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F A I R T R A D E U N I T E D S T AT E S 201 3 IMPAC T REPOR T


GROWING IN FAIRNESS WHO WE ARE

CONTENTS MISSION

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2013 OVERVIEW

We seek to empower family farmers and workers around the world, while enriching the lives of those struggling in poverty. Rather than creating dependency on aid, we use a market-based approach that empowers farmers to get a fair price for their harvest, helps workers create safe working conditions, provides a decent living wage and guarantees the right to organize. Through direct, equitable trade, farming and working families are able to eat better, keep their kids in school, improve health and housing, and invest in the future. Keeping families, local economies, the natural environment, and the larger community strong today and for generations to come; these are the results we seek through Fair Trade.

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INITIATIVES

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FAIR TRADE FOR ALL

11-19

FINANCIALS

23-25

PARTNERSHIPS

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OUR VISON A world in which all producers can enjoy secure and sustainable livelihoods, fulfil their potential and decide on their future. And to develop communitiy wide programs to aid the growth and production of communities all over the world. We seek to understand and smpathize with people.


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DEAR PARTNERS,

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o make a meaningful dent in global poverty, Fair Trade must innovate. As part of the “courage of our convictions,” we recently launched “Fair Trade for All”, our innovation agenda for doubling impact by 2015. Fair Trade for All focuses on strengthening farming communities, including more people receiving the benefits of Fair Trade, and engaging consumers to grow demand for Fair Trade Certified products. We’re already seeing results. In our first pilot--a 500-acre, familyowned, 100% organic coffee farm in Brazil--farm workers are experiencing the impact Fair Trade can have. The farm’s 110 workers democratically elected to invest their first Fair Trade community. development premiums in eye and dental care. Jonatan Santos Silva, who has worked at this farm for 12 years, says, “I had never been to a dentist before because I could not afford it. Dreams like this are heard by our team every day. I listen to these stories and strive to help

development premiums in eye and dental care. Jonatan Santos Silva, who has worked at this farm for 12 years, says, “I had never been to a dentist before because I could not afford it. I am happy and thankful. A farmer who came to deliver his

change. That’s also why we are so proud that Fairtrade International is the world’s only ethical certification scheme jointly-owned by the producers. It is now 25 years since Fairtrade labelling was started by Mexican coffee farmers and Dutch activists in the early 2000s.

We’ll apply the lessons from this pilot to other pilots--we’re going to try, learn, and try again.Tadesse Meskela, the passionate, visionary leader of Oromia Coffee Farmers

A trailblazing idea to put people at the heart of trade, traders who in turn sell to millions of consumers. That total imbalance of power helps explain why tea workers get as little as one percent of the price we pay for a pack of tea. Prices yo-yo up and down, with coffee prices falling by 53 percent in the past 18 months alone. At the same time, climate change is increasingly wreaking havoc with small famers’ yields and crops. If we can contribute to this effort everyday, I know I’ve done my job to the fullest and very best. That’s why we need now to unlock the power of the many, enabling disadvantaged farmers and workers to grow profitable businesses and build thriving communities. As Oromia have shown, strength comes

Cooperative Union in Ethiopia is always wrestling with the next initiative, from new quality drives to setting up a bank to overcome the farmers’ chronic shortages of cash. As part of last year’s Fairtrade Africa Conference, we visited Oromia’s gleaming, stateof-the-art factory – paid for in part by the Fairtrade Premium. A farmer who came to deliver his coffee was happy to reel off a list of benefits from Oromia: his son is in school and his cattle have a

That’s why we need now to unlock the power of the many, enabling disadvantaged farmers and workers to grow profitable businesses and build thriving communities. As Oromia have shown, strength comes in working together to drive change. We want to enable more farmers and workers to partner with more companies and to connect with more citizens, who have shown again and again that they want to make their own contribution to trade justice. For the past 25 years, we have taken the vision of the pioneering fair traders to the wider public, directly reaching over 1.3 million smallholders and workers. The model has been shown to work; now we need to take it wider. We seek to be at the cutting edge of reforming global trade in favour of justice, unlocking the power of disadvantaged producers and PAUL RICE, PRESIDENT & CEO FAIR TRADE USA

Annual Report 2012/13

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2013 OVERVIEW COUNTRIES FEATURED IN THIS 2013’s FAIR TRADE FOR ALL PROGRAM

HONDURAS BRAZIL

COLOMBIA

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INDIA

Annual Report 2012/13

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2013 OVERVIEW PRODU C ERS H AV E

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50% OF THE VOTES IN OUR

DECISION MAKING

C O U NT R I E S

Fair Trade For All Initiative has doubled the amount of farms that are Fair Trade certified. In 2013 Fair Trade USA has partnered with over 30 countries.

