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Making HistoryTransFair USA, Annual Report 2009
In 2009, the Fair Trade movement ushered in a new era. Our eleventh year of certifying Fair Trade products saw social consciousness emerge as a top priority for consumers, and the numbers reflected it. Yet in many ways it was the first year forward after a decade of gathering valuable experience. Throughout the country and throughout the world, the feeling that 2009 marked a new beginning was palpable. A sea change seemed to be occurring in the way people saw their place on the planet, and Fair Trade was ready for the world to turn our way as people embraced the concepts of environmental, economic and social sustainability.
In 2009, we certified over 100 million pounds of coffee for the first time, more than was certified in our first seven years of business combined. We saw opportunities for farm workers broaden as we expanded from fewer than 30 Fair Trade product categories to more than 100. As this expansion occurred, we saw schools and clinics being built, farmers learning new methods of production, and women armed with pride and leadership skills. We watched children proudly take their first steps down newly paved roads to schools where they would encounter opportunities that their parents would never have even dreamed of.
As we move forward, we have renewed hope for economic recovery and continued growth in sales of Fair Trade products. This next phase of Fair Trade is just beginning, and the accomplishments of 2009, though monumental in their own right, are but a small step towards the ultimate goal of alleviating poverty through a revolutionary economic model.
Sincerely,
Paul Rice President & CEO
About UsTransFair USA is a nonprofit, mission-driven organization that tackles social and environmental
sustainability with an innovative, entrepreneurial approach. We are the leading independent,
third-party certifier of Fair Trade products in the United States, and the only U.S. member of
Fairtrade Labelling Organizations International (FLO).
We license companies to display the Fair Trade Certified™ label on products that meet our strict
international standards. These standards foster increased social and economic stability, lead-
ing to stronger communities and better stewardship of the planet. Our goal is to dramatically
improve the livelihoods of farmers, workers and their families around the world.
Our MissionTransFair USA enables sustainable development and community empowerment by cultivating
a more equitable global trade model that benefits farmers, workers, consumers, industry and
the earth. We achieve this mission by certifying and promoting Fair Trade products.
Letter from the President & CEO
Dear Friends,Contents04 2009 Accomplishments
06 Fair Trade Certified Apparel
08 Social Sustainability
12 Community Empowerment
22 Environmental Sustainability
24 Building the Movement
28 Industry Momentum
32 Fair Trade Imports & Products
38 Supporters
42 Financial Summary
2009 AccomplishmentsCoffee Reaches Historic MilestoneTransFair USA certified 109 million pounds of Fair Trade coffee in 2009, more than we certified in our first
seven years combined.
“ $1.2 Billion in U.S. Retail Sales. ”
Farmers Make ProgressIn 2009, U.S. companies sourced Fair Trade products from 325
farming cooperatives around the world. This powerful partnership
generated $48 million in above-market prices and additional income
for hardworking farming families. Funding for Fair Trade community
development projects increased 25 percent to nearly $14 million.
Industry Partners Grow Over 800 U.S. businesses joined our movement by year’s end,
10 percent more than in 2008. With the expansion of product
categories available for certification, the number of Fair Trade
Certified™ products available to U.S. consumers skyrocketed past
6,000.
Imports on the RiseCertified coffee and sugar import volumes jumped more than 25%,
despite the recession, while bananas – our second-highest volume
category – doubled. In newer, smaller categories, imports increased
an impressive 500 percent for wine, 300 percent for rice, 400 percent
for mangoes and 1,000 percent for avocadoes.
New Products LaunchTransFair USA significantly increased the number of certified choices
available in the United States, introducing all remaining products
certified through our international network, Fairtrade Labelling
Organizations (FLO). These new offerings include quinoa, Brazil nuts,
olive oil, spices and herbs, vegetables, and even sports balls.
Access to Credit ExpandsTransFair USA and Starbucks joined forces to create the Small
Farmer Sustainability Initiative, which provides farm loans, technical
assistance and market linkage to small-scale coffee farmers.
Starbucks pledged to increase its farmer loan programs to $20
million by 2015.
Apparel Standards Go Live After a decade working to improve livelihoods on farms, TransFair
USA moved to address the plight of factory workers in the apparel
sector. To ensure impact and integrity, we incorporated multi-
stakeholder input and public comment in our pilot factory standard,
which extends the strict social, economic and environmental
protections found on Fair Trade farms to benefit garment workers.
The first Fair Trade Certified apparel and home goods hit U.S. retail
shelves in fall 2010.
Skoll Renews Support In 2009, TransFair USA received its second grant from the Skoll
Foundation for $1 million. Paul Rice was first honored by the
foundation in 2005 as one of the inaugural recipients of the Skoll
Award for Social Entrepreneurship. The award invests in, connects
and celebrates leading social entrepreneurs with the potential for
large-scale positive impact.
Retailers InnovateWhole Foods Market nearly doubled the number of Fair Trade
Certified products on its shelves to end the year with almost 1,500.
Sam’s Club, Costco, Target, Trader Joe’s and scores of other retailers
expanded their certified product offerings as well, despite the
recession.
Our Efforts are RecognizedThanks in part to these many accomplishments, TransFair USA was
named one of Entrepreneur Magazine’s Top 100 Brilliant Companies
for the second year in a row.
5TRANSFAIR USA ANNUAL REPORT 2009
New Standard for ApparelExtending Fairness From Farm to FactoryIn 2009, we laid the foundation for Fair Trade Certified™ apparel by developing rigorous pilot standards, a worker training program, and tools to monitor sewing facilities against the standards.
Fair Trade Starts with Higher StandardsIn 2009, we developed a new, unprecedented standard for Fair Trade
Certified™ apparel, benefitting not only underprivileged cotton
farmers but also garment workers at the other end of the supply
chain. Our rigorous pilot standards build on core International
Labor Organization (ILO) standards. But beyond the basics, the
distinctive Fair Trade principles of better livelihoods and democratic
organization of farmers and workers are central to this ground-
breaking initiative.
Core factory labor standards address:
What makes this standard unique, relative to other codes of conduct
in the apparel sector, is that both cotton farmers and factory
workers will earn a significant “Fair Trade premium” for each item
sold with the Fair Trade Certified label. This premium, set at 5-10
percent of the factory cost of each garment, effectively doubles
the wages of factory workers over time. Workers can decide to
distribute Fair Trade premiums as cash bonuses or invest them in
community development projects. The pilot Fair Trade standards go
beyond most existing codes of conduct by requiring manufacturing
companies to raise wages over time to a true living wage.
During the public comment period on the pilot standard, we
received input from 55 organizations in 15 countries. In response
to input, we strengthened the standard as it applies to living
wage requirements, environmental sustainability and women’s
rights. TransFair USA will review the apparel standard again at the
end of the two-year pilot, based on multi-stakeholder evaluation
of field results.
Worker TrainingMost factory training programs today are geared towards
management and do not give workers the tools needed to advocate
for their basic legal rights. Our approach to Fair Trade clothing starts
with workers. Worker training is an essential requirement for facilities
seeking to sell certified apparel.
Worker training programs will feature:
• Local educators who use local-language curriculum
• Peer training that builds capacity and develops leadership
• Project management skills needed to implement
development projects
Rigorous Factory MonitoringTransFair USA partnered with Verité, a highly-respected monitoring
organization that supports fair labor practices worldwide, to develop
tools that will measure factory compliance with Fair Trade standards.
After conducting a test audit at a facility in Rwanda, Verité helped us
develop a more robust and rigorous monitoring protocol.
Our monitoring approach highlights worker participation:
• Worker representatives participate in opening and closing
meetings of the audit
• Auditors directly interview workers at work and at home
• Auditors solicit input from local NGOs and unions
Lending a Hand to Cotton FarmersSmall, family-run cotton farms in India and West Africa often struggle
just to survive. Fair Trade standards help certified farmers get a
better price for their harvest and support sustainable agriculture.
Until now, Fair Trade Certified cotton products have only been
available in Europe. With the launch of our pilot apparel standard
in 2010, certified cotton farmers will finally gain access to the U.S.
market and the promise of a better livelihood for their families.
• Wages and Benefits
• Health & Safety
• Child Labor
• Forced Labor
• Freedom of Association
• Non-Discrimination
• Environmental Management
• Women’s Rights
TRANSFAIR USA ANNUAL REPORT 2009 7
Social SustainabilityImproving Income & Quality of LifeEvery day, millions of farmers in developing countries diligently cultivate the land to grow products that Americans both love and take
for granted. For a variety of reasons, ranging from lax government regulations to predatory local middlemen, farmers often cannot sell
their crops for what they’re worth. The result is a cycle of poverty that harms not just individual farmers and their families, but entire
communities and ecosystems.
The Fair Trade system has helped almost 1.5 million families in 70 developing countries develop viable export enterprises, receive better
prices for their products, and steadily improve their quality of life.
Our Fair Trade PrinciplesFair PricesOur unique commitment to fair prices and community development
distinguishes the Fair Trade Certified™ label from all others. Farmers
are ensured a price that covers the cost of sustainable production
with premiums for community development projects and certified
organic crops.
