Making the Difference

www.fairtrade.net

Fairtrade Labelling Organizations International (FLO) Bonner Talweg 177 — 53129 Bonn — Germany Phone +49.228.94 92 30 — Email [email protected]

Making the Difference

A NEW GLOBAL STRATEGY FOR FAIRTRADE

Photo front and back: Didier Gentilhomme

A global strategy for Fairtrade 4

Ambitions for the new strategy 6

Focus on the producer 8

Benefits for all 10

International markets need a global system 12

Making it happen 14

How the strategy was developed 16

The plan for 2009 18

TABLE OF CONTENT — 3

Making the Difference

A new global strategy for Fairtrade

After two decades of remarkable achievement, Fairtrade has even more ambitious plans for the future.

Over the coming two years we will implement a new global strategy that will strengthen, broaden and deepen Fairtrade, and bring valuable benefits to all our partners.

Photo: Kennet HavgaardPhoto: Kennet Havgaard

Currently there are over sixty Fairtrade certified banana producers in Colombia, Costa Rica, Dominican Republic, Ecuador, Ghana, Jamaica, Panama, Peru, Saint Lucia and the Windward Islands. In 2007, consumers throughout the world bought 234,112 metric tons of Fairtrade bananas.

A GLOBAL STRATEGY FOR FAIRTRADE — 5

This pamphlet presents an introduction to the new strategy. In six months’ time we will report again, as Fairtrade around the world begins to turn the strategy into reality.

Over the last 20 years, Fairtrade has been extraordinarily successful. Sales of Fairtrade certified products have increased phenomenally. Marginalized farming communities throughout the global South now benefit from fairer trade conditions.

It’s all excellent news. However, many producers still remain outside the Fairtrade system. Many types of product still fall outside the scope of Fairtrade certification. There’s a long way to go.

Some two years ago, Fairtrade began thinking about how to move forward. We invited our partners – Fairtrade members, producers, traders and consumers – to join us in developing a new strategy.

It soon became clear that for more people to benefit from Fairtrade we needed to shift to a unified global system. It has taken hard work and extensive discussion, but finally the new strategy is taking shape. It’s bold and ambitious, and will bring lasting benefits to everyone involved.

A global strategy for Fairtrade

Rob Cameron — Chief Executive Officer,

Fairtrade Labelling Organizations International — April 2009

A GLOBAL STRATEGY FOR FAIRTRADE — 4

Fairtrade’s worldwide recognition as a leader in the movement for fair trade gives us the opportunity – and responsibility – to set ambitious goals for our new strategy.

Strengthening

“

To ensure that we operate as effectively as possible at every level we will unify our approach globally, strengthen our teams and simplify our operations.

Where possible we will transfer responsibility to local managers for faster decisions and clearer accountability.

”

Broadening

“

We want to see a dramatic increase in the number of people benefiting from Fairtrade. The new strategy will enable producer organizations already in the system to scale up their business and it will bring into Fairtrade’s scope more producer groups, more product categories and more countries.

”

Deepening

“

In future, producers will gain even more by joining the Fairtrade system.

They will get more and better support to plan and implement their business development, and to sell more under Fairtrade terms.

There will also be improved financial benefits and easier local access to technical support.

”

AMBITIONS FOR THE NEW STRATEGY — 7

Ambitions for the new strategy

Photo: Kennet Havgaard

Key benefits for producers

— Greater value – broader and better Fairtrade benefits

— Flexibility – streamlined and inclusive standards

— Local support – to develop and expand

— Global connection – for better marketing

— Broader product range – so more people can benefit

Photo: Simon Rawles

Focus on the producer

Producer empowerment

Fairtrade will support producers more than before with easier access to technical, financial and marketing advice. We will build on the present network of professional Liaison Officers and connect them with partner organizations. Fairtrade producers will be given a clear framework to choose their own direction in business development.

New producer groups

In the future, producers will find it easier to join Fairtrade. Clearer and more adaptable certification

processes will remove barriers for producer groups.

We will also provide certification for a wider range of products. We will actively encourage Fairtrade producers to expand their business if they are eager to do so.

Attracting new partners

Traders and retailers are crucial to deliver a market for Fairtrade producers. To attract new partners we will improve our support services and strengthen the marketing of the Fairtrade label. A new global marketing strategy will reduce the barriers for international companies to work with Fairtrade.

FOCUS ON THE PRODUCER — 8

BENEFITS FOR ALL — 11

For Fairtrade labelling members

Our Labelling Initiative members will benefit from improved central support for core business functions.

A global marketing strategy will support our Labelling Initiatives in their focus on national marketing and supporting business partners. Better marketing and wider product scope will help them to win new commitment to Fairtrade.

