WFTO ANNUAL REPORT 2019 ANNUAL REPORT 2019 1 WFTO ANNUAL REPORT 2019 Table of Contents Message from the President 2 Message from the Chief Executive 4 Global Community of Fair Trade Enterprises 7 WFTO Projects in 2019 9 WFTO Supporting Market Access 12 15th International Fair Trade Summit in Lima 14 Communications, Campaigns and Advocacy 17 Highlights from WFTO Regions 23 Finances 27 WFTO Team 32 Partners 33 Cover photo: Global Mamas/Nicholas Ruffalo 1 WFTO ANNUAL REPORT 2019 Photo: Sasha Fair Trade A Message from the President would summarise 2019 as a year of great and business. If consumers wanted to Ichange at the WFTO. We celebrated spend to support ethical or fair products, our 30th anniversary in Lima at our the products of WFTO members would be International Fair Trade Summit, where we among the few options they had. Through came together as a movement to update our the last decade or so, this has changed principles of Fair Trade to strengthen the radically. We now face a market with a commitment on tackling climate change and broad range of ethical claims from a growing protecting our planet. We also saw the end list of brands, certifiers and initiatives – of the tenure of some of the giants of our some credible, some less so. In this growing movement, namely our former president marketplace of ethical claims, the market Rudi Dalvai, and board members Bob Chase, has shifted and we have needed to evolve Geoff White and Johny Joseph. All remain with it. closely connected to us but a new era began, with new board members and with me Gone are the days where most WFTO stepping into the huge shoes of president. producers can rely solely on WFTO I took this honour with great pride while importers who rely on sales through Fair realising the great work that lays ahead. Trade shops. With the recent decline or closure of some iconic Fair Trade As the year came to a close, I reflected importers, such as the sad closure of Oxfam on the evolution that our movement and Australia Trading and the significant WFTO in particular has been undergoing. changes to Traidcraft PLC in 2019, the We were born in 1989 as a community of commercial transition is inevitable. Like pioneers fully committed to Fair Trade. For many of the leading and pioneering many years, the members of WFTO (IFAT Fair Trade organisations, both played a at the time) were the leaders in ethical big part in building capacity, providing production and trade, encompassing the support and growing markets for several ethical alternative to mainstream trade producer organisations. Several of our 2 WFTO ANNUAL REPORT 2019 WFTO importers continue to review their becomes better understood, and its product strategies to grow their business to reach label better known, we believe there will be larger markets. a strengthened competitive advantage for those very special social enterprises who Our members now tell us to focus on have achieved this status. Much of our work increasing their visibility with commercial has focused on realising this potential for buyers, as they invest to find new market WFTO members. channels and new opportunities. More WFTO members now invest to go to trade As 2020 begins, we are confronted with a shows, create webshops and use social pandemic and its accompanying economic media to profile their products and brand. shocks. While the crisis and our response There are now more consumers interested will be the subject of next year’s annual in ethical products, but they are going to report, I feel compelled to highlight the a broader range of retailers to find them. enormous challenge that lays ahead This is why WFTO has increased its focus for all businesses, including Fair Trade on becoming more visible in more markets, Enterprises. As the crisis unfolded, we and raising awareness with new commercial already saw an unparalleled commitment buyers. Through 2019, this was a focus and from WFTO members to their workers, remains so. farmers and artisans. We have seen innovation, solidarity and perseverance In 2019, WFTO entered new partnerships across the world. There is great pain but our with key networks in fashion, food and hope and commitment to the vision of Fair homewares. We believe that WFTO Trade lives on. Guaranteed Fair Trade is the most holistic, credible and comprehensive status that Roopa Mehta is possible. As our member-built system WFTO President 3 WFTO ANNUAL REPORT 2019 Photo: KhineKyaw, Myanmar Eleven A Message from the Chief Executive t was a privilege to work for the WFTO Trade Enterprises are providing a proof of Ithrough 2019, the second year in my concept of a better business world. We spent role. Through the year, I visited every much of the year promoting, profiling and region and met many WFTO members. I supporting these very enterprises, so that was inspired by the unique combination more consumers, buyers, policy-makers and of entrepreneurship, resilience