Better Working ConditionsWorkers on certified farms can count on more than just better
wages. They are guaranteed freedom of association, safe working
conditions and protection from dangerous agrochemicals. Child
labor, forced labor and discrimination are strictly prohibited.
Market AccessMost Fair Trade farmers develop the business capacity to export their
own harvests, which allows them to bypass middlemen and plug
directly into the global marketplace to get significantly higher prices.
Access to CreditU.S. importers are encouraged to offer commercial credit to farmers,
either directly or in collaboration with financial intermediaries.
Access to timely credit allows farmers to increase export capacity
and improve product quality.
Empowerment and TransparencyEmpowerment is an essential goal of Fair Trade. Small-scale farmers
typically form cooperatives that allow them to process and export
their harvests competitively. Workers on larger farms organize
Worker Councils that plan and manage their own community
development projects. Both types of organizations are audited
annually for transparency, democratic process and sound financial
management.
Community DevelopmentU.S. companies pay premiums that allow farmers and workers to
invest in community development projects. These projects improve
families’ access to clean drinking water, health, education, housing
and other basic social services.
Environmental SustainabilityFair Trade has one of industry’s highest standards for sustainable
agriculture and environmental conservation. These standards
strictly prohibit the use of most toxic agrochemicals and GMOs,
promote active conservation of soil and water resources, and protect
surrounding forests. In 2009, nearly half of all Fair Trade products
were certified organic.
Rigorous Certification StandardsBehind the Fair Trade Certified™ label is an audit process widely
considered to be the most rigorous and transparent social auditing
system in existence today. We track transactions along the supply
chain between more than 800 U.S. companies and the farmer
groups from whom they source. In 2009, our certification team
audited more than 40,000 transactions between producers,
importers and manufacturers. Our team makes certain that the
Fair Trade price is paid and holds companies accountable when
standards are not met.
TransFair USA is one of 24 member organizations that collaborate
under the Fairtrade Labelling Organizations International (FLO)
umbrella. Based in Germany, FLO is a nonprofit, multi-stakeholder
association of Fair Trade certifiers and farmer groups from Africa,
Asia and Latin America. TransFair USA is the only FLO-affiliated
certifying body in the United States market.
Development of Fair Trade StandardsFLO develops global Fair Trade standards based on academic,
industry and field research. All standards are vetted through a
multi-stakeholder consultation process that reflects best practices
in the fields of social and environmental certification. TransFair USA
sits on FLO’s Board of Directors and several operating committees,
including the Standards Committee, to help guide the expansion of
the global Fair Trade market.
Certification on the FarmThe international certification agency FLO-CERT, a wholly owned
subsidiary of FLO, has developed a global network of highly-trained
field auditors. These social audit professionals monitor cooperatives
and companies to verify their strict compliance with Fair Trade
social and environmental standards, as well as their investment of
community development premiums. Offering certification services
in 70 countries around the globe, FLO-CERT gained accreditation in
2008 by the International Standards Organization (ISO), based on
the strength of its audit and certification processes. It is the only
social certification that is ISO 65-accredited.
PRODUCERS MANUFACTURERSIMPORTERS
Audits & Report Validation
Audits & Report Validation
Reports & Data Sharing
Fairtrade Labelling Organizations International (FLO)
TransFair USA
Fair Trade Certification Process
The Label: The Fair Trade Certified™ label represents a unique, powerful symbol for consumers that the farmers and workers behind the product got a better deal. It is more than a certification stamp, more than a seal of approval that reassures consumers that their purchases are responsible. It is the end result of a rigorous global inspection and monitoring system. And it is a call to action.
LICENSEES
Quarterly Reports &
Supporting Documents
Supply Chain Audit and CertificationTransFair USA has built a highly-qualified certification team that
audits transactions between U.S. importers, manufacturers and
distributors and the farming organizations from which they source.
We verify the chain of custody to ensure that the companies
licensed to display the Fair Trade Certified label meet our strict
standards. A commitment to transparency and traceability lies at
the heart of our certification model and is one of the advantages of
the Fair Trade approach.
Commitment to Continuous ImprovementWe constantly evaluate and improve our certification process to
ensure the integrity of our label. TransFair USA audits companies
with a two-pronged approach: a desk audit review of transactions
combined with on-site audits. Our on-site auditors visit partner
companies and carefully review their files, inventories, internal
control systems and traceability protocols. This deep-dive audit into
how companies manage their Fair Trade product flow has proven
highly valuable to encourage transparent accounting and full
compliance with our standards.
To learn more about FLO and FLO-Cert, visit www.fairtrade.net.
“ Transparency and traceability is key to the credibility of any certification label. ”
TRANSFAIR USA ANNUAL REPORT 200910
Community InvestmentFair Trade standards require U.S. buyers to deliver an established
premium to producer organizations to fund community
development and environmental conservation projects.
Community members come together to assess and prioritize local
needs and then manage premium investments in community
development projects, such as:
• Microloans for housing projects and small businesses
• Schools and scholarship programs
• Health care coverage for workers and their families
• Deep wells and clean water supplies
• Childcare facilities
• Training programs supporting women and youth
Community EmpowermentA Safety Net Against Market FluctuationsNo other label in the world offers farmers the combination of sustainability, price and community development premiums that Fair
Trade certification provides. In fact, other certification systems deliberately avoid the sticky issues of low wages and commodity prices in
developing countries. The Fair Trade minimum price gives farmers a safety net when global commodity markets fluctuate wildly. When
market prices fall, our farmers still receive a harvest price that allows them to cover the cost of production, protect the environment through
more sustainable cultivation and care for their families.
Benefiting Producers and Their FamiliesThere were 865 certified producer organizations in 70 countries by
the end of 2009, representing more than 1.5 million farmers and
workers. Fairtrade Labelling Organizations estimates that more
than five million people worldwide directly benefit from Fair Trade,
including certified farmers, their families and dependents. One
has only to visit a certified farm to realize that the uplifting social
and environmental benefits of Fair Trade have a ripple effect that
touches millions of lives in the surrounding communities.
YEAR 2008 2009
Coffee 152 183
Tea 41 42
Produce 13 32
Cocoa 17 19
Flowers 21 16
Sugar 4 7
Wine 4 7
Vanilla 5 5
Rice 5 4
Honey 4 3
Total 266 318
Number of Producer Organizations Selling to the U.S. Market.
13TRANSFAIR USA ANNUAL REPORT 2009
Fair Trade On the Ground:Global Producer ServicesThe dramatic growth of Fair Trade in the United States has created
new market opportunities for certified producers. However, doing
business with global companies can be a challenge for many
producer organizations in the developing world, which often lack
access to the latest production technology, market information,
working capital and management expertise.
TransFair USA launched its Global Producer Services (GPS) program
five years ago to address this challenge and help producer
organizations maximize the benefits of Fair Trade certification. Our
close relationships with importers, retailers and producers give us
a unique perspective on global supply chains and allow us to easily
identify mutually-beneficial trade and investment opportunities.
We work directly with producers to help them capture these
opportunities, develop strong relationships with U.S. business
partners, and grow their Fair Trade sales.
Our projects focus on a few common challenges faced by most farmers as they strive to build profitable enterprises and achieve sustainable development:
• Improving product quality
• Building business and financial management capacity
• Helping cooperatives gain access to working capital
• Connecting farmers to U.S. buyers and forging strong
commercial relationships
Our implementation model is lean and cost-effective. We have
cultivated a network of NGOs, development agencies and industry
experts to deliver high-quality, results-oriented training and
investment services that help farmers overcome specific barriers to
business growth. Ultimately, we measure project effectiveness and
impact in terms of the return on investment for beneficiary farmers,
assessing both their short-term and long-term income generation
potential.
Success Stories of 2009, By the Numbers The hands-on approach of GPS helps create concrete results around
the world that lead to lasting change. There are many examples of
this impact worldwide, but we would like to highlight three origin
countries that had especially successful years and have invested
heavily in the future.
Small farms and cooperatives in every corner of war-torn Rwanda
have embraced Fair Trade in the quest to rebuild their economy and
country, and in the process have instituted some completely unique
ideas. The women of Rwandan coffee have hit the ground running,
and in 2009 alone five women’s associations were formed, three of
which participated in the Women’s Entrepreneurship Program. This
led to a special “women’s coffee” being marketed by 130 members
of the women’s associations. In just its third year in Rwanda, GPS
saw 2,520 farmers benefit from Cooperative Governance and Fair
Trade training, and 1,352 farmers receive a $50,000 grant from the
International Labour Organization. In a nation where educational
opportunities are scarce, 90 percent of children in Fair Trade
cooperatives attend school. Education is the best investment
that can be made, and sowing the seeds of training programs for
farmers and consistent schooling for their children will yield a future
as strong and bright as the midday Rwandan sun.
The GPS program in the West African nation of Cote D’Ivoire seeks
to build a sustainable cocoa industry that focuses on quality. In
2009, over 1,400 Fair Trade farmers were trained in agronomy best
practices, and another 246 cooperative members were trained in
cocoa quality assessment. A health clinic was constructed this past
year with Fair Trade premiums, bringing medical care directly into
the community. Members of two producer groups were given six
motorcycles, a welcome alternative form of transportation for the
incredibly heavy burlap sacks of cocoa beans.