For consumers

Our new strategy will assure consumers that every purchase brings benefits to the producer. It will also extend the range of products sold in a wider variety of small and major retailers.

For donors

Fairtrade’s donors and institutional supporters will see improved value for investments in Fairtrade and a clearer assessment of impact on producers and communities.

Benefits for all

BENEFITS FOR ALL — 10

For Fairtrade producer members

Producer Networks will have a more clearly defined role. Fairtrade will support them in building their capacity to take on more responsibility, so that over time they will take their place as key actors in the system rather than simply beneficiaries of it.

For business partners

The new global strategy will help to increase Fairtrade sales in world markets for all partners. For businesses that are entirely based on Fairtrade, we will bring innovative new approaches to Fairtrade and extend its reach to more marginalized communities. Our strategy will ensure that we can scale-up our operations smoothly through simpler processes and global

coordination.

Photo: Kennet Havgaard

Globalizing marketing

Fairtrade’s marketing operations today are largely managed by national members, Fairtrade Labelling Initiatives. This approach has been extremely successful and will continue to link producers and consumers.

But Fairtrade certified goods are gaining an increasing share of multinational markets and our marketing must respond to that. The new strategy will provide a unified, streamlined marketing operation which will position Fairtrade products globally.

Encouraging diversity

Fairtrade currently works in 58 countries, with thousands of organizations representing millions of people. To ensure that all needs are met, diversity will feature strongly in our global marketing strategy.

We will broaden our focus so that local and regional markets play a bigger role in the way Fairtrade operates.

International markets need a global system

INTERNATIONAL MARKETS NEED A GLOBAL SYSTEM — 13

Key marketing improvements

— Unified approach – for consistent marketing

— Better positioning – to compete more strongly

— Better market intelligence – for product targeting

— New markets and products – for more opportunities

— Local marketing – open to regional trade

MAKING IT HAPPEN — 15

Product management

As part of the new, unified marketing strategy, a Product Management team will work with producers and traders to develop clear strategic goals and appropriate standards for product categories.

Improved demand forecasting will provide a stronger basis for supply management.

Key account management

A Key Account Management team will help strengthen relationships with major business partners that handle a variety of products in different national markets.

A single, integrated service will minimize the administration involved, making it easy for partners to work with Fairtrade.

Achieving the benefits of Fairtrade’s new strategy will involve fundamental changes in the way the organization works.

Making it happen

Greater responsibility for producers

Producer Networks will increase their capacity so as to be able to participate more fully in Fairtrade.

To support this, our Producer Services and Relations team will be strengthened to formulate regional

support strategies, develop local partnerships and share knowledge across the Fairtrade system.

More flexible standards

We will create templates for producers to set their own objectives, and the certification processes will be more user-friendly and flexible – although we will not compromise on the minimum standards that

consumers expect.

MAKING IT HAPPEN — 14

Photo: Didier Gentilhomme

HOW THE STRATEGY WAS DEVELOPED — 17

2007

— Dialogue among the Labelling Initiatives and the Producer Networks begins.

— Strong consensus emerges about the defining principles of Fairtrade.

— The Fairtrade Labelling Organizations (FLO) General Assembly highlights critical issues.

— A number of teams drawn from different stakeholder groups tackle these points.

— A White Paper is approved by the Board and General Assembly.

2008

— Under the leadership of Rob Cameron, the

team designs a business model that can deliver the ambitions of strengthening, deepening and broadening Fairtrade.

— The FLO General Assembly approves this business model, now the Global Strategy for Fairtrade.

How the strategy was developed

A member of the Fairtrade certified Van Chan Bio Farmers Club picks tea in her village near Yen Bai. Shan wild tea is picked by ethnic groups in the lush hillsides of northern Vietnam both for export and for local sale under Fairtrade conditions.

Mr Poul Oweusu is the headmaster at one of the three schools of the Fairtrade certified Kuapa Kokoo organization in Ghana.

With Fairtrade premium money the school can provide extra classes in English, science and mathematics.

THE PLAN FOR 2009 — 18

The plan for 2009

Tasks for the first half of the year ...

— Define our goals, success criteria and priorities

— Design a new governance model for Fairtrade Labelling Organizations International

— Set up a Strategy and Policy Unit to handle implementation

— Develop Product Management and Key Account Management systems

— Develop an international licensing system

... and the rest of 2009

— Audit our existing skills

— Agree new financial and business plans

— Develop the new approach to producer services

— Plan how to build capacity in Producer Networks

— Analyse the impact on Labelling Initiatives

Photo: Kennet Havgaard