Fairtrade Canada Annual Report 2018 by Fairtrade Canada

Fairtrade Canada

ANNUAL Report 2018 Â© CLAC 1

TABLE OF CONTENTS WHO WE ARE

A Message from Fairtrade Canada’s Leadership.................................................................................03 Meet the Team................................................................................................................................... 05 The Global Fairtrade System.......................................................................................................... 06-07 Fairtrade Across The World...........................................................................................................08-09 Labels at a Glance.............................................................................................................................. 10 The Three Pillars of Fairtrade...............................................................................................................11

fairtrade’s contribution to sustainable development

Global Fairtrade Projects....................................................................................................................... 12-13 Fairtrade and the UN’s Sustainable Development Goals.................................................................. 14-15 Monitoring the Scope and Benefits of Fairtrade Globally................................................................. 16-17 Global Commodities by the Numbers............................................................................................. 18-19

Raising awareness of the public and consumers

Fairtrade Growth in Canada............................................................................................................... 20 Business Development and Sales....................................................................................................... 21

Real People, Real Impact

Coffee - Fighting Climate Change in Bolivia.................................................................................... 24-25 Cocoa - Cayat CO-OP, Cote D’Ivoire............................................................................................. 26-27 Bananas - From near bankruptcy to successful business model with Fairtrade.............................. 28-29 Tea - Sukambizi, Malawi: Getting access to markets...................................................................... 30-31 Flowers - Growing a better future by investing in young people and women.................................. 32-33 Cotton - Vasudha Jaivik Krishak Kalyan Samiti (Vasudha), India..................................................... 34-35 Sugar - The secret behind the sweet success of Surinam Souillac CCS in Mauritius...................... 36-37

BUILDING PARTNERSHIPS, GROWING AWARENESS AND ENGAGING CANADIANS

Strong Voice for Trade Justice in Canada............................................................................................39 Fair Trade Programs.......................................................................................................................... 40 Fair Trade Program designations in 2018............................................................................................43 Campaigns........................................................................................................................................ 44 Fairtrade Awards................................................................................................................................48 Fairtrade in the News..........................................................................................................................49

Fairtrade Canada financial statements can be accessed at: fairtrade.ca/reports

Message from Fairtrade Canada’s Leadership

Bill BARRETT

Julie FRANCOEUR

Chair of the Fairtrade Canada Board of Directors

Executive Director of Fairtrade Canada

Reading the headlines, one could think 2018 was all about unfair trade deals. What we saw was an entirely different storyline. We saw Canadians care more deeply about where their food, clothes and goods come from. We saw Canadian companies ask tough questions on the ethics of their supply chains. Sustainability isn’t a trend. It’s the new basic expectation. We can be a rallying force to make trade fair. As you will see in this report, the fair trade movement of supporters grew louder and more diverse from Coast to Coast. In 2018, we have used our voice more effectively than ever. Notably through the production of robust data on living income gaps for Ivorian and Ghanaian cocoa farmers and with thought leadership on the right of workers to living wages. We are particularly proud of having led an advocacy coalition to push the Canadian government to pass Supply Chain Legislation on Human Rights.

In the report, we show solid growth in the uptake of Fairtrade products. As a result, the impact we could deliver to producers increased significantly. Seeing cooperatives innovate in their investments of Fairtrade premium inspires us; from imbedding biodiversity protection in school curriculums in Honduras to satellite geomapping of farms in Ghana. We were both personally pleased that Fairtrade International held its first General Assembly in the South, in Costa Rica. A milestone as we continue to put farmers and workers in the driving seat of defining impact. This way, we can build sustainable trading relationships that work for them. The challenges remain large; climate change, the volatility of commodity prices, child labour and gender inequality, to name only a few. We see this as an opportunity for us to be bolder, to rekindle our activist roots and show even stronger leadership. In solidarity, Bill and Julie

MESSAGE FROM FAIRTRADE CANADA’S LEADERSHIP

WHO WE ARE Fairtrade is a global movement for change with a strong and active presence in Canada, represented by Fairtrade Canada. We work directly with businesses, consumers and campaigners to make trade fair for farmers and workers in the Global South by ensuring fair, sustainable and ethical supply chains for the products we consume. 4

MEET THE TEAM Headquartered in the Nation’s Capital Ottawa, Ontario, the Fairtrade Canada team is comprised of 13 staff members working to support business, educate Canadians, advocate and advise the Canadian Government, and support Canada’s grassroots fair trade community.

BUSINESS DEVELOPMENT AND COMMERCIAL RELATIONS

Helen REIMER

John MARRON

Gariné AINTABLIAN

Jose ABAD-PUELLES

Director of Business Development

Director of Commercial Relations

Coffee Account Manager

Account Manager

Ian BROWN

Gabriela WARRIOR RENAUD

COMMUNICATIONS

Pippa ROGERS

Director of Marketing & Communications

Digital Manager

MARK INTEGRITY

John YOUNG

Mark Integrity Director

Communications Specialist

FINANCE AND ADMINISTRATION

Stilyana STOIMENOVA

Mark Integrity Coordinator

Janet RIEHM

Director of Finance

and Administration

Not pictured: Sofia Molina, Coffee Account Manager, currently on maternity leave.

Debbie KEALEY Bookkeeper

WHO WE ARE

THE GLOBAL FAIRTRADE SYSTEM 6

Â© Sean Hawkey

Fairtrade International is a non-profit, multistakeholder association which brings together all actors in the Fairtrade system to coordinate Fairtrade global strategy. Fairtrade International is responsible for setting the Fairtrade Standards and owns the FAIRTRADE Mark.

e Fairt

ds ar

e Stand rad

Advising businesses and licensing use of the Fairtrade Marks

Advocacy and dialogue with civil society

Supply Chain

Supporting and representing producers, building markets, implementing projects

t r ad e c a n Fair ad

Producer Networks

. g.

National Fairtrade Organizations

Lat i

rica, Asia, A

INTERNATIONAL

ric

me nA

Organization

The Fairtrade System

regional Markets Producers

Exporter / importer

Manufacturer

retailer

Consumers

Audits and certification by FLOCERT 7

Fairtrade Across The World Fairtrade is an alternative approach to conventional trade. Based on a partnership between producers and traders, businesses and consumers Fairtrade is aimed at reducing poverty.

