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FAIRTRADE NETWORK OF
ASIA AND PACIFIC PRODUCERS
ANNUAL REPORT 2015
2
CONTENTS
Cover photo: Ngakip, a member of the cooperative Koptan Gayo Megah Berseri. Photo by Nathalie Bertrams.
Above photo: Uzbekistan Fruits and Nuts. Photo by Lucy Russell
Fairtrade Network of Asia and Pacific Producers
From the Chair and the CEO
How Fairtrade Works
2015 at a Glance
NAPP: Strong Organization, Better Business
Monitoring, Evaluation, and Learning
Producers: The Power of Collective Action
Impact: Growing Produce, Enriching Lives
Knowledge: The Power of Programmes
Connecting the Dots: Market Linkages
Forging Winning Partnerships
Business Model Canvas
3
4
5
6
7
8
13
16
19
20
21
GLOSSARY
ANZ: Australia and New Zealand
CAGR: Cumulative Annual Growth Rate
CP: Contract Production producer organisations FMO:
Fairtrade Marketing Organisation
FT: Fairtrade
FTI: Fairtrade International
HL: Hired Labour producer organisations NFO: National
Fairtrade Organisations
PN: Producer Networks
SDG: Sustainable Development Goals
SPO: Small Producer Organizations
Annual Report 2015 3
FROM THE CHAIR
AND THE CEO
To the Stakeholders,
Fair Trade, the pursuit of trade justice, by bringing consumers
and producers together, is undeniably beautiful. Fair Trade,
which looks to usher in ubiquitous equity, is powerful. At the
same time, Fair Trade, the oxymoron, in the modern context of
supply / value chains is difficult.
With our aspiration to create market leadership in ethical trade in
the Asia and Pacific region, NAPP has continued on a growth
path, albeit marginally. With an intent to change the status quo
to a point of inflexion, as part of the 2016-2020 strategy, NAPP
will be embarking on an ambitious expansion plan. The quest is
to become a serious regional player in Fair Trade, ethical
certifications and the broader development sector.
We began 2016 as ‘Fairtrade Asia Pacific powered by NAPP’,
an important piece of strategic and branding work that we
accomplished in 2015. As we engage on the next phase of the
strategy, we stood on the backbone of some leading
experiences – successes and failures – of 2015. We began work
aggressively on markets and partnerships to achieve this vision.
We prepared and built our innovation canvas. The new strategic
period, 2016-2020, we will embark on the execution.
The transition of the producer services to the Fairtrade Producer
Networks in the South has finally been signed off. A scientific
compensation approach was provided by the Hay Group,
arguably one of the best global Human Resource Consulting
Companies. This yardstick actually allowed the conversations to
conclude positively as they took into account market practices,
local realities as well as had greater alignment within the
Fairtrade ecosystem.
We continue to work on thematic areas – institutional building,
climate change adaptation and gender empowerment. NAPP
will derive the value on number of members, number of critical
touch points in a year, and the content of engagement and
impact. Our work will revolve around building a shared values
and vision. In 2016, we hope that we will be able to build a
stronger cultural sensitivity as well as an ability to battle the
seemingly inherent weaknesses to absorb cultural divides.
The year was a landmark one for NAPP because it moved from
being a ‘secretariat’ to a professional service provider with a
view to deepening impact In line with the structural
recommendations from Deloitte, NAPP-Singapore is now well-
poised to function as the operational hub. We also will have two
independent Directors on the NAPP Singapore Board, who will
bring in their expertise and corporate governance experience to
help catalyse and catapult NAPP into the organization that we
wish to see.
In 2015, we did the NAPP ‘business model canvas.’ The project
facilitated the understanding that we are merely channels: The
real customers are the farmers and workers at one end of the
spectrum and the consumers at the other end of the spectrum.
I am confident that we as an organisation are today well on our
way to align ourselves to the opportunities that the future has in
store for us.
Our approach to partnerships has led to strong conversations
with various stakeholders and we expect that in 2016 we will be
poised to have more than ten strong local / regional/ global
partnerships that will allow catalysing the work of Fair Trade to
the next level. NAPP’s strategic community partnership model
based on Our People, Our Products and Our Places, and helps
to determine the most effective partnerships for the Company.
Our approach is the process by which we propose to rapidly
scale up our influence. Our partners are co-creators in the
execution of the shared vision. Our partnership model is a
powerful process that includes improving performance, develop
potential, and follow a process of empowerment for greater
development and impact. The most critical central function also
took shape: Monitoring, Evaluation, and Learning. I am
particularly enthused at what information for decision making
comes from monitoring data and evaluation studies. The
feedback loop of “learning” is helpful to reflect and build into
stronger operations.
With all said and much to be done, I continue to enjoy taking
NAPP forward – within the highly challenging milieu – to the
next level of growth. I hope to get continued support of the
NAPP Board, patience of the NAPP members and
perseverance of the NAPP team so that together we are
supportive and responsive to creating the social impact that we
wish to see in the ensuing period to come.
Truly to Serve,
Ayan A Banerjee Bharath Mandana
CEO Chairman
HOW FAIRTRADE WORKS
4 Fairtrade Network of Asia and Pacific Producers
Photo: Diagram of the international Fairtrade system. Courtesy: Max
havelaar stiftung schweiz
2015: AT A GLANCE
HOW EFFECTIVE WAS NAPP
2,67700
Delivering relevant value services to FairTrade
farmers and workers
93% satisfaction rate among Fairtrade farmers and
workers
247 Producer Organisations received trainings in 2015.
4,902 farmers and workers participated in the trainings,
of which 13% were women.
2,042 producers and workers participated in 126
trainings on Fairtrade values and principles.
Building, securing and sustaining access to market
for members
23 Producer Organisations received technical assistance
in market access, productivity or product quality.
Advocacy
Support was given to the producer network to
participate in 9 international, 8 local, and 2 regional
events.
Fairtrade farmers and workers
in Asia Pacific
Country Rankings
Photo: Producer organisation Dustkul Bogi from Varganza Pardaali
Holov standing next to grapes. Photo by Lucy Rusell.