1300 FAIR TRADE T O W N S

Fair Trade For All Initiative has doubled the amount of farms that are Fair Trade certified. In 2013 Fair Trade USA has partnered with over 30 countries. We highlight 4 of these countries and the amzaing stories of their workers. Colombia, India and Brazil all took part.

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1149 PRODUCER ORGANIZATIONS

WORLDWIDE

1.2 MILLION

FARMERS AND WORKERS

IN 66 COUNTRIES Fair Trade For All Initiative has doubled the amount of farms that are Fair Trade certified. In 2013 Fair Trade USA has partnered with over 30 countries to bring fairness to it’s farmers.

Annual Report 2012/13

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INITIATIVES GO BANANAS started in South America with the farmers of the Columbian republic. They started an initiative to fairly trade bananas in their town and to also sell them at a fair price. On one day a year citizens ‘go bananas!”

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WHEN: novemeber-january WHERE: north & south america

O F T WIT TE R USE RS PA RTIC IPATE D

GO BANANAS BE FAIR, BUY FAIR

3 in 5 BANNANAS ARE FA I R T R A DE

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WHEN: february-july WHERE: global reach Our BUY FAIR BE FAIR campaign helps the general public learn how fair they are and how to spread fairness to others. In 2013 this initiative was spread through social media outlets and even had specail days on twitter where the hashtag #befair was spread and heard by millions of people.


WHEN: january- december WHERE: global reach Fair Trade For All Initiative has doubled the amount of farms that are Fair Trade certified. In 2013 Fair Trade USA has partnered with over 30 countries. We highlight 4 of these countries and the amzaing stories of their workers.Colombia, India and Brazil all took part in this year.

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P LU S CO F F E E S H O P S PA RT I CI PAT E D

FAIR TRADE FOR ALL

PHILLY ROAST WHEN: october-december WHERE: philadelphia, pa

78%

The annual Fair Trade Philly roast brings together coffee house owners in the downtown Philadelphia area. During the fall season these roasters share their love of coffee with the public to encourage the purchase of fairly traded coffees and teas. In 2013 over 300 coffee shops participated and an overwhelming 3405 people showed up to support fair trade.

G LO BA L S U C C E S S R AT E

Annual Report 2012/13

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I NOW REALIZE THAT FAIRTRADE REALLY IS THE


A TRADE STRUCTURE DESIGNED TO ENABLE PEOPLE TO HELP THEMSELVES, AND THEIR COMMUNITY, RISE OUT OF POVERTY. - PAULINE MCKEE


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DOUBLING FAIRNESS IN 2013 Fair Trade USA is dedicated to empowering farmers and farm workers to fight poverty, improve lives and protect the environment. We are proud of our proven track record within the Fair Trade movement-- helping rural families across the globe earn more than $225 million in additional income since 1998.We’re excited to build on this strong foundation as we work to deliver far more impact to far more people. According to U.N. poverty statistics, over two billion people still live on less than two dollars a day. We at Fair Trade USA believe that all small farmers and farm workers deserve to have access to the opportunities and benefits of Fair Trade if we ever hope to make a significant dent in global poverty. This conviction that Fair Trade can and must be do more lies at the heart of our Fair Trade for All initiative, which aims to double the impact of Fair Trade for farmers by 2015.