Most important countries of product origin: Coffee Peru Colombia Honduras Bananas Ecuador Peru Cocoa Peru CĂ´te d'Ivoire Flowers Ecuador Kenya

National Fairtrade Organization

Cotton

Fairtrade Producer Country

Tea

India

India China

Fairtrade Producer Country and Marketing Organization 8

Sugar Cane Paraguay Costa Rica

Producer Network

Latin America & Caribbean

Fairtrade International

Fairtrade International is the umbrella organization of the Fairtrade network. Fairtrade International links the market and producer voices and sets the Fairtrade Standards.

National Fairtrade Organizations Producer Network

Asia & Pacific

National Fairtrade organizations such as Fairtrade Canada are the best place to find out where you can buy Fairtrade products, how to become a licensee, or learn whatâ&#x20AC;&#x2122;s happening near you and what Fairtrade is all about.

Producer Networks

Producer Network

Africa & Middle East

The Producer representatives have

50â&#x20AC;&#x2030;% of the vote in Fairtradeâ&#x20AC;&#x2122;s General Assembly

Producer networks are regional associations that Fairtrade Certified producer organizations may join if they wish. They represent small-scale producers, workers and other producer stakeholders.

Labels at a GlancE Fairtrade product mark The FAIRTRADE Mark signifies a product has been fairly grown, traded and is physically traceable. The producers and businesses in the supply chain all comply with Fairtrade’s rigorous standards, working to improve the livelihoods of small-holder families and plantation workers. This Mark is mainly used on single ingredient products such as coffee or fresh produce like bananas. The optional ÉQUITABLE text can be used on all versions of the Mark by companies selling in French-language markets. You may also see the Mark with an arrow. The FAIRTRADE Mark with an arrow pointing to the right tells shoppers to read more on the back of the pack about how the product is produced. It shows that the Fairtrade Certified product is made with non-Fairtrade ingredients (for example milk, which cannot be purchased through Fairtrade sources) and/or has a supply chain which involves mixing during production (known as mass balance). This allows brands to provide clearer transparency to shoppers. This Mark still shows that every ingredient that can be sourced as Fairtrade has been purchased on Fairtrade terms. It is mainly seen on composite products like chocolate bars, or products that involve mass balance, like cane sugar, cocoa or tea.

SPECIAL FAIRTRADE PRODUCT MARK The FAIRTRADE Cotton Mark signifies that all of the cotton in a pure or mixed cotton product is Fairtrade Certified. Conversely, the FAIRTRADE Textile Production Mark signifies that all steps in a textile’s supply chain have met the Textile Standards set by Fairtrade. The FAIRTRADE Mark for gold signifies the gold was fairly mined and is traceable. The FAIRTRADE Mark for gold is stamped on the jewelry itself. There are additional product marks for silver and platinum mining.

FAIRTRADE SOURCED INGREDIENT MARK The FAIRTRADE Sourced Ingredient Marks refer to one ingredient in a mixed product that is produced under the same rigorous Fairtrade standards, improving the livelihoods of farmers and workers. Products featuring the FAIRTRADE Sourced Ingredient Mark also show if an ingredient is traceable or was mixed during processing. These Marks communicate to shoppers which ingredient is Certified - for example, the cocoa in a chocolate bar or the roses in a bouquet. 10

LABELS AT A GLANCE

THE THREE PILLARS OF FAIRTRADE The Fairtrade Standards are the collection of standards that smallholder organizations, plantations and companies must meet throughout the supply and processing chain. These standards include social, economic and environmental criteria to ensure the sustainable development of producer organizations.

Economic Criteria

Raw materials are purchased at a guaranteed minimum price which aims to cover the costs of sustainable production and allow producers and their families to live with dignity, regardless of global market fluctuations. Buyers also pay a Fairtrade Premium to producer or labour organizations, which can be invested in the development of their businesses or in social projects benefitting the entire community. Buyers are committed to a lasting relationship with producers and must enable pre-financing if required by the producers.

Social criteria

Fundamental labour rights for workers must be respected, as defined by the International Labour Organization (ILO): decent working conditions, freedom of association, occupational health and safety much of which often contrasts with the reality of workers in the Global South. In particular, an employment contract must be established and is mandatory to implement health standards and strict safety. Child labour is prohibited, as is gender-based discrimination. Producer and labour groups must put in place specific programs in favour of disadvantaged visible minorities, such as women.

Environmental criteria

The use of chemical pesticides is limited and natural products are preferred. The use of GMOs is prohibited. The preservation of natural resources and ecosystems is part of the standards which have to be met, including optimization of drinking water and sustainable soil management. Organic farming is encouraged. Producers and workers receive training on sustainable agricultural practices allowing them to better adapt to the impacts of climate change and reduce their ecological impact.

ÂŠ TransFair THE THREE PILLARS OF FAIRTRADE 11

Global fairtrade Projects 12

Â© Sean Hawkey

Cocoa farmers to earn more through a higher Fairtrade Minimum Price On December 3rd, 2018, Fairtrade International announced that it will raise the Fairtrade Minimum Price for conventional cocoa from $2,000 to $2,400 per metric tonne at the point of export (FOB), marking a 20 percent increase. For organic cocoa, the Fairtrade price will be $300 above the market price or the Fairtrade Minimum Price, whichever is higher at the time of sale. This is a change from the current minimum fixed price of $2,300 per metric tonne for Fairtrade Certified organic cocoa.

The challenges in the West African cocoa sector are huge, with a Fairtrade study in April 2018 showing that 58% of Fairtrade Certified cocoa farming households in Côte d’Ivoire had incomes below the extreme poverty line. The new Fairtrade Minimum Price will allow average Fairtrade cocoa growing households to earn above the extreme poverty line. Fairtrade expects to review its cocoa Minimum Price and Premium again in three years. “This is good news for West Africa’s cocoa growing communities,” said Fortin Bley, an Ivorian cocoa farmer and chairperson of Fairtrade Africa’s West African Network. “Farmers have been badly squeezed by low world prices, so the higher Fairtrade Minimum Price and Premium help to level the playing field for a more sustainable future.”