Annual Report 2015 5
NO. OF PRODUCER
ORGANIZATIONS
NO. OF FARMERS
AND WORKERS
FAIRTRADE
PREMIUM RECEIPTS
GENDER
BALANCE
1 India
2 Sri Lanka
3 Thailand
4 Indonesia
5 Vietnam
6 China
1 India
2 Indonesia
3 Sri Lanka
4 Timor Leste
5 Fiji
6 Pakistan
1 India
2 Indonesia
3 Fiji
4 Vietnam
5 China
6 Sri Lanka
1 Sri Lanka
2 Philippines
3 Uzbekistan
4 Kyrgyzstan
5 India
6 Pakistan
NAPP: STRONGER ORGANIZATION
BETTER BUSINESS
MISSION
NAPP’s mission is to serve as an organ of
representation, coordination, exchange and
collaboration for the empowerment of small scale
farmers and farm workers from Asia and the
pacific within the framework of Fairtrade
certification. NAPP facilitates the incorporation of
more producers to be able to join the Fairtrade
movement in Asia and the Pacific through an
existing wide range of products and services.
NAPP also works to ensure that Asian and Pacific
realities and conditions are taken into account
while setting Fairtrade Standards without
compromising on the basic principles of Fairtrade.
With the Producer Support Services integrating
seamlessly into NAPP, the organisation is
expanding with a larger team compromised of
experts and professionals.
NAPP: BRANDING AND POSITIONING
A new brand identity emerged for NAPP with the
conceptualisation of the corporate logo – Fairtrade
Asia Pacific, powered by NAPP.
CHANGING TRADE, CHANGING LIVES
NAPP is aligning with the FI 2016-2020 strategy
that has an aim of ‘Changing Trade, Changing
Lives’ and also contributing to the Sustainable
Development Goals. The strategy acknowledges
the challenges we face now and the world we
want to head towards in alignment with the
Fairtrade Theory of Change.
Building benefits for smallholders and
workers
Focus on expanding markets for key products
Deepening impact through services
and programmes
Focus on Gender Equality, Climate Resilience and
Children & young people
Building Fairtrade Markets
Channelize global consumer power in emerging
economies
Influencing Government Policies
Greater influence of farmers and workers in having
a voice in key policy debates; focus on living
income and living wages; foster coalition and
partnerships
Building a strong, global system
Working as one, more focus of producer networks
and having learning at the heart of impact
GOAL 1
GOAL 2
GOAL 3
GOAL 4
GOAL 5
Photo: Man holding a football of his making. Amar Khawaja Industries,
Pakistan. Photo by Transfair Germany.
6 Fairtrade Network of Asia and Pacific Producers
Monitoring, EVALUATION, AND LEARNING
FAIRTRADE VISION: A WORLD IN WHICH ALL SMALL PRODUCERS AND WORKERS CAN ENJOY SECURE AND
SUSTAINABLE LIVELIHOOD, FULFILL THEIR POTENTIAL AND DECIDE ON THEIR FUTURE.
INCREASINGINFLUENCEOFCONTEXTUALFACTORS-DECREASINGINFLUENCEOFFAIRTRADE
GOAL 1
MAKE TRADE
FAIR
GOAL 2
EMPOWER SMALL
PRODUCERS & WORKERS
GOAL 3
FOSTER SUSTAINABLE
LIVELIHOODS
UNINTENDED
IMPACTS
UNINTENDED
IMPACTS
CHANGE
Small Producers &
worker organizations
Supply chain
business practices
Consumer
behaviour
Civil Society
action
FAIRTRADE APPROACH
Focus on empowerment.
Good governance.
Commitment to learning
and accountability
Standards and certifications for
supply chain management.
Standards and certifications for
small producers and hired
labor organizations
Providing support.
Building sustainable Fairtrade
markets.
Developing markets and
alliances.
Advocacy and campaigning
KEY PRINCIPLES INTERVENTIONS
7
The Fairtrade Theory of Change
NAPP’s approach to MEL has been driven by the
global Fairtrade Theory of Change. We are
systematically trying to understand how Fairtrade
contributes to change as well as test underlying
assumptions through our research and
evaluations.
MEL Systems for Informed Action
The principles governing Monitoring, Evaluation,
and Learning are aimed towards creating data
access for all members of the system i.e. the
Producer Networks as well as the Market side. We
are collecting data annually to monitor progress
and change over time through the development of
data collection tools, sampling procedures, and
creating synergies with other stakeholders.
Embedded Learning
A structured approach to learning was introduced
in 2015 by ensuring that every programme and
training focuses on what was learned and how
can learnings be made actionable. Hence,
learning has been embedded as a crucial part in
all forms of reporting within the organization.
Learning workshops have got an impetus this year
with a focus on both learning for producers and
learning for Fairtrade through studies. NAPP has
adopted the Kirkpatrick Approach to learning
which will be implemented through a combination
of internal and external evaluations at various
stages of training as well as follow up activities.
Fairtrade Network of Asia and Pacific Producers
PRODUCERS: THE POWER OF COLLECTIVE ACTION
Number of organisations
as per FLO ID
9%
66%
26%
HL (without
multi-estates)
SPO
CP
I am extremely happy as I
have a certain kind of
freedom as well as support
from my family.
Ranjine, on her promotion from tea plucker to supervisor,
Bio-Tea, Stassen Estate, Sri Lanka
6%
45%
49%
HL (including
multi-estates)
SPO
CP
Number of organisations
including multi-estates
Annual Report 2015 8
7%growth
Total cumulative annual
growth rate (CAGR) of
producer organiSations in
our region with base year as
2012 in 2015.
0 Fairtrade Network of Asia and Pacific Producers
FARMERS & WORKERS
While farmers account for 61% of our membership, workers are only
39% of our membership. In terms of global representation, 51% of
global Fairtrade workers are in Asia Pacific. Our region is crucial for
the progress of Hired Labour strategy of Fairtrade.
Total farmers and workers have grown by 2%.
Composition of Farmers and Workers
39%
Farmers
Workers
61%
Photo: Van Chan Bio Farmers Club contributed by Didier Gentlihomme. Annual Report 2015 10
FARMERS AND WORKERS IN RELATION
TO PRODUCER ORGANIZATIONS
SAMOA
39/1
IRAN
56/1
INDIA
147588/85
NEPAL
171/1UZBEKISTAN
401/3
VIETNAM
1088/17
PAPUA NEW GUINEA
3944/3
LAO
1856/1
SRI LANKA
24440/23
INDONESIA
28470/1
FIJI
15676/3
CHINA
3471/14
THAILAND
5277/14
PAKISTAN
12223/8
TIMOR LESTE
21558/1
KYRGYZSTAN
598/2
PHILLIPINES
737/3
TAJIKISTAN
-/3
No. of Individual
Farmers & Workers
(Under FLO cert.)