Fair Trade coffee farmers in Brazil are on a mission to break down
the conception that Fair Trade coffee is somehow of lesser quality.
They are doing so through massive infrastructure improvements
and trainings, made possible by Fair Trade premiums. Four new
producer groups became Fair Trade Certified™ in 2009, joining
12 other groups in this investment project. It resulted in the
construction of a cupping laboratory, 57 drying patios being paved
and the installation of a mechanical coffee sorter and 14 hulling
machines. This infrastructure investment manifested itself in
education as well as construction. There were 313 producers directly
trained in coffee quality, 60 days of cooperative governance training
and over 300 hours of administrative and accounting training. When
all was said and done, over 26,000 pounds of high quality coffee
was sold in the second annual Fair Trade Cupping Competition
Auction, and $100,000 was granted to producer organizations for
further infrastructure improvements. Just like their compatriots in
the Beautiful Game, Brazilian Fair Trade coffee farmers cannot be
stopped when they set their eyes on the goal.
TRANSFAIR USA ANNUAL REPORT 200914
1
23
Developing Economic Sustainability
Brazil: Responsible Sourcing Partnership
Since 2007, TransFair USA has partnered with USAID, Walmart
Foundation, Sam’s Club, Walmart Stores and Brazilian partner
SEBRAE to boost the income and sustainability of small-scale
Brazilian coffee farmers. Through training and infrastructure
development, this three-year project has enabled over 5,000 Fair
Trade coffee farmers to achieve three strategic goals: improve coffee
quality, increase co-op management capacity, and strengthen
direct market linkage with U.S. buyers. To date, this project has
achieved a 5:1 return on investment for participating farmers.
Rwanda: Rebuilding with Coffee
Rwanda’s efforts to rebuild its coffee industry have garnered
global recognition. TransFair USA works closely with government
ministries, USAID, the Clinton-Hunter Development Initiative, and
U.S.-based coffee companies to help small farmers take advantage
of Rwanda’s re-entry into the global coffee market. Since 2006,
TransFair USA has invested in infrastructure and training to boost
coffee quality, enabling farmers to negotiate better prices for
their harvests. We have trained more than 9,000 farmers in our
“Cooperative 101” governance and management program. These
programs are enabling the cooperatives to become more efficient,
profitable, democratic and transparent.
TransFair USA also assists coffee cooperatives in securing working
capital and building stronger relationships with U.S. buyers.
With our support, the COOPAC Cooperative received pre-harvest
financing from the international Progreso Fund to purchase coffee
cherries from members that ensured fulfillment of their contracts.
This loan is the first for Progreso in Africa, and the organization will
expand its services to other Rwandan cooperatives if successful.
Thanks to these and other efforts, in 2009 every available Fair Trade
Certified coffee bean in Rwanda was sold on the international
market under Fair Trade terms.
“ Seeing firsthand TransFair USA’s work with coffee cooperatives in Rwanda confirms my enthusiasm for our family’s charitable investment in this wonderful social enterprise. ”− Ron Cordes, Cordes Foundation
Producer OriginPartnership Projects
13
Cote D’Ivoire: Supporting Cocoa Farmers
Our program in the West African nation of Cote D’Ivoire supports
small cocoa farmers around the challenges of product quality, farm
productivity and market access. In 2009, we trained over 1,400
Fair Trade farmers in agronomic best practices and cocoa quality
improvement. We also linked cocoa cooperatives to U.S. chocolate
manufacturers to help boost sales. As a result, participating farmers
built a new health clinic this past year with Fair Trade premiums,
bringing medical care directly into their community for the first
time. Two other cooperatives used their premium funds to purchase
motorcycles for hauling heavy burlap sacks of cocoa beans from
their farms to community collection stations – a small but poignant
example of progress in the countryside.
2
Land to the TillerUnião dos Pequenos Agricultores de Santana da Vargem, Brazil
União dos Pequenos Agricultores de Santana da Vargem (UNIPASV)
is a coffee cooperative in the state of Minas Gerais in southeastern
Brazil. In 2000, the 74 small-scale coffee growers in the community
united to form a cooperative in order to pursue a common dream of
a better life. At that time, 80 percent of the co-op’s members were
either sharecroppers or renting farmland at continually higher prices.
Like farmers everywhere, these families all dreamed of owning
and cultivating their own land. But that dream remained painfully
elusive, due to the high cost of land and coffee production relative to
the low prices paid by local buyers for their coffee harvest. Life was
precarious, full of hardship, with little hope for change.
In 2003 the community found a solution in Fair Trade certification.
They made their first Fair Trade sale to the U.S. market a year later,
earning more than double the price they had received the year
before. With higher income, land ownership became a reachable
goal for these humble farmers the first time in their lives.
Francisco Alves has been co-op president for nearly eight years. His
personal story as a sharecropper-turned-landowner mirrors that of
many of his neighbors. Francisco and his wife Teresa could never
afford to buy their own land. No matter how hard they worked and
tried to save, they just barely made ends meet. But once they began
selling to the Fair Trade market, things changed, and they were
able to set aside part of their earnings after each harvest. In 2008,
after years of patiently saving and hoping, Francisco and Teresa had
enough money to buy their own four-acre coffee farm. Today,
90 percent of the co-op’s members are landowners. “Life feels full
of possibilities,” says Francisco.
The community has also used Fair Trade premiums to support
local schools and build a new cooperative headquarters. Now that
most co-op members have land, Francisco and other community
leaders have turned their attention to coffee quality, enrolling
their farmers in TransFair USA’s quality development program.
Their ambitious aim is to boost quality scores, coffee sales and net
income in the next few years.
“ As sharecroppers, my wife and I had to turn over half our harvest each year to the landowner, who is one of the richest men in our region. We never dared to complain and lived in constant fear of losing our land. Our poverty was unending. For us, the only escape from this nightmare was to buy our own land. We took the first step when we organized the cooperative. But it wasn’t until we joined the Fair Trade movement that our dreams began to come true. ” − Francisco Alves, UNIPASV farmer
“ Today many Brazilian coffee farmers are disillusioned. Many have abandoned their fields, due to high production costs and low harvest prices. But through Fair Trade, our community gets a decent price for our coffee. With last year’s premium, we repaired the roof on the schoolhouse and added an extra classroom so our kids can get a better education. ”− José Milton Bento, UNIPASV farmer
TRANSFAIR USA ANNUAL REPORT 200918
The Women of Hinga KawaAbakunda Kawa Cooperative, Rwanda
The women of Abakunda Kawa Coffee Cooperative often gather
outside the Rushashi coffee washing station in the late afternoon to
relax after a day’s work and gaze out over the countryside. A nation
about the size of Vermont, Rwanda stretches across thousands of
hills and valleys to create a breathtaking landscape. Sixteen years
after the devastation of war, Rwanda is a place of renewal and hope.
Nowhere is this more visible than in its coffee communities.
Coffee is one of Rwanda’s most important export crops and its
primary source of foreign exchange. Ideal growing conditions,
combined with the astonishing work ethic of the farmers, make it
possible to cultivate coffees renowned for their unique flavors. The
women of Rwanda are the heart of its coffee culture.
Rwanda has an unusually high female population as a result of the
war, and one-third of all households are headed by women. Over
62 percent of those families live in poverty. Many women struggle
to reconstruct their families and villages while learning to be
successful farmers and businesswomen.
In 2006, a group of 26 pioneering farmers from the mountains
of Gakenke province – all women – came together to discuss
the plight of their community and start to organize. They called
themselves the Hinga Kawa Women’s Association. Faced with
very low coffee prices in the local market, these women joined
a local Fair Trade cooperative and pitched the idea of marketing
their harvest separately to Fair Trade buyers interested in women’s
empowerment.
The idea was an immediate success. In their first year, they sold
four tons of coffee at a premium price, using this niche-marketing
approach. With the extra money they earned, the women were able
to keep their kids in school and pay for health care.
Over the next few years, things got better for them, and word
of their success spread. By 2009, Hinga Kawa had grown to 155
members, and their export volume topped 18 tons. To find a
market for their expanded production, the women decided to
send Esperance Nyarigumafura, their President, to the 2009
Specialty Coffee Association of America (SCAA) Conference in
Atlanta, Georgia. It was a dream come true for Esperance and
her colleagues, since none of them had ever travelled outside of
Rwanda. By the second day of the conference, Esperance had not
only found a buyer for their coffee, selling the entire harvest to an
American coffee importer on Fair Trade terms, but she had also built
relationships with dynamic women in the U.S. coffee industry that
would help them realize other dreams in the future.
In late 2009, the women of Hinga Kawa participated in their
first-ever entrepreneurship trainings focused on financial literacy,
accounting and general administration. The women leveraged
the initial trainings offered by TransFair USA to strengthen
organizational and management practices at both the household
and cooperative levels. Always building on positive experience, the
women subsequently developed a project proposal for continued
training in leadership, social dialogue, health and sanitation, and
income diversification – a project which they hope to fund in 2010.
Hinga Kawa’s success has inspired women in other regions of
Rwanda to launch women’s associations and take on leadership
roles in their cooperatives. It appears that a movement has been
born. Women in Rwanda have become the center of an effort that is
driving real change and a positive future for the country as a whole.
