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ANNUAL REVIEW 2011FAIRTRADE AFRICA
Who we are Pineapple workersin West Africa
Message from the Chairman 5
Message from the Executive Director 7
Fairtrade Premium use in Africa 8
Reaching out to African farmers 9
Strengthening of livelihoods in Africa - Cocoa, coffee & tea 10
Promoting sustainable consumption in Kenya & South Africa 12
Creating market access through standard setting 15
Producers improving their business skills 16
Growing stronger together - Partnerships 19
The Africa Fairtrade Convention - Effective trade partnerships 21
Battling climate change in Africa 22
Targets for the future 25
Financial overview 26
Fairtrade Africa’s Board members 28
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Cont
ents
BeninBurkina FasoCameroonComoros IslandsDem. Rep. of CongoEgyptEthiopia
GhanaIvory CoastKenyaMadagascarMalawiMaliMauritiusMoroccoMozambiqueNigeriaRwanda
São ToméSenegalSierra LeoneSouth AfricaSwazilandTanzaniaTogoTunisiaUgandaZambiaZimbabwe
Fairtradein Africa
Fairtrade Africaensures the voices of
African farmers andworkers are heard on
issues related to Fairtrade,agriculture and trade.
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As Chairman of the newly elected Board of Fairtrade Africa, I am ready to take up my responsibility in what will be a crucial period for the organisation. In the two years ahead, Fairtrade Africa will have to deliver on the expectations of producers and its stakeholders. No longer are we trying to find our feet and building up the fundaments of Fairtrade in Africa. Instead we are a strong organisation which over the past twelve months has proven its impact and relevance to Fairtrade producers in the field.
Nevertheless, we still have a difficult task ahead of us to further improve the way our system functions. The past year has brought us important institutional changes which have equipped us with extra tools. We are the first Board appointed under the new constitution, representing the new face of Fairtrade Africa. For the first time two female board members were elected, ensuring the voice of women is effectively represented at all levels of the organisation.
A second historic decision is the unanimous vote by the global Fairtrade members to make producers half-owners of the system. Owing to the new shared-ownership model, farmers and workers have an equal voice in all decisions that affect them. We see it as our role to ensure this ground-breaking change will help create major growth in Africa as we strive to broaden, strengthen and deepen Fairtrade’s impact for all involved.
As Chair of the Board, I guarantee our dedication to Fairtrade Africa. We anticipate the journey to be challenging yet inspiring, demanding yet rewarding. Let it begin.
ADAM TAMPURI,Chairman, Fairtrade Africa Board
Foreword by the Board Chairman
Fairtradein action
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Pictorial:1. Sarfowaa Diana of Kuapa Kokoo used the Fairtrade Premium to buy her daughter a sewing machine 2. The Sidima Cooperative Union constructed two new school buildings with the Fairtrade Premium
2
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Today, Fairtrade Africa champions the voice of over 700,000 farmers and workers in Africa. We have worked hard to increase Fairtrade’s impact on their lives.
Grass-roots structures were shaped to better channel producers’ voices to effect change. Despite the turbulence during the Arab Spring, North Africa was the fourth region on the continent to become a full member of Fairtrade Africa in 2011. The move is indicative of the increasing engagement of producers in the region, who also have now a representative on the Fairtrade Africa Board. Increased activities of our grass-roots networks have not only facilitated opportunities for producer members, they also attracted interest from external partners who recognise the value of these structures. Several networks have secured external funding, guaranteeing their sustainability.
We also united African Fairtrade stakeholders at the Africa Fairtrade Convention in Ghana and led the Fairtrade delegation at COP17, the first UN climate change negotiations on the African continent. Both events were milestones for our organisation, positioning Fairtrade Africa as a key partner in the agricultural field.
With a new business plan for the next three years, Fairtrade Africa is now looking with optimism towards the future. In a world where food security is at risk, climate change is creating new realities and agriculture has not yet reached its potential, this is our time to make a change.
MICHAEL K. NKONU Executive Director, Fairtrade Africa
Foreword by the Executive Director
Community
Not known
OtherPremiumuse
Education
Fairtrade Premium use in Africa*
* Results of the 2011 annual monitoring data collection from Fairtrade certified producer organisations which took place during 2010.
