Fairtrade Mark Denmark: Bridging Phase. Fairtrade Mark Denmark. 1.5 million DKK (11 months) (UMF) Sara Krüger Falk. Henrik Bramsen Hahn

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1 Fairtrade Mark Denmark: Bridging Phase Fairtrade Mark Denmark 1.5 million DKK 2013 (11 months) December ,5 mio DKK - Chairman September ,0 mio DKK - Agenda Item 8 Strategic Framework for Priority Area Growth and Employment , Responsible Growth Action Plan for Corporate Social Responsibility Danida Business Partnerships (UMF) Sara Krüger Falk Henrik Bramsen Hahn Danida will contribute a total of DKK 1,5 million to support the promotion of Fairtrade labelled products in Denmark. The contribution will cover a bridging phase until application criteria and procedures for the new CSR & Fair Trade Facility have been completed.

2 2 Fairtrade is based on a partnership between producers and consumers. Fairtrade offers producers improved terms of trade, stable prices and empowerment, as farmer groups and plantation workers must have a democratic structure and transparent administration in order to be certified. When a product carries the Fairtrade label it means the producers and traders have met the International Fairtrade Standards. The Standards are designed to address the imbalance of power in trading relationships, unstable markets and the injustices of conventional trade. In addition, Fairtrade also encourages environmentally friendly farming techniques and have a series of requirements in relation to the environment. As such, Fairtrade is an (agricultural) development tool built on international conventions related to human rights, workers rights, and to environmental protection. The Fairtrade label offers consumers a way to buy products in solidarity with those who produced them. The label is available on thousands of products in more than 100 countries, including Denmark. Fairtrade Mark Denmark (FMD) aims at promoting sales of Fairtrade labelled products in Denmark, thereby improving the conditions for small scale farmers and plantation workers in developing countries. Fairtrade Mark Denmark is a member of Fairtrade International (see annex 1). In 2013 FMD will continue its efforts to raise awareness about Fairtrade s positive impacts in developing countries. In addition, FMD will inform Danish consumers about how they can support farmers and plantation workers in developing countries by purchasing Fairtrade labelled products. The strategic objective for 2013 is to increase the per capita consumption of Fairtrade labelled products in Denmark by at least 6 % compared to the final result for 2012 (under finalisation). As a spillover effect, FMD aims at increasing its independent earnings by at least 2 % compared to the final result for 2012 (under finalisation). Danida will contribute a total of DKK 1,5 million to support FMD s promotion of Fairtrade labelled products in Denmark. Since FMD received their first financial support from Danida their independent earnings have increased significantly. From accounting for 40 % of FMD s total budget in 2007, Danida s financial support of DKK 1.5 million accounted for only 24 % of FDM s total budget in The high degree of independent earnings in the later years has meant that grants from Danida almost solely have been used for activities motivating consumers and commercial actors by creating awareness about Fairtrade. FMD has almost been able to finance international obligations, everyday operation, and salaries without the support from Danida.