TRANSFAIR USA ANNUAL REPORT 200920
Stringent Environmental StandardsFair Trade principles assert that social and environmental
sustainability are inextricably linked. Nowhere is this logic more
evident than in the developing world’s agricultural sector, where
decades of deforestation and “modern” agriculture have led to
depleted soil, polluted water sources, ravaged ecosystems and
declining household income for farmers. By embracing sustainable
agriculture, Fair Trade farmers are enhancing their own well-being
and that of generations to come. To support this journey, our
rigorous environmental standards address the critical elements of
ecosystem sustainability:
• Restricted use of agrochemicals. Fair Trade standards impose
the most stringent restrictions of any non-organic product
certification on the use of harmful herbicides and pesticides.
To achieve Fair Trade certification, farmers must agree not to
use the dangerous agrochemicals found on the World Health
Organization’s Class Ia & Ib lists, the Pesticide Action Network’s
“Dirty Dozen” list and the United Nations Environment Program’s
Prior Informed Consent Procedure list.
• Smarter farming practices. Fair Trade farmers must implement
integrated crop management systems based on leading
agroecological principles. This model dramatically reduces the
need for pesticides and other agrochemicals by employing
natural farm management techniques such as composting,
crop rotation and biological pest management. Farmers must
demonstrate continuous improvement of soil and water
conservation practices, as well as implement recycling and waste
disposal systems. The result: lower production costs, higher
profitability and greater environmental sustainability.
• Saving the forest. Farmers must develop forest and watershed
management plans for any forest lands on or around their farms.
This helps reduce soil erosion and protects water sources while
supporting biodiversity.
• No Genetically Modified Organism (GMO) crops. Fair Trade
environmental standards prohibit the use of GMOs on all
certified farms.
Healthy Land and Healthy PeopleRestricting agrochemical use has a positive effect on public health
and safety. Reduced usage of toxic chemicals on Fair Trade farms is
helping eliminate the contamination of groundwater sources. More-
over, by reducing their exposure to harmful agrochemicals, farmers
report dramatic reductions in pesticide intoxication and related
health issues that once were prevalent in most farming regions.
Environmental SustainabilityProtecting Our Planet’s FutureEnvironmental conservation is a key element of international Fair Trade standards. More than half of all Fair Trade farms are certified organic,
one of the most environmentally friendly forms of agricultural production. Ultimately, Fair Trade empowers farming families to become
successful stewards of their land and defenders of our entire planet.
Organic ConversionFair Trade’s strong environmental requirements are complemented
by financial incentives that motivate farmers to explore organic
conversion. For major Fair Trade commodities such as coffee, cocoa
and bananas, farmers are ensured a 15-20 percent price premium
for crops that are also certified organic. This incentive has lead
thousands of farmers to seek organic certification in order to satisfy
growing market demand for “double-certified” products. In 2009,
47 percent of all Fair Trade Certified products imported into the U.S.
market were also certified organic.
Technical assistanceTransFair USA collaborates with companies, NGOs and farmers
on technical assistance projects that improve land stewardship.
Key program activities include organic conversion, reforestation,
reduced water usage in processing, solar drying infrastructure
and farmer training in sustainable agriculture. We believe that
technical assistance programs are essential to achieving continuous
improvement in environmental conservation.
Fighting Climate ChangeA growing body of literature now indicates that climate change,
both in local ecosystems and at the planetary level, is linked to
destructive agricultural practices. Fair Trade standards address this
challenge head-on. By adopting progressive agricultural practices,
reducing the use of petroleum-based agrochemicals, encouraging
energy-saving processing methods such as solar drying, managing
watersheds, and supporting forest management and reforestation,
our farmers are actively sequestering carbon from the atmosphere
while dramatically reducing their own carbon emissions. By
committing to smarter agriculture and environmental stewardship,
over 1.2 million Fair Trade farmers make a powerful everyday
contribution to our shared future.
“ Protecting the environment goes hand-in-hand with improving lives and developing communities. ”
23TRANSFAIR USA ANNUAL REPORT 2009
“ Given the continuing rise of the ethical consumer right through the economic crisis, Fair Trade Certified is one of the brands most likely to succeed. ”– Doug Miller, Chairman, GlobeScan
Ethical Consumerism on the RiseFrom our humble roots in grocery cooperatives and independent
coffee houses, Fair Trade Certified™ has grown to encompass
a wide variety of products available in more than 50,000 retail
outlets. Across industries, pioneering brands continue to innovate
the category, expanding into new food products and ingredients
sourced from 70 developing countries.
Every week, an estimated 50 million American consumers choose
retail outlets and products based on their desire to be part of a
solution to global poverty and sustainability. From a morning coffee
and bowl of fruit to wine with dinner and a piece of chocolate
before bed, Fair Trade helps us all make a profound difference in
the lives of hardworking farming families simply by choosing to
purchase the right products.
In 2009, TransFair USA and our European colleagues commissioned
a major global consumer study to better understand awareness
and attitudes toward Fair Trade. The international research group
GlobeScan conducted the study by surveying consumers in 15
countries with well-established Fair Trade markets.
The study found that:
• Nearly nine in 10 American consumers believe that companies
that source products from poor countries should pay workers
fairly and ensure safe working conditions.
• Eighty-one percent of American consumers believe that
companies sourcing from developing countries should
contribute to community development.
• The Fair Trade Certified label positively affects brand perception
for 81 percent of American consumers.
• Fifty-seven percent of Americans say they would spend at least
five percent more for Fair Trade Certified products.
• More than half of American consumers believe that the best
way to verify a product’s social or environmental claims is by
certification via an independent, third party organization.
Building the MovementRaising AwarenessMillions of consumers actively support social responsibility and environmental sustainability through their purchasing decisions.
The Fair Trade Certified™ label is a call to action and a powerful symbol of this groundswell of conscious consumerism.
Celebrating Fair Trade Month31 Days, 31 WaysTransFair USA’s Fair Trade Month campaign brings together
brands, retailers, NGOs, consumers and the media to promote
Fair Trade. Grassroots events, producer tours, media relations,
online marketing and distributer promotions all help to galvanize
supporters and build consumer awareness. The end result is more
products sold and more farmers served.
October 2009 marked the sixth annual Fair Trade Month in the
United States, commemorated with a major online community-
building campaign: 31 Days, 31 Ways. Each day of the month was
marked by a different Fair Trade fact and a simple action that
enthusiasts could take to support the movement. These facts and
actions were spread virally through our growing social networks on
Facebook and Twitter with the help of our industry partners, NGOs
and enthusiastic consumers.
By the end of the month we had reached our goals of 31,000 fans of
Fair Trade Certified on Facebook and 3,100 followers of @FairTradeUSA
on Twitter. These growing online communities play a critical role in
our efforts to raise awareness and demand for Fair Trade products.
“ Fair Trade Month is a great example of companies, activists and consumers collaborating for the common good. The end result: more consumers are awakened and empowered to vote with their shopping dollars for a better world. ”– Paul Rice, President and CEO of TransFair USA
25TRANSFAIR USA ANNUAL REPORT 2009
Fair Trade Month 2009 Highlights:
Igniting Citizen Consumers: Fair Trade TownsThe Fair Trade Towns campaign began in this country in 2007 as
an authentic grassroots initiative to mobilize local communities.
Taking the credo of “think globally, act locally” to heart, community
activists work to raise consumer awareness, expand the availability
of Fair Trade products in local stores, and promote the movement in
local media. Ultimately, by boosting sales of Fair Trade products in
their communities, the Towns activists have a direct, positive impact
on farming families and communities around the world.
The movement began in the United Kingdom in 2000 when
Garstang, England, was recognized as the first Fair Trade Town in
the world. Since then, the number of Fair Trade Towns has grown
to 800 across the United Kingdom and Europe. TransFair USA has
played a leadership role in the Fair Trade Towns USA campaign since
its inception and this year launched a significant fundraising effort
to expand the program.
During 2009, the movement grew from nine to 13 declared Fair
Trade Towns while activists launched more than 40 new campaigns
around the country. To learn more about Fair Trade Towns, please
visit www.FairTradeTownsUSA.org
Fair Trade Towns
Media, PA; Brattleboro, VT; Milwaukee, WI; Amherst, MA; Taos, NM;
Northampton, MA; San Francisco, CA; Montclair, NJ; Ballston Spa, NY;
Chico, CA; Bluffton, OH; Burlington, VT; Highland Park, NJ
Achieving Fair Trade Town StatusMunicipalities must meet five goals to become official Fair Trade
Towns. The five goals are intended to build a platform for long-term
Fair Trade advocacy.
1. A local Fair Trade Steering Committee is formed and
meets regularly.
2. Fair Trade products are readily available in local stores, cafés
and other retail locations.
3. Local community organizations and institutions use and serve
Fair Trade products.
4. The campaign attracts visible support and media attention.
5. The City Council passes a resolution to support the campaign
and commits to procure Fair Trade products.