Annual Report 2012/13

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Believe it or not, it’s almost been a year since we made the announcement that we would be leaving FLO and pursuing a new vision, Fair Trade for All, to double the impact of Fair Trade for farmers by 2015. Challenging the status quo and moving in a new direction has not been easy, but we’re proud of what has been achieved thus far. I’d like to take a moment to share some our most recent news, as it relates to this innovation initiative. According to U.N. poverty statistics, over two billion people still live on less than two dollars a day. We at Fair Trade USA believe that all small farmers and farm workers deserve to have access to the opportunities and benefits of Fair Trade if we ever hope to make a significant dent in global poverty. This conviction that Fair Trade can and must be do more lies at the heart of our Fair Trade for All initiative, which aims to double the impact of Fair Trade for farmers by 2015. The key to adding value and growing impact is innovation. Fair Trade USA is innovating our model in three ways:

Doubling the impact of Fair Trade for farmers by 2015, and improving lives throughout the

global coffee supply chain

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STRONG FARMING COMMUNITIES: Indonesia has become one of the hottest coffee origins in the world, but many farmers here are not well equipped to make the most of this opportunity. Our partnership with Lutheran World Relief will provide key business, quality and productivity trainings to strengthen cooperatives in Sumatra.

INCLUDING MORE PEOPLE The coffee from our very first Fair Trade Certified coffee estate in Brazil is now on shelves at Whole Foods Market. Farm workers chose to invest the community development premiums paid by Allegro in muchneeded dental and eye exams. Some workers received their very first pair of eye glasses, making it easier to pick high-quality beans. Workers also report feeling a heightened sense of ownership and empowerment in their work.

ENGAGING CONSUMERS October is Fair Trade Month. Last October our message reached nearly 30 million consumers. This year, Fair Trade Month promises to be bigger and better than ever before with participation and investment by a wide range of our stakeholders. Fair Trade Towns are also spreading rapidly while the proliferation of Fair Trade Universities is breathing new life into the student movement. Annual Report 2012/13

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MINAS GERAIS FAZENDA NOSSA SENHORA FARM

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he Fazenda Nossa Senhorade In the environmental side, with the Fatima (FNSF) is a familyinclusion of cattle and swine production owned and operated farm in the to have access to natural fertilizer and Cerrado Region in Minas Gerais, a new biodigestor to produce all the Brazil. Ricardo Aguiar Resende and energy needed for the farm, the farm is his wife Gisele direct the production, trying to produce all of the energy and commercialization and social projects most of the inputs needed for coffee at the farm. Ricardo is a thirdproduction. A reforestation process generation coffee farmer. With 230 including more native trees has been in hectares under coffee production, the process too. farm produces 100% organic-certified coffee and is a leader in socially and Some of the coffee is also shadeenvironmentally sustainable practices. grown, which is not commonly found in Brazil. Farm workers at the Fazenda The farm workers at this farm travel Nossa Senhora de Fatima will create every day from three towns: Perdizes, a workers organization in the next Patrocinio and Igrejinha da month. This organization will help to Macega. The farm arranges the facilitate the decision-making about transportation for the workers the use of the Fair Trade premium for every day. A few workers live at the the future and will help the workers to farm too. Between 75 and 110 farm continue discussing with management workers go to the farm ways to improve the social every day (depending and labor well-being of on the time of the workers. The workers the year). The farm have experience with other already has several certifications and are social initiatives benefiting the excited to participate in Fair Trade to workers’ communities, such as build something together.

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ELEVATION: 950M

PRODUCT: COFFEE

LBS SOLD IN 2013: 48920

FARM ID: 1025091

B R A Z I L

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Manja Rai, fabric artisan, sketches scarf designs

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RAJASTHAN JAWADE ROAD ARTISANS

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omorrow, I will have money; I will not have to beg, and my children can go to school,” says beadwork artisan Ms. Jagwati, summing up the most important reason to support fair trade: to restore someone’s hope, dignity, and smile. Jagwati comes from a slum in Delhi, one of many places around the world where fair trade is paving a way out of the cycle of poverty and progressing greatly every year. This February, Gaiam sent a small team to meet some of these extraordinary survivors in the places where they live and work — in India and in poor villages and communities across Vietnam, Cambodia and northern Thailand. Here, fair trade is a way out of the bleak cycle of poverty. By paying livable wages, funding schools and providing job training and child care assistance, fair trade is helping talented yet disadvantaged people gain ground against illiteracy, exploitation, even slavery and human trafficking. That is where fair trade comes in. We help by bringning vibrancy back to this area.

