Making the Difference

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1 Photo front and back: Didier Gentilhomme Making the Difference A NEW GLOBAL STRATEGY FOR FAIRTRADE Fairtrade Labelling Organizations International (FLO) Bonner Talweg Bonn Germany Phone

2 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 Havgaard 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 TABLE OF CONTENT 3

3 A global strategy for Fairtrade Rob Cameron Chief Executive Officer, Fairtrade Labelling Organizations International April 2009 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. 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 4 A GLOBAL STRATEGY FOR FAIRTRADE 5

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 Broadening Deepening To ensure that we operate as We want to see a dramatic In future, producers will gain even effectively as possible at every increase in the number of people more by joining the Fairtrade system. level we will unify our approach benefiting from Fairtrade. The They will get more and better globally, strengthen our teams new strategy will enable producer support to plan and implement and simplify our operations. organizations already in the system their business development, and Where possible we will transfer to scale up their business and it will to sell more under Fairtrade terms. responsibility to local managers bring into Fairtrade s scope more There will also be improved Ambitions for the new strategy Photo: Kennet Havgaard for faster decisions and clearer accountability. producer groups, more product categories and more countries. financial benefits and easier local access to technical support. AMBITIONS FOR THE NEW STRATEGY 7

5 Focus on the producer Producer empowerment processes will remove barriers for producer groups. Fairtrade will support producers more than before We will also provide certification for a wider range of 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 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. Photo: Simon Rawles 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 FOCUS ON THE PRODUCER 8

6 Benefits for all For Fairtrade producer members For business partners For Fairtrade labelling members For consumers 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. 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. 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. 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 10 BENEFITS FOR ALL 11

7 International markets need a global system Globalizing marketing Encouraging diversity Key marketing improvements 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. 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. 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 Photo: Kennet Havgaard 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. 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 13

8 Making it happen Achieving the benefits of Fairtrade s new strategy will involve fundamental changes in the way the organization works. Greater responsibility for producers More flexible standards Product management Key account management 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. 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. 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. 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. MAKING IT HAPPEN 14 MAKING IT HAPPEN 15

9 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. Photo: Didier Gentilhomme 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. 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 17

10 The plan for 2009 Tasks for the first half of the year and the rest of 2009 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 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 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

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