“ Fair Trade is like an international farmers market, and now our citizens have the ability to affect social change by becoming conscientious consumers. ” – Tom Barrett, Mayor, City of Milwaukee, WI
“ Fair Trade Towns USA empowers socially responsible community groups and businesses around the country that are committed to raising consumer awareness around a simple truth: every dollar we spend is a powerful decision, with ramifications that echo across continents. ” – William Linstead Goldsmith, National Coordinator of Fair Trade Towns USA
• TransFair USA’s President and CEO Paul
Rice joined Starbucks Senior Vice
President of Coffee & Tea Dub Hay at the
Starbucks headquarters in Seattle for
a live Q&A session that was broadcast
on USTREAM. More than 5,000 people
viewed the broadcast, which is currently
available online.
• TransFair USA teamed up with the Fair Trade Boston campaign and the Boston Faith & Justice Network to give 25,000
Boston T riders coupons for free hot or
iced Fair Trade Certified™ espresso bever-
ages from Dunkin’ Donuts. Dunkin’ Do-
nuts also hosted a campaign on Facebook
and Twitter to promote Fair Trade to the
company’s massive online audience.
• Green Mountain Coffee launched the
Eat, Drink & Be Fair campaign, which
included a website, daily Fair Trade trivia,
a major culinary event and plenty of free
Fair Trade Certified coffee.
• Divine Chocolate hosted a Share the
Love campaign, sponsoring dozens
of chocolate sampling events in cities
throughout the country, including New
York City, Washington and San Francisco.
• Global Exchange partnered with Equal Exchange, Alter Eco, Sweet Earth Organic Chocolates, La Siembra and
Coco-Zen for the third annual Reverse
Trick or Treat campaign, in which hun-
dreds of children in the United States and
Canada handed out Fair Trade Certified
chocolate and educational materials to
adults on Halloween.
TRANSFAIR USA ANNUAL REPORT 200926 27TRANSFAIR USA ANNUAL REPORT 2009
A Community of Leading BrandsLeading brands and retailers, spanning scores of product categories, have made Fair Trade the success that it is today. In 2009, more than
80 new companies joined the movement to offer Fair Trade Certified™ products, bringing the total number of U.S. industry partners to 813.
In addition to the hundreds of companies that carry single-ingredient products such as coffee, tea, sugar and bananas, many businesses
now carry composite products that contain multiple certified ingredients. From ice cream to beverages to cosmetics, Fair Trade Certified
ingredients now appear in more than 6,000 products.
Industry Momentum A Symbol of Fairness & QualityTo earn the license from TransFair USA to use the Fair Trade Certified™ label on their products, companies must buy from certified farms, pay
Fair Trade prices and community development premiums and submit to a rigorous supply chain audit. This process necessitates a high level
of transparency and traceability in their global supply chains. Today, our partner companies range from small, mission-driven coffee roasters
to some of the largest international corporations in the world.
U.S. retail sales of Fair Trade Certified products was an estimated $1.2 billion in 2009, a increase of seven percent over 2008.
TRANSFAIR USA ANNUAL REPORT 2009 29
Raising AwarenessIn 2009, Dunkin’ Donuts prominently added the Fair Trade™ Certified label to all hot
espresso beverage cups sold in the United States. Notably, Dunkin’ has exclusively
purchased Fair Trade beans for all of its espresso drinks since 2003.
Dunkin’ Donuts also joined TransFair USA and hundreds of Fair Trade supporters in a high-
profile promotional effort to distribute coupons to Boston transit riders for free Fair Trade
Certified espresso beverages.
America’s ‘First’ Tea Honest Tea became the first bottled-tea manufacturer in the United States to market a
Fair Trade Certified product when it launched Peach Oo-la-long in 2003. Since then, the
company has expanded to nine Fair Trade flavors.
In 2009, the company was honored to learn that President Barack Obama’s favorite
beverage is Honest Tea Black Forest Berry. The news inspired the company to convert this
item to 100 percent Fair Trade Certified ingredients, ensuring Fair Trade’s rightful place in
the White House.
Driving InnovationWhole Foods Market, the leading retailer of natural and organic foods, is committed to
supplying food that is beneficial to consumers, producers and the earth—a commitment
underscored by its highly visible ethical sourcing program, called the Whole Trade™
Guarantee.
After doubling its Fair Trade offerings in 2008, Whole Foods kicked off 2009 with an
impressive 860 Fair Trade Certified products and nearly doubled the number of Fair Trade
products over the course of the year, ending with 1,500. From tea, coffee, sugar and
chocolate to energy bars, flowers, jams, cosmetics and wine, Fair Trade Certified products
are now available in almost every aisle, in part because Whole Foods Market has actively
encouraged its vendors to convert their product lines to Fair Trade. Much of the product
innovation and category expansion of Fair Trade in 2009 is a direct result of Whole Foods
Market’s leadership and encouragement.
Toasting Fair TradeTarget introduced a Fair Trade Certified wine collection at 800 stores nationwide in 2009.
The Wandering Grape collection includes an award winning Malbec-Merlot blend from
Argentina and a Cabernet-Shiraz blend from South Africa. Target has also been selling Fair
Trade Certified chocolate and coffee for several years.
Frontier Launched Fair Trade Certified Spices Frontier Natural Products Co-op became the
first company in the United States to offer Fair
Trade Certified organic spices to consumers
and ingredient manufacturers. The company’s
16 new organic spices all hail from Sri Lanka,
and include cinnamon, nutmeg, mace and
both black and white pepper.
Peak Organic Brewing Introduced First Fair Trade Certified Beer TransFair USA is pleased to announce the arrival of
Fair Trade Certified™ beer: Peak Organic Brewing
Company‘s Espresso Amber Ale. This Portland,
Maine-based brewery teamed with its friends down
the street at Coffee By Design to create a robust ale
infused with flavorful Fair Trade espresso.
Alter Eco Introduced Fair Trade Certified Olive Oil Alter Eco unveiled the first Extra Virgin Olive Oils
from Palestine, which are certified organic, Fair Trade
and carbon neutral. These GMO-free, gluten-free
and vegan oils originate from Rumi and Nabali olives,
both native to Palestine.
Adina and Steaz Among BevNET’s BestBevNET.com’s sixth annual “Best Of” awards
recognized the year’s best new product launches,
including two TransFair USA partner companies—
Adina Holistics and Steaz Teas. Adina’s innovative
product design and delicious taste made it BevNET’s
Best New Non-Carbonated Beverage. Steaz took
home both the Best New Organic Beverage and
Best New Carbonated Beverage honors with its Zero
Calorie Sparkling Green Tea.
Rishi Tea Won Big at World Tea Championships Competing among 41 different companies
who submitted nearly 300 teas, Fair
Trade champion Rishi Tea took home an
unprecedented 28 awards, including a
stunning victory of 11 First Place winners at
the 2009 World Tea Championship.
Kenneth Davids and The Coffee ReviewEvery year, world-renowned coffee
expert Kenneth Davids evaluates
coffees from across the globe for The
Coffee Review. In 2009, eight Fair Trade
Certified varieties scored 90 or above
on a 100-point scale and six others
scored in the 88-90 range, a record
number for Fair Trade coffees.
Fair Trade Certified Firsts & Honors
TRANSFAIR USA ANNUAL REPORT 200930 TRANSFAIR USA ANNUAL REPORT 2009 31
Coffee Quality & Market LinkagesAccording to the International Coffee Organization, nearly 70 per-
cent of the world’s coffee farmers are small-scale growers who own
fewer than 20 acres of land. These family farmers often sell to local
middlemen at very low prices, locking them in a cycle of poverty.
These are the families we support and empower through capacity
building, market linkage and collaboration with industry partners.
Coffee continues to be the predominant Fair Trade product in
the United States. In 2009, U.S. companies achieved an historic
milestone by importing more than 109 million pounds of Fair Trade
Certified™ coffee, a volume increase of 25 percent over 2008. These
imports generated almost $11 million in community development
premiums for coffee farmers and their families, helping improve
lives with vital social services and infrastructure.
1998-2009 Pounds Certified
2009 Pounds Certified
2009 Percent Organic
448,275,603 109,795,363 47%
2009 Coffee Market GuideEach year we publish the Coffee Market Guide in English,
Portuguese and Spanish. Part of our farmer capacity building
program, this guide is distributed to coffee cooperatives around
the world. It offers data and insight into the U.S. coffee market and
helps cooperatives improve their coffee sales and production.
Specialty Coffee Association of America The annual Specialty Coffee Association of America (SCAA)
Conference is the leading event for the global coffee industry.
Members include coffee retailers, roasters, producers, exporters
and importers. The conference gives farmers a unique opportunity
to do business directly with U.S. buyers, promote Fair Trade and
participate in valuable training sessions.
At the 2009 SCAA conference in Atlanta, Georgia, TransFair USA
hosted 150 farmers representing 55 coffee cooperatives from 15
countries. These producer organizations sold an estimated 3.7
million pounds of coffee, thanks to their participation in the show,
the equivalent of about 120 million cups.
Imports & ProductsRecord GrowthThe demand for Fair Trade Certified™ products has grown rapidly nationwide and made 2009 a banner year for TransFair USA and our
partners. We certified over 100 million pounds of coffee for the first time in our eleven-year history. Demand for Fair Trade Certified wine
quadrupled, bananas doubled and avocados increased tenfold. We opened up new opportunities for Fair Trade Certified grains, nuts,
olive oils and sports balls.