Environment
Health
Gender equity
Investment in businessdevelopment (producerorganization level)
Investment inproductionprocessing(farmer level)
Small-scaleproducers
Community
Not known
Education
EnvironmentHealth
Genderequity
Investment in workercapacity building andcareer development
Other support toworkers
Hiredlabour
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Fairtrade Africa has positioned itself as a significant player in the African agricultural field - both as a trade and a development partner. Inherent to its success is the continuing growth of its membership. In 2011, Fairtrade Africa exceeded the mark of 300 producer members, an increase of 25%. The growth is specifically significant in the area of small producer organisations, partly owing to the numerous cocoa and sugar cane farms who received certification.
Today over 700,000 producers situated in 29 countries across the continent can benefit from Fairtrade. These farmers and workers saw
their Fairtrade sales revenue increase to an amount of USD 175 million. On top, producers also received over USD 18 million
Fairtrade Premiums which they invested in communal projects*.
One of the growth outcomes is a greater legitimacy by Fairtrade Africa to speak on behalf of the African producer on issues related to their livelihoods.
Reaching out to over 700,000 African farmers
* Results of the 2011 annual monitoring data collection from Fairtrade certified producerorganisations which took place during 2010.
Producers from the Ghana Fairtrade Networkshowing off their products
Strengthening of livelihoods in Africa*CocoaCocoa is in crisis: supply is dropping and farmers in West Africa are abandoning their land to look for new, better opportunities. As a result cocoa brands are increasingly turning to Fairtrade, leading to an increase of sales and of new Fairtrade producers in 2011. To protect the farmers against further
market fluctuations, Fairtrade increased the cocoa Minimum Price and Premium. A new cocoa strategy was designed to offer a long-term solution to
the major challenges the sector faces.
African cocoa dataTotal sales volume (metric tonne) 25,300Total sales income (million USD) 38.9Total Premium received (million USD) 3.54
CoffeeOver 290,000 African Fairtrade farmers are producing coffee. The volatility of the market created challenging circumstances for producer organisations in 2011. Prices have risen, harvests have been smaller than expected and competition is intense. To tackle these challenges, Fairtrade Africa, in partnership with the World Bank, facilitated training in price negotiation and risk management; Fairtrade provided contract default support; and the Fairtrade Premium and Minimum Price were increased.
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African tea dataTotal sales volume (metric tonne) 7,900Total sales income (million USD) 15.6Total Premium received (million USD) 3.6
African coffee dataTotal sales volume (metric tonne) 11,400Total sales income (million USD) 41.06Total Premium received (million USD) 2.34
TeaAddressing barriers to future growth became a priority for Fairtrade due to the rising cost of tea production and fluctuating exchange rates. A project was initiated to create new sales opportunities and increase volumes. Fairtrade increased Fairtrade Minimum Prices with an average of 16% and introduced Minimum Prices for organic teas. Fairtrade Africa also assisted in setting up retro-certification that gives traders and producers more flexibility.
* Results of the 2011 annual monitoring data collection from Fairtrade certified producer organisations which took place during 2010.
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Promoting sustainable consumptionSustainable development in Africa can only be achieved if producers and local value chains are supported. Africa’s middle class is growing, and so is the demand for sustainable and ethical products. Consumers can now purchase Fairtrade products in South Africa and Kenya, thereby given the unique opportunity to contribute to sustainable development in Africa. By launching the FAIRTRADE Mark on the African market, Fairtrade is also enhancing intra-African trade while creating further market access for all African producers.
Dormans and Cadbury – Fairtradeproducts on Kenyan shelves
FMOEA partners:National Council of Churches Kenya,
Eastern Africa Farmers Federation,Junior Achievement, Shared Interest
Partner Africa, Oxfam KenyaChristian Aid, Solidaridad, Traidcraft
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Eastern AfricaIn 2011 work to create a Fairtrade market in Eastern Africa took off. Together with its partners, Fairtrade Africa set up the Fairtrade Marketing Organisation Eastern Africa (FMOEA). Focus will in the first place be on creating a Fairtrade market in Kenya, with a further expansion planned into the Eastern Africa region at a later stage.
South AfricaFairtrade grows from strength to strength in South Africa, with 2011 a new year of records.
In 2011, South Africans were also introduced to Africa’s first Fairtrade certified confectionery brand. Cadbury Dairy Milk is the first Fairtrade chocolate slab made and sold in Africa: while the Fairtrade cocoa is from West Africa, manufacturing is taking place in South Africa.
Fairtrade Label South Africa saw its hard work recognised when it became afull member of Fairtrade International.