In the slum where I live, there are water problems and the circumstances are very bad says Jagwati, who lives in a poor area of the city with her husband and three daughters. It was about 11 years ago when things were at their worst for her family.

at first some of the women put tags on [to finished products] so they could earn some money says Tara Projects liaison Ms. Moon. Then we provided training in beading, tailoring and stitching. The goal was to help them become economically independent.

At that time we were earning very little,” she says, “and because girls’ education is not promoted, I would have to tell the girls they had to sit at home even though I did

My earnings from Tara have helped my family so much says Jagwati. “Before we were not aware of the importance of education. But my children must go, and for that we need support economically. We couldn’t

not want that. We did not have money to buy the books or pay the fees. Those were very difficult times.” Then Jagwati heard about Tara Projects, a group that had begun hiring women in her area for beading and seamstress work at wages she’d never dreamed of earning. But she knew that

go to school when we were young. We want our children to have those opportunities. Today my three daughters are going to school,” she adds. “I can afford to pay the fee. It gave us awareness and empowerment. I feel more confident.” Fair Trade for All came in and saw a community in need. Two years ago noone would have bothered.

I N D I A

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SANTA ROSA PERGAMANO COFFEE FARM

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he Department of Nariñoaccounts for around 5% of Colombia’s coffee production, and is often recognized for producing some of the highest quality in the country. In 2010, 17 of the 21 finalists of the Cup of Excellence were from Nariño. In the region there are approximately 35,000 small-scale farmers, many of whom own between 1 and 3 acres of land. For a wide variety of reasons, cooperative farming has not seen much success in Nariño; the vast majority of farmers in the region are unassociated. To help bring the opportunities of Fair Trade to those farmers who are not part of a cooperative, Fair Trade USA has partnered with Empresas de Nariño (EN), one of the main coffee buyers in the region, and 245 independent small farmers to obtain certification. Empresas de Nariño has a long history of supporting small-scale farmers in Colombia, and has developed a number of projects over the years to help them access the market, improve quality and implement more sustainable agricultural practices.

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H O N D U R A S

With support from local partners on the ground, such as AVINA and FUNDES, we are creating stronger networks or farmers that will ultimately deliver far more impact for far more people.After democratically-electing a Fair Trade committee, the smallscale farmers of Nariño would like to invest their Fair Trade community development premiums in capacity building and business training programs building safer, larger towns.

Fair trade has helped us combat child labor within our cocoa farms and sent over 200 children to school instead of work.

They want to work better as a group and improve the logistics of their business in order to receive better prices for their coffee. We try relentlessly everyday to be there.


NARINO JAGAWATI FAMILIA COCOA FARM

M

ost Colombian coffee growers live in small farms whose coffee cultivations plots do not surpass 2 hectares on average. Only slightly more than 5% of Colombian coffee producers have coffee plantations of a size bigger than 5 hectares. The reduced dimensions of their coffee plots have allowed maintaining an essentially family oriented activity to the Colombian coffee growing industry. Thus, the people of coffee in Colombia believe that thr family is their most important priority, and are very keen on protecting and maintaining a strong set of family values. The arduous work that implies growing and bringing quality coffee from the tree to the cup allows understanding the importance of all the processes in which Colombian producers intervene to sell a coffee with the characteristics of quality with which the Colombian Coffee is distinguished. Given the structure of the property and the average size of the Colombian coffee growing farms, in

most occasion the work of harvesting and post harvesting (see about coffee for details) are carried out by the producers themselves, reinforcing their special commitment to the product that comes out from their farms. In a similar way, the same coffee growers are the ones who, when being employed as harvesters in bigger farms, have helped to consolidate the processes and patterns to interact with the product that have developed in the different regions of the country. Consequently, thanks to this interaction between smaller and larger coffee growers a culture of quality has been developed, associated with the hard work mainly handcrafted, to obtain outstanding coffee of a superior quality. The people of coffee in Colombia are clearly dedicated and committed to their product. Around coffee in Colombia surged a number of social networks with a diversity of cultures and features, including different indigenous, afro descending communities and the heirs of the manifestations between the regions.

