Its great to see initiatives likes ROC coming about and the regenerative movement adding in social justice elements into supply chain.

1. Equitable Trade
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EXECUTIVE SUMMARY
BUSINESS PLAN
Equitable Trade (ET) has a distinguished mission to evolve and instill a “Beyond Fair Trade” values
and standards with the mission to incorporate a much broader and more meaningful set of social,
business, environmental and ethically responsible principles and standards into business and trade
practices. Equitable Trade (ET) has a distinguished mission.
ET certified products will be “fair traded”; that is, in the traditional sense that products are traded at a
living wage that is compatible with the local community but, in addition, the source trading partner and
the local community will also benefit from a supplemental investment made as part of ET practices. The
typical “fair trade” price is derived from and added to the normal “market” price and this is often referred
to as the “premium” paid to the seller over and above the “market” price. In addition, the buyer (i.e.,
wholesale trader, retail trader) pays a percentage of each purchase,for example 1% of gross fair trade
sales, which is called a certification or trademark fee, in order to display the “Fair Trade” logo. In the
case of Equitable Trade and, unlike Fair Trade associations where the entire membership fee is retained
by the trade association, ET charges a membership, (trademark) fee of one per cent (1%) and retains 20%
of that fee for administrative costs. The remaining eighty per cent (80%) is placed in a community
investment fund that will be reinvested directly back into site-specific development projects that enhance
and nurture vibrant, healthy communities and the ecosystems from which these traded materials are
derived. Decisions regarding community investment projects will be developed in cooperation with each
member who was assessed the one per cent fee. These reinvestment efforts,along with the improved
trading processes described in the opening paragraph, thereby go Beyond Fair Trade and contribute
further to the overall strengthening of the supplier’s/farmer’s ability to remain viable and financially
sustainable while also improving the health and well being of the community and related ecosystem.
Equitable Trade Principles
1. Establish safe minimum standards for achieving our principles that are acceptable and verifiable
for basic certification and thereby for membership in ET.
2. Ensure that we incorporate a comprehensive set of values/principles/standards that represents the
key factors in developing and maintaining ecosystem viability and sustainability.
3. Employ systemic verifiable certification—to ensure that operating principles and standards are
third party certified using measurable criteria that can be independently verified and maintained
and not simply stated as rhetorical good intentions.
4. Engage in an equitable trading process that is fully transparent and accessible at all levels from
the growers through the entire production, marketing, sales and consumption process.
5. Direct financial investment, derived from a percentage of the paid Equitable Trade membership
fee,in project initiatives for the sustainable development and support for the local community.
6. Everyone involved, at every level, needs to have a sense of ownership in the trading process and
will have an interest in ensuring that equitability is achieved for all.
7. Develop a functionally appropriate and compatibly structured membership based organization
with operating policies and by-laws consistent with a professionally managed trade association.
8. Create and facilitate a process in which specific community development projects may be
identified and funded with participation of all stakeholders involved.
Equitable Trade Objectives
1. To expand the money/resources available for reinvestment and support of the suppliers, growers,
communities & ecosystems from whom we obtain source products.
2. To act in an ethical, financially sustainable, reflective of source community interests,
environmentally responsible (i.e. energy & water conservation, addressing carbon footprint,
carbon sequestering and global warming, organically grown products, etc.) manner.

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3. To improve the transparency for members trade activities that includes an improved
understanding, appreciation and resolution of potential negative impacts and implications for the
suppliers, farmers,communities and ecosystems that are involved.
4. To communicate, operate, manage and conduct our business, at every level, in a manner
consistent with, sensitive to and responsive to the cultural, historical and other factors endemic to
the people, communities and ecosystem wherein we work and interact.
5. To recognize that in order to obtain the long-term economic viability and sustainability of our
trading endeavors we must act in a manner consistent with retaining the health of the ecosystems
from which we derive the essential services that sustain all life.
6. To undertake educational, public relations and community support activities and marketing
efforts that will enhance the public’s understanding and appreciation for Equitable Trade.
7. To challenge retailers selling ET products to contribute up to 1% of retail priced sales that bear
the ET logo in order to assist communities and representative ecosystems.
8. To liaise, work together and join forces whenever amenable with other like minded ET
associations and companies for common goal attainments.
ET conducted research into both the historical context of fair trade,trade associations, certification firms,
and other related entities and determined that markets have grown substantially over the past 10 years.
There is a greater consumer awareness and desire to purchase products that are making a significant
contribution to both social and environmental values. Sales of organic products alone were estimated to
be $23 billion worldwide in 2003 and growing at an annual rate of about 25%. This rate of growth is
expected to continue for the foreseeable future. According to the Fair Trade Federation, the total FLO
affiliated Fair Trade sales in North America rose from an estimated $276 million in 2003 to $359 million
in 2004 and is estimated to have reached $500 million in 2005. It is estimated that of the $3.6 trillion of
all goods exchanged globally, fair trade currently represents only about .014% of the total market. Based
on the growth of Fairtrade, there is great potential for Equitable Trade growth as well. Fair Trade
Certified Coffee has grown an average of 72% per year since 1999. Compare this to 12% for organic and
3% for conventional. Also, 50% of consumers who are aware of Fair Trade will buy it. In 2004 Fair
Trade total sales were $376.42 million, and sales are expected to continue to grow at an accelerated rate.
A survey of 187 value-driven trade companies was conducted and 16 responses were received for a return
of 9%. Of those responding, 94% desired: (1) more involvement with decisions, (2) improved
transparency,(3) enhanced participation in decision-making, (4) ensuring that some portion of premium
went back into community development, (5) substantial improvement in the assessment process for
certification, and (6) an interest in joining ET. Also, 69% wanted a trade association with a
comprehensive range of principles and values consistent with ET. The overall responses were very
favorable and most respondents felt that ET would provide good benefits and good investment value.
ET expects to gain membership from companies whose missions are consistent with ET principles and
standards. ET will gain credibility in the marketplace by demonstrating that adherence to its principles
and standards are in the best interests of the people, the communities involved, the ecosystems effected,
the companies engaged and, of course, the consumers committed to obtaining the best possible quality
products produced, and delivered in the most ethical and environmentally responsible manner.
As a result of our analysis of alternative certification systems and methods, ET was able to identify a
certification company with a program and system capable of meeting our high ethical and procedural
standards. This company is the Institut Fur Marktokologie (IMO) with its corporate offices in
Weinfelden, Switzerland. ET will incorporate a comprehensive set of criteria for certification by IMO.
The methodology employs valid, verifiable, transparent, certification that can be clearly documented—
requires specific standards be met for each category of operation to be certified that fulfills the minimum
standards required for that category. Then increasingly higher standards can be met to elevate the
standard of certification, which is the true goal for Equitable Trade – for everyone to reach that highest
standard level. Therefore, ET has established gradients of certification so that it’s not an “either or”
process. If the minimum is met for a set of standards in each category,then a company can be certified.