Retail sales in 2011$ 9 million
supermarket to sellFairtrade labeled products
After Pick ‘n Pay,Woolworths became the
2ndMoney given back to producers inFairtrade Premiums generated
through sales
$ 110,000of the Fairtrade Premium was investedin education and training programmes
Over
1 3
South Africa in facts & figures
South African barista makingdelicious Fairtrade coffee
Who we are Sugar cane farmersin Southern Africa
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Fairtrade standards are designed to support the sustainable development of small producer organisations and workers. In 2011 Minimum Prices and Premiums for traditional Fairtrade products like cocoa were increased to address the needs of producers, while standards for minor products were changed to create more market access:
- Citrus was added to the producers’ certificate in Swaziland. As a result an estimated USD 40,000 will be generated in additional
Fairtrade sales, benefitting over 1,000 farmers and workers.
- The Fairtrade Minimum Price and Premium for raisin were increased by 100% to support a South African cooperative in purchasing more from its members.
- 19 new countries in Africa have now access to a Fairtrade Minimum Price and Premiums for fresh and processed
mangoes.
- Egyptian producers sold an estimated 40 tons of dates as a result of Fairtrade Africa leading a project to set Minimum Prices for the region.
Creating market access through standard setting
This Zambian farmer can now sellFairtrade mangoes
TAF CaseStudy
The farmers were trained to make better purchasing decisions and investments which helped Mpanga increase its capacity for drying tea leaves, leading to increased sales of quality tea. All current operation decisions, including the expansion of the factory, are made in line with the new business plan. In addition a road map for the next five years has been drawn, while contract and budget training have helped management to run the business more efficient on a daily basis.
Amount received: USD 6,750Members trained: 21Skill training: Planning, budgeting and expenditure control
‘In the past, they just wouldsee the factory as if it was owned
by another person. Now it hasbrought the farmers closer to the
factory,’ states Solomon BagonzaAkiike, who is a farmer and Chairman
of Mpanga’s Premium Committee.
Mpanga Growers Tea Factory, Uganda
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Supporting producers in building their capacity to trade is one of Fairtrade Africa’s key goals. The main tool over the past years has been the Technical Assistance Fund – or TAF – which finances training sessions. The impact of TAF should not be underestimated. To date more than 3,000 farmers have participated in training.
Producers opted to be trained in the following fields: - Setting up a business plan - Bookkeeping support
- Developing procurement guidelines- Improving price negotiation, customer handling and ICT skills
Producers improve their business skills
‘There were a lot of problems with the posho mill. Afterthe TAF training, the staff has been able to keep therecords properly and to manage the accounts. Theyhave also written proposals to expand the mill.’
Joshua M. Kanake,Rukuriri Tea Factory Company,Kenya
Who we are Citrus workers inNorth Africa
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Fairtrade Africa’s work is driven by the belief that the collective efforts of African producers, businesses, civil society and governments will yield higher benefits for producers and contribute more towards sustainable development in Africa. The organisation works effectively together with partners on a range of issues:
Growing stronger together
Supporting the establishment of Fairtrade chains in Zimbabwe
Funding of the institutional capacity building of Fairtrade Africa as an organisation
Providing know-how to Fairtrade Africa and producer organisationsas part of its CSR programme
Supporting Fairtrade Africa’s Coffee and Cocoa Network
Assisting in the set-up of a country network in Malawi
Facilitating a platform between Fairtrade producers in West Africa and SouthAmerica; conducting market intelligence and training in Madagascar
The AFC in figures
AFC attendees Stakeholder attendance
Producer attendance- Representatives from 27 different African countries - One out of three member organisations was present
Expo breakdown
NGO
Finance
Government
Trader
Press
Other
34%
18%
10%3%
10%
25%
StakeholdersKEY: Producers Fairtrade
28.9%
51.5%
19.6%
78 139 53 270
35.8%
56.6%
7.5%
19 30 4 53
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To ensure producers can compete on a level playing field, Fairtrade Africa organised the Africa Fairtrade Convention (AFC) in Accra, Ghana - a five-day event where producers and other stakeholders could interact, connect and strengthen networks. With relationships being at the heart of trade, the theme of this year’s event was ‘Effective trade partnerships for sustainable livelihoods in Africa’. During the Fairtrade Africa Forum global and local experts addressed key issues to help Fairtrade producers grow their businesses and further
take advantage of Fairtrade benefits. The Ghanaian Minister of Trade Hanna Tetteh, who was Guest of Honor, acknowledged the need
for collaboration to further support farmers and announced the interest of the government to set up a partnership with Fairtrade.
