FAIR TRADE USA FAIR AL AL REPORT CELEBRATING 20 YEARS CELEBRATING 2018 ANNU 1998-2018 I AIR TRADE USA F I 1 DEAR FRIENDS, More than twenty years ago, an idealistic, young do-gooder (that would be me) brought an idea from Nicaragua to a one room office in Oakland, California. What started with coffee and conviction has grown into a global movement. Fair Trade USA is now the leading certifier of Fair Trade products in North America. There wouldn’t have been a one room Everyone did their part to make Fair office without the Ford Foundation Trade work, grow, and thrive. Fair Trade betting on us with our first grant. That USA simply wouldn’t have survived grant enabled conviction to become over 20 years or reached over 1 million confidence. families around the world without the everyday heroes who joined us to For Fair Trade USA to become challenge the status quo and re-imagine sustainable we needed more than capitalism. grant dollars. Early partners like Equal AL REPORT Exchange and Green Mountain Coffee We established Fair Trade USA as a signed on to the “crazy” notion of different kind of organization—a mission- buying Fair Trade Certified™ coffee and driven nonprofit that generates earned putting our seal on their products. These revenue and is financially sustainable. 2018 ANNU partnerships primed us to become a One that helps mainstream companies viable organization generating impact for combine sustainability and profitability. farmers worldwide. One that serves farmers, workers, I companies, consumers, and the earth, Our model would have collapsed without based on mutual benefit and shared those first consumers willing to buy Fair value. One with you in mind. Trade products and reward companies for responsible sourcing. Of course, Whether you’ve been with us 20 years Jean Marie Bikamumatuba, 58, is a third- at the core of this new model were or you’re just leaning in, YOU are what generation coffee farmer, father of four, Fair Trade farmers who transitioned to makes the Fair Trade difference. and proud member of the Abakundakawa cooperative in northern Rwanda. When I sustainable agricultural practices and AIR TRADE USA visited his community in early 2019, he had invested in their communities. They With deepest gratitude, F this message for our followers: organized cooperatively, worked to “If consumers in the United States pay improve quality, and proved that farmers just a little bit more for our coffee, we can don’t need charity—just a fair price for I continue producing a high quality product their quality products. in harmony with nature. We want to invest in our farms and our communities and provide a better future for our children. All this can Paul Rice, 3 be achieved if our coffee is purchased at a Founder & CEO fair price.” Table of Kajoina Jenifer and her family have been farming tea since 1999. She has seven children and all of them are in Contents school except for the youngest who will attend when old enough. She hopes that the additional income from selling tea on Fair Trade terms will enable all of her children to attend university. She also Dear Friends 2 hopes to improve the community women’s farming project in order to create better Table of Contents 4 food security and provide additional sustainable income. Mission, Vision and Model 6 Impact 8 The Fair Trade Difference 10 How We Work 12 20 Years of Fair Trade USA Impact 14 Program Spotlight Family Farmers 16 Farmworkers 18 AL REPORT Factory Workers 20 Fishing Communities 22 Where We Work 24 2018 ANNU Movement Building 26 I Celebrating 20 Years 28 Industry Partner 30 Visionary Philanthropy 32 It Started with a Dream 34 36 AIR TRADE USA Fair Trade USA Donors F Leadership 38 I Financials 40 Thank you 42 5 Mission, Vision and Model Mission Fair Trade USA is building an innovative model of responsible business, conscious consumption and shared value that eliminates poverty and enables sustainable development for farmers, workers, and families around the world. AL REPORT Vision 2018 ANNU Our vision for the future is Fair Trade for All. We believe that all farmers deserve a fair price for their harvest that enables them to stay on the land, keep their kids in school, and farm I sustainably. We envision a day when all workers enjoy safe working conditions and a living wage. We believe that business with purpose – companies that combine people, planet, and profit – will become the norm. We envision a time when it is easy and affordable for all consumers to choose Fair Trade Certified™ Abebitu Nigussie, 20 and daughter products and vote with their dollars for a better world. of coffee farmers, is shown at the Homacho Waeno AIR TRADE USA cooperative site Model F where she brews coffee for fellow Fair Trade USA, a nonprofit organization, is the leading certifier cooperative members. of Fair