No. of Producer
organisations
World map: Free Vector Maps, Icons: FlatIcon11 Fairtrade Network of Asia and Pacific Producers
GENDER BALANCE
Note: When we look at a combined figure of
representation of farmers and workers by gender, it does
not quite clearly reflect the diverse situation of the farmers
and workers in the respective structures that they work in
i.e. SPOs and HL plantations. For programme impact and
delivery, percentage of women participation cannot be
looked at in isolation. Consider the number of producer
organizations it represents and look at the disaggregated
figures for farmers and workers.
FARMERS
10.4%
89.6%
WORKERS
55.3%
44.7%
Men
Women
Men
Women
I want to prove that we can achieve business
success with our will and determination. I want
our cooperative to become internationally
recognized and perform even better than our
husbands’ cooperatives.
Yuyun Sri Wahyuni, Koperasi Kopi Wanita Gayo (KKWG)
coffee farming organization, Indonesia
Photo: Stitchers posing black footballs in their hands. Photo by Transfair Germany. Icons: FlatIcon 12Annual Report 2015
IMPACT: GROWING PRODUCE,
ENRICHING LIVES
At NAPP, farming goes beyond the crop. It
touches the entire farmer ecosystem to which
human kind is intrinsically linked – circumstance,
community, environment, food security, trade,
livelihood, institutional systems and cultural
values. Staple commodities and produce such
as rice, coffee, tea and sugar have a human
story behind them, involving hundreds of people
across the world that people are dependent on
but largely blinkered to. Therefore, bettering
agricultural practices, strengthening the
agricultural communities and seeking creative
ways to build an association between agrarian
and urban society is likely to shape human
thought and lifestyle choices, ultimately securing
our very futures.
The Minimum Price Guarantee
When the market price is higher than the
Fairtrade Minimum Price, producers receive the
current market price or the price negotiated at
contract signing.
Advantage Fairtrade: Premium Impact
Proportion of Fairtrade farmers and workers in
comparison to Fairtrade Premium receipts
10.8 million euros Fairtrade Premium to 2,67,700
farmers and workers in Asia & Pacific.
Global premium receipts have grown by 13%
from 2013 levels i.e. from 95 million Euros
accruing to 1.5 million farmers and workers to
108 million Euros accruing to 1.6 million farmers
and workers.
Impact
fairtrade
premium
fairtrade
minimum price
knowledge
13 Fairtrade Network of Asia and Pacific Producers Photo: Ratree Chotiphan at the rice harvest. Photo by Santiago Engelhardt
£40.41
FT Premium per Year (in Euros)
per Worker/Farmer
£56
per Worker
£15
per Farmer
FT Premium Distribution across Products
It is because of Fairtrade
that I have the opportunity
to sit with the management
and workers at various forums
to discuss our issues and
how the Premium should be
utilised as an equal. Everything
is decided democratically
and it gives us a voice.
Lalita Inbarani on her promotion from tea plucker to supervisor,
Bio-Tea, Stassen Estate, Sri Lanka
14Annual Report 2015
Premium usage by SPOs
47.8%
Others
1.78%
21.21%
29.20%
Investment in producer
organisations
Service to
communities
Service to
farmer members
44.4%
52.5%
Investments in Producer organisations
Facilities and
infrastructure
HR & Admin
Training & capacity
of board committees
3.1%
Service to communities
10%
32.6%
24.9%
23.9%
Socio-Economic
4.7%
Environment
3.5%
Community
Infrastructure
Education
Gender Equality
0.4%
Health
Others
Service to Farmer members Training & Empowerment of Workers
Credit & Finance
4.2%
Education 1%
Hired workers on farms 1%
Farmer Training
Health 3.3%
Implementation
Others
Payments to
members
Agricultural tools
and inputs 7.8%
20.7%
15%
16.8%
30.2%
FAIRTRADE PREMIUM: CHANGING LIVES
89%
9%
Training for workers
2%
Joint Body & committee
running costs
Support for
worker organisations
Service for Workers & their families
Payments
3%
Education
12% Finance & credit
1%
Health
10%
Investment in
worker housing
20%
54%Others
15 Fairtrade Network of Asia and Pacific Producers
KNOWLEDGE: THE POWER OF PROGRAMMES
The thematic programs of NAPP on Gender,
Child Rights, Climate Change, Capacity Building
of SPOs, Access to Finance, and workers and
farmers empowerment in the region follows the
three pronged approach of building awareness
and sensitization, providing supportive
framework, and building capacity of producer
organizations. Workshops and meetings were
designed to familiarise producers with the
mandate of the network, its relevance in the
system and how they may benefit from it. They
focused on identifying challenges, arriving at
practical measures to address some, if not all, of
them, and prioritising areas the network should
focus on. Producers valued being part of the
consulting process and the opportunity to be
heard. Apart from the one-on-one support that
producers received on certification, product
network and national network meetings; here’s a
glimpse of 2015.
Capacity Building and Awareness of
Fairtrade
Standards and Principles
Garden Exchange
Training the Trainer
Productivity Trainings for Rice and Sugar
Water Management
Soil Management
Knowledge Exchange
I am very grateful for the training. Now I will explain
others what is climate change and its impacts in our lives and
livelihoods and how we can participate to become part of the
solution. We will include in our development plan the
adaptation measures we discussed in the workshop and want to
serve as a model to adjacent communities.
Nelida Catuba “Gingging”, Secretary, NAPFWA, Philippines
THematic
programmes
climate change
gender
child rights
worker rights
Workshops
Gender Mainstreaming:
Women Leadership Training
Drawing Competition,
Workshops, Fairtrade
Child Labour Policy
Training
Sports Ball Manufacturers
Training, Worker rights
awareness and training
programmes
16Annual Report 2015
NETWORKING AND MARKETING
56 producer organisations were supported to
attend eight market-based events such as Fruit
Logistica, BioFach America, Textile Exchange,
Specialty Coffee Association of America (SCAA),
BioFach Germany, Team Up, BioFach Shanghai
and BioFach India.
First successful direct export by SPO
SPO Sambalpatti Mango Growers Association in
Tamil Nadu took up the challenging task of
exporting with Fairtrade support and were able
to directly supply 350 tons of mango pulp to
parts of Europe.
Go Push Go!
NAPP producers in India joined Push a.k.a. Pushpanath
Krishnamurthyon his 450km walk from Puducherry to Ooty,
where he highlighted Fairtrade and talked about climate change.
The campaign highlighted the extraordinary business acumen of
our producers and the power of the collective. Go Push Go was a
marketing campaign fully owned, planned, and executed by our
producers.