and an campaigners can embrace them. unparalleled commitment to the workers, farmers and artisans by Fair Trade Through 2019, our priority was to reach Enterprises. I was energised to see that new audiences, build new partnerships and many WFTO members are also pioneering connect to new networks. We engaged with eco-friendly practices such as upcycling, environmental NGOs and social enterprise recycling, use of natural fibres and low- networks to reach new supporters and allies. carbon production. It’s truly a combination And we engaged industry organisations who of people and planet that’s occurring. can help us attract new buyers interested in sustainable production. We promoted WFTO WFTO is a community pioneering models members at trade shows and conferences, of business that truly prioritise social and became visible on ecommerce platforms and environmental goals. These Fair Trade to networks of buyers in fashion, food and Enterprises are truly mission-led while homewares. We communicated together with remaining commercially sustainable. This other movements and began to be featured is a big idea. WFTO is perhaps the most in the campaigns and communications of global and deep-rooted example of such others, such as Common Objective, Social business models, set-up and verified as truly Enterprise World Forum, Wellbeing Economy putting people and planet first. We are at a Alliance and a range of new economy and moment in history when the world looks to green movements. We are gaining traction, as transform the global economy. New models more people realise that WFTO members are of business are central to this and Fair a unique breed of business. 4 WFTO ANNUAL REPORT 2019 At our core is the WFTO Guarantee System, products. We know many WFTO members which combines Fair Trade and social are impacted by these developments and enterprise verification into one. Through we have worked hard to engage new buyers 2019, it evolved further, by going online and from outside our movement who see value becoming more accessible while remaining in buying from Fair Trade producers and credible, clear, and affordable. wholesalers. The commercial transition is painful for many but it seems unavoidable. Over the last decade, the Fair Trade commercial model has evolved. The role The year has been followed by the greatest of larger and multi-product Fair Trade crisis in decades - the COVID-19 pandemic importers has declined. Meanwhile, and its economic shocks. This has turned the many new Fair Trade buyers, focused on world upside down for many, halting trade a smaller range of products, have joined and production, and upending campaigning WFTO. In 2019, we were saddened by the and marketing plans. We remain confident news of Oxfam Australia shutting down that through solidarity and dynamism, our its trading operations. We thank the staff community will get through this crisis. Our and supporters of this Fair Trade pioneer, vision remains in-tact, but the challenges who over decades has helped thousands of have grown. We are up to the challenge. producers earn dignified livelihoods. Other notable Fair Trade importers have also Erinch Sahan recently reduced their orders of non-food WFTO Chief Executive 5 WFTO ANNUAL REPORT 2019 Photo: Allpa 6 WFTO ANNUAL REPORT 2019 Photo: WEAVE Fair Trade Global Community of Fair Trade Enterprises Verified Fair Trade Enterprises he WFTO is the home of Fair Trade who prove that their workers, farmers TEnterprises and the organisations that and artisans are their main priority across support them. Spread across 76 countries, their business. They also demonstrate a most members are verified as social commitment to respecting the environment. enterprises that fully practice Fair Trade WFTO members are visited and verified (Fair Trade Enterprises). By the end of 2019, by their peers and independent auditors there were 361 Fair Trade Enterprises in the against the 10 Principles of Fair Trade. The WFTO, and 55 networks and organisations criteria is captured in the WFTO Fair Trade that support Fair Trade (a total membership Standard, which includes an assessment of 416). Of the 361 Fair Trade Enterprises, of the enterprise’s structure and business 240 had achieved full Guaranteed status, model, its operations and its supply chains. with the remainder at various stages of their Once verified, a business can be considered first Guarantee System cycle (at the Self a Fair Trade Enterprise that truly exists Assessment Report, Peer visit, Monitoring to put the interests of producers and their audit or post audit stage). communities first. They can then use the Guaranteed Fair Trade Product Label on all WFTO = social enterprise + Fair Trade their Fair Trade products. To become and remain a WFTO member, an WFTO’s Fair Trade System - the enterprise or organisation must demonstrate Guarantee System they put people and planet first in everything they do.