3 3 The major challenge related to FMD s activities in Denmark is to convert the very high awareness level of the Fairtrade label to higher per capita consumption. Today, approximately 9 out of 10 Danes know the Fairtrade label but their consumption of Fairtrade labelled products remains relatively low compared to the potential. With an annual per capita consumption of approximately DKK 100 in 2011 and low market shares across all categories there is a huge potential to increase the benefits for producers in developing countries by further growing the consumption in Denmark. Meanwhile, the current recession and subsequent decreasing sales of some Fairtrade labelled products implies a pressure on FMD s independent earnings, which hampers the organization in its efforts to realize the enormous potential on the Danish market. With the aim to increase the per capita consumption by at least 6 % in 2013 compared to the final result for 2012, FMD will focus on the following activities in 2013: Assortment growth. FMD will provide guidance and assistance to companies (suppliers and retailers) regarding product development and supply chain management. This involves pro-active business development efforts, for instance with a view to convincing discounters to develop and sell more Fairtrade products. Efforts will also be made to convince retailers to perform so called choice editing with the aim of having retailers convert entire product ranges (e.g. all bananas) to Fairtrade. Special efforts will be made to increase the number of African Fairtrade products. Strengthened retail campaigns. FMD will collaborate with retailers and convenience outlets in order to optimize marketing of Fairtrade labelled products, e.g. by allocating more pages for Fairtrade campaigns in supermarket leaflets and develop in-store sales activities. The development and implementation of campaign activities will have a special focus on African Fairtrade products. Communication efforts. With the objective to increase awareness about development challenges and the Fairtrade label, FMD will continue communication efforts such as publishing the magazine FairNok, communicating via social media such as Facebook, increase the number of homepage visitors, ensure public mentioning, organize special events, and grow the number of Fairtrade Towns. Across all communication channels focus will be on awareness raising and on communicating the impact that Fairtrade has on farmers and plantation workers in developing countries. FMD has received DKK 11,5 million from Danida since the inception of the commitment based accounting in Before that FMD received contributions of approximately DKK 20 million through other support mechanisms. Not least due to previous support from Danida, FMD has managed to increase the Danish population s awareness about Fairtrade. In addition the number of Fairtrade labelled products has increased significantly while more businesses and retailers have incorporated and marketed the label. It is estimated that the turnover of Fairtrade labelled products amounted to DKK 560 million in 2011 equaling a growth of 20 % compared to 2010.

4 4 In addition to obtaining good results in Denmark, Fairtrade has also become a significant actor internationally. Approximately one million small scale farmers and plantation workers, spread across 63 countries, are certified by FLO-CERT, the independent ISO65 accredited certification body of Fairtrade International (i.e. Fairtrade Labelling Organisation, FLO). In 2010 consumers at a global level spent approximately EUR 4,36 billion on Fairtrade products which today globally amounts to more than 27,000 goods. FMD has since 2007 experienced a significant increase in the income deriving from licence fees paid by brands and retailers. In addition the percentage-wise contribution from Danida has decreased from 66% in 2005 to 21% in 2012 (budget), as illustrated in the table below. Year (rev budget) License Danida Other Total Danida contribution % 35% 30% 28% 24% 21% Danida s support to promotion of Fairtrade labelled products complies with the Strategy for Denmark s Development Cooperation The Right to a Better Life, which focuses on human rights, sustainable and inclusive growth, in special relation to agricultural development, food production and corporate social responsibility. In addition, the contribution of DKK 1,5 million is consistent with the priorities of the Danish Government s Action Plan for Corporate Social Responsibility Responsible Growth. The Action Plan lays out a new direction for the Danish CSR policy towards shared value creation for both business and society. In order to promote responsible growth in developing countries, the Government will support initiatives and organisations that promote knowledge and debate among Danish companies and consumers about ethical trade and supply chain management. As part of negotiations of Finance Act 2013, the Government and the Read-Green Alliance made a policy agreement to strengthen corporate social responsibility and fair trade aiming at promoting responsible growth in developing countries. To implement this agreement, the MoFA (Department of Green Growth) is currently preparing a new CSR and Fair Trade Facility to be financed under Danida Business Partnerships. In relation to future Danida grants FMD will be obliged to apply for support from the CSR & Fair Trade Facility once the application criteria and procedures have been completed.

5 5 Year (mio.dkk.) 2013 Total Assortment growth 0,4 0,4 - budget margin Retail campaigns 0,4 0,4 - budget margin Communication 0,7 0,7 - budget margin Administration/Review Total of allocated funds Unallocated funds Total 1,5 1,5 Other donors There is not considered to be any significant risks connected to this grant.

6 6 Fairtrade International is the organization that sets the Fairtrade standards and coordinates Fairtrade labelling at an international level. The overall objective of Fairtrade International 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 live. Fairtrade International sets International Fairtrade Standards, develops the global Fairtrade strategy, and promotes trade justice internationally. In addition, Fairtrade International helps producers to gain Fairtrade certification and develop market opportunities. This is done through locally based Liaison Officers who provide training, guidance on certification and facilitate relationships with buyers. Fairtrade Mark Denmark is part of a network of Fairtrade labelling initiatives around the world, all members of Fairtrade International. The following organizations are behind Fairtrade: Fairtrade International (FLO) FLO is a non-profit, multi stakeholder body that is responsible for the strategic direction of Fairtrade, sets Fairtrade standards and supports producers. FLO-CERT FLO-CERT is an independent ISO65 accredited certification company, owned by FLO. FLO- CERT inspects producers and traders to ensure they comply with Fairtrade standards. Fairtrade labelling initiatives These are national organizations that market Fairtrade in their country. FMD is one of these. There are currently 19 Fairtrade labelling initiatives covering 24 countries in Europe, North America, Japan, Australia and New Zealand. These organizations also license companies to use the Fairtrade Mark on products in their country. Fairtrade producer networks These are associations that Fairtrade certified producer groups may join. There are currently three producer networks, representing producers in Africa, Asia and Latin America and the Caribbean. Through these networks, Fairtrade producers can influence decisions that affect their future. The producers are part-owners of the Fairtrade system through their represenation at the General Assembly of Fairtrade International.

7 7 Fairtrade Mark implies improvements for farmers at local level: Minimum prices: The minimum price paid to Fairtrade producers is determined by the Fairtrade Standards. It applies to most Fairtrade certified products. This price aims to ensure that producers can cover their average costs of sustainable production. It acts as a safety net for farmers at times when world markets fall below a sustainable level. When the market price is higher than the Fairtrade minimum, the buyer must pay the higher price. Producers and traders can also negotiate higher prices on the basis of quality and other attributes. Fairtrade Primium: In addition to the Fairtrade price, there is an additional sum of money, called the Fairtrade Premium. This money goes into a communal fund for workers and farmers to use to improve their social, economic and environmental conditions. The use of this additional income is decided upon democratically by producers within the farmers organization, or by workers on a plantation. The Premium is invested in education and healthcare, farm improvements to increase yield and quality, or processing facilities to increase income. As many projects funded by the Premium are communal, the broader community, outside the producer organization often benefits from Fairtrade. Environment: Fairtrade rewards and encourages farming and production practices that are environmentally sustainable. Producers are also encouraged to strive toward organic certification. Producers must: Protect the environment in which they work and live. This includes areas of natural water, virgin forest and other important land areas and dealing with problems of erosion and waste management. Develop, implement and monitor an operations plan on their farming and techniques. This needs to reflect a balance between protecting the environment and good business results. Follow national and international standards for the handling of chemicals. There is a list of chemicals which they must not use. Not, intentionally, use products which include genetically modified organisms (GMO). Work out and monitor what affect their activities are having on the environment. Then they must make a plan of how they can lessen the impacts and keep checking that this plan is carried out.

8 Markedsafdel ing Produktafdeling Strategisk målsætning 1 Opnå en vækst i per capita forbrug af Fairtrademærkede varer på 6 % i forhold til resultatet for Resultatmål Indsatsområder Indikatorer/Målemetode 1. Det samlede antal Fairtrade varenumre udbudt af danske licenshavere eller udenlandske licenshavere med salg i Danmark skal stige med minimum 200 (iberegnet udgåede produkter). Baseline ultimo 2007: 250 Baseline ultimo 2008: 480 (iberegnet udgåede produkter) Baseline ultimo 2009: 981 (iberegnet udgåede produkter) Baseline ultimo 2010: 1291 (iberegnet udgåede produkter) Baseline ultimo 2011: 1234 (iberegnet udgåede produkter) 2. Det samlede antal Fairtrade varenumre udbudt af danske licenshavere og med ingredienser fra Afrika skal stige med minimum 10 (iberegnet udgåede produkter). Baseline ultimo 2009: 125 Baseline ultimo 2010: 158 Baseline ultimo 2011: 142 (iberegnet udgåede produkter) 3. Det samlede antal FLO-produktkategorier udbudt af danske licenshavere eller udenlandske licenshavere med salg i Danmark skal stige med minimum 1. Baseline ultimo 2007: 15 Baseline ultimo 2008: 16 Baseline ultimo 2009: 17 Baseline ultimo 2010: 17 Baseline ultimo 2011: Opnå væsentlige milepæle i projekt der på sigt knytter en dansk virksomhed til en afrikansk producent i et gensidigt berigende og forpligtende partnerskab. 1. Antal detailkampagner (målt på hele Fairtrade kampagnesider i tilbudsaviser) skal stige med minimum 4 helsider 2. Baseline ultimo 2007: 11 helsider Baseline ultimo 2008: 18 helsider Baseline ultimo 2009: 25 helsider Baseline ultimo 2010: 29 helsider Baseline ultimo 2011: 41 helsider Motivering Rådgivning Produktudvikling Leverandørkædestyring Motivering Rådgivning Produktudvikling Leverandørkædestyring Motivering Rådgivning Produktudvikling Leverandørkædestyring Facilitering Motivering Rådgivning Kampagneplaner med detailhandlen Input til tilbudsaviser Distribution af FairNok Salgsrapportering fra licenshavere. Opgørelse over produktintroduktioner. Salgsrapportering fra licenshavere. Opgørelse over produktintroduktioner. Salgsrapportering fra licenshavere. Opgørelse over produktintroduktioner. Statusrapport Registrering af tilbudsaviser 1 Ny opdeling af produktkategorier fra Fairtrade International siden tredje kvartal Der er nu i alt 17 mulige produktkategorier, mod 21 før den nye opdeling af kategorier. 2 En helside defineres som værende overvejende dedikeret til Fairtrade-mærkede produkter