17 Fairtrade Network of Asia and Pacific Producers
The women in our community feel closer and
we now have a channel to express our interests,
experiences and plans. The women say to me, ‘We
may not have much education but we have big
dreams’.
Rizkani Ahmad, Koperasi Kopi Wanita Gayo (KKWG)
coffee farming organization, Indonesia
INNOVATIONS: CLIMATE STANDARD
PILOT BIOGAS PROJECT
The Chikballapur District in the state of Karnataka
is one of the most underdeveloped areas in India.
Here, traditional stoves made out of clay and
stone are fuelled by kerosene and wood, causing
deathly smoke. The Fair Climate Fund
(FCF) has partnered with ADATS since early 2009
providing upfront financing to enable the
production and dissemination of 18,000 biogas
installations. The partnership is long term with an
aim of monitoring and maintaining the biogas
installations until the units are paid off and carbon
income can be generated at a household level.
This project is CDM & Gold Standard Certified.
“The respect with which
everyone speaks to me now
is overwhelming, including
my husband.”
Lalita Inbarani on her promotion from tea
plucker to supervisor, Bio-Tea, Stassen Estate,
Sri Lanka
Photo: United Niligiri Tea Estates Co. Ltd. (UNTE), India. Contributed by Laura Restrepo Parrado. 18Annual Report 2015
19 Fairtrade Network of Asia and Pacific Producers
CONNECTING THE DOTS:
MARKET LINKAGES
Recent estimates reveal that more than 80% of
the products sold by NAPP producers under
Fairtrade terms are sold in Europe and USA. In
certain categories of products such as Tea and
Sugar, close to 90% of products sold under
Fairtrade terms are sold in Europe, primarily UK.
The importance of European markets in existing
Fairtrade sales of Asia & Pacific producers
cannot be underscored enough. At the same
time, the highly saturated European markets are
recording dismal growths due to prevailing
macroeconomic situation across Europe. Hence
it is important that NAPP has a balanced
strategic focus in potential markets across the
globe.
Four target markets have been identified
Europe, North America, Developed Asia
(Australia, New Zealand, Japan, South Korea,
Taiwan, Hong Kong), and Other Asia (India,
Philippines, Thailand),
In the year 2015, NAPP built a progressive
relationship with 17 Fairtrade organisations
spread across the developed world. This
relationship ranges from Fairtrade Foundation
UK, Max Havelaar Switzerland, Fairtrade
Germany, Fairtrade Australia, Fairtrade
Belgium, Fairtrade Canada, Fairtrade Finland,
Max Havelaar France, Fairtrade Italia, Fairtrade
Japan, Stitching Max Havelaar Netherlands,
Fairtrade Hong Kong, Fairtrade India, Fairtrade
South Korea, Fairtrade Philippines, and
Fairtrade America.
MARKET STRATEGY
1. Superior Customer value
2. Differentiated products
3-pronged approach
Product: Provide high quality products, and
make use of geographic advantage for specific
crops.
Practices: The majority of NAPP produce is
certified organic and many producers are on the
path to organic as well. Some of the producers
are bio-dynamic.
People: As a movement based on the
philosophy of trade justice, people are at the
centre of everything that we do. NAPP’s
producers and workers are the decision makers
and define the strategy and processes.
People Product
Practices
FORGING WINNING
PARTNERSHIPS
NAPP’s partnership ‘chakra’ ensures that we are
able to co-create the necessary impact that we
collectively wish to see and articulate the same
to various stakeholders. The NAPP Model of
Partnership is a holistic process based on
co-creating a sustainable and effective
partnership between the stakeholders. Our
partnership model is a powerful process that
includes improving performance, develop
potential, and follow a process of empowerment
for greater development and impact.
The Trade from Development Center – BTC,
Belgium who came forward taking up the
Sustainable Cocoa route to work with in
Vietnam. The program is to Develop Sustainable
Fairtrade Cocoa supply chain from Vietnam
impacting a tleast 350 households. The
two-year program begins in 2016.
Taking
Action
Activating
Ambition
Manifesting
Appreciation
Gaining
Awareness
Designing
Alignment
Core values
Confidentiality
Accountability
Integrity
Trust
Pro-active
p
rocess
Potentialgrowth
Co-creative PartnershipOutcomefocused
Learni
ng
approach
20Annual Report 2015
Key Partners Key activities value propositions customer relationships customer segments
cost structure revenue streams
Who are our Key Partners?
Who are our Key Suppliers?
Which Key Resources are we acquiring from
partners?
Which Key Activities do partners perform?
Optimization
and economy Reduction of risk
and uncertainty
Acquisition of
particular resources
and activities
Motivation
for Partnerships
FairTrade International System
Government
Civil Society
Implementing Specialists/Partners
What Key Activities do our Value
Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?
Production Problem Solving
Platform/Network
CATEGORIES
Market Access
Capacity Building
Certification Support
Start / Continue / Stop
What value do we deliver to the customer?
Which one of our customer’s problems are
we helping to solve?
What bundles of products and services are
we offering to each customer segment?
Which customer needs are we satisfying?
Newness Performance
Customization
CHARACTERISTICS
What type of relationships does each of our
Customer segments expect us to establish and
maintain with them?
Which ones have we established?
How are they integrated with the rest of our
business model?
How costly are they?
channels
Through which Channels do
our Customer Segments
wants to be reached?
How are we reaching them
now?
How are our Channels
integrated?
Which ones work best?
Which ones are most cost
effecient?
How are we integrating them
with customer routines?
For whom are we creating vlue?
Who are our most important customers?
What are the most
important costs
inherent in our
business model?
Which Key Resources
are most expensive?
Which Key Activities
are most expensive?
For what value are our
customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue
Stream contribute to overall
revenue?
“Getting the job done”
Design Brand/Status Price
Risk Reduction Accessibility
Conveniency/Usability
Sustainable Livelihoods
Fair price
Access to fair/ethical supply chains
Information & knowledge brokering/
dissemination
Personal Assistance Self Service
EXAMPLES
Dedicated Personal Assistance
Automated Services Communities
Co-creation
Farmers & Workers
CUSTOMERS
FairTrade consumers
Physical Human
Intellectual (Brand Patents, Copyrights)
TYPES OF RESOURCES
Market Access
Capacity Building
Certification Support
Start / Continue / Stop
key resources
What Key Resources do
our Value Propositions
require?
Our Distribution
Channels?
Customer Relationships?
Revenue Streams
Financial
Cost Driven (leanest cost structure, low price value proposition, maximum automation,
extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
Sample characteristics - Fixed costs (salaries, rents, utilities), Variable costs?
