Driving Sales, Deepening Impact: Fairtrade Annual Report Highlights 2015-16

Fairtrade international Annual report highlights 2015-2016

DRIVING SALES,

DEEPENING IMPACT

© Santiago Engelhardt / TransFair e.V.

CHALLENGING OUR WORLD: Message from our Board Chair

We’re learning from studies which show Fairtrade certification has a direct,

positive impact on workers’ income, empowerment, collective bargaining

and living standards. But there is a long way to go in achieving our goals

for fairer trade and sustainable futures. We’re also learning that farmers

and workers need to significantly scale up their Fairtrade sales if they are

to escape from poverty.

Our aim is to deliver inclusive trade for farmers and workers in developing

countries to build a more sustainable future for all. That’s the priority of our

new strategy. By 2020 we want to see real progress towards a very

different world.

Fairtrade International | Annual Report Highlights 2015-2016 2

“we are continuously learning from

our experiences. We don’t shy away

from the tough issues and we advocate

for the most vulnerable farmers and

workers."

© Javier Luna / Fairtrade International

© Javier Luna / Fairtrade International

GROWING BETTER FUTURES

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In 2015, there were 1.6 million Fairtrade farmers

and workers across 75 countries. We certified

our first producer organization in Tajikistan.

© Swedish Trading Audio Visual (PVT) Ltd/ Fairtrade International

Fairtrade International | Annual Report Highlights 2015-2016

Our experience shows that the biggest

driver of economic improvement for

Fairtrade farmers and workers is higher

Fairtrade sales. If farmers only produce

small volumes or their organizations only

sell a small percentage as Fairtrade, it may

not be enough to escape from poverty.

Fairtrade’s new strategy seeks to deepen our

impact by enabling producer organizations to

secure the revenues they need for workers to

be paid a living wage and for farmers and

artisanal miners to earn a living income.

2015 saw significant growth in sales of coffee

(18 percent), bananas (12 percent) and cocoa

(27 percent). But it wasn’t good news for

everyone - among the hardest hit last year

were sugar farmers, largely as a result of

recent European Union sugar policy changes.



5 Fairtrade International | Annual Report Highlights 2015-2016


FOSTERING SUSTAINABLE GROWTH

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© Suzanne Lee


Fairtrade is an active game changer for farmers and workers.

• To improve our support for small producer organizations (SPOs), we are conducting research to understand

what factors contribute to or obstruct their development. The findings, together with our experience supporting

producers, will inform guidance, tools, and training for SPOs.

• With Oxfam, the Ethical Tea Partnership and local industry we have agreed a plan aimed at securing a living wage

for tea workers in Malawi. In Kenya and Ethiopia we facilitated discussions between producers, trade unions and

civil society about ways to improve wage levels on flower plantations.

© Kate Fishpool / Fairtrade Foundation

TACKLING TOUGH OBSTACLES

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• Our Youth Inclusive Community Based

Monitoring and Remediation (YICBMR)

system is being piloted in 11 countries. The

system aims to proactively identify and respond

to child labour.

• We launched the Fairtrade Climate Standard.

The new Standard, developed in partnership

with the Gold Standard, enables producers to

reduce their carbon emissions while improving

their resilience to climate change.

• Training and awareness-raising are key parts of

our recently refreshed gender strategy. A

‘Leadership Training & Women’s Empowerment

School’, piloted in El Salvador, will be

implemented in three more countries.

© Luca Rinaldini


Through Fairtrade, farmers and workers have the power to tackle obstacles such as child labour, gender

inequality, labour rights and environmental abuses, which not only deny people their basic human rights but

threaten the future of their businesses and jobs. In 2015-2016 we expanded our programmes in these key areas.

BUILDING A LEARNING ORGANIZATION

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• We are strengthening our monitoring, evaluation and

learning (MEL) system with a digital data collection

tool to generate better quality data from

producers across a wider range of indicators.

• We have created MEL frameworks for our work in

programme areas such as gender, climate change,

and workers’ rights, and for key products.

• Fairtrade was ranked in the top 2 of 48 NGOs in

BOND’s 2015 NGO Transparency Review for

systematically publishing all evaluations.

• We came out on top in Finnwatch’s 2015

assessment of the quality of 16 social responsibility

monitoring schemes.


© James Rodriguez

Fairtrade aims to enable farmers and workers to

move up the value chain, build stronger businesses

and fairer workplaces, and access new markets. To

evaluate our progress towards this, we use

Fairtrade’s Theory of Change to analyse, learn and

improve our work.