World cocoa prices plunged by more than a third last year, and it is farmers who bear the brunt of price volatility. Fairtrade is the only certification scheme that has a mandatory minimum price, which acts as a safety net for farmers when market prices fall while allowing them to benefit when prices rise.

The new price structure, agreed by the Fairtrade Standards Committee, a multi-stakeholder body which includes farmer and trader representatives, will take effect on October 1, 2019. The decision follows a lengthy consultation process across the cocoa supply chain with Fairtrade farmers, traders, manufacturers, and chocolate brands.

The Fairtrade Living Income Reference Price, which is calculated at farm gate level rather than FOB because it refers to farm income, is $2,668 per metric tonne of cocoa in Côte d’Ivoire and $2,300 in Ghana. (For comparison, the new Fairtrade Minimum Price at FOB level would equate to approximately $1,600 per metric tonne at farm gate level in Côte d’Ivoire at today’s rates.) The Living Income Reference Price should enable full-time cocoa farmers to earn a living income if implemented as part of a holistic strategy that also includes increased productivity and diversified crops. Unlike the Fairtrade Minimum Price, the Living Income Reference Price is not mandatory. The increase in the Fairtrade Minimum Price closes about a quarter of the gap between the average Ivorian cocoa farmer income and a living income, as a first step in a gradual and collective approach to bridging the difference.

For reference, the current cocoa price set by the government of Côte d’Ivoire, the world’s biggest cocoa producer, is $2,124 at FOB. Fairtrade buyers pay farmer organizations the differential when the Fairtrade Minimum Price is higher. The additional Fairtrade Premium will be increased from $200 to $240 per metric tonne, the highest fixed premium of any certification scheme. This is an amount on top of the selling price, paid directly to farmer organizations to spend on projects of their choice. The Premium helps to build strong and viable cooperatives that can respond to their members needs and strengthen them as long-term business partners for buyers. In 2017, Fairtrade cocoa farmer cooperatives earned nearly $43 million in Fairtrade Premium to invest in their communities and businesses.

household’s basic costs for food, housing, clothing, health care, education plus a small provision for emergencies, and then factors in productivity benchmarks and the cost of sustainable production. The basis for this price model was also validated through a consultation process with producers, industry and civil society.

New Living Income Reference Price sets target level On December 3rd, 2018, Fairtrade International announced Fairtrade International has established a Living Income Reference Price for cocoa in Côte d’Ivoire and Ghana, providing the first target price for the industry based on living income benchmarks and consultation on farm costs.

“It’s a sad truth that most cocoa farmers in West Africa are living in poverty,” said Darío Soto Abril, global CEO of Fairtrade International. “The price that farmers are paid is a critical aspect that needs to increase so that cocoa farmers can afford a decent standard of living for their families. We are committed to working together with our partners, and welcome other bold efforts across the industry to make living incomes a reality.” Fairtrade will develop projects with committed partners to test the Fairtrade Living Income Strategy, including price and diversification initiatives, and share learning that will move the cocoa industry closer to supporting a living income.

This target price is based on what the ISEAL Living Income Community of Practice has calculated would be needed in each country to support the average cocoa farming GLOBAL FAIRTRADE PROJECTS 13

Fairtrade and the UNâ&#x20AC;&#x2122;s Sustainable Development Goals Contributing to the global movement for change with concrete actions that deliver lasting impact. 14

ÂŠ Sean Hawkey

Leveraging Fairtrade to achieve the Sustainable Development Goals Fairtradeâ&#x20AC;&#x2122;s strategy, which combines economic, social, and environmental progress, is fully committed to achieving the Sustainable Development Goals adopted by the United Nations and the international community in 2015. With the fight to end poverty (SDG 1) at their core, many of the SDGs are closely linked to agriculture and rural communities in the Global South, as well as consumer habits in the Global North.

Zero Hunger

The majority of the 815 million people suffering from hunger in the world are small farmers. Fairtrade allows them to increase and stabilize their income and ensure food safety for their families and communities.

Gender equality

Women constitute up to 70% of the agricultural work force in the poorest countries. Fairtrade prohibits discrimination on the grounds of gender and is strengthening economic independence and autonomy for women: they are paid directly and participate in the governance of organizations.

Decent work and economic growth

Sustainable and inclusive growth is possible only if farmers and workers can live in dignity and their rights are respected. The Fairtrade system respects International Labour Organization (ILO) standards which allow for workers to assert their rights and fight against human rights violations, such as child labour.

Sustainable production and consumption

Sustainable consumption and production requires environmental and social responsibility from all. Fairtrade connects everyone involved: from companies that are changing their practices (trade policy and sustainable supply chains) to consumers, who are encouraged to change their purchasing choices.

Climate Action

Small farmers who are experiencing the effects of climate change can also be part of the solution. Fairtrade certification includes environmental requirements that improve the preservation of ecosystems and encourages the conversion to organic agriculture. A support program allows producers to adapt to climate change and reduce their environmental footprint

Peace, justice and strong institutions

The Fairtrade system is governed equally by producer organizations from the Global South and Fairtrade organizations from the Global North. It proposes an approach based on respect for human rights and inclusiveness, leading producers and workers to strengthen their governance and accountability. Support for producer organizations allows them to better defend their position with private and public stakeholders. Support for agricultural workers gives them the means to understand and demand their rights.

Partnerships for the achievement of objectives

All stakeholders â&#x20AC;&#x201C; businesses, governments, producers, consumers - have a crucial role to play in the implementation of the SDGs. Imbalances in supply chains exclude the most vulnerable, which the SDGs seek to address as a priority. Fairtrade implements a collaborative approach which brings together all stakeholders involved in the value chain, engaging their economic partners and the public.