Is your business more..
Asset sale
Usage fee
Lending/Renting/
Leasing
Brokerage Fees
Types
List Price
Product feature
dependent
Customer segment
dependent
Volume dependent
Fixed Pricing
Negotiation (Bargaining)
Yield Management
Real-time-Market
Dynamic Pricing
CostIntensive
Personalised
Group/Community
based (Client-Server)
Self/Peer/
Automated
Co-Create
Awareness: How do we raise awareness about
our company’s product and services?
Evaluation: How do we help customers
evaluate our organisation’s value proposition?
Purchase: How do we allow customer’s
purchase specific products and services?
Delivery: How do we deliver a Value
Proposition to customers?
After sales: How do we provide post-purchase
customer support?
Channel Phases
Farmers
& Workers
SPO
HL
CP
Traders
NPOS
Retail
NNPN
Consumers
Business Model Canvas
21 Fairtrade Network of Asia and Pacific Producers
Connect with us
www.fairtradenapp.org
fairtradeasiapacific.tumblr.com
linkedin.com/company/fairtrade-asia-pacific
For information, please contact Harveen Kour at
harveen.kour@fairtradenapp.org.

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Annual Report 2015, at a glance

  • 1. FAIRTRADE NETWORK OF ASIA AND PACIFIC PRODUCERS ANNUAL REPORT 2015
  • 2. 2 CONTENTS Cover photo: Ngakip, a member of the cooperative Koptan Gayo Megah Berseri. Photo by Nathalie Bertrams. Above photo: Uzbekistan Fruits and Nuts. Photo by Lucy Russell Fairtrade Network of Asia and Pacific Producers From the Chair and the CEO How Fairtrade Works 2015 at a Glance NAPP: Strong Organization, Better Business Monitoring, Evaluation, and Learning Producers: The Power of Collective Action Impact: Growing Produce, Enriching Lives Knowledge: The Power of Programmes Connecting the Dots: Market Linkages Forging Winning Partnerships Business Model Canvas 3 4 5 6 7 8 13 16 19 20 21 GLOSSARY ANZ: Australia and New Zealand CAGR: Cumulative Annual Growth Rate CP: Contract Production producer organisations FMO: Fairtrade Marketing Organisation FT: Fairtrade FTI: Fairtrade International HL: Hired Labour producer organisations NFO: National Fairtrade Organisations PN: Producer Networks SDG: Sustainable Development Goals SPO: Small Producer Organizations
  • 3. Annual Report 2015 3 FROM THE CHAIR AND THE CEO To the Stakeholders, Fair Trade, the pursuit of trade justice, by bringing consumers and producers together, is undeniably beautiful. Fair Trade, which looks to usher in ubiquitous equity, is powerful. At the same time, Fair Trade, the oxymoron, in the modern context of supply / value chains is difficult. With our aspiration to create market leadership in ethical trade in the Asia and Pacific region, NAPP has continued on a growth path, albeit marginally. With an intent to change the status quo to a point of inflexion, as part of the 2016-2020 strategy, NAPP will be embarking on an ambitious expansion plan. The quest is to become a serious regional player in Fair Trade, ethical certifications and the broader development sector. We began 2016 as ‘Fairtrade Asia Pacific powered by NAPP’, an important piece of strategic and branding work that we accomplished in 2015. As we engage on the next phase of the strategy, we stood on the backbone of some leading experiences – successes and failures – of 2015. We began work aggressively on markets and partnerships to achieve this vision. We prepared and built our innovation canvas. The new strategic period, 2016-2020, we will embark on the execution. The transition of the producer services to the Fairtrade Producer Networks in the South has finally been signed off. A scientific compensation approach was provided by the Hay Group, arguably one of the best global Human Resource Consulting Companies. This yardstick actually allowed the conversations to conclude positively as they took into account market practices, local realities as well as had greater alignment within the Fairtrade ecosystem. We continue to work on thematic areas – institutional building, climate change adaptation and gender empowerment. NAPP will derive the value on number of members, number of critical touch points in a year, and the content of engagement and impact. Our work will revolve around building a shared values and vision. In 2016, we hope that we will be able to build a stronger cultural sensitivity as well as an ability to battle the seemingly inherent weaknesses to absorb cultural divides. The year was a landmark one for NAPP because it moved from being a ‘secretariat’ to a professional service provider with a view to deepening impact In line with the structural recommendations from Deloitte, NAPP-Singapore is now well- poised to function as the operational hub. We also will have two independent Directors on the NAPP Singapore Board, who will bring in their expertise and corporate governance experience to help catalyse and catapult NAPP into the organization that we wish to see. In 2015, we did the NAPP ‘business model canvas.’ The project facilitated the understanding that we are merely channels: The real customers are the farmers and workers at one end of the spectrum and the consumers at the other end of the spectrum. I am confident that we as an organisation are today well on our way to align ourselves to the opportunities that the future has in store for us. Our approach to partnerships has led to strong conversations with various stakeholders and we expect that in 2016 we will be poised to have more than ten strong local / regional/ global partnerships that will allow catalysing the work of Fair Trade to the next level. NAPP’s strategic community partnership model based on Our People, Our Products and Our Places, and helps to determine the most effective partnerships for the Company. Our approach is the process by which we propose to rapidly scale up our influence. Our partners are co-creators in the execution of the shared vision. Our partnership model is a powerful process that includes improving performance, develop potential, and follow a process of empowerment for greater development and impact. The most critical central function also took shape: Monitoring, Evaluation, and Learning. I am particularly enthused at what information for decision making comes from monitoring data and evaluation studies. The feedback loop of “learning” is helpful to reflect and build into stronger operations. With all said and much to be done, I continue to enjoy taking NAPP forward – within the highly challenging milieu – to the next level of growth. I hope to get continued support of the NAPP Board, patience of the NAPP members and perseverance of the NAPP team so that together we are supportive and responsive to creating the social impact that we wish to see in the ensuing period to come. Truly to Serve, Ayan A Banerjee Bharath Mandana CEO Chairman
  • 4. HOW FAIRTRADE WORKS 4 Fairtrade Network of Asia and Pacific Producers Photo: Diagram of the international Fairtrade system. Courtesy: Max havelaar stiftung schweiz