Trade products in North America. We audit and certify I transactions between companies and their global suppliers; educate consumers; enroll new brands and retailers; and deliver the tools, training, and resources that producers need to 7 succeed in the global market. Our impact is significant CUMULATIVE FINANCIAL BENEFIT TO FARMERS AND WORKERS IN 2018 $105 million Social Return on Fair Trade Investment: is the only independent CUMULATIVE FINANCIAL BENEFIT TO FARMERS AND WORKERS SINCE WE For every dollar we have invested certification that BEGAN IN 1998 in growing the Fair Trade guarantees a market and movement, we have higher income generated four dollars in impact. to farmers and workers. $610 million CONSUMER AWARENESS IN 2018 60% AL AL REPORT NUMBER OF COUNTRIES WHERE WE WORK CUMULATIVE FINANCIAL BENEFIT TO PRODUCERS (USD): $610 million 46 countries 2018 ANNU $600M I $500M NUMBER OF FAIR TRADE CERTIFIED™ PRODUCERS WORLDWIDE $400M 1.6 million $300M $200M AIR TRADE USA NUMBER OF NEW BUSINESS PARTNERS IN 2018 F $100M 120 partners I $0M 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 YEAR 9 COMMUNITY DEVELOPMENT FUNDS MINIMUM GUARANTEED PRICE TOTAL NUMBER OF BUSINESS PARTNERS IN 2018 1,250 companies The Fair Trade Reginberto Serna Latha Maheshwari Fabiola Lauro Difference COLOMBIA INDIA MEXICO For every Fair Trade Certified™ product Reginberto Serna, a 61-year-old father of Latha Maheshwari, a 38-year old mother Fabiola Lauro, 33, a mother, farm worker, sold, the business selling it pays a four, is a third-generation coffee producer. of two, works hard to give her children and the president of her Fair Trade small premium into a Community He’s been a member of the COOPERANDES a promising future. She has held jobs Committee, works in the tomato seedling co-op in Colombia since 1987. He believes in several factories in India and is section for Wholesum Harvest in Sonora, Development Fund, which goes directly his remote, mountain community’s greatest happy to have found the Bestitch Knits Mexico. back to the community of origin. From need is for better roads. factory, a Fair Trade Certified™ apparel there, the farmers and workers decide factory where she’s been working for AL REPORT together how to spend the funds. The two years. She shared that the working Community Development Fund, a environment is safer, the benefits are I realize how special unique feature of the Fair Trade model, greater, and she is happier. “ Better roads can open 2018 ANNU is one of the key drivers of impact in the “ it is to be part of Fair thousands of communities we serve. our community to lots of Trade. We have a better economic opportunities work environment and I In 2018, communities invested their funds and help us get our coffee Working at“ a Fair Trade in an array of vital grassroots development more support than factory means I can take projects, including: to market faster. That’s most farmworkers. We better care of my family. • Schools, health clinics, roads, and clean important for maintaining invested our Community water infrastructure high quality and earning My son, Gautam, received Development Funds in a • Nutritional programs for children a better price. Thanks to an academic scholarship • Reforestation and environmental computer center, a grocery through the Community AIR TRADE USA conservation Fair Trade, we have created store, a soccer field, a F • Adult education and skills development a road maintenance fund Development Fund. Without • Revolving loan funds to support housing and scholarship program, and this support, we would not other needs that benefits our farmers healthcare services. I’m I and the entire community.” have been able to keep him so proud to play a part in school. I’m hopeful for in improving the lives of 11 his future and for the future families in my community.” of elected Fair Trade Committee of all our families.” 36% members globally are women. How We Work Individual and community well-being. Fair Trade standards help improve wages, benefits, and workplace health and safety. Our worker engagement and training programs build skills and self-confidence. Companies pay a Fair Trade premium, which in turn is invested Certificate by farmers and workers in their communities’ Market Consumers Farmers and Holders greatest needs, such as water, education, Support ethical AL REPORT Ensure compliance Partners housing, and healthcare. Purchase, label, and practices and Workers with Fair Trade Grow and manufacture sell certified products sustainable standards and sell to Income sustainability. products while meeting and pay the Fair livelihoods for market partners. Fair Trade helps small farmers organize and rigorous Fair Trade standards. Trade premium. farmers and workers. empower themselves, form direct trading 2018 ANNU relationships with U.S.