FAIRTRADE AND THE UNâ&#x20AC;&#x2122;S SUSTAINABLE DEVELOPMENT GOALS 15

Monitoring the Scope and Benefits of Fairtrade Globally 16

ÂŠ Sean Hawkey

1.66 million farmers &

workers

in Fairtrade

certified producer organizations

fairtrade premiums

$168,000+

received ON Average

by fairtrade producer organizations

$237.5 million IN Fairtrade Premium

BENEFITS of fairtrade premiums

Workers on fairtrade certified plantations invested

33%

of their Fairtrade Premium in education services and housing improvements

PAID TO Fairtrade producer

SMAll producer organizations spent

1411

Fairtrade certified producer

organizations

23% 73 48% Countries

of all Fairtrade of all farmers

farmers

and workers in Fairtrade are Produce coffee women

Latest figures from Fairtrade International. Financial figures are estimated and converted from Euros to Canadian dollars.

48%

of their Fairtrade Premium in services for farmers like provision of agricultural tools or farmer training MONITORING THE SCOPE AND BENEFITS OF FAIRTRADE GLOBALLY 17

Global Commodities by the Numbers 189 cocoa producer

537 coffee producer

organizations representing 795,457 coffee farmers in 30 countries

1 million hectares of coffee cultivated worldwide

COFFEE

Coffee farmer organizations received $111 million in Fairtrade Premium

83% of all Fairtrade coffee comes from Latin America and the Caribbean

organizations representing 226,579 226,579 farmers in 22 countries

147 banana producer Sales volumes of Fairtrade Cocoa grew by 34%

Cocoa

$36.9 million in Fairtrade Premium received by cocoa producers

182,920 Fairtrade cocoa farmers in West Africa

organizations representing 22,044 farmers and workers in 16 countries

Sales volumes of Fairtrade bananas grew by 5%

Bananas

$42.75 million in

Fairtrade Premium received by banana producers

94% of all Fairtrade

bananas come from

Latin America and the Caribbean

101 sugar producer organizations representing 54,000 farmers in 19 countries

18 cotton producer Organic Fairtrade sugar production grew by 15%

Sugar

$14.55 million in

Fairtrade Premium received by sugar producers

Sales volumes grew by 7% for Fairtrade sugar

organizations representing 46,305 46,305 farmers in 6 countries

Fairtrade cotton farmers invested 35% of their Fairtrade Premium to support education in their communities

Cotton

86% of all Fairtrade Premium for cotton goes to India

75% of all Fairtrade

cotton farmers live in India

Latest figures from Fairtrade International. Financial figures are estimated and converted from Euros to Canadian dollars.

67 flower producer

organizations representing 54,160 54,160 workers in 8 countries

$10.2 million in

Fairtrade Premium received by flower workers

Flowers

Workers on Fairtrade Certified flower plantations invested 24% of their Fairtrade Premium in education projects

$829 million stems sold as Fairtrade

GLOBAL COMMODITIES BY THE NUMBERS 19

Fairtrade Growth in Canada 20

Â© Sean Hawkey

Business Development and Sales volumes sold by producers through Fairtrade Canada in 2018 2018 saw the continued growth in engagement, reach, and sales of Fairtrade products across Canada, with retail sales in Canada estimated at $500 million, marking +9.8% value growth in 2018. We welcomed 16 new licensees and saw the introduction of the first new products under the new Fairtrade Sourced Ingredients (FSI) model. The FSI model, launched across the Fairtrade system in 2018, allows farmers and workers more opportunities to sell their produce on Fairtrade terms and gives companies greater flexibility to incorporate Fairtrade ingredients into their products. With market research showing a growing consumer segment shopping their values, Fairtrade certification is an easy way for companies to distinguish their products as socially, environmentally, and economically sustainable. We saw increased levels of engagement from companies introducing Fairtrade offerings across brand and private labels across the retail and foodservices sector.

Bananas (Kilos) 4,299,757

Coffee (Kilos) 11,906,701

33% growth from 2017

7% growth from 2017

Tea (Kilos) 76,464

Cocoa 30% Growth from 2017

48% growth from 2017

Cadburyâ&#x20AC;&#x2122;s volumes excluded from 2017-18 years.

In addition, in 2018 we saw an increased level of engagement with companies from product sectors outside of the traditional food & beverage categories.

$500

in Fairtrade Premium

Retail sales of Fairtrade Products in Canada (CAD)

million million Generated from Canadian

sales in 2018 (USD)

177

Licensees

Pure Traders

5,024

Licensed Products from Domestic licensees (excluding variants), of which are 3 FSI products

FAIRTRADE GROWTH IN CANADA 21

Real People Real Impact Fair terms of trade, safeguarding human rights, and increased producer autonomy: these are the basic principles of Fairtrade that can improve the social, economic and environmental conditions of producer communities. Seeing the real-world impact of Fairtradeâ&#x20AC;&#x2122;s efforts is the true measure of success for the fair trade movement. 22

COOMPROCOM Coop members Timoteo Miranda Orozco, Rodrigo Salomón Miranda and José Daniel Sevilla at a water tank built with the Fairtrade Premium for the community at Payacuca, Matagalpa. COOMPROCOM Coop was founded in 2003 and Fairtrade Certified by FLO in the same year. © Sean Hawkey

Fighting Climate Change in Bolivia In 2014, small-scale organic coffee farmers in Bolivia were severely affected by coffee leaf rust, or â&#x20AC;&#x2DC;la royaâ&#x20AC;&#x2122; (Hemileia vastatrix). The impact of the fungus on coffee plants resulted in a substantial 5090 percent drop in production between 2015 and 2016. The majority of the affected plants did not survive the outbreak and producers were forced to renovate their entire plots. The rust epidemic in Bolivia can be linked to unprecedented excessive rainfall and increased temperatures, both of which can be attributed to climate change. Additional factors that may have caused it include the age of the coffee trees, degraded soil, lack of adequate crop management and fertilization. All of these factors weaken coffee plants, making them more vulnerable to pests and disease, such as coffee rust. With support from Fairtrade Germany and financing from commercial partner LIDL Germany, the Latin American and Caribbean Network of Fair Trade Small Producers and Workers (CLAC), in collaboration with the Fair Trade National Platform in Bolivia (CNCJ-Bolivia), began implementing a two-year project to strengthen eight small producer organizations in the country. The project aims to build up their resilience to climate change by improving their organic production systems and training young leaders. Currently, 330 producers are participating in the project, building family nurseries (or greenhouses) with the objective of replacing more than 300,000 old coffee trees. Additionally, producers are participating in field schools, where they are learning best agricultural practices relevant to their region. These include seed selection, plant nurseries, plotting the land and crop management.