  • 5. 2015: AT A GLANCE HOW EFFECTIVE WAS NAPP 2,67700 Delivering relevant value services to FairTrade farmers and workers 93% satisfaction rate among Fairtrade farmers and workers 247 Producer Organisations received trainings in 2015. 4,902 farmers and workers participated in the trainings, of which 13% were women. 2,042 producers and workers participated in 126 trainings on Fairtrade values and principles. Building, securing and sustaining access to market for members 23 Producer Organisations received technical assistance in market access, productivity or product quality. Advocacy Support was given to the producer network to participate in 9 international, 8 local, and 2 regional events. Fairtrade farmers and workers in Asia Pacific Country Rankings Photo: Producer organisation Dustkul Bogi from Varganza Pardaali Holov standing next to grapes. Photo by Lucy Rusell. Annual Report 2015 5 NO. OF PRODUCER ORGANIZATIONS NO. OF FARMERS AND WORKERS FAIRTRADE PREMIUM RECEIPTS GENDER BALANCE 1 India 2 Sri Lanka 3 Thailand 4 Indonesia 5 Vietnam 6 China 1 India 2 Indonesia 3 Sri Lanka 4 Timor Leste 5 Fiji 6 Pakistan 1 India 2 Indonesia 3 Fiji 4 Vietnam 5 China 6 Sri Lanka 1 Sri Lanka 2 Philippines 3 Uzbekistan 4 Kyrgyzstan 5 India 6 Pakistan
  • 6. NAPP: STRONGER ORGANIZATION BETTER BUSINESS MISSION NAPP’s mission is to serve as an organ of representation, coordination, exchange and collaboration for the empowerment of small scale farmers and farm workers from Asia and the pacific within the framework of Fairtrade certification. NAPP facilitates the incorporation of more producers to be able to join the Fairtrade movement in Asia and the Pacific through an existing wide range of products and services. NAPP also works to ensure that Asian and Pacific realities and conditions are taken into account while setting Fairtrade Standards without compromising on the basic principles of Fairtrade. With the Producer Support Services integrating seamlessly into NAPP, the organisation is expanding with a larger team compromised of experts and professionals. NAPP: BRANDING AND POSITIONING A new brand identity emerged for NAPP with the conceptualisation of the corporate logo – Fairtrade Asia Pacific, powered by NAPP. CHANGING TRADE, CHANGING LIVES NAPP is aligning with the FI 2016-2020 strategy that has an aim of ‘Changing Trade, Changing Lives’ and also contributing to the Sustainable Development Goals. The strategy acknowledges the challenges we face now and the world we want to head towards in alignment with the Fairtrade Theory of Change. Building benefits for smallholders and workers Focus on expanding markets for key products Deepening impact through services and programmes Focus on Gender Equality, Climate Resilience and Children & young people Building Fairtrade Markets Channelize global consumer power in emerging economies Influencing Government Policies Greater influence of farmers and workers in having a voice in key policy debates; focus on living income and living wages; foster coalition and partnerships Building a strong, global system Working as one, more focus of producer networks and having learning at the heart of impact GOAL 1 GOAL 2 GOAL 3 GOAL 4 GOAL 5 Photo: Man holding a football of his making. Amar Khawaja Industries, Pakistan. Photo by Transfair Germany. 6 Fairtrade Network of Asia and Pacific Producers
  • 7. Monitoring, EVALUATION, AND LEARNING FAIRTRADE VISION: A WORLD IN WHICH ALL SMALL PRODUCERS AND WORKERS CAN ENJOY SECURE AND SUSTAINABLE LIVELIHOOD, FULFILL THEIR POTENTIAL AND DECIDE ON THEIR FUTURE. INCREASINGINFLUENCEOFCONTEXTUALFACTORS-DECREASINGINFLUENCEOFFAIRTRADE GOAL 1 MAKE TRADE FAIR GOAL 2 EMPOWER SMALL PRODUCERS & WORKERS GOAL 3 FOSTER SUSTAINABLE LIVELIHOODS UNINTENDED IMPACTS UNINTENDED IMPACTS CHANGE Small Producers & worker organizations Supply chain business practices Consumer behaviour Civil Society action FAIRTRADE APPROACH Focus on empowerment. Good governance. Commitment to learning and accountability Standards and certifications for supply chain management. Standards and certifications for small producers and hired labor organizations Providing support. Building sustainable Fairtrade markets. Developing markets and alliances. Advocacy and campaigning KEY PRINCIPLES INTERVENTIONS 7 The Fairtrade Theory of Change NAPP’s approach to MEL has been driven by the global Fairtrade Theory of Change. We are systematically trying to understand how Fairtrade contributes to change as well as test underlying assumptions through our research and evaluations. MEL Systems for Informed Action The principles governing Monitoring, Evaluation, and Learning are aimed towards creating data access for all members of the system i.e. the Producer Networks as well as the Market side. We are collecting data annually to monitor progress and change over time through the development of data collection tools, sampling procedures, and creating synergies with other stakeholders. Embedded Learning A structured approach to learning was introduced in 2015 by ensuring that every programme and training focuses on what was learned and how can learnings be made actionable. Hence, learning has been embedded as a crucial part in all forms of reporting within the organization. Learning workshops have got an impetus this year with a focus on both learning for producers and learning for Fairtrade through studies. NAPP has adopted the Kirkpatrick Approach to learning which will be implemented through a combination of internal and external evaluations at various stages of training as well as follow up activities. Fairtrade Network of Asia and Pacific Producers
  • 8. PRODUCERS: THE POWER OF COLLECTIVE ACTION Number of organisations as per FLO ID 9% 66% 26% HL (without multi-estates) SPO CP I am extremely happy as I have a certain kind of freedom as well as support from my family. Ranjine, on her promotion from tea plucker to supervisor, Bio-Tea, Stassen Estate, Sri Lanka 6% 45% 49% HL (including multi-estates) SPO CP Number of organisations including multi-estates Annual Report 2015 8
  • 9. 7%growth Total cumulative annual growth rate (CAGR) of producer organiSations in our region with base year as 2012 in 2015. 0 Fairtrade Network of Asia and Pacific Producers
  • 10. FARMERS & WORKERS While farmers account for 61% of our membership, workers are only 39% of our membership. In terms of global representation, 51% of global Fairtrade workers are in Asia Pacific. Our region is crucial for the progress of Hired Labour strategy of Fairtrade. Total farmers and workers have grown by 2%. Composition of Farmers and Workers 39% Farmers Workers 61% Photo: Van Chan Bio Farmers Club contributed by Didier Gentlihomme. Annual Report 2015 10
  • 11. FARMERS AND WORKERS IN RELATION TO PRODUCER ORGANIZATIONS SAMOA 39/1 IRAN 56/1 INDIA 147588/85 NEPAL 171/1UZBEKISTAN 401/3 VIETNAM 1088/17 PAPUA NEW GUINEA 3944/3 LAO 1856/1 SRI LANKA 24440/23 INDONESIA 28470/1 FIJI 15676/3 CHINA 3471/14 THAILAND 5277/14 PAKISTAN 12223/8 TIMOR LESTE 21558/1 KYRGYZSTAN 598/2 PHILLIPINES 737/3 TAJIKISTAN -/3 No. of Individual Farmers & Workers (Under FLO cert.) No. of Producer organisations World map: Free Vector Maps, Icons: FlatIcon11 Fairtrade Network of Asia and Pacific Producers