C O L O M B I A

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WHEN WE STARTED WE DIDN’T HAVE ANYTHING, AND HERE FAIRTRADE HELPED US CONNECT WITH THE MARKET. PEOPLE CAME FROM GERMANY AND SWITZERLAND TELLING US,


TO HELP FARMERS IN OTHER COUNTRIES AND DEVELOP PROGRAMS TO AID THEIR COMMUNITIES. - RINK DICKINSON


2013 FINANCES The summarized key financial figures outlined below have been extracted from internal management reports and from the 2012 audited financial statements. The latter, as in previous years, received an unqualified opinion (DHPG). Fairtrade International’s accounting practices comply with generally accepted accounting practices and relevant German legislation.

GRANTS

FU N DI NG

We received grants totalling €6.3 million from the funding partners mentioned on page 19. An amount of €561,000 is restricted funding: these funds can only be used for specific projects approved by the funding partner. The remaining €5.8 million is unrestricted funding.

We received grants totalling €6.3 million from the funding partners mentioned on page 19. An amount of €561,000 is restricted funding: these funds can only be used for specific projects approved by the funding partner. The remaining €5.8 million is unrestricted funding.

FEES

S ERV ICE S

As part of our agreement with DFID, a proportion of the grants we receive from them goes directly to funding Fairtrade Foundation UK’s work.

As part of our agreement with DFID, a proportion of the grants we receive from them goes directly to funding Fairtrade Foundation UK’s work.

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INCOME

2013

2012

TOTAL INCOME

14,972

15,805

TOTAL EXPENDITURE

14,051

15,385

CHANGES IN RESERVES

921

420

Annual Report 2012/13

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COFFEE 35 North Coffee Company Indigo Coffee Java Estate Roastery Johan & Nyström Kalani Organica Coffees Landgrove Coffee Mahogany Roasters Midwest Custom Roasting Moka Joe Moschetti Incorporated MP Mountanos Nada Moo Night Owl Roasters LLC NR North Roast

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COCOA Badger Company Blommer Chocolate Ciao Bella Gelato Co. Cisse Coco - Zen Dale & Thomas Popcorn Eco Lips INC General Mills Global Organics LTD Good Pops Guittard Chocolate Co. Honeyville Grain

PARTNERSHIPS

PRODUCE

TEA

Albert’s Organics Bridges Produce Interrupcion Nutiva Oppenheimer Group Organics Unlimited Pacific Organic Pure Ground Rainbow Valley Seald Sweet Southern Specialties Tropic Trade Turbana Corporation Wholesum Familyww

Allegro Coffee Company Arbor Teas Art of Tea Bhakti Chai Bigelow Tea Blue Buddha Beverages LLC Bully Blends Coffee & Tea Shop Incorporated Cafe Moto Chai Wallah China Mist Choice Organic Teas Coffee - Tea - Etc LLC Crimson Cup Coffee & Tea Da Cha Teas


FRUITS

SPORTS

SUGAR

Albert’s Organics Bridges Produce Calavo Growers Capespan North America Divemex - Export Entity Divine Flavor Dole Food Company Earth Source Trading Interrupcion JACOBS FARM / DEL CABO Oppenheimer Group Organics Unlimited Pacific Organic Produce Rainbow Valley Orchards Seald Sweet International Southern Specialties The Giumarra Companies Tropic Trade LLC Turbana Corporation Wholesum Family Farms Inc

Badger Company Blommer Chocolate Ciao Bella Gelato Co. Cisse Coco - Zen Dale & Thomas Popcorn Eco Lips INC General Mills Global Organics LTD Good Pops Guittard Chocolate Co. Honeyville Grain

A & A Tropical Foods Corporation Alter Eco Americas Chocolate Alchemy Frontier Natural Products GloryBee Foods Green Mountain Coffee India Tree Madhava Natural Merisant Pura Vida Coffee Whole Foods Market

FLOWERS BloomQuest LLC Ecuador Fair Trade Fall River Florist Supply Flowerlink InBloom Group LLC One World Flowers USA Bouquet

Annual Report 2012/13

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