In total over 270 participants from all over the world visited the Africa Fairtrade Convention, which for the first time included a Fairtrade & Organic Expo.
www.africafairtradeconvention.net
The Africa Fairtrade Convention – Creating effectivetrade partnerships
Trade Minister of Ghana opens AFC expo
‘It has been too dry. In a good year I used to be able to harvest 18,000 kgs of raw coffee beans
but in 2003/4 I harvested only 12,000kgs, so my income was down with one third. And we have
had a number of bad years since.’
Ngambe Ehab, coffee farmer,Ankole Coffee Producers Cooperative
Union (ACPCU), Uganda
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Fairtrade is faced with the paradox of witnessing the real effects of climate change while governments are failing to establish concrete mechanisms to deal with the issue. Efforts were stepped up to draw attention to the plight of producers at the COP 17, the UN climate change negotiations in Durban, South Africa. For the first time, Fairtrade, under leadership of Fairtrade Africa, gained official accreditation and could intervene in the negotiations. Several activities - including a workshop, a roundtable and a press conference - ensured Fairtrade’s visibility at the event.
To unite the different Fairtrade stakeholders and to further help producers voice their challenges, Fairtrade Africa set up a dedicated
blog. www.fairclimatedeal.net creates a platform where producers and stakeholders can find relevant case studies, point-of-views and
COP updates. Fairtrade Africa will continue to work on the website, ensuring it becomes Fairtrade’s global platform on all issues related to the topic. A third component of Fairtrade Africa’s efforts to help farmers is through training. Fairtrade organised a workshop on the carbon
market and climate change ‘in-setting’. Producers could also use the Technical Assistance Fund for specific environmental training
needs.
Battling climate change in Africa
www.fairclimatedeal.net
Who we are Flower farmers inEastern Africa
In the coming years, Fairtrade Africa is planning to further strengthen, broaden and deepen its impact. The new, ambitious business plan outlines the goals of the organisation for 2012-2015. Focus will not only be on growing the impact of Fairtrade in Africa, the business plan will also assist in ensuring the organisation’s sustainability.
Building upon the success of previous years, the plan is geared towards increasing the numbers of producers and producer organisations by over 60% within the next five years. With secured market access, this will translate into a similar increase in Fairtrade Premiums, contributing to greater investment by communities in their own development.
Reaching out to over 1,000,000 African farmers
More than
local producers
producersorganisations
continental coverage
Over 60 standardsdeveloped products
hectares undersustainableproduction
over
Target impact for 2015:
25
1 million
Over 50070%
60million1.4
premium
over 90 million
The summarised key financial figures outlined below have been extracted from internal management reports and from the audited financial statements 2011.
Financial overview
2007 2008 2009 2010 2011
Total Income 85 312 295 665 994
0
200
400
600
800
1000
1200
Inco
me
(kU
SD)
Fairtrade Africa's Income Trend 2007 -2011 (kUSD)
26
Financial overview
Expenditure breakdown (USD) 2011
1,038,503Total
12
3
4
5
6
Admin and Resources
Organisational Development
Policy, Advocacy and
Communications
Standard and Certification
New Markets Development
Producer Support in the
Regions
322,502
319,909
83,811
26,260
23,241
262,780
Total Fairtrade Expenditure 2011 - USD 1,038,503Total Fairtrade Income 2011 - USD 994,307
Unutilised donor funds amounting to USD 526,292 were transferred to deferred income.
Income Sources (USD) 2011
Total 1,519,349
Comic Relief Fund
Fairtrade Foundation
FLO
Oxfam Belgium
Cafe Direct
FLO PSU
Africa Now
KPMG
932,392
7,221
430,279
26,890
10,867
21,354
9,902
80,444
1
2
3
4
5
6
7
8
Others 1,250
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Fairtrade Africa Secretariat5th Avenue Office Suites
Room 8 & 9, 5th Avenue Ngong Road,PO Box 3308 - 00200, Nairobi, Kenya
+254 20 272 1 930
Our Contacts:
Design: Creative VillagePhotography credits: Linus Hallgren,
Nathalie Bertrams, Didier Gentilhomme,Simon Rawles and Emilie Persson
Chief Adam TampuriGbankuliso Cashew Farmers AssociationGhana
Mahmoud Al-HusseiniMagrabi AgricultureEgypt
Brenda AchiengFinlays HorticultureKenya
Noel OettléEnvironmental Monitoring GroupSouth Africa
Doreen ChanjeFoodSec ConsultingMalawi
Introducing the new board
Board Members
Board Chairman