  • 12. GENDER BALANCE Note: When we look at a combined figure of representation of farmers and workers by gender, it does not quite clearly reflect the diverse situation of the farmers and workers in the respective structures that they work in i.e. SPOs and HL plantations. For programme impact and delivery, percentage of women participation cannot be looked at in isolation. Consider the number of producer organizations it represents and look at the disaggregated figures for farmers and workers. FARMERS 10.4% 89.6% WORKERS 55.3% 44.7% Men Women Men Women I want to prove that we can achieve business success with our will and determination. I want our cooperative to become internationally recognized and perform even better than our husbands’ cooperatives. Yuyun Sri Wahyuni, Koperasi Kopi Wanita Gayo (KKWG) coffee farming organization, Indonesia Photo: Stitchers posing black footballs in their hands. Photo by Transfair Germany. Icons: FlatIcon 12Annual Report 2015
  • 13. IMPACT: GROWING PRODUCE, ENRICHING LIVES At NAPP, farming goes beyond the crop. It touches the entire farmer ecosystem to which human kind is intrinsically linked – circumstance, community, environment, food security, trade, livelihood, institutional systems and cultural values. Staple commodities and produce such as rice, coffee, tea and sugar have a human story behind them, involving hundreds of people across the world that people are dependent on but largely blinkered to. Therefore, bettering agricultural practices, strengthening the agricultural communities and seeking creative ways to build an association between agrarian and urban society is likely to shape human thought and lifestyle choices, ultimately securing our very futures. The Minimum Price Guarantee When the market price is higher than the Fairtrade Minimum Price, producers receive the current market price or the price negotiated at contract signing. Advantage Fairtrade: Premium Impact Proportion of Fairtrade farmers and workers in comparison to Fairtrade Premium receipts 10.8 million euros Fairtrade Premium to 2,67,700 farmers and workers in Asia & Pacific. Global premium receipts have grown by 13% from 2013 levels i.e. from 95 million Euros accruing to 1.5 million farmers and workers to 108 million Euros accruing to 1.6 million farmers and workers. Impact fairtrade premium fairtrade minimum price knowledge 13 Fairtrade Network of Asia and Pacific Producers Photo: Ratree Chotiphan at the rice harvest. Photo by Santiago Engelhardt
  • 14. £40.41 FT Premium per Year (in Euros) per Worker/Farmer £56 per Worker £15 per Farmer FT Premium Distribution across Products It is because of Fairtrade that I have the opportunity to sit with the management and workers at various forums to discuss our issues and how the Premium should be utilised as an equal. Everything is decided democratically and it gives us a voice. Lalita Inbarani on her promotion from tea plucker to supervisor, Bio-Tea, Stassen Estate, Sri Lanka 14Annual Report 2015
  • 15. Premium usage by SPOs 47.8% Others 1.78% 21.21% 29.20% Investment in producer organisations Service to communities Service to farmer members 44.4% 52.5% Investments in Producer organisations Facilities and infrastructure HR & Admin Training & capacity of board committees 3.1% Service to communities 10% 32.6% 24.9% 23.9% Socio-Economic 4.7% Environment 3.5% Community Infrastructure Education Gender Equality 0.4% Health Others Service to Farmer members Training & Empowerment of Workers Credit & Finance 4.2% Education 1% Hired workers on farms 1% Farmer Training Health 3.3% Implementation Others Payments to members Agricultural tools and inputs 7.8% 20.7% 15% 16.8% 30.2% FAIRTRADE PREMIUM: CHANGING LIVES 89% 9% Training for workers 2% Joint Body & committee running costs Support for worker organisations Service for Workers & their families Payments 3% Education 12% Finance & credit 1% Health 10% Investment in worker housing 20% 54%Others 15 Fairtrade Network of Asia and Pacific Producers
  • 16. KNOWLEDGE: THE POWER OF PROGRAMMES The thematic programs of NAPP on Gender, Child Rights, Climate Change, Capacity Building of SPOs, Access to Finance, and workers and farmers empowerment in the region follows the three pronged approach of building awareness and sensitization, providing supportive framework, and building capacity of producer organizations. Workshops and meetings were designed to familiarise producers with the mandate of the network, its relevance in the system and how they may benefit from it. They focused on identifying challenges, arriving at practical measures to address some, if not all, of them, and prioritising areas the network should focus on. Producers valued being part of the consulting process and the opportunity to be heard. Apart from the one-on-one support that producers received on certification, product network and national network meetings; here’s a glimpse of 2015. Capacity Building and Awareness of Fairtrade Standards and Principles Garden Exchange Training the Trainer Productivity Trainings for Rice and Sugar Water Management Soil Management Knowledge Exchange I am very grateful for the training. Now I will explain others what is climate change and its impacts in our lives and livelihoods and how we can participate to become part of the solution. We will include in our development plan the adaptation measures we discussed in the workshop and want to serve as a model to adjacent communities. Nelida Catuba “Gingging”, Secretary, NAPFWA, Philippines THematic programmes climate change gender child rights worker rights Workshops Gender Mainstreaming: Women Leadership Training Drawing Competition, Workshops, Fairtrade Child Labour Policy Training Sports Ball Manufacturers Training, Worker rights awareness and training programmes 16Annual Report 2015
  • 17. NETWORKING AND MARKETING 56 producer organisations were supported to attend eight market-based events such as Fruit Logistica, BioFach America, Textile Exchange, Specialty Coffee Association of America (SCAA), BioFach Germany, Team Up, BioFach Shanghai and BioFach India. First successful direct export by SPO SPO Sambalpatti Mango Growers Association in Tamil Nadu took up the challenging task of exporting with Fairtrade support and were able to directly supply 350 tons of mango pulp to parts of Europe. Go Push Go! NAPP producers in India joined Push a.k.a. Pushpanath Krishnamurthyon his 450km walk from Puducherry to Ooty, where he highlighted Fairtrade and talked about climate change. The campaign highlighted the extraordinary business acumen of our producers and the power of the collective. Go Push Go was a marketing campaign fully owned, planned, and executed by our producers. 17 Fairtrade Network of Asia and Pacific Producers
