ANNUAL REPORT Table of Contents 1. VISION AND MISSION OF THE WFTO.............................................................................................. 3 2. PRESIDENT’S REPORT..................................................................................................................... 4 3. WFTO in 2010: BRIEF REVIEW ......................................................................................................... 5 4. CORE SERVICES ............................................................................................................................... 7 4.1. Membership and Monitoring: Coping with growth and harmonization through QMS ............... 7 4.2. COMMUNICATION: positioning a global network .................................................................... 8 4.3. MARKET ACCESS AND MARKET DEVELOPMENT .............................................................. 9 5. PROGRAMS AND PROJECTS: SFTMS and Geo Fair Tr.................................................................. 9 5.1. The Sustainable Fair Trade Management System (SFTMS): Developing a sustainable certification system for greater equity .............................................................................................. 9 5.2. Geo Fair Trade........................................................................................................................ 10 6. REGIONAL NETWORKS AND REGIONAL NETWORKING............................................................ 11 6.1. AFRICA: Cooperation for Fair Trade in Africa (COFTA) ......................................................... 11 6.2. ASIA: WFTO Asia .................................................................................................................... 13 6.3. EUROPE: WFTO Europe ....................................................................................................... 14 6.4. LATIN AMERICA: WFTO LA ................................................................................................... 16 6.5. NORTH AMERICA AND THE PACIFIC RIM: WFTO Pacific .................................................. 17 7. THE FAIR TRADE MOVEMENT ....................................................................................................... 18 ADVOCACY: Engaging Policy Makers in Fair Trade..................................................................... 18 8. THE FINANCIAL REPORT................................................................................................................ 22 9. LIST OF MEMBERS.......................................................................................................................... 25 2 © WFTO Annual Report 2010. All Rights Reserved. 1. VISION AND MISSION OF THE WFTO Vision WFTO, the World Fair Trade Organization, has a vision of a world in which trade structures and practices have been transformed to work in favor of the poor and promote sustainable development and justice. Mission WFTO’s mission is to enable producers to improve their livelihoods and communities through Fair Trade. WFTO will be the global network and advocate for Fair Trade, ensuring producer voices are heard. The interests of producers, especially small farmers and artisans, should be the main focus in all the policies, governance, structures and decision making within the WFTO. 3 © WFTO Annual Report 2010. All Rights Reserved. 2. PRESIDENT’S REPORT: ANOTHER STEP IN A LONG BUT WORTHWHILE JOURNEY We all know that “the journey of a thousand miles begins with a single step.” During 2010 we took another “step” in this journey. It was another challenging year. The economic climate remained tough and bleak for most of our members. The Fair Trade movement continued to splinter, but also in some instances to grow. Despite the internal and external challenges experienced by WFTO and many of its members, the year 2010 has seen some positive developments for WFTO, including greater internal dialogue. The October Annual General Meeting in Cordoba Spain brought conclusion to a number of critical issues, despite continuing strong differences of opinion. We agreed to address governance, communication and financial concerns on an urgent basis. We began to rebuild as the year came to an end. Financial issues stemming from a major loss in 2009 and the resulting deficit in reserves, was compounded in the first half of 2010 when major donors suspended their promised contributions while conducting a review. In addition, the growing demands of members that a full time Chief Executive be appointed resulted in the appointment of Carola Reintjes on May 17, 2010 as full time Chief Executive (CE). The first half of the year and the last half of the year were very different as strong budget reductions took place and a focused drive to collect special contributions from members and their membership dues was initiated. Most critical to the improvement was the completion of both the 2008 and the 2009 audited accounts, which were approved by members at the Cordoba AGM. Finally, the financial year 2010 ended with a significant surplus and a notable reduction in the reserves deficit as of the end 2009. Regional conferences were held in Wisconsin USA (Pacific), in Manzini Swaziland (Africa), in Lima Peru (Latin America), in Savar Bangladesh (Asia), and in Cordoba Spain (Europe). Governance, the Sustainable Fair Trade Management System (SFTMS), Advocacy and regional issues made up the agenda for these meetings. World Fair Trade Day took place in May with thousands of participants engaged around the world. The membership and monitoring system began to take shape. Additional SFTMS pilots completed their work. Clear agreements and relationships were worked out with donors, and plans were initiated for the next Biennial conference and AGM to be held in Mombasa, Kenya in May 2011. What have we learned in 2010? We need each other. We need to communicate and listen to each other better. The commitment to the World Fair Trade Organization and to the principles of Fair Trade is very deep and strong for many of our members. We need a clear and understood governance structure, prompter payment of dues and financial accountability that prohibits major financial mistakes. We need to remember the mission focused on small disadvantaged producers, which is why we exist. We want to acknowledge Mr. Alan Rossi for helping us resolve a major financial problem early in the year. We express appreciation to CE Carola Reintjes and her team for the substantial work they did in helping us turn the corner. Carola, accepted the terms of her employment (absolute minimum salary) unconditionally, in order to help WFTO through the financial crisis. Words are inadequate to thank you for this and for your passionate commitment to the Mission of WFTO and to its producers, indicated in so many ways. Finally, as President I cannot express enough appreciation to our board members for their wisdom, patience and support, which required long hours of work. We anticipate that the next “steps” in 2011 will be strong, positive and exciting. We hope it will be an improving year for each of you. Respectfully, Paul Myers President 4 © WFTO Annual Report 2010. All Rights Reserved. 3. WFTO in 2010: BRIEF REVIEW By the end of 2010, WFTO had 472 member organizations and individuals in 74 countries. WFTO has grown. 2010 was a difficult year for WFTO and its membership, characterized by internal, organizational and financial challenges. Externally, most members were facing severe cutbacks due to the economic crisis. Despite the internal and external problems experienced by WFTO and many of its members, the year 2010 has seen some positive developments for WFTO. The challenges obliged us to do a more inward-looking focus coupled with internal dialogues and learning processes, which had helped understand the weaknesses, as well as, discover opportunities. WFTO has started to recover financially, largely due to a severe austerity budget and support from members. Special mention goes to the generous assistance of our members who supported with donations. Thank you very much! The year also saw significant developments in the organization: successful regional conferences took place in all regions, World Fair Trade Day was celebrated with improved cooperation between the regions, Carola Reintjes was appointed in May as full time Chief Executive, and the Annual General Assembly was celebrated late October in Córdoba, Spain, hosted by WFTO Europe during the European Conference. After the Córdoba AGM a Roundtable was convened with representative participation from the five regions where WFTO has networks. The Roundtable focused on core concerns for the future of the organization, and decided a preparatory process to define governance structure, improve communication and operational implementation. The conclusions of the working committees set up for each specific issue will be presented at the 2011 AGM. Late 2010 saw the preparations for the decentralization process of Membership and Monitoring. These core steps undertaken during a challenging year will be elaborated in the preceding chapters of the annual report. We welcome 37 new members. A Fair World (USA), Aravore (Paraguay), Assoc. Romande des Magasins du Monde (Switzerland), Assoc. Botteghe del Mondo (Italy), Au Lac Designs (Vietnam), Ayni (Bolivia), Baladarshan (India), Calypso-Chile Glass Fusing (Chile), Cojolya Assoc. Of Maya Women Weavers (Guatemala), Craftbeauty Workshop (Vietnam), Czech Fair Trade Association (Czech Republic), Ecoandino Sac (Peru),