2009 imports of Fair Trade Certified products into the United States (in millions of pounds).
Coffee 109,795,363 Tea 1,372,157 Cocoa 2,629,411 Rice 971,454 Sugar 10,963,627
Produce 50,272,722 Vanilla & Spices 149,344 Flowers 9,539,8591 Honey 242,671 Wine 1,450,7172
1 Unit measure for flowers is stems. 2 Unit measure for wine is 750ml bottles.
Coffee Producer Advisory CouncilOur Coffee Producer Advisory Council gives farmers an opportunity
to play a leading role in developing strategies for expanding the
Fair Trade market. This Council is comprised of 10 highly-regarded
grassroots leaders Latin American and African cooperatives, who
gather with us to study market dynamics, discuss strategies and
address producer concerns.
In 2009, we convened the Council three times for joint meetings
with leading importers and roasters from the U.S. coffee industry.
The meetings focused on understanding and reacting to emerging
challenges and opportunities in the growing Fair Trade market. Key
issues included the rise in production costs faced by coffee farmers
and lack of access to farm credit.
Fair Trade Certified Cupping CompetitionOur second Fair Trade Certified Cupping Competition, part of the
Responsible Sourcing Project, took place in 2009. Held in Minas
Gerais, Brazil, the competition recognized the best Brazilian Fair
Trade Certified coffees and the farmers who produced them. An in-
ternational panel of eight experts judged the coffees, and the win-
ning farmers received generous rewards. The winning coffees had
the added benefit of fetching above-market prices when auctioned
off after the competition. However, the real prize was the industry
recognition of the high-quality coffee that these farmers produce.
33TRANSFAIR USA ANNUAL REPORT 2009
Fair Trade Certified Product OverviewsFresh ProduceProduce continues to be a leading product category in terms of
growth. Market demand for Fair Trade Certified™ produce increased
even more sharply in 2009 than in 2008 as volumes nearly doubled,
as did community investment funds back to farmers and workers.
Banana volumes almost doubled from 2008, while avocados
increased by a factor of 10 and mangoes quadrupled.
Sales of Fair Trade bananas continued to rise in the U.S. market for
the third year in a row. The result was an impressive $1 million in
premium funds in 2009 to support scholarships, microloan programs
for small businesses, environmental programs and many more
sustainable community development projects in Latin America
Product 2004-2009 Pounds Certified
2009 Pounds Certified
Avocados 610,550 554,550
Bananas 102,574,890 49,270,680
Mangos 1,114,754 303,777
Sugar Fair Trade Certified sugar continues to be a success story with growth
of more than 25 percent from 2008 to 2009. This versatile product
reaches the U.S. market as packaged sugar and as an ingredient in
an ever-growing list of consumer packaged goods such as chocolate
bars, bottled beverages, jams and spreads.
The continued market expansion of sugar is exciting for consumers
and a sweet deal for farmers. Since the introduction of the Fair
Trade Certified sugar category to the United States, companies have
paid more than $1 million in Fair Trade premiums to small-scale
sugar farmers in Paraguay, Malawi and Costa Rica. These premium
payments contribute to the alleviation of poverty in these countries,
as well as much needed improvements in the livelihoods of the
producers, their families and their communities.
2005-2009 Pounds Certified
2009 Pounds Certified
2009 Percent Organic
32,170,469 10,963,627 85%
CocoaAfter a booming growth year in 2008, Fair Trade Certified cocoa
imports scaled back in 2009 as cocoa importers sold off their
remaining 2008 inventory. The percentage of organic imports,
however, continued to grow and represented 85 percent of Fair Trade
cocoa in the U.S. market. Furthermore, our community of partners
that use Fair Trade cocoa has continued to grow—85 companies now
source certified product. The use of Fair Trade Certified cocoa butter
in body care products is on the rise, and cocoa powder has started
to appear in ready-to-drink beverages, baking mixes, ice cream and
energy bars. Looking ahead, 2010 promises to be a growth year for
cocoa, since many top global chocolate companies have pledged to
strengthen their commitment to Fair Trade sourcing.
2002-2009 Pounds Certified
2009 Pounds Certified
2009 Percent Organic
12,200,171 2,629,411 91%
TeaIn spite of the difficult economic climate, imports of Fair Trade
Certified tea remained stable in 2009 at around 1.3 million pounds.
Almost 5.5 million pounds of Fair Trade Certified tea have been
sold in the U.S. market since 2001, generating nearly $2 million in
premiums for farmer organizations in nine different countries. These
organizations have invested in programs to enable better access to
health care and education, support women’s initiatives and protect
the environment. Beyond the premium benefits for producers, the
Fair Trade standard also supports better wages, the right to organize
and a safe working environment on large tea estates.
While traditional Asian origins (India and Sri Lanka) continue to
be the largest source of Fair Trade tea in the U.S. market, African
teas—especially Egyptian herbal and Rwandan conventional teas—
grew sharply in 2009. Other notable trends: China is becoming an
increasingly important origin for certified tea, while Fair Trade herbal
teas are expected to report strong growth in the coming years.
In 2009, many industry partners expanded their lines of Fair Trade
teas. Meanwhile, 13 new tea manufacturers joined the Fair Trade
community, bringing the U.S. total to just over 100 tea companies.
Fair Trade Certified tea is now prevalent in the specialty market and is
picking up momentum in mass markets nationwide.
2001-2009 Pounds Certified
2009 Pounds Certified
2009 Percent Organic
5,454,842 1,372,157 78%
WineIn 2009, Fair Trade Certified™ wine grew in leaps and bounds,
marking a successful end to the first complete year since its launch
in the U.S. market. Argentina took the lead as the largest origin of
Fair Trade wine, but a steady contribution was seen in South African
and Chilean imports, too.
In South Africa, Fair Trade wineries have implemented special
programs to support post-apartheid economic empowerment. In
2009, TransFair USA hosted South African wine producers Fairhills
and Stellar Organics to participate in market linkage opportunities,
including an exciting cross-country tour during Fair Trade month,
meetings with interested buyers, wine tastings and educational
talks. We celebrated the impact of Fair Trade in South Africa at two
special events held at the South African Embassy in Washington,
D.C., and the South African Consulate General in Chicago.
The amount of community development premium funds has
increased by more than 500 percent since Fair Trade Certified wine
first hit U.S. shelves, which demonstrates the remarkable impact
that this product can have on farmers and vineyard workers.
2008-2009 Bottles Certified
2009 Bottles Certified
2009 Percent Organic
1,708,677 1,450,717 14%
Fresh FlowersFlower imports were virtually flat in 2009. Nevertheless, loyal
retailers such as Whole Foods Market and Shop Rite purchased
nearly 10 million stems from 16 certified farms in Kenya, Ecuador
and Colombia. These imports generated almost $300,000 in
community development premiums, which were paid back to
farmers and workers on certified farms. These funds helped pay
for medical clinics and treatment, clean water, better housing,
scholarship programs and other vital social programs benefitting
the workers and their families.
2007-2009 Stems Certified
2009 Stems Certified
20,025,719 9,539,859
HoneyFair Trade Certified honey imports, which are entirely organic, have
remained modest since the program’s U.S. launch in 2008. The
U.S. market is largely driven by the dedication of a few visionary
companies who remain committed to delivering continued impact
to beekeepers and their families across Mexico.
As honey extends beyond the food industry to the body care
industry, and as TransFair USA looks to expand supply into new
origins, Fair Trade honey is expected to take off in the coming years.
2008-2009 Pounds Certified
2009 Pounds Certified
509,055 242,671
South African Ambassadors Honor Fair Trade Certified Wine LaunchOn June 25 and July 1, 2009, the South African Embassy in
Washington, D.C. and the South African Consulate General in
Chicago feted TransFair USA and Stellar Organics in celebration
of the U.S. launch of Fair Trade Certified wine from South
Africa. These festive and collaborative events were attended
by a wide variety of TransFair USA allies including business,
government, foundation, media and grassroots partners, and
were a powerful debut for Fair Trade Certified wine in the
United States.
A keynote speaker at the gatherings was Berty Jones, Head
of the Joint Body of Stellar Organics in Trawal, South Africa.
Mr. Jones touched hearts by telling his story of rising from
a concrete-layer who couldn’t speak English to his current
position as cellar master.
“ You cannot imagine what it is like for someone like me to come all this way to tell someone like you about the impact of Fair Trade and the difference that it is making, ”– Berty Jones, head of the Joint Body of Stellar Organics
in Trawal, South Africa
TRANSFAIR USA ANNUAL REPORT 200934 35TRANSFAIR USA ANNUAL REPORT 2009
Vanilla Fair Trade vanilla imports support the livelihoods of farmers in rural
regions of India and Uganda, giving them a larger portion of the final
selling price. In 2009, vanilla imports rose 20 percent and farmers
received more than $26,000 in community development premiums.
In India, these funds are channeled through the Eco-Agri Research
Foundation, a nonprofit organization that supports small-scale
vanilla farmers in Karnataka and Kerala states. Training programs
funded by Fair Trade premiums educate farmers and school children
on sustainable and organic farming techniques that both improve
crop quality and protect delicate ecosystems.
