FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
FAIRTRADE FINLAND
DEVELOPMENT
COOPERATION PROGRAMME
ANNUAL REPORT 2014
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
Contents
Fairtrade Finland
Kuortaneenkatu 1
00520 Helsinki
Phone: +358 45 1275 179
[email protected]
www.reilukauppa.fi
Summary
2
1.
Introduction and background
5
2.
Programme implementation
8
2.1.
More efficient and productive small producer organizations
10
2.2.
Enhanced capacities of the producer network
12
2.3.
Cross-cutting objectives
13
2.3.1. Environmental sustainability and adaptation to climate change
14
2.3.2. Vulnerable people: Youth participation and child protection
15
2.3.3. Gender equality
16
2.4.
Quality and monitoring
17
2.5.
Challenges and lessons learned
19
2.6.
Assessment of the sustainability of the results & impact assessment
21
3.Communications
22
3.1.
Programme communications
24
3.1.1. Objectives of programme communications
24
3.1.2. Key activities conducted to achieve the set objectives
25
Development communications
25
3.2.1. Objectives of development communications
25
3.2.2. Key activities conducted to achieve the set objectives
26
Challenges and lessons learned
28
3.2.
3.3.
3.4.Results
28
4.
31
Administration and support functions
ANNEXES:
Financial statement 2014
Auditor’s report 2014
Programme Audit 2014
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
Summary
SUMMARY
F
airtrade aims to foster sustainable livelihoods among small producers and
workers by enabling improvements in income, decent working conditions
and sustainable ecosystems. Fairtrade as a system is convinced that trade can
be a fundamental driver of poverty reduction and greater sustainable development, but only if it is managed for that purpose, with greater equity and
transparency than is currently the norm.
2014 was the first year of Fairtrade Finland’s development cooperation and
also its first year as a Ministry for Foreign Affairs (MFA) Partnership organization
and the first of a three-year MFA-funded programme. Fairtrade Finland bases
its development cooperation on a rights-based and participatory approach.
With a participatory approach we aim ensure the effectiveness, real ownership and sustainability of our projects. Our rights-based approach empowers
people as individual subjects and rights-holders, but also as part of society.
Another cornerstone of Fairtrade Finland’s development cooperation is our
ability to link with Finnish civil society and Finnish private sector companies.
In 2014, in accordance with MFA’s recommendations, we refined the original programme proposal and concentrated on one geographical area and
streamlined its objectives. Central America was chosen as the focus area over
Africa based on the widespread proliferation of the rust disease in the area,
increasing challenges caused by climate change to coffee farming in the
region, and the forerunner role of the African Network in implementing the
transition process. The final programme includes two objectives (development
of coffee producer cooperatives and strengthening of the producer network),
and four projects (in Guatemala, Honduras and Nicaragua, as well as the
regional Latin American and the Caribbean project). Fairtrade Finland recognises environmental sustainability, the inclusion of vulnerable people and
gender equality as cross-cutting objectives throughout its programme focus.
As this is our first development cooperation programme, the work has been
focused on programme development and project planning. Programme
implementation was started by updating and developing our project planning and management tools as well as monitoring systems. The next phase
involved the launching of participatory project planning processes in the field
followed by implementation of the projects. The participatory planning phase
facilitated a really important learning process for our partner organizations
and beneficiaries, and was highly appreciated by all stakeholders. During
the reporting year we started to prepare a quality assurance system which
will be completed in 2015. The drafted results-based quality assurance principles were already used in the planning phase of the projects.
Our partner organizations include the Latin American and the Caribbean
Network of Small Fairtrade Producers, CLAC, and its national producer networks in Guatemala, Honduras and Nicaragua. We had close cooperation
with Fairtrade International during both the planning and monitoring of the
projects. Fairtrade International offered their expertise especially in issues related to climate change and coffee.
In its communications work, Fairtrade Finland succeeded in deepening
the understanding of the target group about the challenges facing family
farmers, especially the coffee farmers. The commitment of active citizens was
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FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
also increased via the communicational activities and via the deepening the
relationship with them. The themes of the communications were discussed
throughout the year in digital channels and highlighted during the advocacy campaigning activities in October.
The self-financing of Fairtrade Finland’s development cooperation programme was 18.3 per cent which was secured through license fees collected
from Finnish companies selling Fairtrade products, as well as a donation from
Fairtrade International.
Even though the programme is still in its early stages, key steps were already
realized with the development of PME tools and mechanisms for effective project cycle management. As all projects were developed through a thorough
planning process, they all started the implementation and have succeeded
in implementing almost all the planned activities, it can be concluded that
the objectives of our first programme’s first effective year were achieved and
the programme is on track. Participatory planning created a solid foundation
for a sustainable and high-quality development cooperation. The organization’s development cooperation model has proven to be functional and effective. With confidence we can begin to extend our operations to other countries
and product categories.
01.
INTRODUCTION
AND BACKGROUND
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FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
1. Introduction and background
T
he Fairtrade system is a multi-stakeholder, non-profit movement focusing
on the empowerment of small farmers and workers in developing countries through trade. The people Fairtrade serves, the small farmers and workers, have a strong voice in how the system is run. Small farmers and workers,
via the three regional producer networks, hold 50% of the vote at the Fairtrade
General Assembly, the highest decision- making body of the system. Fairtrade
is an alternative approach to conventional trade and is based on a partnership between producers and consumers. Fairtrade offers producers a better
deal and improved terms of trade. This gives them the opportunity to improve
their lives and plan for their future. Fairtrade offers consumers a powerful way
to reduce poverty through their everyday purchasing habits.
Fairtrade Standards form the cornerstone of Fairtrade’s approach. They are
designed to support the sustainable development of small farmer organizations and agricultural workers in the poorest countries in the world. The key
objectives of the Standards are:
• to set clear criteria to ensure that the conditions of production and trade
of all Fairtrade certified products are socially and economically fair and
environmentally responsible;
• to ensure that producers receive prices that cover the costs of sustainable
production;
• to provide an additional Fairtrade Premium which can be invested in
projects that enhance social, economic and environmental development;
• to enable pre-financing for producers and
• to facilitate long-term trading partnerships and enable greater producer
influence over the trading process.
Fairtrade is a true partnership. The Fairtrade system consists of the central coordinating body Fairtrade International, three producer networks (PNs) and
19 national Fairtrade organizations (NFOs) in consumer countries. Fairtrade
Finland’s development cooperation links all of these three actors into one effective and comprehensive programme.
Fairtrade Finland (in Finnish Reilu kauppa ry), was established in 1998 by
Kepa, International Solidarity foundation, Finn Church Aid, Finnish Association of World Shops, Martha Organization and The Finnish Association for
Nature Conservation. Currently there are 31 member organizations. The total
number of individual members within the member organizations exceeds the
population of Finland. Besides the development cooperation, covered by this
annual report, Fairtrade Finland supervises the use of the FAIRTRADE Mark,
promotes the selling of Fairtrade products through business-to-business arrangements, and conducts communication and campaign activities to increase awareness about Fairtrade and the impact of Fairtrade in developing
countries. Fairtrade Finland also supervises the use of the FAIRTRADE Mark in
the Baltic countries.
Poor producers often lack access to appropriate technical know-how and extension services and are therefore unable to implement modern sustainable
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
agricultural practices. Pest and diseases as well as outdated farming practices
impact on crop yields. Coffee production is also severely affected by climate
change, in particular increased variability in rainfall levels and drought conditions as well as frost cause reduced crop yields, threatening a key economic
activity and source of livelihood for millions of households in the South. Small
producer organizations have limited managerial capacity and, in view of
high demand and tough competition in the market, are often unable to fulfil
their commitments to buyers and lenders, decreasing trust among the supply
chain actors.
Fairtrade Finland’s first development cooperation programme (2014-2016)
aims to address these challenges through its two objectives:
• More efficient and productive Small Producer Organizations,
• Enhanced capacities of the producer network to deliver services and
advocate for its members.
The objectives also cover three cross-cutting themes based on the values of the
Fairtrade system: environmental sustainability, vulnerable people and gender equality.
Fairtrade’s mission is to connect disadvantaged producers and consumers,
promote fairer trading conditions and empower producers to combat poverty,
strengthen their position and take more control over their lives. Thus, Fairtrade
producers and their legitimate representatives (the producer networks) are
at the forefront of this programme as partner organizations. Fairtrade Finland
works to directly connect producers and consumers, to promote fairer trading
conditions and sustainable development. An inclusive green economy that
promotes employment is central to Fairtrade Finland’s development cooperation. Fairtrade Finland empowers producers to access markets, secure more
value for their products and build sustainable livelihoods.
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FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
2. Programme implementation
T
he goal of the programme is to build sustainable livelihoods for small-scale
producers. This will be achieved through the development of both producer organizations and the producer network in the region. The programme’s
goal and objectives are:
GOAL
Sustainable livelihoods for small-scale coffee producersC
•
•
•
INDICATORS •
•
OBJECTIVES
02.
PROGRAMME
IMPLEMENTATION
Improved standard of living for participating producers (income, assets, food security, schooling, health)
Increased environmental sustainability and resilience to climate change
Young people within producer communities considering coffee farming as a viable future livelihood option
Reduction of child labour risks
More efficient and productive small
producer organizations (SPOs)
•
Enhanced capacities of the producer network to
deliver services and advocate for its members
Implementation of the programme in 2014 was divided into three phases:
preparation, project planning and project implementation. During the preparatory phase planning, monitoring and evaluation (PME) tools were developed and consolidated, project cycle management guidelines and templates were revised and rolled-out, tools and guidelines were translated into
Spanish, roles and responsibilities were assigned and agreed, project coordinators were recruited and cooperation agreements were signed. Two start-up
workshops for the programme were organized to sensitize stakeholders: one
in Bonn for Fairtrade International’s personnel and the other in San Salvador
for CLAC’s personnel, project coordinators and national producer networks’
representatives. As this was our first year of development cooperation all projects had to be thoroughly planned in a participatory way. After finalizing the
project plans, budgets and monitoring plans the implementation of projects
started in the last quarter of the year. After the completion of all project plans
with set indicators, the programme level monitoring table was produced. The
monitoring table systematically collates indicator data from project level indicators for programme level monitoring. It is still too early to analyse progress
towards project, or let alone programme level, objectives.
Although the launching of the programme was slower than expected, we
were able to catch up the slight delay towards the end of the year. Due to late
completion of the project plans and combined with the beginning of the harvest season, the baselines of the projects were postponed to the first quarter of
2015. The projects’ year 1 budget was achieved 90-93 per cent.
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2.1.
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
More efficient and productive small producer organizations
Set objectives in all three countries are very similar due to their similar challenges and ways of working. All projects have institutional capacity, improved
productivity and quality, better sales skills and facilitated access to finance as
objectives, but with a local emphasis and approach. One difference among
the country projects is that in Guatemala all 14 local Fairtrade coffee producer
organizations are participating but in Honduras only the smallest and weakest ones were selected as beneficiaries. The reasoning in Honduras being that
the biggest cooperatives decided that due to the limited funds available the
weakest ones (defined by size, sales volume, number of members, compliance
with certification norms and commitment and willingness to participate) need
greater support. However, in Guatemala producers were of the opinion that in
all cooperatives there are producers who are very poor and thus all cooperatives could benefit from project activities but the emphasis should be on the
weakest producers. In Nicaragua, the national producer network developed
a comprehensive grading system for SPOs which takes into account, for example, size, activity, production volume and access to other financial support,
and based on this evaluation the cooperatives were selected as participants.
These criteria were developed by the producers themselves.
As the projects’ implementation started only in the last quarter of the year it is
far too soon to analyse the progress of the projects or the programme because
the monitoring data is too scarce. All three projects are contributing towards
the programme level objective of more efficient and productive small producer organizations and its five expected results. In 2014, the emphasis on the implementation of all projects was on improved quality and productivity, not just
because the producers prioritized this as the most important component, but
also because the start of the implementation coincided with the beginning of
the harvest season. This challenging schedule meant that the producers were
not available for trainings so the projects started with productivity and quality
improving investments. Below is a short summary of activities implemented in
2014 to improve the productivity and quality of coffee production:
Unlike originally planned, the planning for all projects started at the same
time, without piloting in Honduras first. This change (which was approved
by the Ministry) was due to a longer than expected preparatory process and
also to combine some planning activities to save travelling expenses. During
the project planning phase several planning workshops to analyse gender
equality, environmental sustainability, problems, objectives and stakeholders were organized in each country (Guatemala, Honduras and Nicaragua).
Despite several similarities in the region, all analyses were independent local
processes. Local workshops were facilitated by external facilitators and were
attended by about 30 farmers each, 1-2 from every producer organization.
Participants in environmental proofing and problems workshops were mostly
men in Guatemala and Nicaragua with the exception of a couple women,
but in Honduras a quarter of participants were women. Gender analysis workshops were more balanced between genders, a slight majority of participants
being women in Guatemala and Nicaragua, men in Honduras. Participants
analysed problems and challenges the producers are facing classifying those
by severity, urgency and tendency. They also analysed different stakeholders
and their possible approach to the project as well as available resources by all
components (quality, productivity, organizational capacity, finance). SWOT
analyses of different components were conducted. Workshops were summarized in the planning workshops held in each country. In these summary
workshops, the final objectives, indicators and main activities were defined.
The producers’ participation in the workshops was really active.
The table below describes the expected results of the first objective of the programme and it also gives an overview of the respective indicators to measure
achievement. These programme level indicators were refined after the completion of project plans and their objectives and indicators.
OBJECTIVE 1 More efficient and productive small producer organizations
EXPECTED
RESULTS
INDICATORS
Capacities of SPOs are
improved




SPOs’ internal control
and management
systems have
improved
Increased
participation and
voice of members in
the activities of the
SPOs
Increased % of
producers receiving
satisfactory key
services from SPOs
SPOs' financial
position has been
strengthened
Productivity and quality have
improved






Increased productivity
Measures to support and
track improvements in
quality adopted
Farmers have adopted
agricultural practices to
improve quality and
productivity
Reduced rejections from
buyers for defects or poor
quality
Quality valuation has
improved
Less imperfections
The contribution of SPOs to
social development is
enhanced



Increased amount of
Premium income spent
on community and risk
mitigation development
projects
Premium projects
benefit more women
and young people
Participation of
women and young
people within the
SPOs is increased
Increased resilience
to climate change
and more
sustainable
production

Farmers start to
adopt agricultural
practices to
mitigate climate
change risks.
Profitability is
improved



Increase in sales
Increase in
number of buyers
Increase in quality
premium
Guatemala:
• Distribution of plastic bags and seeds for establishing coffee nurseries.
Each organization selected seed varieties adapted to their agroclimatic
conditions.
• Purchase of spare parts for machinery and equipment for wet processing.
• Purchase of materials for the construction of solar dryers, production of
manual and budget for the design and construction of a solar dryer (actual construction will be carried out in 2015 after the harvest).
• Purchase and distribution of 140 toolkits for the calibration of coffee processing machines (10 kits for each organization).
Honduras:
• Essential agricultural inputs and tools were purchased for producer
organizations, including inputs for coffee nurseries (nursery bags, shade
cloth), digital weighing scales, pH meters, moisture control equipment,
barrels for fertilizers, GPS sets, organic fertilizers, motorcycles for technicians etc.
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Nicaragua:
• Procurement of inputs, equipment, tools and other materials for demonstration plots.
• Agreements were made with SPOs that produce organic inputs and
coffee seedlings for the purchase of organic fertilizers and 30 000 coffee
plants to be distributed to the beneficiaries.
• Purchase of field toolkits for demonstration plots.
Although the improvement of productivity and quality was the main focus in 2014, several activities were carried out to achieve other results as well.
For example, an organizational strategy consultation was started for the improvement of capacity of SPOs in Nicaragua. Also the comprehensive and
participatory planning phase was recognised as an important organizational
capacity building process for partner organizations and SPOs.
Beneficiaries in 2014 were 45 small producer organizations with a total of
32,500 members of which approximately 21 per cent were women. Fairtrade
Finland’s partner organizations include Latin American and the Caribbean
network of small Fairtrade producers, CLAC, and its national coordinating organizations in the project countries. Towards the end of 2014 the planning for
a couple of new pilot projects took place. These workers’ rights pilot projects
aim to test new approaches before starting to plan Fairtrade Finland’s next
development cooperation programme.
PROJECT COSTS
Guatemala
Honduras
Nicaragua
sub total
2.2.
Budget €
100 748
100 652
100 748
302 148
Incurred €
%
91 442
90,8 %
93 707
93,1 %
90 934
276 083
90,3 %
91,4 %
Enhanced capacities of the producer network
Due to a reduced budget, the second programme level objective consists of
only one project: Development of the Latin American and the Caribbean
producer network (CLAC). A comprehensive participatory project planning
phase was carried out in the field for this project as well. This phase was led by
an external facilitator and it included problem, objective, gender, resource,
stakeholder and risk analyses. The planning sessions included representatives from the whole region. For environmental sustainability analysis, the
project made use of the analyses done for the first objective’s projects. As CLAC
strongly participated in the planning of our development cooperation programme and its objectives, the project level objectives do not differ much from
the programme level objectives. The table below describes the expected results of the second outcome of the programme, and it also gives an overview
of the respective indicators to measure achievement.
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
OBJECTIVE 2 Enhanced capacities of the producer network to provide key services and advocate for its
members
EXPECTED
RESULTS
PN has improved organizational
capacities to fulfil its adjusted
mandates and roles
INDICATORS



Approved organizational
development strategy and
business plan are
implemented
Effective human,
institutional and financial
resource mobilisation
Lower transaction costs
PN has improved technical
capacity to provide and deliver
key services to its members


Increase in compliance with
certification Standards (less
audit queries)
Increased satisfaction of
members with service
delivery
PN has strengthened capacity to carry
out advocacy for its members



PN is able to influence the
broader Fairtrade policy
framework
More effective advocacy leads to
new funding and technical support
opportunities
Increased satisfaction of members
with representation in the global
Fairtrade system
During the planning process CLAC defined the goal of the project as follows:
Contribute to the empowerment, self-management capacity and resilience of
Fairtrade certified producers. CLAC set the project purpose as: improve CLAC’s
capacity to provide services to its members. The three expected results are:
1. CLAC has improved its organizational capacities to fulfil its current tasks
and mandates.
2. CLAC has improved its technical capacity to provide and deliver key
services to its members.
3. CLAC has improved its communicational and advocacy capacity on
trade policy, climate change adaptation and youth participation.
Naturally it is far too early to notice much progress towards achievement
of the set objectives. Nevertheless, although the start of the implementation
phase was slightly delayed, CLAC managed to implement most of the Year
1 planned activities. For example, a review of the organization’s communications work was conducted, which provided interesting findings about the
improvements that need to be made to the current communications strategy.
Based on this review the communications strategy will be updated in 2015.
Also a meeting for CLAC’s coffee network was organized to discuss ideas for
the growth of the Fairtrade coffee market.
The beneficiaries of the project are CLAC´s 300 producer organizations with
over 250,000 farmers. Fairtrade Finland’s implementing partner organization
for this project is the Latin American and the Caribbean Network of Small Fairtrade Producers, CLAC.
PROJECT COSTS
Regional project
2.3.
Budget €
Incurred €
95 151
87 927
%
92,41 %
Cross-cutting objectives
Three cross-cutting themes to be taken into account in the planning and implementation of all projects were defined during the programme’s planning
workshops. These themes – environmental sustainability, inclusion of vulnerable people and gender equality – were analysed during the projects’ planning phases and incorporated into project plans. As the projects’ implementation did not begin until the last quarter of 2014, which was also the beginning
of the busy harvest season, so far only limited training activities have been
implemented.
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2.3.1. Environmental sustainability and adaptation to climate change
In 2014, Fairtrade Finland supported the integration of an environmentallyand climate-friendly approach as a cross-cutting objective and took into account the effects of and adaptation to climate change in projects. Coffee is the
main product of Fairtrade Finland’s development cooperation programme.
Coffee ripens best in the shade under large trees. Besides temperature cooling these trees also provide protecting hedges, windbreaks, large amounts of
litter fall and protection against erosion. Furthermore, the Fairtrade Standards
promote environmental sustainability through sustainable agricultural practices, including integrated pest management, prevention of soil erosion, improvement of soil fertility, sustainable use of water sources, sustainable waste
management, protection of biodiversity, prohibition of GMOs, use of renewable energy as well as reduction of greenhouse gas emissions.
To guarantee a comprehensive approach and the integration of environmental sustainability in all relevant activities, environment and climate related activities were planned as an integral part of all projects. During the
preparatory phase of the programme in the first quarter of 2014, a set of tools
was developed to analyse environmental sustainability issues in each country. The toolkit includes tools suitable for local conditions on climate proofing,
environmental assessment and disaster risk analysis. In all three coffee project countries desk study analyses were conducted about climate change,
environmental risks and disasters in the country, and these analyses were
validated by participatory workshops. These two-day environmental sustainability workshops were facilitated by Fairtrade International’s Climate Change
and Sustainable Development Officer and around 20 producers (of which 1-3
were women) participated in every country. During the workshops the participants produced historical timelines of major environmental disasters and
seasonal calendars and defined local risks. These results were then taken into
account in the project plans. Below are some examples of how environmental
sustainability and adaptation to climate change were included in the coffee
projects’ plans:
• Old coffee plants are gradually replaced by more resilient varieties.
• SPO-level organic fertilizer production plants will be established.
• Field schools and demonstration plots will be established to teach sustainable technologies and adaptation measures to climate change
(identification and promotion of resistant coffee varieties, soil and water
conserving agronomic practices, shade farming, production of organic
fertilizers).
• The projects are seeking to increase production by improving productivity rather than by increasing the cultivated area.
• At the office level, all projects will promote better environmental awareness and carbon emission reduction through small practices like paper
recycling, water and energy saving measures, sorting of waste, etc.
The main project activities for disaster risk reduction are:
• Increasing public awareness of disaster risks facing farmers in each
country.
• Encouraging intersectoral partnerships and expanding networking on
risk reduction.
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
•
•
The projects will analyse and characterize threats for the most vulnerable
production areas, settlements and infrastructure and prepare risk reduction plans.
The projects will develop an institutional framework for the implementation of risk reduction measures by developing policy instruments, contingency plans and environmental management tools.
The only project under the programme’s other objective, the producer network development, has a really strong environmental and climate change
adaptation focus. It was agreed in the planning phase carried out in 2014 that
the project activities will include:
• Support CLAC to implement its climate change strategy to support national networks in activities to adapt to climate change.
• Information exchange in product networks and among national producer networks.
• Design, development and dissemination of a technical manual containing methodological tools that facilitate learning and acquisition of
knowledge on adaptation to climate change.
• Designing and conducting a virtual course on climate change for 23
leaders of national producer networks.
• Establishment of a system for monitoring the impacts of climate change
in the region.
In the field of disaster risk reduction, CLAC’s project activities are aimed at
providing knowledge and awareness about the disaster risks for the national networks in the region. The organizational strengthening of CLAC is also
important for national networks to improve their participation in civil society
alliances and coalitions that are involved in disaster risk management and
humanitarian aid.
2.3.2. Vulnerable people: Youth participation and child protection
Another key element of Fairtrade’s work is the protection and involvement of
vulnerable people including children, youth and seasonal migrants. In particular, the involvement of youth in the cooperatives’ activities was carefully
taken into account during these first four projects’ planning phases. Seasonal
migrants and child protection are going to be the focus in the new projects to
be planned in 2015.
Based on analyses and workshops carried out in 2014, the three coffee projects under the programme aim to raise the interest of young people in the
coffee industry. This will help generational renewal and help reduce the risk
of migration to big cities or abroad in search of job opportunities. This will be
done by creating, activating and training SPOs’ youth committees. The projects will also identify and promote other productive and entrepreneurship activities that are attractive and suitable for the youth. Other vulnerable groups
targeted by the coffee projects are single mothers and indigenous people
who are encouraged to join cooperatives, take part in trainings and proceed
to leadership positions.
The regional CLAC development project addresses the youth by sensitizing
leaders for backing generational renewal in decision-making. During the
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project CLAC will design, develop and disseminate a manual containing
methodological tools to facilitate the incorporation of young people into the
cooperatives’ activities. In addition, CLAC’s Youth and generational renewal
strategy will be developed and its implementation will be started by organizing regional youth forums.
2.3.3. Gender equality
Fairtrade Standards endorse equal rights for women, counter gender discrimination and promote women’s participation in the decision-making bodies of
producer organizations. Certified organizations are mandated to change the
way they operate internally, to become more gender conscious and promote
equal opportunities for both men and women.
In Fairtrade Finland’s development cooperation, gender equality is taken
into account throughout the project cycle. Special attention was given to gender equality during all the projects’ planning workshops and analyses. In addition, a special gender analysis workshop was held in all the project countries. In all three countries 21 producers participated in the workshops of which
in Guatemala twelve and Nicaragua eleven were women but in Honduras
only four women took part. In the workshops current participation and different needs in producer organization, marketing and finance were analysed.
Participants also analysed decision-making on resource use in families and
distribution of work by gender.
All the set indicators are gender sensitive, whenever feasible, and monitoring data will be disaggregated by sex.
It was agreed during the planning phase of the reporting year that the three
coffee projects will aim to solve structural problems in production through personalized technical assistance and exchange of experiences so that women
could own their own plots and manage their resources. In addition, the projects aim to contribute to incorporating gender equality in the implementation
of policies and the strategic plans as well as to create and/or activate gender
policies within the SPOs. The projects will also identify alternative livelihood
activities for women to diversify their income and to generate additional revenues. Furthermore, the projects include awareness-raising on gender equality. In the first year of the projects’ implementation, some gender activities were
already implemented. For example, in Guatemala a workshop was organized for producers’ children on cooperative values from a gender equality
point of view.
According to the project plan produced in 2014, the regional CLAC development project is supporting the implementation of CLAC’s gender strategy.
CLAC will design, develop and disseminate a technical manual containing
methodological tools to facilitate the inclusion of women in the cooperatives’
activities. The project will sensitize leaders to focus on gender equality in decision-making. The project will also organize a meeting of 30 Latin American
Fairtrade women to identify alternative and different opportunities for equal
participation in the activities and management of the organizations.
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
2.4.
Quality and monitoring
In 2014 Fairtrade Finland begun to prepare a new quality assurance system
which will be completed in 2015. The system will be based on Fairtrade’s theory of change aiming at capturing and assessing the simultaneous change
in four areas:
• Small producer & worker organizations
• Supply chain business practices
• Consumer behaviour
• Civil society action
Fairtrade Finland’s development cooperation is actively influencing all these
areas which are central for the sustainability of the impact of the cooperation.
Fairtrade has two different types of interventions which are used for bringing about change in these four spheres:
1. Standards which establish the ‘rules’ for fair trading practices and engagement in Fairtrade. The standards include rules for supply chain businesses
and rules for small farmer organizations and plantations using hired labour.
They promote the key principles of Fairtrade, including sustainable and equitable trading relations; good governance in organizations (democracy, participation and transparency); respect for human rights (particularly labour,
child and gender rights); and protection of the environment. The standards
also incorporate the key tools used in Fairtrade, including:
• Economic protection policies which aim to offset price volatility and risk
(minimum price, access to pre-finance, provision of sourcing plans).
• The Fairtrade Premium which is paid to small farmer and plantation
worker organizations based on sales and enables them to invest in economic, social and environmental development, in line with their democratically-agreed priorities.
• Empowerment policies which support independent organizations of
small farmers and workers to develop and implement their strategies for
sustainable development based on their own aspirations and priorities.
2. Support activities which enable engagement in Fairtrade by small farmers, workers, employers, supply chain businesses, consumers and civil society
organizations, and leverage this engagement to bring about wider changes
in support of greater justice and sustainability in trade. These include strategies to:
• Build Fairtrade markets though raising consumer awareness and engaging with businesses
• Provide support to small farmers and workers
• Develop networks and alliances
• Intensify advocacy and campaigning
Fairtrade Finland’s development cooperation programme comes under the
support activities. However, the first type of interventions – the standards – are
essential for the quality control, sustainability and risk management of the
programme. These standards, whose compliance is regularly monitored by
an independent certification body, establish an exceptionally firm foundation
for our development cooperation.
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18 FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
According to the first draft of our quality assurance system, the effectiveness
of Fairtrade Finland’s development cooperation is based on:
• Ownership and local priorities: the projects are planned by local partner
organizations and beneficiaries leading to a more extensive but inclusive
bottom-up process.
• Harmonization: our programme aligns with the global Fairtrade strategy.
We cooperate closely with other national Fairtrade organizations on joint
projects, reports, visits etc. During the planning phase we closely map
other actors and projects in the region to avoid duplication.
• Results: Fairtrade seeks to achieve measurable and sustainable results.
We inform consumers actively, openly and transparently about the benefits. The projects have clear goals, indicators and qualitative monitoring
procedures as well as results-based budgeting and reporting.
• Sustainability: Fairtrade promotes the capacity building of local organizations and youth involvement, and has a requirement for the organizations’ internal democracy, strict environmental criteria, economic sustainability (minimum price, demand increase). Our implementing partners
are already existing organizations owned by the beneficiaries (cooperatives, producer networks, trade unions).
• Transparency: Fairtrade publishes project information as part of IATI. Fairtrade International’s standard consultations are made public, seeking
feedback from a number of stakeholders.
• Human rights based: Fairtrade Finland is a rights-based organization
and the rights-based approach forms an essential element of all our
work. Fairtrade is guided by international human right standards and
principles. Fairtrade promotes compliance to the ILO’s fundamental
conventions and essential UN conventions regarding the right to work,
livelihood, labour rights, prohibition of child labour, etc.
• Equality and justice: Fairtrade standards include requirements on gender equality, fair trade agreements, non-discrimination, inclusion and
remediation processes, etc.
• Efficiency: Fairtrade Finland is administrating and implementing the
programme with minimal additional resources, using the expertise of
Fairtrade International, including technical inputs from specialists on
gender, environment, child protection, monitoring and product specific
areas. The programme’s costs are concentrated in the field.
• Minimal aid dependency: Our projects are aiming to reach a large
number of beneficiaries with small support instead of a small number of
people with large support. This way we can avoid aid dependency and
keep the beneficiaries’ livelihood on an economically sustainable basis.
To ensure the quality of our development cooperation, the drafted quality
assurance system is focusing on:
• Reliable partner organizations: At Fairtrade Finland we are privileged
to work with excellent partners who share the same vision and a similar
strategy. Our partner organizations are mainly local producer networks
that belong to the global Fairtrade movement, who share the common
goal with us, and which other actors in Fairtrade movement can assure
to be efficient and reliable partners.
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
•
•
Planning, monitoring and evaluation (PME):
• Partner organizations and beneficiaries are responsible for the projects’ planning which will ensure the projects’ relevance and ownership.
• Monitoring plans will be produced during the projects’ planning
phase.
• Programme level monitoring is based on the projects’ objectives and
indicators.
• Annual and quarterly plans; annual and quarterly reports. Active
monitoring will be used for critical reflection and feedback to update
plans if needed.
• Financial monitoring is conducted at the organizational, programme
and project levels.
• External audits.
• Evaluations: all projects and the programme as a whole will be
evaluated.
Risk Management includes:
• DRR analysis in project planning
• Climate and environmental risk assessments
• Annual project-specific risk updates
• Analysis of commercial risks
• System-level risk monitoring
• Tackling of corruption and embezzlement
Although the quality assurance system was not fully completed during the
first year of Fairtrade Finland’s development cooperation, all projects were
planned based on these drafted quality principles. Project-specific monitoring
plans were produced by the implementing partners. Based on the projects’ objectives and indicators, the programme level monitoring table was produced
but some baseline information was still missing by the end of the year. As the
projects’ implementation started quite late in the year, there were no actual
monitoring trips from Finland but Fairtrade Finland’s programme manager
made visits to the field (all four project countries) during the inception and
planning phases. Fairtrade International’s Head of Liaison and Service Development participated in the planning visit (not included in the financial report
because the costs were covered by Fairtrade International).
2.5.
Challenges and lessons learned
As 2014 was the very first year of Fairtrade Finland’s development cooperation,
tools and practices had first to be developed. This preparatory phase and the
recruitment of project coordinators took a bit more time than planned but our
partner organizations managed to catch up with project delivery. The key
principles of our development cooperation are a participatory approach and
local ownership but that also means that processes might take more time. This
participatory approach was highly appreciated by producer communities
and it ensured a commitment to self-defined objectives and better ownership
of the projects. In particular, the formulation of indicators proved to be quite
difficult for beneficiaries because for most of them this is the first time that they
are involved in designing a development cooperation project. Despite some
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20 FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
challenges caused by the participatory approach, the main lesson learned
from the first year of development cooperation was the importance of this participatory grassroots method.
The year also saw one technically small but symbolically significant change
as in December 2014 Fairtrade Finland signed a direct cooperation agreement with the national Fairtrade producers’ network of Honduras (CHPP) to
replace the agreement signed with the regional umbrella organization CLAC.
CHPP’s will to be a direct partner was a sign of the independence, capacity
and empowerment of a producer organisation. Fairtrade Finland screened
CHPP’s administrative capacity which was assessed to meet the due diligence
requirements for the project’s implementation. CHPP’s decision created some
initial tensions between national CHPP and its regional parent organization
but these were subsequently solved. Fairtrade Finland considered the matter
as internal and focused on ensuring the project’s implementation and administration were properly taken care of.
Central American countries are regularly affected by high levels of insecurity, inequality, climate induced disaster risks and an unstable post-conflict
environment. The implementation of the projects faced challenges due to the
fungus disease that is still afflicting coffee production in the whole region and
causing significant damage to plantations. Weather conditions were irregular
and strong winds and prolonged rains caused some changes in project activities as it became clear that stronger-than-planned constructions are required
for drying establishments. The political situation in all three coffee project
countries was challenging but did not cause major difficulties for the projects’
implementation. For example, in Guatemala there was a conflict between the
government and farmers about the so called “Monsanto Law,” which would
have given the transnational chemical and seed producer a foothold into the
country’s seed market but after huge protests the government repealed the
act. The Nicaraguan government has put a lot of pressure on NGOs but cooperatives have managed to work quite independently. In Honduras the new
president Juan Orlando Hernández took office in the beginning of 2014 and
his first year in office has been characterized by accusations of tough measures, militarization and dictatorship – not surprising for a person who promised
during the campaign to “put a soldier on every street corner”.
The seasonal nature of coffee production sets some challenges as our main
beneficiaries – coffee producers – are not available for time-consuming activities like trainings during the harvest season. Therefore activities have to be
scheduled carefully, especially as the harvest season slightly differs depending on microclimatic conditions.
In 2014 Fairtrade International started to improve its producer support services by taking a more programmatic approach. The programmatic approach
ensures that producer support is better aligned to one strategy and stakeholder participation is built in. The approach makes Fairtrade’s field work more robust, and roles and responsibilities clearer. This programmatic approach was
developed during the year and Fairtrade Finland’s development cooperation
programme was one of two pilots under the approach. The drafted models
of operation, developed templates, lessons learned and viable methods piloted under Fairtrade Finland’s development cooperation programme will be
applied in the projects and programmes of Fairtrade International and other
countries’ national Fairtrade organizations.
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
2.6.
Assessment of the sustainability of the results & impact assessment
All the projects being implemented under the programme are totally new
and were just planned during the year of reporting, so no results or impacts
are available as yet. Ensuring effectiveness and sustainability of the expected
results were in focus during the planning of the projects.
As explained in section 2.4, Fairtrade standards - such as sustainable and
equitable trading relations, good governance in organizations, respect for
human rights, protection of the environment, minimum price and sourcing
plans play an important role in ensuring the sustainability of the projects’
results. Fairtrade standards like the Fairtrade Premium are also important in
helping address the development needs of the whole community and thus
expand the outreach of the overall impact of the projects.
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FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
23
3. Communications
03.
COMMUNICATIONS
I
n addition to informing about the work done in the South and raising awareness about larger development issues, the aim of our communications is
that Finnish people would take part in solving the same global problems
that the programme’s work in the South addresses. The projects carried out
in the South and the communications work in Finland thus share the same
indivisible goal – contributing to the achievement of sustainable livelihoods
for small-scale producers. If there is no demand for the farmers’ products, the
productive improvements accomplished through the programme will hardly
improve the living conditions of the farmers.
The objective of the programme’s communications is that Finnish people
recognize the links between their lives and activities and the livelihoods of
farmers in developing countries. This objective is to be achieved using two
components: programme communications and development communications. The objective is further divided into four expected results; one under programme communications and three under development communications.
Finnish people recognize the links between their lives and activities and the livelihoods of farmers in
developing countries
EXPECTED
RESULTS
Target audience know
about the programme
and the achieved
permanent changes in
the farmers’
livelihoods.
Consumers’
awareness on
small farmers’
challenges and
international
trade system’s
grievances has
increased.
Individual
Fairtrade
supporters’
commitment
has
deepened.
The awareness of
the companies in
food and textile
industry on ethical
sourcing and human
rights risks in supply
chains has
increased.
Fairtrade Finland’s segmentation is based on values and we use Valuegraphics analysis (by Taloustutkimus) for this categorisation. There are two
somewhat differing target audiences for the communications in Finland. The
people in the first target group (about 869,000 Finns) which Valuegraphics
call “The Seeking Zealots” or “The Advocates” consist of value-bound and modern people who can be both humanistic and materialistic by orientation and
who readily tell others about their views and consumption choices. Another
substantial target group consists of “Homebodies” (about 577,000 Finns): the
segment of traditional and humanistic people strongly committed to their values. They appreciate a good, stable life and shun novelties and challenges.
Through this group we can also convert some people who were previously
more critical towards development cooperation to see the value of the empowerment brought about by Fairtrade. In addition to value-based segmentation,
the communication activities are also targeted to relevant organizations such
as universities, Fairtrade parishes, Fairtrade towns and municipalities, workplaces, other NGOs and potential businesses that develop, import, sell and
consume Fairtrade products.
24 FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
The communications section’s two components shared partly the same
channels and campaigns. For example, during the traditional Fairtrade week
both programme and development communications themes were raised.
Also the main media cooperation partner in2014, Radio Nova, was used for
both components. The main channels for Fairtrade Finland’s communications were digital: website, Facebook, Twitter and newsletters. In addition, the
themes were taken up in several meetings, training sessions, workshops, fairs
and events with a wide variety of Fairtrade Finland’s stakeholders. To ensure
successful campaigns, it was essential to activate Fairtrade Finland’s partners
(retailers, food and textile industry, wholesalers, cafes, restaurants and hotels),
Fairtrade cities (10), Fairtrade parishes (100), Fairtrade universities (7), member
organisations (31), workplaces (609, from both the private and public sector).
This activation was carried out via face-to-face meetings, phone discussions,
e-mails, newsletters, events, information sessions, social media, active consumers and media representatives.
In 2014, Fairtrade Finland’s development cooperation programme supported the objectives of the United Nations’ International Year of Family Farming to
raise the profile of family and smallholder farming by communicating about
the origin of several commodities, the challenges faced by the family farmers,
and the link between the Finnish people and their consumer choices with the
improved livelihoods of the family farmers.
An individual Finnish consumer can support farmers from developing
countries access the market not just with their own consumption choices, but
also through comprehensive public participation. The communications activities in Finland addressed both these aspects but also included advocacy
work to make Finnish companies’ sourcing more sustainable. This kind of coherent approach throughout the value chain and the whole programme is
unique in development cooperation.
3.1.
Programme communications
3.1.1. Objectives of programme communications
The objective of the programme communications is that the target audience is
aware of the partnership programme, highlighting specially the permanent
changes in the farmers’ livelihoods and living conditions attained through
the programme. As the programme started and the projects’ planning phase
took place during the year 2014, the communications about the programme
were mainly about the needs and challenges of the coffee farmers.
EXPECTED
RESULT
Target audience know about the programme and the achieved permanent changes in the
farmers’ livelihoods
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
3.1.2. Key activities conducted to achieve the set objectives
The programme communications’ main activity in 2014 was the nationwide
advocacy campaign, Fairtrade Week in October. The key objective of the
campaign was to increase awareness concerning the origin of coffee production and the challenges facing the coffee farmers. To reach the wide target
group, cooperation with the mass media was essential, and thus Fairtrade
Finland cooperated with Radio Nova, the biggest commercial radio channel
with 1.2 million listeners which has a strong following among people with
traditional values (’The Homebodies’). The cooperation included seven small
radio documentaries, radio spots and campaign-specific web pages to highlight the themes of the programme communications. The listeners of Radio
Nova familiarized themselves with the everyday life and the role of a coffee
farmer at the very beginning of the long supply chain.
In addition to campaign related activities, the themes of the programme
communications were communicated on a regular basis via Fairtrade Finland’s own digital channels: newsletters, Facebook, Twitter and the website.
The challenges in coffee production and in sustainable livelihoods were also
discussed in several meetings with the stakeholders of Fairtrade Finland: current and potential Fairtrade towns and their representative working groups,
Fairtrade parishes, member organisations of Fairtrade Finland, current and
potential Fairtrade universities, student associations, schools, and in tailored
trainings on sustainable procurement or on advocacy, by representation at
Educa Fair for Education and on Church environment day. Over 50 private
sector representatives were informed about the programme in business meetings.
Finnish media covered Fairtrade coffee in dozens of articles through the
year but especially during the campaign week in October. For example, the
programme was taken up in an interview on Morning Television (Aamutv,
YLE) as an example what should be done to support coffee farmers in adapting to the changes caused by climate change. Pekka Haavisto, Minister for
Development Cooperation, also gave an interview about development cooperation and the importance of Fairtrade.
3.2.
Development communications
3.2.1. Objectives of development communications
Development communications raise the wider themes of trade and development and hence support reaching the goals of Finland’s development policies. Our development and advocacy communications work covers global
development issues arising from the contents of the programme activities,
such as livelihood challenges, working conditions, equality, food security, climate change, sustainable use of natural resources, and trade agreements.
The objective of the development communications was slightly modified
based on experience and feedback. The expected results were analysed during the year 2014 to ensure they guide the work of Fairtrade Finland and that
of the programme in the most effective way. One expected result was added
to the development communications: “The awareness of the companies in the
food and textile industries about ethical sourcing and human rights risks in
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26 FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
supply chains has increased.” The fine-tuned expected results are presented
below:
EXPECTED
RESULTS
Consumers’ awareness on small Individual Fairtrade
supporters commitment
farmers’ challenges and
has deepened
international trade system’s
grievances has increased
The awareness of the companies
in food and textile industry on
ethical sourcing and human rights
risks in supply chains has
increased
3.2.2. Key activities conducted to achieve the set objectives
The nationwide advocacy campaign, Fairtrade Week, was the main activity
conducted as part of the development communications. The key objective
of the campaign was to increase awareness concerning the origin of coffee
production, the challenges the smallholder farmers face and to demonstrate
the link between the consumer choices of the target group and smallholder
farmers in developing countries. The campaign succeeded in attracting wide
interest in the themes from media representatives and private sector partners.
The active participation of Fairtrade Finland’s different types of stakeholders also played an important role. The preferred activation platform was the
celebration of the Fairtrade coffee break. The concept provided an opportunity for the target group and the partners to participate in the campaign, to
talk about the challenges the smallholder farmers face and to explain to the
network about the link between daily consumer choices and the livelihoods
of the smallholder farmers in the developing countries. A total of 215,812 fair
cups of coffee (the target was 100,000) were consumed during the Fairtrade
coffee breaks in 420 organised events. Fairtrade coffee breaks were organised,
for example, in cities, parishes, universities, workplaces, supermarkets, hotels,
cafes and in people’s homes.
#faircoffeethanks campaign was another activating element of the advocacy campaign which generated consumer feedback to cafes, restaurants
and catering businesses to have sustainable coffee. The partners in the campaign included student unions in several universities, Eettisen kaupan puolesta ry and Kuluttajaliitto. The communications and activation about the
campaign were targeted to the younger ’The Seeking Zealots’ and ’The Advocates’ groups via social media, online advertising, newsletters as well as
through the partners’ own channels and activities.
Content, stories and photos have an important role in effective communications. To gather new content and to highlight the themes based on the objectives of the Fairtrade Week (as above), a journalist from Radio Nova travelled
to Tanzania to visit Fairtrade coffee co-operatives and farmers. The resulting
photos and updates were shared in the social media, and mini-documentaries and interviews were broadcast on the radio channel.
In addition to digital communications, campaign materials and brochures
were used to increase awareness about the challenges the small scale farmers
face in general and specifically by coffee, cotton, banana and cocoa farmers in different parts of the world. Brochures have been shared via a broad
network of stakeholders to reach a wide target audience. Brochures and post-
ers have been shared especially during Fairtrade Week in the events organised by Fairtrade towns, Fairtrade parishes, Fairtrade universities, workplaces, member organisations and Fairtrade Finland. In addition, the brochures
have been shared in several events e.g. Helsinki Chocolate Festival.
In 2014, Finland prepared the national implementation of UN Guiding Principles on Business and Human Rights (UNGP). Fairtrade Finland participated in
the multi-stakeholder discussions on national implementation, initiated by the
Ministry of Employment and the Economy and the Ministry for Foreign Affairs.
For instance, Fairtrade Finland was one of the NGO participants in the round
table discussions about the implementation of the Guiding Principles in the
retail sector.
In line with the national UNGP plan, Fairtrade Finland met with 18 private
sector food and textile industry companies that do not source Fairtrade certified commodities as yet. In the meetings Fairtrade Finland raised the role of
businesses concerning human rights in the supply chains they use, and
talked about the ethical sourcing of commodities from the developing countries. Fairtrade Finland’s aim has been to help businesses to improve the way
they take into account the human rights impacts of their activities in the supply chains. The approach has been to build co-operation and to offer solutions
to the companies.
In addition to the events mentioned in chapter 3.1.2., issues concerning
cocoa farming were discussed at the Helsinki Chocolate Festival attended
by 3000 chocolate enthusiasts. Fairtrade Finland’s presence at the festival
brought a radically different message for the chocolate lovers, drawing attention to the risky origin of cocoa by talking to the participants at the fair stand,
by organising two fair chocolate tasting sessions with a chocolatier and by
having a seminar event. The challenges in cotton farming were highlighted
in an event with public procurers and textile companies and in a responsible
procurement seminar for the cities.
Throughout the year, Fairtrade Finland was in close cooperation with other
NGOs, companies, government bodies and decision-makers working in the
field of sustainable food systems and ethical consumption. For instance, communications work related to sustainable food consumption was coordinated
through a workshop and follow-up communications with Ministry for Environment, Ministry for Agriculture and Forestry, relevant employer organizations,
consumer NGOs and environmental organizations. Fairtrade Finland also
participated in the discussions on corporate social responsibility and related
cooperation with companies and NGOs, organized by the so called ”Friday
Group” of the Parliament of Finland. A representative of Fairtrade Finland was
also invited to give a speech about the international food system and Fairtrade at the Tampere Human Rights Film Festival and in an event organized
by Helsinki Think Company, the entrepreneurship society of University of Helsinki.
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28 FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
3.3.
29
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
Challenges and lessons learned
The biggest setback for Fairtrade Finland’s communications in 2014 was
the cancellation of the farmer visit because the cotton farmer from Senegal was not granted a Schengen Visa. This clearly had some impact on
our media visibility.
Based on the experiences and analysis, an important lesson learnt is
that we should use multiple channels to communicate with the target
audience and repeat the message several times. The ways in which we
talk about the coffee farmers – their working conditions, the importance
of development regarding their livelihoods and the challenges they face
due to climate change – need to be adapted to be easily understood by
different audiences and to fit appropriately with the channel used. As the
message needs to be repeated several times, the themes should be communicated both on a regular basis and as part of the campaigning activities. With the campaigning activities Fairtrade Finland can reach a wider
target audience with less understanding on the themes but the campaigning also activates and engages the target audience that already
has a basic knowledge of the themes. Campaigning therefore provides
a platform for the committed target audience to share the information by
themselves.
One development area for the year 2015 is to communicate about the
outputs and outcomes of the projects. As the projects’ planning phase took
most of the year 2014, there were no specific outcomes to communicate
about to the target audience as yet. Next year we will focus on the positive
impacts and success stories of the programme in the daily lives of people
in developing countries as well as the qualitative and quantitative results
achieved by the projects.
3.4.Results
As 2014 was the first year of Fairtrade Finland’s development cooperation
programme, the indicators were slightly refined. The basis of the update
was the relevance and the prominence of the indicator and the availability and accuracy of the data.
Finnish people recognize the links between their lives and activities and the livelihoods of farmers in developing
countries
INDICATORS
EXPECTED
RESULTS
INDICATORS



Trust in Fairtrade gets stronger
The target groups have deeper understanding about Fairtrade and its impact
Number of committed consumers increases
Target audience
knows about the
programme and
the achieved
permanent
changes in the
farmers’
livelihoods.


Through the
campaign and
the farmer visit
tour the media
hits will reach 6
million contacts
Successful content
communications of
the programme; 5
shared updates in
Facebook and
Twitter, 2 blog
texts
Consumer awareness
about the challenges
facing small farmers’
challenges and the
problems in the
international trade
system has increased.



Through the campaign
and the farmer visit tour
the media hits will reach
6 million contacts
The communications
carried out by our
partners will reach
300,000 people
30% of the
radio/TV/mass media
listeners remember the
campaign
Individual Fairtrade
supporters’
commitment has
deepened.




# of committed supporters
has increased by 3% (not
relevant during the year
2014)
The presence in the social
media gets stronger
# of Facebook page likers
increased by 2000 annually
The average # of our
Facebook updates shared
increases
Based on research conducted by Taloustutkimus, the indicators’ values for
2014 are:
1. Trust in Fairtrade: In 2014 the general trust was at the same high level
(72%) as in 2013, but the number of people that have a strong trust in
Fairtrade increased by 1 percentage point.
2. 2 percentage points increase in people’s knowledge of what Fairtrade
stands for and what is its aimed impact (75% -> 77%)
3. Number of committed consumers increased by 2 percentage points (16%
->-18%)
Indicators’ values of the expected results are:
1. Through the campaign 9 million contacts were reached, 50% more than
targeted. The short documentaries and the communications campaign
on Radio Nova reached 3.5 million contacts. In addition, there were
several interviews on radio channels, e.g. on local radio channels and in
YleX and Radio Vega. The television interviews (YLE and MTV3) reached
300,000 contacts. In the print media the reach was, based on the distribution of the newspapers and magazines, 5.2 million contacts.
2. Digital channels reached some already quite committed target groups:
2750 newsletter subscribers, 35,000 followers on Facebook, 1800 followers
on Twitter and 3700 monthly website visitors. Newsletters also reached 125
employees in parishes.
3. Communications carried out by our partners reached clearly more than
the set objective of 300,000 people.
The awareness of
the companies in
the food and
textile industries
about ethical
sourcing and
human rights
risks in supply
chains has
increased.

38 new companies, not
part of Fairtrade
movement yet, have
been contacted in 20142016
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FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
a) Fairtrade towns: 5700 persons via Fairtrade coffee breaks, thousands
of residents via the web pages of several cities, articles in local newspapers, e.g. Joensuun Uutiset (43,000 readers), advertisements in Länsiväylä
(114,000 readers), an article in Tampere City bulletin (120,000 readers)
and an article in Pam magazine (230,000 readers).
b) Fairtrade parishes: approximately 450 persons via Fairtrade coffee
breaks and additional contacts via articles in web pages and newspapers.
c) Fairtrade universities: catering service providers communicated
about the Fairtrade coffee break in their restaurants, internal communications reached the students of the universities.
d) Member organisations: approximately 3000 persons via Facebook
e) Companies: a huge amount of people via Facebook, newsletters,
stores and advertising.
4. From the people that listened to the radio station, 10% remembered the
mini-documentaries on Radio Nova (less than the set objective of 30%).
From those who remembered the campaign, 61% liked the campaign.
5. Social media targets were exceeded as the number of Facebook page likers increased by 10,000 (from 25,000 to 35,000 followers) and in Twitter the
number of followers reached 2000
6. Taloustutkimus conducted a research for the people in the catering business which indicated that the business is now more interested in sourcing Fairtrade products than in 2013.
Based on these indicators, it can be concluded that Fairtrade Finland’s communications were successful as they reached most of the set objectives and results already during the first year of the programme’s implementation. In the
future, we have to set more challenging objectives to reach even more people and especially deepen their understanding of the challenges the farmers and workers are facing, and the role that Finnish consumers can play in
improving their livelihoods.
04.
ADMINISTRATION
AND SUPPORT
FUNCTIONS
32 FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
4. Administration and support functions
I
n 2014 Fairtrade Finland had 11 employees of which a deferred average of
2.4 people worked with the development cooperation programme: besides
the full-time programme manager, the organization’s administration and
communication personnel used part of their worktime for the programme. The
annual atmosphere survey of employees was carried out in December, and
the results were again excellent with an overall atmosphere rating of 4.36 /
5. Moisture damage was found in the organization’s premises in the spring
of 2014. Since the property was about to be renovated in the near future, the
decision to move to new premises was brought forward. The search for new
premises was started in the early summer immediately after dampness test
results and Fairtrade Finland moved to new premises in Vallila at the end of
the year. In 2014 Fairtrade Finland was also an active member of the international Fairtrade movement and contributed, for example, to the development
of Fairtrade International’s 2016-2020 strategy.
2014 marked Fairtrade Finland’s first year as one of MFA’s 16 partnership
organizations. As a new organization in the partnership scheme, Fairtrade
Finland complements the set by offering a unique bridge between private
sector companies and civil society. Fairtrade Finland works actively together
with other Finnish development organizations as well as Finnish companies.
Fairtrade Finland is a member of Kepa, the umbrella organization for development NGOs, and the Finnish NGDO Platform to the EU – Kehys ry. In 2014,
Fairtrade Finland participated actively in the partnership organizations’ working groups for quality assurance and finance & administration as well as in
the MFA’s partnership forums and the seminar for development cooperation
NGOs.
Our development cooperation was implemented in close cooperation with
Fairtrade International. This decentralized structure was chosen to avoid
duplication, to achieve efficiency and to be able to leverage the expertise
of Fairtrade International. In Finland we had only one staff member, a programme manager, working with the development cooperation programme’s
implementation. The programme manager is responsible for developing PME
tools, and ensuring the quality and accountability of the programme. The
programme manager was also facilitating the projects’ planning and monitoring the implementation as well as designing the programme´s annual
plan and report for MFA. In addition, three people from Fairtrade Finland’s
communications personnel worked total of 7 months for development and
programme communications, as detailed in section 3.
Fairtrade Finland’s Annual General Meeting, the highest decision-making
body consisting of representatives of the member organizations, nominated
10 members to the board of Fairtrade Finland for 2014. Finnish civil society is
well represented in the Fairtrade Finland board which consists of representatives of development cooperation organizations (e.g. SASK and FELM), trade
unions and political youth organizations as well as other NGOs like Kepa, The
Consumers’ Union of Finland and The Martha organization. The board has
the overall responsibility for the activities of Fairtrade Finland in accordance
with the legislation as well as the values and principles agreed by the organization’s bylaws and the General Meeting. The Board nominated the Working
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
Group (Anja Toivola-Stambouli, Kirsti Aarnio, Arja Toivonen) for Development
Cooperation which acted as an expert committee to advise the programme.
Fairtrade Finland and Fairtrade International have formed a joint programme
decision-making body comprising of representatives from both organizations.
This Steering Committee held teleconferences and one physical meeting to
give general guidance and oversight of implementation. In addition, there is
a programme team comprising of the staff involved in planning, monitoring
and implementation. This group met a few times and several virtual meetings
were also held. To backstop activities in the field and contribute to capacity
building at the local and regional levels, experts in Fairtrade International allocated part of their working time to this programme. See the chart below for
the coordination structure.
During the year, Fairtrade Finland’s administrative capacity was developed
and improved in many ways as recommended by KPMG during the application process for new partnership organizations. An administrative assistant
was recruited and training on the project cycle management of development
cooperation projects was provided for administration personnel. Updated
bookkeeping software was purchased for improved financial monitoring. The
financial management capacity of all the projects was reviewed.
All the projects were audited by Crowe Horwath audit company in El Salvador where the projects’ bookkeeping was centralized. The auditor of Fairtrade
Finland (Marko Reponen, KHT - Signia Tilintarkastus Oy) inspected and commented on the project audit reports according to the MFA guidelines.
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34 FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
MFA provided funding totalling EUR 500,000 for Fairtrade Finland’s development cooperation programme of which EUR 54,451.28 euros was transferred
to 2015. Self-financing for 2014 was 18.3 percent and it was sourced mainly
from companies’ license fees in Finland. Fairtrade Finland did not have any
fundraising costs in 2014. In addition to the reported self-finance, Fairtrade International’s experts worked on the development of the programme’s tools
and planning for the projects in 2014 for more than 100 work days. This work
contribution is valued at around EUR 34,000 and it is not included in the programme’s financial statements nor in the reported self-financing. Fairtrade
International also paid some additional expenses related to travel and planning of the projects. See the table and figures below for the expenditure and
finance of the programme in 2014.
EXPENDITURE
Euro
Budget
A: PROJECT COSTS
%
Actual
Expenditure
of budget
of total costs
OBJECTIVE 1
302 148
276 083
91,4 %
50,6 %
OBJECTIVE 2
95 151
87 927
92,4 %
16,1 %
subtotal
397 299
364 010
B: PLANNING, EVALUATION, MONITORING & DEVELOPMENT
39 319
91,6 %
66,7 %
36 856
93,7 %
6,8 %
97,3 %
12,4 %
95,8 %
4,2 %
C: COMMUNICATION AND ADVOCACY
Development Communications
Programme Communications
subtotal
69 300
23 700
93 000
67 433
22 700
90 133
96,9 %
16,5 %
D: ADMINISTRATION
58 824
54 550
92,7 %
9,999 %
TOTAL
FINANCE
MFA
Self-Finance
Self-financing from abroad
Self-financing from Finland
TOTAL
588 442
545 549
92,7 %
euros
Budget
500 000
88 442
44 000
44 440
588 442
100,0 %
%
Incurred
445 549
100 000
44 000
56 000
545 549
Budget
85,0 %
15,0 %
7,5 %
7,6 %
100,0 %
Incurred
81,7 %
18,3 %
8,1 %
10,3 %
100,0 %
35
36 FAIRTRADE FINLAND – DEVELOPMENT COOPERATION PROGRAMME - ANNUAL REPORT 2014
The auditor’s assurance and signature, see annex.
Fairtrade Finland
Janne SivonenPentti Kotoaro
Executive directorChairperson
ANNEXES:
•
Financial statement 2014
•
Auditor’s report 2014
•
Programme Audit 2014