A worker plunges his hands into freshly picked coffee cherries at Fairtrade Certified Cooperativa de Caficultores de Manizales, Colombia. ÂŠ Sean Hawkey

FAIRTRADE COFFEE: FAIRTRADE PREMIUM USE

Note: Percentages may note sum due to rounding. Latest figures from Fairtrade International.

FAIRTRADE COFFEE 25

Cayat CO-OP, Cote D’Ivoire Société Coopérative Agricole de YakasséAttobrou (CAYAT) is an excellent example of what can be achieved when communities use the Fairtrade Premium to tackle problems that are most pressing for them. CAYAT is a 1st-grade Fairtrade Certified producer organization and became Fairtrade Certified in 2012. The cooperative has 1,391 members, including 115 women (eight percent of all members). Confronted with the fact that most of its members did not have access to a bank account or microfinances, CAYAT decided to invest part of its Fairtrade Premium in a project called CAYAT – MOBILE-MONEY. Through it, the cooperative pays each farmer their share of Premium funds directly to their mobile phone accounts, which most of them have. The objective is to enable CAYAT members to better manage their incomes and improve the traceability of Premium payments.

Producer holding three cocoa pods at a Fairtrade Certified cooperative, Côte d’Ivoire. © Marco Garofalo 26

The project has already enabled more than 90 percent of members to register and obtain mobile money accounts. An additional benefit is that producers can use their mobile money accounts to send money to relatives or their children. With cash withdrawal points becoming more common – even in remote villages – producers no longer need to travel long distances to the nearest larger town to withdraw money. CAYAT-MOBILEMONEY has also brought additional benefits to the community. It has taught producers about saving money; facilitated access to producer credit, and made money transfers easier.

FAIRTRADE COCOA: FAIRTRADE PREMIUM USE

Note: Percentages may note sum due to rounding. Latest figures from Fairtrade International.

FAIRTRADE COCOA 27

From near bankruptcy to successful business model with Fairtrade COOBANA is a real Fairtrade success story. From a group of people with a vision who were hit by economic crisis and a lack of business acumen, they have emerged bigger and stronger, with a bright future thanks to Fairtrade and the concept of partnership. Bocas del Toro province is a traditional banana growing enclave in Panama. But, during a downturn in the 1990s combined with related labour conflicts, many banana companies went to the wall. In 1991, a group of workers came together to try and keep jobs in their region, Changuinola. They had a proposal for government: to purchase and restore what was formerly the Atlantic Banana Corporation run by the Ministry of Agricultural Development. It was accepted and they did. But, almost three decades on, they were at breaking point. Following a number of bad purchasing contracts combined with lack of knowledge of the global fruit market, COOBANA hit a low point in 2009. Producing only 1,400 boxes per hectare, it was making losses hand over fist. But, when they most needed help, a banana co-op just across the border in neighbouring Costa Rica suggested they contact Fairtrade for advice. After studying the potential benefits of certification, including better prices for their bananas, the Fairtrade Premium, growth opportunities for small banana producers and a more transparent supply chain, COOBANA began the certification process in 2010. They collaborated with Dutch importer Agrofair, which became a partner and supported their development within Fairtrade. Today, COOBANA employs more than 550 people, almost half of whom are members. They own three farms and are the largest independent producer in the region. From a lowly 1,400 boxes per hectare, they now produce 2,100 – meaning better wages and more Premium funds to invest in their farms, their communities and their children’s education and, ultimately, a better future for the whole community.

Feliciana Quintero holds a Fairtrade banana ready for export at Fairtrade Certified COOBANA plantation, Panama. © James Rodriguez

FAIRTRADE BANANAS: FAIRTRADE PREMIUM USE IN SMALL PRODUCER ORGANIZATIONS

FAIRTRADE BANANAS: FAIRTRADE PREMIUM USE IN HIRED LABOUR ORGANIZATIONS

Note: Percentages may note sum due to rounding. Latest figures from Fairtrade International.

FAIRTRADE BANANAS 29

Sukambizi, Malawi: Getting access to markets Sukambizi is an organization of small-scale tea producers in the Mount Mulanje area of southern Malawi. Since acquiring Fairtrade certification in 2008, its membership has grown from 4,000 to over 8,600 as local farmers have seen how Fairtrade Premium projects have helped boost living standards. Fairtrade Premium funds were heavily invested in infrastructure to improve market access for the farmers. Sukambizi constructed bridges to connect inaccessible villages with other villages and markets and bought vehicles to transport produce. This greatly improved their ability to get green leaf tea to Lujeri, the regional trading centre, quickly and efficiently. Almost 5,000 residents in 45 hard-to-reach villages benefitted as a result. A majority of Sukambizi members – 70 percent of whom are women – have also invested funds in other social projects, including a new school, a maternity wing extension, and a 28-kilometre pipeline to supply twelve villages with drinkable water. “The first thing we did was to invest in the school,” says Esme Kamwende, one of the women smallholder farmer members of Sukambizi. “We believe in a future here but this is only possible if the next generation gets your support.” In recognition of their outstanding work in driving change in their community, the farmers at Sukambizi were honoured with the Fairtrade Award 2016.

Tea worker at Fairtrade Certified Sukambizi Association Trust, Malawi. © Francesco John Mpambe

FAIRTRADE TEA: FAIRTRADE PREMIUM USE IN SMALL PRODUCER ORGANIZATIONS

FAIRTRADE TEA: FAIRTRADE PREMIUM USE IN HIRED LABOUR ORGANIZATIONS

Note: Percentages may note sum due to rounding. Latest figures from Fairtrade International.

