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


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New actions on climate, textiles and gender - our latest annual report highlights what Fairtrade has been working on over the past year:

View the full report online at

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

  1. 1. Fairtrade international Annual report highlights 2015-2016 DRIVING SALES, DEEPENING IMPACT © Santiago Engelhardt / TransFair e.V.
  2. 2. 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
  3. 3. GROWING BETTER FUTURES 3 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.
  4. 4. Fairtrade International | Annual Report Highlights 2015-2016 4 GROWING BETTER FUTURES
  5. 5. 5Fairtrade International | Annual Report Highlights 2015-2016 GROWING BETTER FUTURES
  6. 6. FOSTERING SUSTAINABLE GROWTH 6 © Suzanne Lee Fairtrade International | Annual Report Highlights 2015-2016 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
  7. 7. TACKLING TOUGH OBSTACLES 7 • 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 Fairtrade International | Annual Report Highlights 2015-2016 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.
  8. 8. BUILDING A LEARNING ORGANIZATION 8 • 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. Fairtrade International | Annual Report Highlights 2015-2016 © 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.
  9. 9. Protesting and proposing 9Fairtrade International | Annual Report Highlights 2015-2016 • 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
  10. 10. Power in partnerships 10Fairtrade International | Annual Report Highlights 2015-2016 • 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.
  11. 11. Fairtrade International | Annual Report Highlights 2015-2016 11 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.
  12. 12. 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. 12 • 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. Fairtrade International | Annual Report Highlights 2015-2016 © Vanessa Kerton / Fairtrade Australia and New Zealand
  13. 13. Fairtrade international’s financials in 2015 13Fairtrade International | Annual Report Highlights 2015-2016
  14. 14. Thank you… To our funding partners: 14 And our board members: Fairtrade International | Annual Report Highlights 2015-2016 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)
  15. 15. Fairtrade facts 15Fairtrade International | Annual Report Highlights 2015-2016
  16. 16. View the FULL Annual Report: