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new opportunities

UPDATE! FAIR TRADE ORIGINALIN 2016

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‘Do you think about the people

that produce your food?’

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INHOUD04 Preface: Our Asian products contain five

basic ingredients that are indicative of our approach, our challenges and ambitions.

06 1. Our dream: To make our dream a reality, we develop Original Chains and measure the impact of our work.

10 2. Fair local chains: Rice noodles from Thailand, fairtrade farmers in Indonesia: we are constantly developing new supply chains and products.

16 3. Climate: Fairtrade farmers are vulnerable when it comes to climate. Preventing climate change is therefore part of our process.

18 4. Everywhere, for everyone: By developing and improving products and conquering more space on the shelf, we reach more people.

26 5. Special encounters: Felice: ‘My visit to Thailand confirms to me that we have a unique story to share.’

28 6. Optimistic about the future: Fairtrade in Indonesia. Organic farming in Thailand. The future is getting increasingly fairer.

30 7. Our team: We want to live up to the rapidly changing expectations of customers and consumers.

32 8. Ghanaian oranges: By building a strong orange chain in Ghana we help citrus farmers work towards a profitable farm.

36 9. Good question! Five questions about our orange juice. With the answers, of course.

38 10. Our figures: We ended 2016 with a posi-tive result, which we invest in our work and in our trading partners.

Colophon FAIR TRADE ORIGINAL IN 2016

Fair Trade Original Multatulilaan 12 4103 NM Culemborg The NetherlandsT: +31(0)345 54 51 51 E: info@fairtrade.nl www.fairtrade.nl

LAYOUTStudio Bassa

TEXTFair Trade Original2 in beweging

PHOTOSHugh Sitton p 1Micky Wiswedel p 2Remko Kraaijveld p 5, 9, 13, 27, 28, 40Aleide Tomson p 6, 10, 15Sjoerd Eickmans p 16, 18, 19, 20Blauw Gras p 22Cynthia Brandwijk p 25Suzanne Klaver p 30Bastiaan Musscher p 31Fair Trade Original

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PREFACE

Our five ingredients leave you wanting moreEvery day we have contact with many consumers. We receive a large amount of positive feedback about the taste of our coconut milk, curries and other products from our Asian culinary product range. The products are not only delicious, the way they are made is equally special. We always say that these products contain five fixed ingredients. In other words, the Fair Trade Original recipe. I will go through them with you using our Thai curries, wok sauces and sambals:

1 LOCALLY PRODUCEDAt home with the four Thai brothers Yo, Bo, Ball and Boy, it must often have smelt of delicious food, because their mother is a gifted home cook who started selling home-made curries, wok sauces and sambals. This became a resounding success and the four brothers further developed their mother’s idea. When we learnt about their Thai products at Fair Trade Original, we realised immediately that really tasty Thai food is made locally.

2 FOR THE FARMERIf you ask our Thai farmers Orapin and Orachan, they will tell you that being a farmer is the most beautiful job of the world. As farmers the women grow vegetables and spices with what nature has given them: soil, sun and water. A great job, but also a demanding one. It is mostly manual work done in the hot sun and the income of Thai farmers is low. Our farmers deserve a better reward.

3 TOGETHEROrapin and Orachan belong to a farmer group. They work together in a way we can learn a lot from. First, Orapin helps the neighbours with the harvest, after which her neighbours help her. By working together instead of competing, you can achieve a great deal and in the end there are only winners.

4 CONFIDENCE IN THE FUTUREIn 2012 the 15 farmers of Sisaket embarked on an adven-ture. By now, the daily concerns about uncertain sales and changing market prices have disappeared. At this moment, the group consists of 55 farmers and together they discuss the future.

5 FOR PEOPLE, NOT FOR PROFITFair Trade Original makes products to make people’s wishes come true. This applies to the farmer who dreams of a prom-ising future and to the consumer who wants to combine nice flavours with all that is good.

You will find these ingredients in increasingly more products in our range. In this Update! you can read more about our approach, the results, our challenges and ambitions. Bert Jongsma, Managing Director

Bert in Ghana: ‘We can see the positive effects of our fair approach all around us.’

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THANKS! In this Update! of 2016 we review the past year and have various stakeholders talk about their experiences with Fair Trade Original. This provides a nice picture from different perspectives: Marit, Commercial Director of Albert Heijn; Kim, chocolate sprinkles fan; Pablo, vegan; Margreet, Chair of our Supervisory Board; Charlotte, orange farmer in Ghana. I would like to thank you all for your contribution to this Update!

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1. OUR DREAM

OUR DREAMFrom farmer to consumer, trade is fair and transparent

OUR SHAREBy developing local food chains we make fair food and drinks accessible to everyone

OUR AMBITION • more fairtrade products in the shops• create opportunities for farmers and employees• more added value in the country of origin• transparent international supply chains• encourage other brands and trade to implement

fairtrade • involve consumers in our mission

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OUR DRIVING FORCESince our establishment in 1959, we have been fighting poverty among producers in developing countries. In recent decades poverty in these countries has fallen sharply, but 70% of the poor still live in rural areas. Since world leaders have agreed to wipe out poverty by the year 2030, farmers play an important role. Our contribution is that we want to help precisely these people to create a better life.

WHAT IS THE PROBLEM?Millions of small-scale farmers in developing countries grow ingredients for our daily food and drinks. But if they want to sell their products on the international market, they lose out due to a lack of knowledge and resources.

Often, farmers in developing countries supply the ingredients for our food and drinks; the final product is made here. The added value (the price difference between ingredient and final product) largely goes to a small group of traders and manufacturers. They have an unprecedented strong position within international trade.

Consumers have little or no insight into the origin of the products they buy. Where do the ingredients come from, how do they get here, which parties are involved in the produc-tion and trade? This makes it impossible for people to make conscious choices in their buying behaviour.

OUR ALTERNATIVE We work together with local entrepreneurs in developing countries: small-scale factories that produce food. We pay a fair price for the ingredients of farmers and for processing them into finished product.

The local entrepreneurs we work with opt for social entrepre-neurship, act as our local ambassador and form an indis-pensable link with farmers who grow fairtrade ingredients. Because we deal directly with local farmers and entrepre-neurs, we build a strong personal relationship with them and we work together on social impact. Moreover, a significantly greater share of the added value remains in the country of origin.

Consumers like you have the final say. By choosing socially responsible products, you give a voice to small farmers in developing countries. And together with many others, you make a difference. We call this the Original Chain.

MILLIONS OF SMALL-SCALE FARMERS

MILLIONS OF CONSUMERS

A HANDFUL OF: TRADERS,

PROCESSORS, RETAILERS

TAKE: THE BULK OF THE CAKE

SMALL-SCALE FARMERS IN DEVELOPMENT COUNTRIES

CONSUMERS

LOCAL BUSINESSES

TOGETHER WITH FAIR TRADE

ORIGINAL

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SOCIAL IMPACT By having fairtrade ingredients from farmers processed into a finished product in their country of origin, more impact is created locally. Then, if the processor can successfully export the products, this increases the farmers’ sales and, conse-quently, the social impact on the farmers’ families. At the moment, 37% of our products are sold according to this Origi-nal Chain method. We aim to expand this share every year to increase prosperity in the countries of origin.

‘I’M GLAD I CAN CONTRIBUTE’In 2016, co-funded by Max Havelaar and CSR Netherlands, Avance Impact carried out a study into the social impact of three Original Chains set up by us:

1 in Thailand at Sisaket Fairtrade Farmer Group and KRS Spicy Food, suppliers of curries, wok and other sauces, and sambal. Read all about it in the Update! Asia at www.fairtrade.nl/english. 2 in Ghana at the chain for orange juice concentrate (see also page 32 and following). The impact study confirms that citrus farmers have gained access to the international market through their sale of fairtrade oranges to a local processor (Pinora) that processes the oranges to orange juice concen-trate. Through cooperation with Fair Trade Original, farmers can participate in training programmes where they learn to apply better farming methods. They now have easier access to fertilisers and less harmful products for pest control.

WHAT WE DO

BUILD DEVELOP SUPPORT SELL FAIRTRADE

SUPPLY CHAINFAIRTRADE PRODUCTS

LOCAL PROCESSOR WITH EXPORT PLANS

FAIRTRADE PRODUCTS UNDER OUR BRAND

ENSURES

INCREASED LOCAL PROSPERITY

MORE INTERNATIONAL INTEREST

INCREASED TURNOVER AND EMPLOYMENT OPPORTUNITIES

INCREASED SALES AND FAIRTRADE PREMIUMS

IN THE FAIRTRADE RANGE

FOR AND WITH THE PROCESSOR

FOR FARMERS

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This benefits the harvest, both in terms of quality and quan-tity. The farmers are Fairtrade certified and receive a far higher price for their oranges.

3 in Thailand at Fairtrade Pineapple Growers Group and Samroiyod Corporation, suppliers of canned pineapple and mango, as well as juice concentrate. Fair Trade Original is behind this chain and has both organised farmers and supported them in using fairtrade principles and helped the factory during its start-up period as fairtrade producer.The main outcomes of the impact study:Samroiyod Corporation is the processor of pineapple and mango and exporter of the canned fruit and pineapple concentrate. Thanks to Fairtrade certification, they have a distinctive proposition. Through participation in internation-al food trade fairs and excellent export management, the company knows well how to use fairtrade as an important USP. They already have customers in Germany, Switzerland, Austria and Italy. The increased international demand for fairtrade fruit provides additional revenue for the processor and premium income for farmers.The farmer group, which grows both fairtrade pineapple and mango, has grown from 20 to 58 farmers and has been professionalised. Thanks to the development premium, the group employs two clerical workers and provides specific services to its members. For example, through training and other facilities the farmers work towards becoming more resilient to climate changes such as drought. In this respect, they have a head start on non-fairtrade farmers. The farm-ers themselves say that through cooperation in the fairtrade group they are more aware of their health, have a better view of the world thanks to the study trips, they can seek advice from more people within the farming community and are proud to be part of an organisation that contributes to the community as a whole. Like a farmer said: ‘I’m glad I can contribute’.

The story of NipalinNipalin harvested her first pineapple on her parents’ farm when she was 13. She is now 44. She learnt the trade from her parents, but they only had one crop from November to February. By adopting a more systematic approach, Nipalin now has several crops throughout the year. Nipalin has learnt to achieve a higher yield with fewer resources, such as fertiliser: ‘Thanks to better planning, the fruit has the right size at the right time. Moreover, the fruit is riper. Because of all of this I can sell more under Fairtrade terms.’

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2. FAIR LOCAL CHAINS

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In 2016 we set up new supply chains and strengthened existing chains. Read here about the most important steps taken.

NEW PRODUCTSTogether with Thai fairtrade rice farmers and a local proces-sor we have managed to develop rice noodles. Rice noodles require a specific type of rice, which grows in a different season and is harvested at a different time than the regular Pandan rice. This means a second crop for the Nam Om rice farmers and thus more income and a fairtrade development premium. The noodles are produced locally by the President Rice factory. Our Thai partner KRS Spicy Food exports the noodles to the Netherlands. In addition, we developed two new spice pastes in Sri Lanka: Korma and Tandoori. The vegetables and spices are grown locally. We help farmers to better organise themselves, allowing them to share their knowledge of good farming practices. We develop the recipe together with local processor Ma’s Tropical Foods.

FAIRTRADE CERTIFIEDOur products bear the Fairtrade certification of Max Havelaar or (in a few cases) the Fair For Life certification. Certification of this kind is mainly aimed at farmers or plantation workers. Some of our local processors allow independent certification organisations to check the social and working conditions of their employees. Fairtrade certification of the chocolate sprinkles and flakes in 2016 is a milestone. After years of searching, we succeeded in adding fairtrade cane sugar to these products. This makes us the first and only brand for this chocolate product that uses both fairtrade cocoa and fairtrade cane sugar. The Korma and Tandoori spice pastes did not yet have the Fairtrade label at the time of introduction in 2016. To encourage farmers in their transition to fairtrade practices, we do not wish to postpone the introduction for an unnecessarily long time. In the period before official certifica-tion (obtained in 2017) we already paid them the development premium.

Investing more in the growth of fairness Our expenses for fairtrade development premiums, direct support from our trading partners and license fee to Max Havelaar amounted to € 1,000,000 in 2016 (7% of net sales). Through the growth of our trading activities, we are working towards more investment in the development of our trading partners.

LOCAL SUPPLY CHAINSWe prefer to process our products locally. Eleven local pro-cessors, mostly in Asia, make a total of 40 products for us (2016: 37% of sales). The success of many of these products means we see opportunities for expansion with our suppliers and look for new resources. This way we found a second - extra - pineapple chain (farmers and processor) and with the Sisaket farmers - chillies and vegetables for our Thai curry and wok sauces - we work to increase production. When processing locally is not possible, we purchase the fairtrade ingredients ourselves (2016: 4% of sales) for processing in Europe, or we work with an importer under our management (2016: 36% of sales, mainly coffee). If there really is no other option, we will have our supplier purchase the fairtrade ingre-dients (2016: 23% of sales).

PERSONAL RELATIONSHIPS In 2016 Ma’s Tropical Foods in Sri Lanka celebrated its 30th anniversary. We have been doing business with this suppli-er of coconut milk and the new Korma and Tandoori spice pastes for more than 20 years. Together we work intensively on the empowerment of farmers who have come together in the SAFENet organisation. In honour of the anniversary we issue a € 5,000 check to farmers who grow herbs and spices for the spice pastes. They use this to address some of the priorities in their development plan: the construction of water channel drains for soil conservation and compost production.

FOOD SAFETYWe require our processors in developing countries to comply with a food safety system accredited by GFSI (Global Food Safety Initiative). We provide them with support in implement-ing and improving their quality assurance system. Following a recall in 2016, the quality checks at one of our coconut milk suppliers were improved.

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GIVING NEW FARMERS ACCESS TO FAIRTRADEDeveloping local chains requires a long-term approach. The introduction of the above-mentioned rice noodles required intensive involvement of our Development Manager in the set-up of a complex chain in 2016. The specific long grain rice required - with a high amylose content - needs to be pur-chased well in advance. After harvest, the rice must rest for a number of months to develop into suitable raw material for the rice noodles. This requires long-term commitment from all parties, even before any actual trading takes place. In addi-tion, we started developing a new chain in Indonesia in 2016. The products are expected to be marketed in early 2018. Sometimes setting up a new supply chain is more challeng-ing than foreseen. We discontinued our search for farmers in Cambodia that can supply us with fairtrade and organic rice. The overall market opportunities for the farmers concerned do not appear to be significant enough.

MORE TRANSPARENCY AND TRACEABILITYWhen we have fairtrade ingredients processed in the Netherlands or elsewhere in Europe, we take on the role of chain director. In developing these supply chains, we consult with the processor to make agreements on the origin of the fairtrade ingredients and their cooperation with the farmers. We want to keep a finger on the pulse by, among other things, having access to fairtrade inspection reports and visiting farmer cooperatives.

International trade is not always organised in such a way that every step from the ingredient to the final product can be traced. This is especially true in the cocoa sector. For years we failed to convince our manufacturer of chocolate sprinkles and flakes to process the fairtrade cocoa and cane sugar in a traceable manner. That is why we switched to a different chocolate sprinkles factory in 2016, which is able to do that. Because we purchase the fairtrade ingredients ourselves, we can decide which cocoa cooperative we work with. Once a new collaboration has been launched, we can develop programmes for farmers who, like the cocoa sector as a whole - face problems of low productivity, climate change, gender inequality, child labour and lack of business acumen. Moreover, we believe we can keep better track of the origin of our cocoa if we have the beans processed to cocoa liquor in the country of origin. Research into this is in full swing and we will make a decision by 2017. The switch to another chocolate sprinkles factory also means that we will also use fairtrade cane sugar, from Mauritius, in addition to fairtrade cocoa.

At the same time, we are critical of non-fairtrade ingredients that may involve risks. For example, we have reassured our-selves that the hazelnuts in our hazelnut paste are purchased for us - according to the mass balance principle - in Spain and not in Turkey where much of the harvesting is done by children.

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NEW PINEAPPLE CHAIN

Fairtrade pineapples are a success. For years, Samroiyod Corporation has been the only supplier of Fairtrade canned pineapple and pineapple concentrate. In close cooperation with Samroiyod, a second chain was formed between Saming Foods and Trat Pineapple Farmers Group in less than five months. This allows us to give new farmers the opportunity to sell their pineapples at a fair price too.

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TRAVEL IN 2016Om onze ambities bij de boeren en verwerkers waar te maken, reizen we in 2016 extra vaak. Al onze dienstreizen zijn klimaatneutraal. We compenseren met Gold Standard CO2 credits, zie ook pagina 16-17). Vooral onze twee development managers zijn veel op pad, soms vergezeld van collega’s zoals een product manager, de kwaliteits medewerker en de directeur. Bij sommige partners gaan we vaker dan een

keer langs. In totaal gaat het om 18 bezoeken, variërend van enkele dagen tot ruim een week. Daarnaast is Avance Impact twee keer voor ons op reis geweest om impactmetingen te doen bij boeren en verwerkers en werken we nauw samen met lokale consultants die partijen in de keten regelmatig bezoeken en advies geven.

Country Visit to Activities

Ghana 1. orange juice concentrate partners

2. farmer organisations and cocoa producers

1. discuss strategy/progress development programme/handing over Jumbo truck/ impact assessment implementation 2. new chain orientation

India noodles partners prepare farmers, wheat mills and noodle producer for Fair for Life inspection; discuss developments at noodle producert

Sri Lanka 1. coconut milk partners

2. Indian spice pastes partners3. tea chain

1. focus on food safety, improvement plan after coconut milk recall, visits with auditor2. discuss development plans with herb/spice farmers3. visit potential tea chain; study cooperation opportunities

Thailand 1. culinary products partners

2. rice noodles partners

3. new canned pineapple chain partners

4. cassava chips partners5. rice, pineapple and herb farmers

1. prepare impact study; discuss Fairtrade compliance in preparati-on for inspections; set up study of production costs; discuss growth scenario and biological potency2. discuss production of Chainat rice for rice noodles in 2016 and 2017 with a view to growth scenario; Fairtrade compliance by farmers3. implementation and progress Fairtrade certification of 2nd source of pineapple 4. discuss FSSC22000 Food Safety process5. collect stories and visual material with photographer and copy-writer for ontmoetonzeboeren.nl campaign

Cambodia potential Jasmine rice partners in Cambodia

analysis of the options to develop an organic and Fairtrade chain with farmers and rice mill

Mauritius cane sugar partners discuss Fairtrade compliance growth and development plans with farmer cooperatives; discuss social audits of sugar mills; discussion at packer on reorganisation and food safety

Indonesia partners in new chain for Indonesian organic and Fairtrade culinary products

discussion on Fairtrade and organic pathways at farmer organisations; use of local Fairtrade and organic experts. Food safety assessment of local processor

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PROMISE FOR THE FUTURE Among the students of the village school in Hakmana, in southern Sri Lanka, are the children and grandchildren of our coconut farmers. The building was beautifully refurbished two years ago with the help of Jumbo supermarkets, Fair Trade Original and the development premium. And it shows! The light classrooms, the computer room, the play equipment outside: everything looks fresh and cheerful. The children clearly enjoy their lesson on the nutritional value of different fruits and vegetables. Why is a banana healthy and what’s in a coconut? In the practical room their classmates are already preparing smoothies that will be tasted later. Since the refurbishment, the school has been growing and, thanks to the quality it offers, receives more government subsidies. The parents are happy with the improvements at the school. They see good education as a promise for their children’s future. In fact, just like parents everywhere else in the world.

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3. CLIMATEPreventing climate change is part of our process. Farm-ers supplying the fairtrade ingredients for our products are among the most vulnerable groups when it comes to climate change: this has a direct impact on their harvest.

Our own business and packaging are climate-neutral through CO2 compensation. In addition, we are working on a five-year plan to combat climate change. In that respect, we take into account the degree of influence we can have on the activities and stakeholders in our supply chains:

1. GROWING INGREDIENTSThe farmers who grow the ingredients for our products work in accordance with the fairtrade standards on environmental management, prevention of and protection against climate change. We help new farmers obtain the fairtrade certificate through training sessions and guidance by local consultants.

2. PRODUCTIONWith effect from 2017, our entire coffee range is climate neutral. CO2 emissions are mapped from bean to shop and compensated through Gold Standard CO2 credits. We want to prepare a joint business plan with the processors in the countries of origin, focusing on their carbon footprint. Development of these plans was originally scheduled for 2016. In 2017 we expect to start with CO2 reduction plans for a number of local processors we have selected.

3. PACKING Our packaging is climate-neutral. When selecting materials, food safety and the quality of our products have the highest priority. The most frequently used types of packaging within the current range are glass, paper, cardboard and cans. In 2016, 540 tonnes of material were used, equal to 455 tonnes of CO2. CO2 emissions fell by 11% compared to 2015. We compensate the total CO2 emissions from the packaging of the products we sell through the purchase of Gold Standard CO2 credits.

Glass (19)

Aluminum (1)

Other metals(29)Plastic (22)

Paper and cardboard

(29)

Use of packaging materials in 2016: 455 tonnes of CO2

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4. TRANSPORT TO WAREHOUSEThe ingredients and products purchased by us or our import-ers are transported by sea. We never have products flown in. In 2017 we will map the CO2 emissions from sea transport and transport from the port to the warehouse and we intend to develop a plan to reduce emissions.

5. STORAGE AND TRANSPORT TO CUSTOMERWe have outsourced the storage and transport of products to customers to Simon Loos B.V. This company specialises in shipping products to major retailers and in 2014 it received the Lean and Green Star Award for reducing CO2 emissions by 20% in five years.

6. SALES TO CONSUMERSWe have little influence on the climate policy of our custom-ers. We inform them about our climate policy and the meas-ures we take to reduce our carbon footprint.

7. PRODUCT USEIncreasingly more packaging mentions that it is climate-neu-tral and includes information about the waste stream (plastic, paper, other) by which it can be disposed of. In our newsletter and on Facebook, we provide tips on waste management and the prevention of food waste.

8. BUSINESS OPERATIONS AND TRAVELWe work in a net-zero office and our business trips are cli-mate-neutral. The emissions released in 2016 when working at the office and through travelling amounted to 130 tonnes of CO2. In comparison with 2015 this is an increase of 106%. In 2016, the flights we made accounted for 62% of the CO2 emissions released as a result of work and travel. We flew more often to our producers: we guide our producers more intensively in developing strong supply chains and conduct-ed three impact studies. We compensate the CO2 emissions through the purchase of Gold Standard CO2 credits.

Wood-fired ovens in AfricaThrough the purchase of our Gold Standard CO2 credits, we contribute to the distribution of human and environ-mentally-friendly wood-fired ovens in Kenya, Tanzania and Uganda. These ovens use about 40% less fuel than traditional cooking on open fire and produce no smoke, or hardly any. This means lower CO2 emissions: an advan-tage that is converted into CO2 credits. The sale of the credits finances the wood-fired oven project.

The CO2 emissions released in 2016 when working at the of-fice and through travelling amounted to 130 tonnes in 2016.

Office (12%)

Airplane (62%)

Car (24%)

Public transport

(2%)

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4. EVERYWHERE, FOR EVERYONE

Ideally, we would like to see our products everywhere, accessible to anyone. By developing new products, we reach more and more people. In the Netherlands and in the rural areas of Asia, Africa and Latin America. That means a better life and a better future for the farmers, and fairer food on your plate.

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Taste. Health. Organic. That drives us, in addition to our search for fairtrade ingredients, in further developing our product range and optimising existing products. Wherever possible we work without artificial additives. If this is not possible because of shelf life or taste, we choose the best alternative. By providing clear information about the content of a product on the packaging, we give consumers the opportunity to make conscious choices in their diet. In 2016 we added 12 new products to our product range.

CULINARY The fragrant taste and versatile uses make our Rice Noodles a success. The brown rice version is unique in the Dutch super-market. It contains more dietary fibre than white noodles: 6.1g compared with 3.4g per 100g. Rice noodles are naturally gluten free. Equally important: both versions have quite a bite and can be prepared easily and in no time.

For those who like to put different meals on the table, the new Rice Variations are a surprise. The brown Pandan rice, mixed with red and black rice, makes for a colourful addition to your meal. The Basmati rice with lentils and black quinoa is full of colour and high in dietary fibre (8g per 100g). Both products are certified as both organic and fairtrade. The lentils are a second crop for the farmers who grow the Bas-mati rice. 2016 was the year of the lentils: they form part of a healthy diet - even according to the new Food Pyramid.

Following the great success of the Curry spice pastes from Thailand, we introduce two new variants that are grown, prepared and packaged in Sri Lanka. This melting pot of cultures is very familiar with Indian cuisine and as such also with dishes such as Korma and Tandoori. MA’s Tropical Foods, our supplier of coconut milk, has been successful with spice pastes in the local market for a long time. Now the fairtrade variants, without artificial additives, are gradually gaining a place on the shelves in Dutch supermarkets. This has created an export market for the herb/spice farmers, who have joined the coconut farmers in SAFENet.

The surprising Coconut-lemon-coriander Sea salt Mix is produced in South Africa with an unmistakable Asian twist. Not surprising really, because South Africa also unites all the cultures and tastes of the world. The salt comes from Khoisan Salt Trading, a family company on the Atlantic Ocean. The employees ‘harvest’ the salt from the salt pans. The new mill bears the Fair for Life certification.

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No. 1 coconut milk in the Netherlands

Our 400 ml can of Coconut Milk is the number 1 selling coconut milk in the Netherlands and that also applies to our Green Thai Curry. This has encouraged even more retailers to include these products in their product range. At Dirk and Dekamarkt, for example, sales of both products now exceed expectations.

HOT DRINKSOur new Fairtrade and certified organic premium instant coffees, Dark Roast and Mild Roast, both made using the best quality beans, are unique in the Dutch market. Mild Roast is freeze-dried coffee made from 100% Arabica beans. The Dark Roast version contains 100% of the highest quality Robusta beans.

Also, Fairtrade and certified organic are the cocoa and unrefined cane sugar that together form the new Drinking Chocolate. The high cocoa content (60%!) gives this hot- chocolate-in-a-cup its full flavour with a hint of bitter choc-olate. You can make it with any type of milk (or milk alterna-tives), just how you like it.

SANDWICH FILLING AND SWEETSIn view of the significant recipe change - from beet sugar to fairtrade cane sugar - in 2016 we decided to put our choco-late sprinkles and flakes in a limited edition packaging. Extra festive, extra happy. All in all, there are three brand new products. Read more about it on pages 22 and following.

Using the same Fairtrade honey as in the squeeze bottle - liquid, aromatic, fruity with a slightly floral flavour - honey is now also available in sticks, packed per serving. Easy for everyone, at home and on the go. And convenient for house-holds where honey is not used daily. Disposal of honey has a higher environmental impact than this conscious use of small packaging. Honey is again gaining in popularity, and these days it is also appears on the coffee and tea shelf in shops. This honey comes from our regular partners in Chile, Guate-mala and China.

And another first for 2016: the first Fairtrade White granulated sugar in the Netherlands. Like the brown cane sugar we have had in our product range for years, this version also comes from fairtrade sugar farmers in Mauritius. The granulated sugar has a beautiful white colour, has a neutral flavour and a fine texture, making it excellent to use in batter, for example.

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DYNAMICS ON THE SHELFSales in 2016 amounted to € 14.5 million, which is 1% lower than in 2015. In the supermarket channel sales increased by 4%. This growth is due to the success of our culinary line.

Albert Heijn has included the rice noodles in their range and presents our Asian culinary products together on one shelf. This allows consumers to see all our culinary products at a glance.

Jumbo gave substance to our partnership by sponsoring a truck for orange farmers in Ghana. See also page 34. Since then, our fruit juices have been on the shelves in all Jumbo stores. The company has also included many other products and early 2017 became the first supermarket selling the Kor-ma and Tandoori spice pastes.

Emté and Coop are smaller supermarket chains owned by Superunie which have chosen a sustainable path. In 2016, both formulas included new Fair Trade Original products and saw their sales increase as a result. The strategy of Plus, also part of Superunie, is to mainly sell fairtrade products under its own brand, which means that various variants of coffee and our tea and rice are no longer sold there.

Worldshops and WAAR had a difficult period once more in 2016. Our sales in this channel - which mainly positions itself as a gift shop - fell. As an extra service we made recipe cards and a Christmas package leaflet and offered several reason-ably-priced gift packs.

The relevance of sustainability increases Albert Heijn consumers consider different sustainability themes important. And our customers increasingly care about transparency: they want to know where products come from, what the living conditions of humans and ani-mals are and what the environmental impact is. Fair Trade Original offers a wide range of Fairtrade-certified food, thus meeting the customers’ wishes to pay farmers and workers a fair price.

The themes remain the same, their relevance increases. Studies have shown that the importance of sustainability in procurement is becoming significantly higher. This applies more to food than to buying services and clothing. I see opportunities for us, in particular with respect to even better addressing the growing demand for sustainable products by our customers.My favourite Fair Trade Original product? The coconut milk in combination with the Thai green curry!Marit van Egmond – Director Merchandise & Sourcing Albert Heijn.

Turnover 2016 by product group

Hot drinks (40%)

Other (2%)

Culinary (32%)

Sandwich filling (17%)

Cold drinks (9%)

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NEW ON THE INSIDE AND OUTSIDE We also regularly analyse our existing products. Do the habits of users change, what happens on the shelf, what is happen-ing with our suppliers, what do we think of the packaging? There is always room for improvement.

In 2016, it was the turn of the Sprinkles and Flakes. Finally success: we managed to replace beet sugar with Fairtrade cane sugar. As a result, the fairtrade percentage of our products shot up:Dark chocolate sprinkles: from 34% to 97% fairtradeMilk chocolate sprinkles: from 27% to 85% fairtradeDark chocolate flakes: from 33% to 96% fairtrade

For the cane sugar farmers in Mauritius, with whom we have been working together for 18 years, the Fairtrade devel-opment premium of $ 60 per tonne of cane is more than welcome. Prices for sugar cane are under pressure and production costs are rising. A number of cooperatives invests in programmes that generate additional revenue, such as growing seedlings for vegetables. All cooperatives spend

part of the premium on farming input such as fertiliser or rent-al of loading equipment during harvest. That makes a huge difference in production costs, from which especially smaller sugar farmers benefit. Since we also process their Fairtrade cane sugar in the Sprinkles and Flakes, this provides the farmers annually with approximately € 14,000 in additional premium revenues.

LIMITED EDITIONWe celebrate this great news with a limited edition package. This package is different: entirely in the spirit of the sugar cane island of Mauritius. We receive many positive com-ments about the illustrations and the story of the fairtrade cane sugar. But to be honest, some people are missing their familiar packaging in the shops. Early 2017 we will return to the original packaging, according to plan. The sugar cane will remain, obviously.

We also seize this opportunity to party with our biggest sprinkles fans. A number of people who have registered via a Facebook campaign are invited to try the new sprinkles and flakes at a tasting offering yummy snacks. At the same time we explain why sugar farmers have such an enormous need for the additional development premium.

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DUTCH RUSKSTopping mini rusks with butter, sprinkles and red fruit.

SPRINKLES BREAD LOLLIES For approximately 20 bread rollsPreparation time: 5 minutes

INGREDIENTSBreadButter3 raspberries

AND FROM FAIR TRADE ORIGINALDark chocolate sprinkles

METHOD OF PREPARATION• Ask the baker to cut bread

lengthwise.• Remove the crusts.• Spread butter on the long slices of

bread, then add sprinkles and 3 raspberries per slice in a row and roll them up.

• Stick together with butter and cut 2-3 bread rolls from the roll.

• Put them on a stick and serve in a glass.

A real eye-opener When I am invited to the ‘Sprinkles Tasting’ I know immedi-ately who I want to bring: a good friend of mine. We both have a passion for good food and fine brands, the perfect combination for this party. Upon arrival at the location, I am immediately cheerful. It is so nice to see how many people are as excited about this as I am!

The people behind Fair Trade Original talk about the transi-tion from beet sugar to cane sugar from Mauritius for their chocolate sprinkles and flakes. The small dishes with sprin-kles are delicious and inspiring. A real eye-opener in terms of the diversity of sprinkles.

Everyone takes ample time to answer the questions my girl-friend and I have. This creates the impression that the brand is really interested in its consumers and the opinions they have about the products. Something I remember in particular is that the people of Fair Trade Original said that there was still much to be gained in terms of product improvement. Each step is one in the right direction. No arrogant shouting, but developing products for the love of good food, that’s what it is about. Thank you, Fair Trade Original!

Kim van de Sande – Sprinkles fan

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Celebration time! The recipe of our choco-late sprinkles has become even more fair. Did you know that chocolate sprinkles and flakes are the most popular sweet sandwich fillings in the Netherlands? Before jam (2) and peanut butter (3).

Good news for you and the cane sugar farmers in Mauritius. Through endless trial and error we

succeeded: finally there is cane sugar from Mauritius in our chocolate sprinkles. The amount of fair trade

ingredients has grown to 97%. The farmer group receives the fairtrade premium which enables the

farmers to improve their working methods. Your sandwich with chocolate sprinkles

makes the difference.

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GREAT COMMITMENT We also use the transition to cane sugar in our sprin-kles to address the problem of fat bloom on the dark chocolate sprinkles. By adding a little milk fat, the sprinkles stay nice and dark longer. We can see now - almost a year later - that this is producing results. We receive significantly fewer complaints about fat bloom on the sprinkles.

Together with flakes, sprinkles are the most popular sweet toppings in the Netherlands. Dutch people are very attached to those toppings, which creates a great deal of commitment. Besides many positive responses to all the changes, there is fierce protest from a group of vegans who fail to understand why milk fat should be added to their favourite sprinkles. We enter into discussions with them (see box), and this means that we are looking into milk alternatives together with a specialised company in Belgium. To date, the results have not produced a satisfactory solution. We will compare the options and decide how to proceed in the coming period. As an alternative, we offer vegans our dark chocolate flakes - without milk.

Animal welfare

In 2016 Fair Trade Original was confronted with a small social media incident following the decision to add milk fat to the dark chocolate sprinkles. Many animal lovers have difficulty with this change in this product, which is very popular among vegans. They are surprised that Fair Trade Original does not consider the welfare of dairy cows and their calves.

Clearly, Fair Trade Original did not expect this criticism, so it scheduled a discussion evening. I took part in that on behalf of Viva Las Vega’s, hoping to contribute to a solution. The goal of Viva Las Vega’s is indeed to help businesses reduce their use of animal ingredients.

I was positively surprised by the integrity of Fair Trade Original in responding to the sometimes fierce criticism and in listen-ing to their responses. Ellie and Bert seemed truly interested in learning more about the animal and environmentally-un-friendly aspects of the dairy industry. To me, it is clear that Fair Trade Original takes sustainability of its products and its customers’ satisfaction very seriously.

Unfortunately, this has not yet produced a concrete solution to replace the milk fat, but it has resulted in the intention to include animal welfare in the company’s sustainability policy from now on. I endorse this wholeheartedly and am very much looking forward to seeing how Fair Trade Original will imple-ment it in the future.

Pablo Moleman – Viva Las Vega’s

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5. SPECIAL ENCOUNTERS In June 2016 I travelled to Thailand to meet Wilawan, Nipalin, Orapin and Orachan. We have been working closely for many years with these four women farmers; they grow rice and pineapple for us and provide the ingredients for our curry spice pastes, wok sauces and sambal.

Even though the meetings are short, I immediately feel I am part of the farming families. We cook local recipes and eat the dishes together. We also have lively conversations about daily life there and what we as Fair Trade Original mean to them. We laugh a lot.

What strikes me the most? How demanding the work is. The ladies are used to get-ting up before dawn to get started with all that needs to be done: they cook for the family, take care of the monks, work the land and there are consultations within the farmer group. They do all this - and a great deal more - with much enthusiasm and full of plans for the future.

In the spring of 2017, Orapin and Orachan visit the Netherlands - their first flight in their lives. To get to know our fans and our trade partners. Enthusiastically they share their experiences with fairtrade and what cooperation with Fair Trade Orig-inal has given them. They get busy in the kitchen and share their Thai recipes and cooking methods with our fans. Our special story and our personal approach come to life thanks to their radiant presence. My visit to Thailand confirms to me that we have a unique story to share. The local fairtrade chains we develop are truly exceptional and make a real difference to the farmers. Our method is never standard and varies by category and distribution chain. Never simple, but very satisfying when it works. That makes our work (and our brand!) complex and challenging. Our role is to have more and more consum-ers discover fairtrade food and drinks. When you see Orapin’s smile, you know it’s worth it.

Felice UiterwijkMarketing Manager

Read more about my visit to Thailand and about the women farmers in the Update! Asia

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‘When we’re staying with Nipalin, the light comes back on at 4 am and they

start cooking food for the monks. Mango with sticky coconut rice and curry with pineapple and roasted pork are put into plastic bags. ‘Come on, hop on the

motorbike’, says Nipalin smiling. And that is how we all chug along on

our way to the monks. The sun has barely risen.’

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‘They like to share their rich flavours

and recipes’

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6. OPTIMISTIC ABOUT THE FUTURE Setting up fairtrade with Javanese farmers

in Indonesia. Transition to organic farming.

Getting our coffee climate-neutral. The future

is getting increasingly fairer.

In 2017 we are celebrating the first jubilee year of our Asian product line. We are very proud of the growth this product range has experienced in five years. Moreover, this success has given us a taste for more. That is why we are expanding: we expect to introduce our first Thai soups in the Netherlands during the course of the year. These are, like all other culinary products in our range, grown, prepared and packaged in the country of origin. Five years of Thai culinary products marked a good time to assess the cooperation with the Fairtrade farmers through an impact assessment. We are very busy processing the results of this assessment. This way, we help farmers to also grow organic herbs, spices and vegeta-bles. This strengthens their market position. They are highly motivated to take this step. They see organic cultivation as a sustainable farming method that is better for people and the environment.

NEW SUPPLY CHAIN IN INDONESIAWe also support the transition to organic cultivation in Sri Lanka (herb/spice farmers), Ghana (orange farmers) and Indonesia. In the last country, we are building an entirely new Original Chain. Indonesian cuisine is a beautiful and logical extension of our Asian range. We will assist the farmers in Central Java in the process of growing fairtrade and organic ingredients for three Bumbus (spice mixes). After having locally tasted the first products of some recipes, we are confi-dent that they will be as tasty as the popular Thai curries.

CLIMATE-NEUTRAL COFFEEAs of 2017, all our coffee is climate-neutral and by offsetting the CO2 emissions we will make a positive contribution to the health of the people and the development of the local economy in Kenya and Uganda. Moreover, the coffee will be given a new look around the summer of 2017. The new pack-aging is recyclable and better preserves the coffee aromas. This benefits the taste. In June 2017, we will also introduce a new tea range. The tea is blended in Sri Lanka and packed in a box that is fully recyclable.

THE REAL PROFITTo launch even more products successfully, we are expanding our team with new people in the marketing and sales depart-ments. That allows us to offer farmers in developing countries better future prospects. And that is where our real profit is.

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7. OUR TEAMGrowth is necessary to fulfil our missionFair Trade Original aims to bring about social impact by setting up production chains in emerging countries. In light of this, it makes much sense that we are a not-for-profit organisation. As a foundation, we are more socially com-mitted than driven by corporate profits. At the same time we want to achieve that consumers prefer our products and that these are readily available at local shops. In doing so, we show that we genuinely want to make a difference.

As the Supervisory Board, we like to contribute to this interesting field; ensure that you realise and sell good and honest products to achieve sustainable impact. Among the Board members, we possess a wide range of expertise: retail, marketing, quality, supply chain and change in organisations. We use this to advise the Fair Trade Original management and to ensure that the use of people and resources is benefi-cial to the mission.

BE ALERTGrowth is needed to realise the mission of Fair Trade Original. More sales means more opportunity for impact. That is why we are committed to high-quality products and we want to be able to respond to the rapidly changing expectations of customers and consumers. This requires the organisation and the people who work there to be alert. Staff must be well-equipped and have the right knowledge; Fair Trade Original invests in that.

LEARNING FROM EACH OTHERAs the Supervisory Board, we also invest in gaining experi-ence and learning from each other and other companies. And in sharing knowledge. I myself, for example, have trained dairy cooperatives in Indonesia and given them advice. You notice that they make quick progress by learning from expe-riences elsewhere. People are curious and want to grow and improve. To them growth means the opportunity to improve their own circumstances and those of their community. That is also what we aim to achieve through the creation of produc-tion chains: the opportunity to work with various partners in

a chain on development of individuals, companies and the world in which they live.

POSITIVE ENERGYI believe in the power of collaboration and the positive energy it produces within the Fair Trade Original company and together with our chain partners. I am 100% committed to the mission of fairtrade. My role as Chair of the Supervisory Board is to spread the story and together with the Supervisory Board members, the director and the company to look to the future. The environment is changing, and so are the demands placed on our products and our company. There really is still much to be done, and I want to encourage everyone to contribute.

Margeet Oostenbrink Chair of the Supervisory Board

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SUPERVISORY BOARD 2016Margreet Oostenbrink (Chair since 28 December 2015)Theo Roos (member since 26 February 2010)René Bakker (member since 11 June 2015)Maarten Delfortrie (member until 11 March 2016)Harry de Grooth (member until 11 March 2016)Simone Hertzberger (member since 11 March 2016)Bart Kroon (member since 11 March 2016)

The director is in charge of the daily management of the organisation and chairs the management team meeting. The staff elect their staff representation (PVT) from among their number. The three members regularly consult with the director and negotiate on behalf of the staff on the terms and conditions set out in separate legal status regulations.

Facts about our team• In 2016 one new staff member was hired. The average

number of FTEs dropped from 20.3 in 2015 to 19.0 in 2016. • The average age of the employees increased from

46.3 years in 2015 to 47.8 years in 2016.• The average length of service of employees employed on

31 December 2016 is 14. • Absenteeism (excluding pregnancies) increased from

1.7% in 2015 to 2.0% in 2016.• The staff survey carried out in 2016 produced an overall

score of 7.8 (on a scale from 0 to 10).

These are the people we work with. From left to right, back row: Mark van Noord, Richard Wijnands, Josée van Kesteren, Bert Jongsma, Karin Schat, Lotje Kaak, Maurice van Dort, Martin Boon. Centre: Harold Goessens, Katrien Kloos, Wendy Koelemij. Front: Lisette Brouwers, Ellie Tap, Ralph Vermeulen, Margot van Veldhuisen, Felice Uiterwijk, Jan van der Heiden, Loïs van Erkel. Annemarie Govaerts, René Wils and Yvonne Janssen are not in the photo; Evelien van de Glind and Peter Hummels joined us after the photo was taken.

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8. GHANAIAN ORANGES ARE BECOMING SERIOUS BUSINESSWhen in early 2012 a decline in the supply of fairtrade orange juice concentrate from Brazil was imminent, our importer, Verbruggen Juice Trading, contacted Fair Trade Original to jointly look for a new supplier. Now, approxi-mately 30% of our orange juice comes from Ghana.

At the time, Ruben Verbruggen, Director of Verbruggen Juice Trading said: ‘To build a new fairtrade chain, you need three parties: a local pioneer who can coordinate the activities locally, a party that wants to finance the start-up costs and a commercial market party that possesses the right skills and the channels to get the trade off the ground. Fair Trade Orig-inal has the network and the goodwill to bring these parties together. In addition, you have the expertise to train those involved in accordance with the Fairtrade standard. These roles have made our collaboration in Ghana so successful.’

QUALITYIn Ghana we first come into contact with fruit processing fac-tory Fruittiland, where we see opportunities for a new supply of orange juice concentrate, if produced under fairtrade con-ditions. We also visit a number of citrus associations. Togeth-er with the farmers we work on strengthening their organisa-tions and certification according to the Fairtrade standards. Verbruggen focuses on improving processing at Fruittiland. For example, the factory needs to adapt the machinery and work towards complying with European legislation on food hygiene and safety. In addition, the farmers receive training on quality. And the importance of good working conditions, including the use of safe ladders and boots for protection against snakes is also emphasized.

PROFITABLE BUSINESS The citrus sector in Ghana is weak. Farmers with orange trees on their land pick what can be easily reached and sell the fruit at the local market or in neighbouring countries. Knowledge of proper cultivation and harvesting methods is lacking, as a result of which the quality often lags behind, and the yield in terms of kilogrammes is limited. There tends to be neither sustainable production nor motivation to improve the quality. Many citrus farmers easily trade their orange trees for cocoa and rubber trees.

FAIRTRADEBy building a strong orange chain in Ghana, Fair Trade Orig-inal helps citrus farmers to sustainably improve their orange production and to work towards a profitable farm. Fairtrade orange-growing in Ghana is lucrative; the Fairtrade minimum price for oranges is significantly higher than the regular market price. The money farmers earn from their orange crop is spent on their families, such as for school fees for their children and better housing. They also invest in their farm. In addition, the farmers’ association receives a fair trade devel-opment premium. This is used in mutual consultation for the enforcement of fairtrade standards and community projects. TRICKS OF THE TRADEThe organised trainings are another significant benefit of the Fair Trade Original approach for farmers and for the sector as a whole. Quality improvement, productivity, managing their income: everything is covered. Farmers learn the tricks of the trade and know how to keep their farms financially healthy. For example, they plant their fruit trees at the correct distance from each other, the trees are regularly pruned and with full knowledge of the facts they use natural fertil-isers to enrich the soil. The orange trees bear significantly more healthy fruit than before and everyone is very opti-mistic about further growth. This enthusiasm is contagious: neighbours are very interested in finding out what they should be doing to achieve the same result. Through training, the farmers are discovering the benefits of a profitable business. Oranges are becoming serious business. This leads to the empowerment of farmers, strengthening of their associations and a better bargaining position in the chain.

UPS AND DOWNSFollowing a good first season, problems still arise. While support continues, purchasing from Fruittiland comes to a halt temporarily. Because of poorly-functioning machines in the factory, the concentrate fails to meet the export requirements in terms of taste and food safety. These quality issues persist until production finally comes to a full stop in 2015. To keep offering farmers a market and to keep the processing and supply of fairtrade orange concentrate from Ghana constant, we switch to another fruit processing

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‘Give someone else the same opportunities

you have’

34

factory: Pinora. To cope with the obstacles - of which there are still many - in this Ghanaian chain, all parties involved once again express their long-term commitment. As Ruben Verbruggen said years ago: only by working together and pooling all knowledge, you can make a new fairtrade chain a success.

JUMBO TRUCK For a period of three years Jumbo Supermarkets and Fair Trade Original put aside money for joint projects with our partners. In 2016, the focus was on a truck for the citrus farmers in Ghana. Transporting their produce quickly and safely to the factory is a challenge for them. The available vehicles are small and often old, many roads are of poor quality and become impassable after heavy rain. Often, a truck gets stranded along the road when it breaks down: if repairs are not carried out quickly, the oranges start rotting and will later be refused at the gate of the concentrate plant. Representatives of Jumbo personally handed over the truck to the farmers’ association. Now the farmers can deliver their orange crop safely and on time. Outside harvest season,

the truck can be used for other products and materials, thus generating additional income. The farmers use the truck extremely economically; the truck management ensures its efficient and safe use.

Best citrus farmer For eight years I have been growing oranges in my own orchard. My husband Antoni does not work on the farm, he is a driver. Last year I received the ‘Best Regional Citrus Farmer 2016’ award along with four other farmers in the region. The jury visited all farms to look at the way we work, but also at

how we share our knowledge with others. I always attend the training sessions of our association and apply the new tech-nologies wherever possible. Because I see that it works, I also pass on to others what I have learnt. And if I cannot solve something, I ask for advice.

I have two employees: they prune the trees, control weeds and help with the harvest. I teach them what I myself have learnt during the training. And the same goes for the group of pickers that help me with the harvest. I make sure that every-one strictly follows all the rules because I will have more and better fruit as a result. Last year, the harvest was 45 tonnes of oranges, which I expect to increase to 60 tonnes. With the award, I won materials to improve my business operations, such as spraying machines and protective clothing. That is also beneficial to my employees.

I see myself more as a business woman than as a farmer. I have an organising role on the board of the citrus associa-tion and I hear that other women see me as a role model. My parents had a farm and if it were up to me, my daughter will take over mine.

Charlotte, member of citrus association Nyame Akwan

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LINKS IN THE CHAINDuring high season (from December to March), the orange harvest is in full swing. In the orchards, there are many seasonal workers to help with the harvest. The ripe fruits are picked and carried in baskets, trays and bags to small trucks. These trucks eventually gather at a station where the Jumbo truck is waiting to drive the ripe oranges to Pinora. Whatever the farmers cannot sell to Pinora ends up at the local (fresh food) market or goes to Burkina Faso where oil is extracted from the peel.

Upon arrival at Pinora, the oranges are inspected. Once they have passed the quality check, the oranges are weighed and unloaded. After a manual check on the assembly line, the oranges are washed, pressed, pasteurised and processed into juice concentrate.

Pinora supplies the concentrate to the Dutch company Ver-bruggen Juice Trading, which is responsible for the composi-tion and recipe of the juice. Thus, depending on the taste, the ratio of concentrate from Ghana and Brazil is finalised. The juice is mixed in the Netherlands and filled into the packs of Fair Trade Original. Through the distribution centre it contin-ues its way to the shops and ends up in your glass.

Future growthSince 2014, we have been working to strengthen the citrus chain in Ghana within a public private partnership. This programme, called 2SCALE, is co-financed by the Dutch government, will expire at the end of 2017. Meanwhile, the chain is able to maintain itself, with Pinora playing a pivotal role. We advise the company on food safety. Pinora provides the farmers with technical advice and assists the associations in obtaining loans. Together with Pinora we will be investing in training a new group of farmers for Fairtrade certification in the coming period. New opportunities for farmers and more Fairtrade oranges will be on the horizon as a result. Furthermore, Pinora plans to test new orange varieties on an experimental farm. If farmers can harvest all year round, it means doubling their income.

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9. GOOD QUESTION!

Where does the money go that I pay for a pack of juice in the shop?

MAX HAVELAAR 1%

2% FAIR TRADE PREMIU

M

73% RECOMMENDED RETAILPRICE 27%

PACKAGING AND FILLING 25%

9% LOCAL PROCESSO

R

16% FARMER ASSO

CIATIONS

1/3 OF THE CONCENTRATE

COMES FROM GHANA, 2/3 FROM BRAZIL

RET

AILER AND FAIR TRADE ORIGINAL 26% €1,89

IIMPORTER /LOGISTICS 11%

VAT

6%

IMPORT DUTIES 4%

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Why do you mix the orange juice from Ghana with that from Brazil? Oranges are a natural product. Their flavour and quality can vary by crop. By mixing with Fairtrade juice from Brazil, which is of a better and more consistent quality, we can ensure a consistent final product. Perhaps we can increase the share of Ghanean oranges in the future if we continue to invest and develop in quality.

Why do you not have the entire final product made in Ghana?Due to mixing with concentrate from Brazil, processing in Ghana would not be logical. Now the frozen concentrate comes from both countries to the Netherlands and is processed on demand. Moreover, filling in Ghana would be at the expense of shelf life. Our products arrive in the Netherlands by ship, and upon arrival a significant part of the shelf life has already expired.

Why do you process concentrate rather than fresh juice?Concentrate has advantages and disadvantages in comparison to fresh juices. The volume to be transported and the shelf life are in favour of concentrate. On the other hand, there are aspects of flavour and preservation of nutrients. With the introduction of the juices it made sense to opt for concentrate. We have no other fresh products in our range; such products require a different dynamic due to the shorter shelf life and other distribution requirements. Switching would be quite complex, therefore. Nevertheless, we continue to ask ourselves this question from time to time, in line with the wishes of our juice drinkers.

Why is the juice not organic?

Firstly, our products are fairtrade. We are increasingly choosing products for our brand that are also organic. We do this when it is relevant to consumers, when the supply of organic fairtrade ingredients is sufficiently large and the price of the ingredients remains sufficiently competitive. Since supply seems to be increasing, we may also consider the other two aspects.

Is the environment taken into account during production?The farmers must meet strict fairtrade requirements, including in respect of the environment. They follow many trainings on this topic. For instance, they have learnt how to use the bark of cocoa beans as fertiliser for their orange trees, and can already see this is bearing fruit. Literally! There are projects at Pinora aimed at turning waste of the fruit into biogas and fertiliser.

DO YOU HAVE A QUESTION? SEND IT TO INFO@FAIRTRADE.NL

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10. OUR FIGURES FOR 2016 BALANCE SHEET AS AT 31 DECEMBER 2016(After appropriation of profits) EUR 2016 2015

FIXED ASSETS

Tangible fixed assets 50,582 81,501 Financial fixed assets 5,689 5,603 ······················································ 5,.271 87,104 CURRENT ASSETS

Stock 2,198,575 2,527,724 Trade receivables 2,555,312 2,842,133 Advance financing of trading partners 152,804 104,354 Other receivables and prepayments 191,740 107,273 Liquid assets 441,525 1,002,121 ······················································ 5,539,956 6,583,605

TOTAL 5,596,227 6,670,709 EQUITY AND RESERVES Other reserves 2,769,854 2,211,651 PROVISIONS 16,758 13,078 LONG-TERM LIABILITIES Interest-free loan 982,434 982,434 CURRENT LIABILITIES

Trade creditors 540,137 657,180 Current account of Stichting Fair Trade Assistance 610,673 2,124,850 Taxation and social security contribution 184,893 185,580 Other liabilities and accruals and deferred income 491,478 495,936 ······················································ 1,827,181 3,463,546 TOTAL 5,596,227 6,670,709

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INCOME STATEMENT FOR 2016

EUR 2016 2015

GROSS OPERATING RESULT

Net sales 14,480,713 14,700,453 Other proceeds 62,001 32,669 Costs of raw materials and consumables (10,489,820) (10,937,436)······················································ 4,052,894 3,795,686 COSTS Personnel costs 1,523,942 1,623,294 Depreciation/amortisation 36,194 77,697 Selling expenses 1,384,873 1,308,760 Accommodation expenses 102,596 116,071 General expenses 424,256 289,635

······················································ 3,471,861 3,415,457 RESULT FROM ORDINARY OPERATIONS 581,033 380,229 Financial income and expenditure (22,830) (17,264) OPERATING RESULT BEFORE TAXES 558,203 362,965 Corporation tax - - RESULT AFTER TAXES 558,203 362,965

The Annual Accounts of Fair Trade Original can be viewed at www.fairtrade.nl/english

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‘By developing local supply chains we make

fair food and drinks accessible to everyone’