trade importers, with the EU Institutions. The FTAO Secretariat is based 4,000 World Shops and more than 100,000 volunteers. in Brussels. The office monitors European and international trade Fairtrade International (FLO) and development policies, ensures a constant dialogue An umbrella of 27 organisations around the world, includ- between the Fair Trade movement and political decision- ing three producer networks representing producers in makers, develops political positions in the area of Fair Africa, Asia and Latin America and the Caribbean, 19 Trade and trade justice and publishes information material labelling initiatives, four marketing organisations and one such as newsletters and brochures. associate member. The members all produce or promote © Beatrice De Blasi © Beatrice FTAO 2012 annual review 05 products that carry the Fairtrade Certification Mark and together they are responsible for decision making within FLO. Half of the members of the FLO General Assembly “ The Alternative Trade Mandate (ATM) Alliance is a represent producers. Together, they develop the Fair- network of some fifty organizations, from all across Europe, developing an alternative vision for European trade labelling model as a tool to secure a better deal trade policy that puts people and planet before big for small farmers and workers in the South. FLO has its business. We aim to use our vision to campaign for headquarters in Germany. www.fairtrade.net change in the run up to the European elections in 2014. The FTAO has been a key player at the heart of the ATM and the knowledge and experience of The European Fair Trade Association (EFTA) the European institutions and processes has been An association of 10 Fair Trade importers in nine Eu- invaluable in developing the vision and planning our ropean countries: Austria, Belgium, France, Germany, campaign. FTAO has not only been a very valuable member of the coordinating group of the ATM but has Italy, The Netherlands, Spain, Switzerland and the United been able to provide valuable insights and contacts to Kingdom. EFTA was established informally in 1987 by ensuring that the ATM accurately reflects the reality some of the oldest and largest Fair Trade importers. of EU trade policy and that we are able to identify and It gained formal status in 1990. The aim of EFTA is to work with potential allies within the institutions. ” support its member organisations in their work and to Toby Quantrill, encourage them to cooperate and coordinate. It fa- Coordinator, Alternative Trade Mandate (ATM) Alliance cilitates the exchange of information and networking, it creates conditions for labour division and it identifies and develops joint projects. EFTA is based in the Netherlands. www.eftafairtrade.org The European Branch of the World Fair Trade “ The FTAO is our main partner when it comes to Organization (WFTO-Europe) advocating for a people-centred business model. Indeed, Fair Trade and Cooperatives share the WFTO-Europe is formed by more than 90 members same conviction that only a business model putting across 17 European countries, amongst them Fair Trade people and not capital at the core of the enterprise, Organisations, national Fair Trade Networks and Fair can achieve sustainable and inclusive development, Trade Support Organisations. It is the European branch that will alleviate poverty. In this sense, FTAO and Cooperatives Europe are working hand-in-hand of the World Fair Trade Organization (WFTO, formerly to advocate towards EU for a private sector in known as the International Federation for Alternative development which empowers local communities Trade - IFAT) which counts more than 450 members and stakeholders. FTAO proved to be an excellent and efficient partner to raise awareness and visibility, from 75 countries, mainly in the South. The goals of and we are looking forward with enthusiasm to a WFTO-Europe include representing Fair Trade in Europe, reinforced collaboration in 2013. ” supporting Fair Trade policies and supporting the global Klaus Niederländer, Fair Trade network. WFTO-Europe carries out its mis- Director, Cooperatives Europe sion through campaigning, policy, advocacy, monitoring, certification and market access. The WFTO-Europe has its office in Belgium. www.wfto-europe.org 06 FTAO 2012 annual review Membership, partners & networks FTAO is a member of the following advisory groups of the European Commission • Expert Platform on Business to Business Contractual Practices in the Food Supply Chain - under the High Level Forum on the functioning of the food supply chain (DG ENTR) • Enlarged Advisory Group on the Common Agricultural Policy Towards