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ET will therefore ensure that consumers will easily recognize specific levels of acceptable certification
and their corresponding logos that will be reflective of each level achieved.
ET has established principles for reinvesting in community and ecosystem projects that includes:
 Provides an environment/networking community in which economically disadvantaged producers
from these developing countries can benefit and participate.
 Supports training farmers/communities in organic production and other sustainable practices.
 Trade is accomplished with concern for the social, economic and environmental well being of
marginalized small producers and does not maximize profit at their expense.
 Assists producers, whenever possible, with access to pre-harvest advance payment.
 Strengthens employee commitment, and improves financial performance.
 Treats their own employees with respect and supports their overall well being.
 Ensures that there is no child labor or slave labor.
 Ensures responsible working conditions and a safe and healthy environment for producers.
 Ensures that there is gender equity and women are always paid for their contribution, paid
equally, and empowered in the work place.
 Provides capacity building to improve producer’s management skills and access to new markets
and will assist in improving business skills.
During our first full year of operations, ET expects to attract and recruit manufacturing, wholesale buyer
and direct retail buyer members who will generate ET related fees at 1% of related sales as follows:
26 members with related sales >$5M = $1,279,040 26 members with related sales > $3M = $767,424
39 members with related sales >$2M = $ 779,858 66 members with related sales < $2M = $658,171
Also, (1) 39 Associate/Supporting Organizations with total fees of $19,496; (2) 390 farmers-suppliers-
cooperative members with total fees of $39,000 and, (3) 1,380 consumer members with total fees of
$48,300. Total reinvestment fee related income in year one is estimated at $3,484,493. Of this amount,
$2,787,594 (80%) will be reinvested back into community related projects. ET also expects to obtain an
additional $292,500 in grants and contributions to supplement the fee generated investment fund in
support of our projects. The numbers of members are expected to increase each year of the projected next
five years until we have reached a total, respectively, of 60 >$5M; 60 >$3M; 70 > $2M; 110 <$2M; 80
associates; 2,000 farmers-suppliers-coops; and 10,000 consumer members who will generate in the year
2012 a total of $7,300,000 in investment related fees of which $5,840,000 will be reinvested back into
community and ecosystem related projects at the local level.
ET will require an initial capital investment of $100,000, to meet cash flow requirements and reserves.
Start-up capital will be sought from grants as well as individual contributions. Revenue is expected to be
generated from an initial recruitment of 8 full members with recruitment continuing monthly from 8-18
members providing related sales revenue that will generate fees required to cover the administrative
overhead of the company. Additional funds may be required if recruitment efforts fall short of
expectations. We anticipate some members will be asked to advance some portion of expected related
ET sales fees in order to assist in managing cash flow during start-up.
ET expects to be an economically viable and fully sustainable from the outset but only if projected
recruitment goals are met. ET is organized to be operational flexible during startup and is prepared to
adjust staffing and other costs to meet cash flow availability and requirements. ET has prepared a
comprehensive and well thought through business plan containing detailed analysis and appropriate
documentation in support of our objectives, plans and projections.
The overall principles, standards and operating policies of ET are governed by an Advisory Board
composed initially of the founding members of ET, Dr. Christopher Daugherty, CEO of Essential Living
Foods (ELF),Mr. Karlo Flores, CEO of Terra Nostra Chocolates (TN) and Mr. David Bronner, CEO
of Doctor Bronner’s Soap.