2006-2009 Pounds Certified
2009 Pounds Certified
2009 Percent Organic
444,031 53,261 28%
RiceFair Trade rice has been something of a sleeper category for us
since launching in 2005. But rice imports tripled between 2008
and 2009, suggesting renewed industry interest in the high-quality
Fair Trade basmati and jasmine rice varieties grown by small family
farmers in India and Thailand. Most of these farmers have turned to
organic rice cultivation as a way to reduce costs, increase income,
protect their ecosystems and achieve greater sustainability at the
community level.
2005-2009 Pounds Certified
2009 Pounds Certified
2,190,234 971,454
New Fair Trade Certified ProductsQuinoaAfter much anticipation, TransFair USA was delighted to certify
Fair Trade quinoa for the U.S. market in 2009. Sales in this first year
reached a respectable 300,000 pounds. Consumers can now find
Fair Trade Certified™ quinoa in bulk bins and retail packages in select
markets as demand for this protein-rich grain continues to grow.
Fair Trade quinoa comes exclusively from Bolivia, where it has been
cultivated for more than 6,000 years. Farmers live in conditions
of extreme isolation in the Altiplano of southwestern Bolivia,
where poverty is endemic. With their new Fair Trade community
development funds, farmers report that they are investing in
several educational and training programs, including an organic
cultivation program that teaches farming methods that don’t rely
on harmful chemicals.
Product 2009 Pounds Certified
Quinoa 304,351
Nuts and OilseedsThe launch of nuts and oilseeds in 2009 was modest, but it presents
an exciting opportunity for companies to expand their Fair Trade
offerings. We anticipate that an array of body care and chocolate bar
companies will take advantage of these new products in the future.
Fair Trade olive oil has brought much-needed assistance to
marginalized rural communities in the war-affected regions of
Palestine. Fair Trade premiums helped fund higher-education
scholarships to the children of 10 farmers per year, covering full
tuition and expenses for the students for four years of university.
In addition, there is an olive tree replanting program, a women’s
microloan program and a workers’ capacity-building program, all
aimed at enhancing production and furthering sustainability.
Product 2009 Pounds Certified
Nuts & Oil Seeds 53,001
Shea Butter 54
Olive Oil 16,867
Brazil Nuts 36,080
Sports BallsTransFair USA began testing the certification of Fair Trade sports
balls for the U.S. market in early 2009, addressing an industry that is
outside of our traditional agricultural model. Certified sports balls
include rugby and soccer balls, with the potential for footballs, bas-
ketballs and volleyballs to become available over the next few years.
This new category brings benefits to workers in Pakistan, a new
origin for the U.S. market. At Vision Technologies in Pakistan,
which has been selling Fair Trade soccer balls to Europe for several
years, workers now receive free transportation to and from the
work site, group insurance coverage, free vaccinations, subsidized
meals, and medical attention for surrounding communities.
Product 2009 Balls Certified
Sports Balls 850
Herbs and SpicesThe spice category presents exciting opportunities both as a
retail-ready product and as an ingredient in composite products.
Fair Trade Certified spices can be found with certified tea, sugar
and cocoa in chai blends and baking mixes. Bottled spices hit the
shelves in late 2009. Cloves, pepper and cinnamon represent the
bulk of U.S. Fair Trade spice imports to date. The expansion of
the standards to include additional herbs and spices in July 2009
signifies greater growth potential for the category in coming years.
In 2009, nearly $15,000 in community development funds reached
spice farmers in India, Uganda and Sri Lanka as a result of their
exports to the newly-opened U.S. market.
Product 2009 Pounds Certified
2009 Percent Organic
Herbs & Spices 96,084 100%
TRANSFAIR USA ANNUAL REPORT 200936 37TRANSFAIR USA ANNUAL REPORT 2009
SupportersPhilanthropists Showed Their SupportAs a nonprofit organization, TransFair USA depends on a community of individual, business, government and foundation donors to support
the growth of Fair Trade. We are grateful to repeat funders, including the Peery Foundation, the Skoll Foundation, RSF Social Finance,
Stichting Het Groene Woudt, the Levi Strauss Foundation, and the Marisla Foundation for renewing their commitment in 2009. We were
also honored to receive grants from new funders, including the Ansara Family Fund at the Boston Foundation, the Curtis & Edith Munson
Foundation, the Germeshausen Foundation, and the Cordes Foundation. Additional new funders in 2009 included Green Mountain Coffee,
the Green Mountain Coffee Roasters Foundation and Wal-Mart Stores, Inc.
Board of DirectorsTom BullockChairman of the Board, Mac-Gray Corporation & former President and CEO, Ocean Spray Cranberries
Susan ClareBusiness Consultant
Michael E. ConroyChairman of the Board and former Senior Lecturer & Research Scholar, Yale University’s School of Forestry & Environmental Studies
Theresa Fay-BustillosPrincipal & Co-Founder, Ideal Philanthropy, LLC
Paul HodgeFounding Chair, Global Generations Policy Institute
Rick LarsonDirector of Sustainable Ventures, The Conservation Fund
Katy MurrayExecutive Vice President and Chief Financial Officer, Taleo
Ellen PeckSenior Officer and Director of Development, Save the Children
Paul D. RicePresident & Chief Executive Officer, TransFair USA
Frank TsaiPartner, FLG Partners
Carlos Vargas LeitónFinancial Manager, CoopeTarrazu R.L. Costa Rica
Advisory CouncilKenneth J. BeebyAttorney (Consultant) & Retired Vice President of the General Council, Ocean Spray Cranberries
Andrew J. Ferren, Esq.Partner, Goulston & Storrs
Barbara FioritoFormer Chair, Oxfam America, FLO
John HannanDirector of Development, Audubon Connecticut
John HenryFormer Senior Vice President of Grower Relations & CFO, Ocean Spray Cranberries, Inc.
Tim HoranFormer Vice President Human Resources, Latin America, Gillette Company
Stephen Land, Esq.Partner, Linklaters LLP
Joshua MailmanPresident, Sirius Business Corporation
Kim Samuel-JohnsonPresident, Samuel Family Foundation
George ScharffenbergerSpecial Assistant for International Development Policy and Practice, Office of the Vice Chancellor for Research, UC Berkeley
Michael ShimkinFormer Executive Vice President, Simon & Schuster, Inc.
Management TeamJoan Catherine BraunChief Financial Officer
Lynn LohrVice President of Resource Development
Paul D. RicePresident & Chief Executive Officer
Todd StarkChief Operating Officer
* As of July 2009
TRANSFAIR USA ANNUAL REPORT 2009 39
DonorsVisionaries - $100,000 or MoreAnonymous donor – RSF Social FinanceGreen Mountain Coffee Roasters FoundationPeery FoundationSkoll FoundationStichting Het Groene WoudtUnited States Agency for International Development (USAID)Walmart Foundation
“ We support TransFair USA because it provides families and communities around the world with the dignity of work and opportunity. And, of course, because we believe Fair Trade Certified chocolate simply tastes the best. ”– Dave Peery, Executive Director, The Peery Foundation
Champions - 25,000-$99,999Cordes FoundationGreen Mountain Coffee RoastersAlan HassenfeldStephen & Jane LandLevi Strauss FoundationJerome J. LohrMarisla FoundationRonald B. RankinWhole Foods Market
Benefactors - $10,000-$24,999Ansara Family Fund at the Boston FoundationSusan Clare & Peter D. ParkerCurtis & Edith Munson FoundationGermeshausen FoundationPaul & Lorna HodgeKim Samuel-JohnsonMichael Shimkin & Barbara FioritoHarriet Mouchly-Weiss
Patrons - $5,000-$9,999Jerome DodsonRick Larson & Gair McCulloughKaty MurrayCarlos Alberto & Ana Vargas LeitónWilliam & Flora Hewlett Foundation
Partners - $1,000-$4,999Bastian+SkoogKenneth & Shelley BeebyJoan Catherine BraunThomas & Elizabeth BullockCaroline Blanton Thayer TrustMarin Community FoundationMichael Conroy & Lucy Atkin
Theresa Fay-BustillosTodd GentzelLatin America FundGeoff MassingberdEllen M. PeckPaul D. Rice & Marisol AguilarGeomar FoundationGeorge ScharffenbergerSmall Planet Fund of RSF Social FinanceFrank & Frances Tsai