FAIRTRADE TEA 31

Growing a Better Future by Investing in Young People and Women Harvest Limited employs about 653 workers and produces more than 35 million roses annually in their greenhouses in Athi River, Kenya. The farm became Fairtrade certified in 2012. It has also subscribed to the sector’s collective bargaining agreement, which requires better employment conditions for workers than the national legal minimums in Kenya. As well as benefiting the workers, Fairtrade certification has also helped Harvest to increase its sales by 30 percent and boost its productivity. This has inspired the farm’s workers to launch an ambitious development plan. Based on the Sustainable Development Goals, its aim is to improve their livelihoods using their Fairtrade Premium. Educational programs, geared towards ensuring better opportunities for the younger generation, especially girls, are a key focus of their Premium-related investments. Despite advancements in access to education in Kenya, secondary schools still require tuition payments, which many parents can’t afford. Fifty percent of Harvest workers have already benefited from individual bursaries for their children. In addition, Fairtrade Premium funds have also been used to supply free sanitary napkins to the girls in the community so that they can they attend school full-time. In the past, girls used to stay at home or even drop out of school because they could not afford sanitary napkins. This project has increased girls’ school attendance substantially.

Workers at Harvest are also offered opportunities to learn new skills thanks to the Fairtrade Premium, which funds classes on driving and computer skills among others. In order to promote women’s self-sufficiency and independence, women’s empowerment groups have also been set up to start collectively-run businesses for income diversification. So far, this has resulted in the development of small grocery stores; pig and cattle farms, and rabbit breeding. These provide a reliable alternative livelihood. Other projects funded with the Fairtrade Premium include a home improvement scheme to help workers start building or making improvements to their houses, and an environmental protection program to promote reforestation along the Athi River.

FAIRTRADE FLOWERS: FAIRTRADE PREMIUM USE

Note: Percentages may note sum due to rounding. Latest figures from Fairtrade International.

FAIRTRADE FLOWERS 33

Vasudha Jaivik Krishak Kalyan Samiti (Vasudha), India The cotton farmers we work with in India currently find it very difficult to access nongenetically modified (GM) cotton seeds, with over 95 percent of cotton seed supply in India being genetically modified. This limits the opportunities of cotton farmers to improve their livelihoods by gaining access to higher-value markets for their crops, since Fairtrade and organic standards prohibit use of GM seeds. Farmer members of Fairtrade cooperatives have proactively identified increased access to non-GM seeds as a major priority for them. Vasudha Jaivik Krishak Kalyan Samiti (Vasudha) is one such cooperative. A registered society of smallholder cotton farmers in Khargone district in the state of Madhya Pradesh, Vasudha comprises 1,524 individual members spread across 47 villages, of which 1,417 are men and 107 are women. The staple crops of the region are wheat, maize, soybean, pigeon pea, grams and groundnut. Vasudha has encouraged other neighbouring producer organizations to invest in similar Fairtrade Premium projects, such as building schools, investing in education and drip irrigation. In late 2016, Fairtrade Foundation raised funds through TRAID to develop a three-year seed breeding program for non-GM cotton seeds. The program is being run under the supervision of a qualified agronomist and plant breeder employed by Vasudha’s parent organisation, Pratibha Syntex, and includes the training of 19 skilled farmers. The project aims to benefit 1,500 farmer members of Vasudha and will be extended to other producer organizations in the coming years. This project is one example of the Fairtrade-facilitated link between Vasudha and Pratibha Syntex, which is one of the world’s largest textile manufacturers with a strong focus on sustainability. It specializes in knitted textiles and is also located in Madhya Pradesh. Thanks to Fairtrade Premium funds, Vasudha has been able to invest significantly in their members’ businesses. The cooperative makes its own chemical-free fungicides, insecticides and nutritional supplements and sells to farmers at cost. They work with several technical experts to provide periodical workshops and training camps on different topics to improve quality and productivity. Cooperative members have also chosen to invest in drip irrigation for 125 farmers covering 50 hectares, conserving up to 40 percent of their former water usage. Eighty percent of Fairtrade cotton farmers are using drip irrigation today and improving their water management as a result. Vasudha has also used the Fairtrade Premium to benefit the local communities. Projects include the establishment of a skills development centre for women where they learn stitching and tailoring to supplement their income. Toilet facilities for women have also been built in the village, and efforts are being made to enroll all the girls in the community in the local schools. 34

FAIRTRADE COTTON: FAIRTRADE PREMIUM USE

Note: Percentages may note sum due to rounding. Latest figures from Fairtrade International.

FAIRTRADE COTTON 35

The secret behind the sweet success of Surinam Souillac CCS in Mauritius Mauritian sugarcane farmers have a saying: “sugar is in our blood.” But extreme weather conditions in recent years led to a fall in productivity both of sugarcane and sucrose. And, like small-scale sugar farmers around the world, farmers here have faced rising costs and volatile sugar prices. As a result, many stopped growing cane. It was simply no longer a viable or sustainable business proposition. But producer organization Surinam Souillac CCS – many of whose small farmers grow cane on marginal lands of less than one hectare on sloping mountainous terrain - has bucked the trend. They say their competitiveness comes from the support they’ve received from Fairtrade. Coop members have adopted better agricultural practices, such as the “Clean Cane Campaign”. They improved their field structure; they weed and feed their crop in a timely fashion; they replace old cane varieties with more adaptable new ones. And they’ve introduced improved governance and internal controls. To incentivize farmers and buffer them against low sugar prices, Surinam provides financial aid for each tonne of cane produced. The more cane the farmers produce, the more Premium they receive. The co-op’s Premium has also paid for timely cutting, loading and transportation of the cane to the mill, thus increasing both the sucrose content and the farmers’ income. There has been a positive environmental pay-off too. Cultivating cane on the mountains is tough but the crop cover helps prevent soil erosion. This has become even more important as farmer numbers fall and more land lies fallow.

With more and more farmers in the Fairtrade fold, the sustainability of their future has been reinforced. Farmers are also helping to combat global warming as sugarcane is a C4 plant, which absorbs more carbon dioxide

FAIRTRADE SUGAR: FAIRTRADE PREMIUM USE

Note: Percentages may note sum due to rounding. Latest figures from Fairtrade International.

FAIRTRADE SUGAR 37

Building Partnerships and Engaging Canadians 38

Strong voice for Trade Justice in Canada

Canadian Coffee & Tea Show s eptember 23-24, 2018 | Toronto Jose Abad-Puelles and Sofia Molina presented at Canadian Coffee & Tea Show, Canada’s largest coffee and tea event. Jose presented on the Sustainability Panel, hosted by the Tea and Herbal Association of Canada, while Sofia hosted a lunch and learn focused on Fairtrade coffee.

World banana forum october 10-11, 2018 | Montreal

Throughout the year, the Fairtrade Canada team presented at a number of key events, sharing their expertise and carrying the Fairtrade mission across the country. Here are a few of the events that Fairtrade Canada participated in throughout 2018.

The World Banana Forum held its first ever meeting on North American soil in Montreal, QC in October 2018. The whole event was generously hosted by Fairtrade Canada’s licensee Equifruit. The Forum strives to ensure that banana production and trade are sustainable from the environmental, social and economic perspectives and that every actor in the supply chain, from producers to retailers, receives a fair price. John Marron and Jose Abad-Puelles, among other stakeholders of the banana sector, were invited to participate in the meeting.

World Ethical Apparel Round Table (WEAR) Fashion Takes Action October 1-2, 2018 | Toronto WEAR is a unique forum to share examples of both local and global leadership, best practices and innovative solutions with the North American apparel and textile industry. Helen Reimer presented a panel session with Simon Chorley of UNICEF Canada and Daniel Wilcox of World Vision Canada. The panel explored how Canada can most effectively tackle its supply chain connections to child labour and modern slavery and shared insights on the role collaboration has played in moving Canada towards new supply chain legislation, and the role the textile sector can play in continuing that momentum.

COFFEE ASSOCIATION OF CANADA NOVEMBER 6, 2018 | TORONTO Fairtrade Canada sponsored a panel discussion on sustainability at the CAC’s 2018 Annual Conference. Kathrine Löfberg, Chair of Löfbergs, and Stéphane Glorieux, President of Keurig Canada, explored the future of coffee in Canada and what a sustainable future for the industry looks like.

BUILDING PARTNERSHIPS AND ENGAGING CANADIANS 39

Fair trade Programs 40

Partnering With and Empowering the Grassroots The Fair Trade Programs provide a framework by which the Canadian fair trade grassroots movement can take action in their local communities. The Programs work to educate, raise awareness, advance, and advocate for trade justice and fair terms of trade for producers and workers in the Global South. Producers and workers in the Global South can directly benefit from the establishment of strong procurement partnerships and increased sales of Fairtrade products in communities across Canada. Association québécoise du commerce équitable, Canadian Fair Trade Network and Fairtrade Canada manage the Fair Trade Programs in the spirit of collaborative partnership that works to strengthen the impact of our collective goals in advocating for trade justice in Canada.

FAIR TRADE PROGRAMS 41

A Word from our Partners About the Canadian Fair Trade Network The Canadian Fair Trade Network (CFTN) exists to inspire and coordinate a network of engaged civil society advocates and volunteers, along with business, institutional, and government leaders, in building a robust social movement that works to advance the values and vision of fair trade. Find out more at www.cftn.ca. About l’Association québécoise du commerce équitable The Association québécoise du commerce équitable (AQCÉ) aims to bring together all the players working to grow the fair trade movement in Québec. Through their expertise, education, promotion, consultation and mobilization, the AQCÉ influences public, private and institutional purchasers to commit to fair trade. Find out more at www.assoquebecequitable.org.

Fair trade is built upon collaboration, co-operation and mutual respect, and while these values should make for a natural partnership between any two organizations, living them is often difficult and elusive. Working with Fairtrade Canada, especially in recent years, it has been clear that these values have been put front and centre by both organizations, and that has made for a wonderful, fruitful partnership. We look forward to many more years of collaborative work ahead. Sean McHugh, Executive Director, Canadian Fair Trade Network

Fair Trade is a rich movement that is based on solidarity. We are thrilled to see the growth of this movement in Canada and Quebec. Our partnership with Fairtrade Canada enhances this solidarity. We work with Fairtrade Canada to maximize the reach of fair trade and engage the public. The recent successes observed are the result of this collaboration and we see a long partnership that will benefit fair trade. Fouzia Bazid, Project Manager Association québécoise du commerce équitable

2018 Fair Trade Program Designations All Program categories continued to grow during 2018. The Fair Trade Events and Fair Trade Workplace program categories saw particular growth over 2018, showing promise for future exansion to large-scale events as well as workplaces with larger staff numbers.

27 Fair Trade Towns One designated in 2018:

• MONT-SAINT-HILAIRE, QC There were almost 6,000,000 Canadians living in Fair Trade Towns in 2018

24 Fair Trade Schools Four designated in 2018:

• COLLÈGE MONT-NOTREDAME, SHERBROOKE, QC • ST. BROTHER ANDRÉ CATHOLIC HIGH SCHOOL, MARKHAM, ON • BIGGAR CENTRAL SCHOOL 2000, BIGGAR, SK • TECHNICAL VOCATIONAL HIGH SCHOOL, WINNIPEG, MB There were over 23,000 students enrolled in Fair Trade Schools in 2018

70 Fair Trade Workplaces 35 Fair Trade Campuses Six designated in 2018:

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HUMBER COLLEGE LAKESHORE, ON UNIVERSITY OF ALBERTA, AB UNIVERSITY OF VICTORIA, BC VANIER COLLEGE, QC UNIVERSITY OF MANITOBA – BANNATYNE CAMPUS, MB • CEGEP CHAMPLAIN ST. LAWRENCE, QC There were almost 700,000 students enrolled in Fair Trade Campuses in 2018

Twenty designated in 2018

12 Fair Trade Faith Groups Five designated in 2018

51 Fair Trade Events Forty-Five designated in 2018

19 Fair Trade Ambassadors FAIR TRADE PROGRAMS 43

Campaigns 44

Â© Sean Hawkey

Stronger Together: A Coalition of NGOs Advocating for Supply Chain Legislation in CanadA