  • 18. The women in our community feel closer and we now have a channel to express our interests, experiences and plans. The women say to me, ‘We may not have much education but we have big dreams’. Rizkani Ahmad, Koperasi Kopi Wanita Gayo (KKWG) coffee farming organization, Indonesia INNOVATIONS: CLIMATE STANDARD PILOT BIOGAS PROJECT The Chikballapur District in the state of Karnataka is one of the most underdeveloped areas in India. Here, traditional stoves made out of clay and stone are fuelled by kerosene and wood, causing deathly smoke. The Fair Climate Fund (FCF) has partnered with ADATS since early 2009 providing upfront financing to enable the production and dissemination of 18,000 biogas installations. The partnership is long term with an aim of monitoring and maintaining the biogas installations until the units are paid off and carbon income can be generated at a household level. This project is CDM & Gold Standard Certified. “The respect with which everyone speaks to me now is overwhelming, including my husband.” Lalita Inbarani on her promotion from tea plucker to supervisor, Bio-Tea, Stassen Estate, Sri Lanka Photo: United Niligiri Tea Estates Co. Ltd. (UNTE), India. Contributed by Laura Restrepo Parrado. 18Annual Report 2015
  • 19. 19 Fairtrade Network of Asia and Pacific Producers CONNECTING THE DOTS: MARKET LINKAGES Recent estimates reveal that more than 80% of the products sold by NAPP producers under Fairtrade terms are sold in Europe and USA. In certain categories of products such as Tea and Sugar, close to 90% of products sold under Fairtrade terms are sold in Europe, primarily UK. The importance of European markets in existing Fairtrade sales of Asia & Pacific producers cannot be underscored enough. At the same time, the highly saturated European markets are recording dismal growths due to prevailing macroeconomic situation across Europe. Hence it is important that NAPP has a balanced strategic focus in potential markets across the globe. Four target markets have been identified Europe, North America, Developed Asia (Australia, New Zealand, Japan, South Korea, Taiwan, Hong Kong), and Other Asia (India, Philippines, Thailand), In the year 2015, NAPP built a progressive relationship with 17 Fairtrade organisations spread across the developed world. This relationship ranges from Fairtrade Foundation UK, Max Havelaar Switzerland, Fairtrade Germany, Fairtrade Australia, Fairtrade Belgium, Fairtrade Canada, Fairtrade Finland, Max Havelaar France, Fairtrade Italia, Fairtrade Japan, Stitching Max Havelaar Netherlands, Fairtrade Hong Kong, Fairtrade India, Fairtrade South Korea, Fairtrade Philippines, and Fairtrade America. MARKET STRATEGY 1. Superior Customer value 2. Differentiated products 3-pronged approach Product: Provide high quality products, and make use of geographic advantage for specific crops. Practices: The majority of NAPP produce is certified organic and many producers are on the path to organic as well. Some of the producers are bio-dynamic. People: As a movement based on the philosophy of trade justice, people are at the centre of everything that we do. NAPP’s producers and workers are the decision makers and define the strategy and processes. People Product Practices
  • 20. FORGING WINNING PARTNERSHIPS NAPP’s partnership ‘chakra’ ensures that we are able to co-create the necessary impact that we collectively wish to see and articulate the same to various stakeholders. The NAPP Model of Partnership is a holistic process based on co-creating a sustainable and effective partnership between the stakeholders. Our partnership model is a powerful process that includes improving performance, develop potential, and follow a process of empowerment for greater development and impact. The Trade from Development Center – BTC, Belgium who came forward taking up the Sustainable Cocoa route to work with in Vietnam. The program is to Develop Sustainable Fairtrade Cocoa supply chain from Vietnam impacting a tleast 350 households. The two-year program begins in 2016. Taking Action Activating Ambition Manifesting Appreciation Gaining Awareness Designing Alignment Core values Confidentiality Accountability Integrity Trust Pro-active p rocess Potentialgrowth Co-creative PartnershipOutcomefocused Learni ng approach 20Annual Report 2015
  • 21. Key Partners Key activities value propositions customer relationships customer segments cost structure revenue streams Who are our Key Partners? Who are our Key Suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities Motivation for Partnerships FairTrade International System Government Civil Society Implementing Specialists/Partners What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Production Problem Solving Platform/Network CATEGORIES Market Access Capacity Building Certification Support Start / Continue / Stop What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each customer segment? Which customer needs are we satisfying? Newness Performance Customization CHARACTERISTICS What type of relationships does each of our Customer segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? channels Through which Channels do our Customer Segments wants to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost effecient? How are we integrating them with customer routines? For whom are we creating vlue? Who are our most important customers? What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenue? “Getting the job done” Design Brand/Status Price Risk Reduction Accessibility Conveniency/Usability Sustainable Livelihoods Fair price Access to fair/ethical supply chains Information & knowledge brokering/ dissemination Personal Assistance Self Service EXAMPLES Dedicated Personal Assistance Automated Services Communities Co-creation Farmers & Workers CUSTOMERS FairTrade consumers Physical Human Intellectual (Brand Patents, Copyrights) TYPES OF RESOURCES Market Access Capacity Building Certification Support Start / Continue / Stop key resources What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams Financial Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) Sample characteristics - Fixed costs (salaries, rents, utilities), Variable costs? Is your business more.. Asset sale Usage fee Lending/Renting/ Leasing Brokerage Fees Types List Price Product feature dependent Customer segment dependent Volume dependent Fixed Pricing Negotiation (Bargaining) Yield Management Real-time-Market Dynamic Pricing CostIntensive Personalised Group/Community based (Client-Server) Self/Peer/ Automated Co-Create Awareness: How do we raise awareness about our company’s product and services? Evaluation: How do we help customers evaluate our organisation’s value proposition? Purchase: How do we allow customer’s purchase specific products and services? Delivery: How do we deliver a Value Proposition to customers? After sales: How do we provide post-purchase customer support? Channel Phases Farmers & Workers SPO HL CP Traders NPOS Retail NNPN Consumers Business Model Canvas 21 Fairtrade Network of Asia and Pacific Producers
  • 22. Connect with us www.fairtradenapp.org fairtradeasiapacific.tumblr.com linkedin.com/company/fairtrade-asia-pacific For information, please contact Harveen Kour at harveen.kour@fairtradenapp.org.