Advocates - $500-$999Allen Fischer & Renate BelvilleDoña Tomás RestaurantTim & Jeanne HoranRebecca LeeLynn Lohr & Lance BelvillePedro F. MataAdrian & Kim McCarthyMicrosoft Matching Gifts ProgramMatthew MlinacSalesforce.com FoundationJane Serlin & Sam EganMaya & Dan SharpHeather SoffanThomas International USA IncorporatedPeter Wantuch
Sociates - $100-$499Maria ArellanoNancy BakerChris BancellsElizabeth BerlikNancy BlissKevin BraunTemmie BrierCedar Lane Unitarian Universalist ChurchCheltenham HighPhilip CookChris & Kathy DudaItzel DuranSusan FarberDavid FunkhouserJohn GroceMarghi HagenLois HallenSusan HanleyNikki Neufeld & Brian HarperJohn & Diana HarringtonAmelia HolsteinGary HutchensW. Burns & Marcia Bell JonesDavid KatzLucy KoelleShade Keys LittleJim & Mary LohrDavid LyChris & Liz LyserJocelyn Mini
North Beach FoundationNumi Organic TeaJohn PeedF. Elliott RyderSaint Mark’s CathedralLara SantiagoSylvia SchellyPatricia ScofieldBetsy & Ira SilvermanChris & Margaret SinclairConnie SmithElaine SpaullSports BasementShelley WeissGladys WongYahoo Inc. Donor Advised FundDavid Zebker
Friends – Up to $99Anonymous Alice AdlerDina AngressNathan AricoAtonement Lutheran ChurchLarry BachDiane BaerCharlotte BakerCindy BallaroKatie BarrowJohn BayerRita BohlingM. BremerSarah BrownChanging the PresentWoodworth & JoAnne ChittickDan & Sue CockrumBarbara & Don CohenKayla ColeJoan ConklinLinda CouchCarol CoxClyde CramerMerredith CristNina CudneySamantha DickeyMichael DwyerEconscious MarketRebecca EnnenAndrew Ferren & Sue WilkinsCharlie FloydLinda FosterDavid GardinerDanica GardinerGoodSearchSusan GroffJustin GuayMark & Amy HamiltonMichaeli HansenBill HaydenLauren HayesElysa HaysJulie HelouJonna Hensley & Dylan HawheeJerry Hoff
Rachel Lee HolsteinEric Husby-GerryDavid IzzoLudvin JacobsonNancy JanssenDavid & Jean JonassonMichael KearneySherry KeithDeborah KimJacqueline KlippenesDonna KreisbergTannisha LambertGilbert & Elaine LessencoCarolyn LiefRoger & Joanne LindEric LloydKathy LyonsNeil MarshallJudy McEvittLinda & Mark MoriartyAmanda MorrellBarbara NoparstakKevin OlinManeesh PangasaNikki PosnickErin QuiringFrances RamirezRichard RedfernLinda RoyTricia RussellDavid & Sandra RussellSarah SaastamoinenDeborah Sanborn & Donald DavellaEmanuel Santa-DonatoNebyat ShewayeKelsey StevensErin Swenson-KlattKurt & Mary TeichmannThe Clorox Company FoundationMargaret ThomasTia Upchurch-FreeloveM. UpshawJoshua Von KorffPing Huang WangMobi WarrenRobert & Allyson WhiteAnna Wiersma
LendersCatholic Healthcare WestFord FoundationIdyll Development FoundationNonprofit Finance FundSisters of Charity of New YorkSisters of Charity of St. ElizabethSisters of the Holy Names of Jesus and MarySisters, Servants of the Immaculate Heart of MarySisters of St. Francis of PhiladelphiaSt. Joseph Female Ursuline Academy, Inc.Viva Investments Company SA
In-kind SupportersAllegro Coffee GroupAlter EcoAmerica’s Best Coffee Roasting CompanyAngus AndersonAnti-bodyAwaken CaféBay Area Rapid Transit (BART)Blends for Life OrganicsBorlaug Institute of Texas A&M UniversityBradescoBruegger’sBusiness Meets Sustainable Development (BSD)Bull Run RoastersCafé ImportsCapricorn CoffeesCarmichael Lynch SpongChoice Organic TeasClinton Hunter Development InitiativeCountercultureDe La Paz CoffeeDivine ChocolateDunkin’ DonutsEcologicaEmbassy of the Republic of South AfricaEquator Estate Coffees & TeasFair Spirits Co.Fair Trade SportsFairhillsFord FoundationGoogleGoulston & StorrsGreen Mountain Coffee RoastersHub Bay AreaIn bloom GroupJ. Lohr Vineyards & WinesKopaliKris BeschLa YapaLinklaters LLPMassachusetts Bay Transportation Authority (Boston T)Microsoft Software Donation ProgramMortarMountanos Brothers Coffee CompanyNumi Organic TeaOne World FlowersPinhalensePrestige Wine GroupRepublic of TeaRishi TeaRoyal CoffeeSalesforce.comSalesforce.com FoundationSamovar Tea LoungeSEBRAE
South African Consulate General in ChicagoSouth African International Business Linkages (SAIBL)Starbucks Coffee CompanyStellar WinerySurf City Coffee CompanySwoonbeamsTaleo Talent Management SolutionsTchoTechSoupThe RoasterieTheo ChocolateTony’s Coffee and TeaTraditional MedicinalsTravel ChocolateTully’s CoffeeWild Card RoastersWholesome SweetenersWorld FlowersZhena’s Gypsy Tea
1-800-Flowers
Partners, Allies and CollaboratorsClinton Global InitiativeEqual ExchangeFair Trade FederationFair Trade Resource NetworkFairtrade FoundationGlobal Center for Social Entrepreneurship, University of the PacificGlobal ExchangeGreen AmericaJan Vossen ConsultingLutheran World ReliefOxfam AmericaRoot CapitalSara LeeSchwab Foundation for Social EntrepreneurshipSkoll World ForumSocial Venture NetworkWalmart BrasilWorld Economic Forum
Donor Spotlight: Maya & Dan SharpMaya and Dan Sharp of Pasadena, California are true Fair Trade
devotees who have been spreading the word about Fair Trade
for years. They have hosted Fair Trade events and supported
TransFair USA monetarily as contributors. And on top of it all,
Maya is currently looking into how to introduce curriculum
about Fair Trade into her children’s classrooms.
When asked what drew them to the movement, Maya and
Dan said that they are inspired by how Fair Trade empowers
farmers and workers in impoverished countries to take the
lead on improving life for their families and communities,
instead of just receiving temporary aid. They are also
passionate about the environmental benefits of Fair Trade,
such as deforestation prevention, conversion to organic
agriculture and restriction of GMO use.
TRANSFAIR USA ANNUAL REPORT 200940 TRANSFAIR USA ANNUAL REPORT 2009 41
Financial Summary
ASSETS 2009 2008Current assets:
Cash and cash equivalents $1,299,168 $2,243,986
Investment, at market value $765,822 $310,898
License fees receivable, net of allowance $1,754,970 $1,261,467
Grants receivable $1,237,672 $1,027,500
Prepaid expenses and Other receivables $322,588 $181,012
Total current assets $5,380,220 $5,024,863
Property and equipment, net $286,424 $278,443
Deposits $50,350 $76,787
Long-term grant and contributed revenue $715,000 $505,000
Total assets $6,431,994 $5,885,093
LIABILITIES AND NET ASSETSCurrent liabilities:
Accounts payable $211,169 $226,115
Accrued liabilities $817,632 $544,349
Current portion of notes payable $70,000 $54,000
Total current liabilities $1,098,801 $824,464
Long-term liabilities:
Notes payable, net of current portion $5,220,000 $5,290,000
Accrued lease incentive $192,407 $191,478
Total long-term liabilities $5,412,407 $5,481,478
Net assets surplus (deficit):
Unrestricted ($2,347,479) ($2,278,656)
Temporarily restricted $2,268,265 $1,857,807
Total net assets surplus (deficit) ($79,214) ($420,849)
Total liabilities and net assets $6,431,994 $5,885,093
REVENUES AND SUPPORT 2009 2008License fees $6,881,181 $5,757,709
Grants and contributions $2,752,477 $3,273,512
In kind donations $245,712 $189,288
Trade show support $21,060 $41,348
Other income $121,177 $70,673
Net unrealized/realized loss on investments $19,087 ($19,035)
Total revenue and support $10,040,694 $9,313,495
EXPENSES:Program $7,809,173 $7,299,987
Management and general $1,280,896 $1,109,534
Fundraising $608,990 $656,984
Total expenses $9,699,059 $9,066,505
Net change in assets $341,635 $246,990
Grants and Contributions
License Fees
In Kind Donations
Trade Show Support
Other Income
Trade show support
0.2%Other income
1.4%
In-kind donations
2.4%
License fees
68.5%
Grants and
contributions
27.4%
2009 Revenues
Program
Management and General
Fundraising
Fundraising
6.3%
Management and
general
13.2%
Program
80.5%
2009 Expenses
TransFair USA Statements of Financial Position for the Years Ended December 31, 2009 and 2008
TransFair USA Summary of Activities for the Years Ended December 31, 2009 and 2008
The information on the adjacent page is
summarized from the TransFair USA financial
statements which are audited by Bregante
& Company LLC. Copies of the completed
audited financial statements are available
upon written request.
Photo credits Didier Gentilhomme, Christof Krackhardt,
Simon Rawles, Frédéric Raevens, Tabitha
Otwori, Jenna Payne, Gregor Dicum, Nicolas
Gauthy, Linus Hallgren, Kennet Havgaard.
This annual report was printed by a FSC
Certified printing company and only paper
that meets the internationally recognised
FSC Principles and Criteria of Forest
Stewardship has been used.
TRANSFAIR USA ANNUAL REPORT 200942
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Tel: 510-663-5260Fax: [email protected]
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