In 2017, the House of Commons conducted a parliamentary study on Canada’s connection to child labour and modern slavery. A coalition of NGOs, including Fairtrade Canada, pushed to make the study a reality and shared expertise through written submissions and testimony. In October 2018, the House of Commons’ Foreign Affairs and International Development Committee released their report, A Call to Action: Ending the Use of All Forms of Child Labour in Supply Chains, that included recommendation #6 to the House of Commons to “develop legislative and policy initiatives that motivate businesses to eliminate the use of any form of child labour in their global supply chain.” The coalition of NGOs, including Fairtrade Canada, World Vision, UNICEF Canada, and Save the Children, took action and collaborated on a public awareness campaign, positioning the opportunity as “Canada’s Moment” to address the issue of child labour. By consolidating efforts with like-minded organizations, the coalition engaged their audiences in advocacy tactics that demonstrated cross-sectoral support for supply chain legislation across the private sector, NGOs, the Canadian public, and Canadian youth. A Change.org petition demanding that Canada acts on child labour, and modern slavery, and human rights violations in supply chains saw over 60,000 signatures. Social media video campaigns saw more that a quarter of a million views on Fairtrade Canada social media channels In February 2019, the Government of Canada responded that it would initiate consultations on corporate supply chain legislation. The coalition acknowledged the statement is a positive step towards requiring Canadian companies to take action and report on their efforts to address child labour, modern slavery, and other human rights violations.

CAMPAIGNS 45

Bringing Canadian Businesses, Food Service, and Grassroots Together 46

Fair Trade Campus Week

Fairtrade Month

This year’s Fair Trade Campus Week (FTCW) was focused on providing campuses with digital-first resources and facilitating in-person dialogue around fair trade and campuses’ unique involvement in growing the movement.

Each year we dedicate the month of May to Fairtrade Month. It’s when we encourage consumers, campaigners, licensees and retailers across Canada to celebrate everything Fairtrade and to work together to make a difference for farmers and workers in the Global South.

Our matching process was updated to allow for more transparency between campuses and the companies who donate their time and products to this campaign. By publicly sharing campuses’ need of Fairtrade products, companies could clearly see the growing demand of products that carry the FAIRTRADE Mark. We believe that this method is a positive addition to this campaign, and allows campuses and businesses to build meaningful and sustainable relationships.

This year, we built on our growth from last year and saw significant increases in widespread participation. What worked? Engaged retailers building in-store displays and using flyers and posters to promote Fairtrade; licensees offering their products on promotion and using powerful Fairtrade images and messaging on their social media; campaigners and consumers downloading materials and resources from our digital toolkit.

We see Campus Week as an integral part of growing the fair trade movement in Canada and we are excited to see what next year has in store. We want to continue our efforts in ensuring FTCW is an environmentally sustainable campaign, as well as assisting the building of meaningful relationships between Fairtrade businesses and campuses

Major retailers like IGA, Federated Coop, Metro and Whole Foods had store offers and flyer events. Strong sales results reported by participating distributors reflected retail support for the promotion and consumer engagement. Expanded webpages included retailer listings and producer focused Feed Empowerment messaging.

View Full Report at bit.ly/FTCW18_Report

View Full Report at bit.ly/FTM18_Report

campuses participated in FTCW18, a 40% increase from 2017

companies donated Fairtrade products to campuses

16,500

people received Fairtrade product samples

1.5 million

hashtag impressions

1600 Canadian retailers

(+53%) participated—from small independents to large national chains 57% national banners 36% regional chains 7% Independent and specialty

835 Out-Of-Home merchandising kits distributed

100% increased participation

from Canadian food distributors

CAMPAIGNS 47

Fairtrade Awards

Congratulations to the 2018 Winners:

The Canadian Fairtrade Awards recognize exceptional Fairtrade supporters, partners and allies, including members of our Fair Trade Programs, retailers, and individuals dedicated to the fair trade movement. This is our chance to say THANK YOU to members of our community who work with us in advocating for a sustainable, fair global trade system free of injustices. It is also an opportunity for us to come together and truly feel the power of our collective work across Canada.

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School of the Year COLLÈGE DE L’ASSOMPTION

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New Product of the Year KICKING HORSE COFFEE COLD BREW

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Event of the Year LA VENTE-TROTTOIR ÉQUITABLE DE TROIS-RIVIÈRES

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Retailer of the Year CHOICES MARKETS

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Campus of the Year UNIVERSITY OF CALGARY

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Product of the Year ETHICAL BEAN’S SWEET ESPRESSO

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Excellence in Producer Partnership RGC COFFEE

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Workplace of the Year OXFAM QUÉBEC

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Excellence in Education and Public Outreach MCIC

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Licensee of the Year CAMINO, LA SIEMBRA

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Town of the Year TROIS-RIVIÈRES

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Fair Trade Campus Week All-Star HUMBER COLLEGE

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Fairtrade All-Star GIADA SIMONE

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Lifetime Achievement Awards JEFF & DEBBIE MOORE, JUST US! COFFEE ROASTERS

fairtrade in the news As a core tool that supports recognition, trust, and authority with Canadians, we continue to build our public relations strategy by engaging media on current affairs. With our work on the Supply Chain Legislation campaign, we engaged media outlets to bring light to the issue and deliver a strong call to action to Canadians. Opinion pieces published in The Star and Policy Options, written by Julie Francoeur, positioned Fairtrade Canada as subject matter experts in supply chain management and human rights due diligence. We saw keen interest from Canadian media on covering the growing ethical consumer segment. Reporting by Radio Canada and Global News explored the future of retail in Canada, sharing consumer data and trends from the Fairtrade Canada commercial team.

+ 1.23M

Search result appearances

+ 1M

Reach across social media

+ 395 000

Pageviews on our website

FAIRTRADE IN THE NEWS 49

THANK YOU TO ALL OUR PARTNERS ACROSS CANADA fairtrade canada • 800-250 City Centre Avenue Ottawa ON • K1R 6K7 • T: +1 613 563 3351 • E: info@fairtrade.ca • fairtrade.ca 50