Protesting and proposing


• We delivered a statement to the UN demanding that fair

trade principles and producers’ voices be heard to

ensure successful planning and implementation of the Global

Goals.

• In December 2015, Fairtrade smallholder farmers had

their say in the crucial climate change talks at COP21 to

show how small-scale farmers – often the worst hit by

climate change – are finding new ways to adapt.

• At the 2016 Cotton Forum, the Fair Trade Advocacy Office

called on the EU, G7 and West African governments to do

more in support of fairer and more sustainable textile supply

chains.

• The European Commission selected Fairtrade as one of

its strategic partners for the next five years to help deliver a

better deal for farmers and workers.

Fairtrade was born from a grassroots movement for trade justice. Our innovative work on textiles and

climate change reflects our focus on advocacy and partnership with other organizations.

© Éric St-Pierre

Power in partnerships


• Communities in developing markets

are taking up the challenge to make

change happen: A Fair Trade Towns

and Villages campaign launched in

Latin America; campaigners in India

are working towards their first Fair

By choosing Fairtrade products consumers enable

producers to take control of their lives. The powerful

connection between producers and consumers remains

a fundamental pillar of Fairtrade.

© Santiago Engelhardt / TransFair e.V.

• Fairtrade ramped up its work on a Textile Standard and

Programme, extending the Fairtrade approach to the entire

textile supply chain, and enabling businesses to certify their

supply chain against Fairtrade Standards.

• Italian confectionery company, Ferrero, committed to

doubling the amount of cocoa it purchases from

Fairtrade farmers over the next three years and plans to

source 20,000 metric tonnes of Fairtrade cane sugar

between 2016-2019.

Trade towns; the 2016 Fair Trade Towns conference in

Lebanon was the first held in a developing nation.


Power in partnerships

Notes:

• Growth rates are based on each market’s local currency.

• The global growth rate reflects adjusted 2014 figures for USA, and

an estimate for Fairtrade sales in Brazil, Czech Republic, Hong

Kong, India, Kenya, Slovakia, South Korea and ‘Rest of World’.

• These figures comprise sales of consumer products in stores and

supermarkets (‘retail sales’) and sales of products consumed in

cafés, restaurants etc (‘out of home sales’).

There are two different methods to calculate ‘out of home’ retail

values:

1. Use the average ‘out of home’ price - e.g. the average price

of a cup of coffee at a café (used by Estonia, Finland,

Germany, Ireland, Japan, Latvia, Lithuania, Spain/Portugal).

2. Use the average retail price for consumer products bought

in stores and supermarkets (used by all other countries).

Given that ‘out of home’ prices are often higher than retail prices,

countries that use the first method may have relatively higher sales

values.

Stronger as a system

The international Fairtrade system brings consumer

markets together with producers to push for change

to the way global trade is done.

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• Fairtrade is compliant with ISEAL’s Code of Good

Practice for Setting Social and Environmental

Standards and the Fairtrade Assurance

Programme was launched.

• In 2016 Fairtrade completed the devolution of

producer services to the producer networks.

• A new system-wide learning platform allows

better internal sharing of Fairtrade-related

research and studies, and improved

dissemination, learning and uptake.

• National Fairtrade organizations increasingly

collaborate with each other to engage consumers

and supporters in their markets. The first global

campaign, the World Fairtrade Challenge, ran

across 50 countries.

• Two new Fairtrade marketing organizations were

launched in Asia – Fairtrade Philippines and

Fairtrade Taiwan.


© Vanessa Kerton / Fairtrade Australia and New Zealand

Fairtrade international’s financials in 2015


Thank you…

To our funding partners:

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And our board members:


Bread for the World – Protestant Development Service (EED)

Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ)

DFID – UK Department of International Development

Entrepreneurial Development Cooperation (DEG)

European Commission

French Development Agency (AFD)

SECO – State Secretariat for Economic Affairs, Switzerland

Producer Network Representatives

Bharath Mandanna

Charbel El Fakhri

Marike de Peña (Chair)

Tapan Ray

National Fairtrade

Organization Representatives

Ian Bretman

Melchior Lengsfeld

Melissa Duncan

Valentina Tripp

Independents

Gulam Juma (Vice-Chair)

Jean-Paul Rigaudeau (Treasurer)

Fairtrade facts


View the FULL Annual Report:

annualreport.fairtrade.net

http://www.annualreport.fairtrade.net/








Date post:	21-Jan-2018
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Driving Sales, Deepening Impact: Fairtrade Annual Report Highlights 2015-16

Government & Nonprofit