9 Kommunikation og Marketing 9 2. Antal produkter på fast hylde i discount (Fakta, Lidl, Netto, Rema 1000 & Kiwi minipris) skal stige med minimum 5 produkter. Baseline ultimo 2007: 13 produkter Baseline ultimo 2008: 41 produkter Baseline ultimo 2009: 49 produkter Baseline ultimo 2010: 54 produkter Baseline ultimo 2011: 41 produkter 3. Antal produkter i Coop-regi skal stige med minimum 15 produkter 3. Baseline ultimo 2009: Baseline ultimo 2010: 165 (iberegnet udgåede produkter) Baseline ultimo 2011: 200 (iberegnet udgåede produkter) 4. Udvikling og implementering af minimum 2 kampagneaktiviteter i detail med fokus på Afrika. Baseline ultimo 2009: 0 Baseline ultimo 2010: 2 Baseline ultimo 2011: 0 7. Antal hjemmesider (større danske catering- og detailkæder samt licenshavere) indeholdende Fairtrade-elementer skal være på 75 %. Baseline ultimo 2009: NA Baseline ultimo 2010: NA 5 Baseline ultimo 2011: 33% 8. Udsendelse af minimum 2 informationspakker 6 (product placement) til medier. Baseline ultimo 2009: NA Baseline ultimo 2010: 0 Baseline ultimo 2011: 2 1. Antallet af danskere, der kender til Fairtrade-mærket skal øges med minimum 2 %-point. Kampagneplaner med detailhandlen Input til tilbudsaviser Samarbejde på tværs af afdelingerne i to kæder; indkøbs-, kategori- og markedsføringsafdelinge n. Udvikling af strategi Input til tilbudsaviser, hjemmeside mv. Producentbesøg Leveringsdygtig i tekster mv. Input til hjemmesider Leveringsdygtig i tekster mv. Korte og lange medier Færdige pakker indeholdende foto samt tekst om produktet Alle kommunikationskanaler Registrering af produkter Registrering af produkter Registrering af kampagner Registrering af information på hjemmesider Presseklip Repræsentativ survey blandt forbrugere Baseline ultimo 2007: Kendskab 69 % (survey marts 2008) Baseline ultimo 2008: Kendskab 76 % (survey december 2008) Baseline ultimo 2009: Kendskab 76 % Baseline ultimo 2010: Kendskab 78 % Baseline ultimo 2011: Kendskab 86 % 3 Fokus på samarbejde med to kæder i Coop regi: Irma og Kvickly 4 Rettelse: 11 produkter var overset i Coop-regi i forhold til den oprindelige baseline Udskudt til 2011 da Fairtrade Mærket først ønsker at starte optællingen når det rentegnede logo er i brug. Det rentegnede logo kom i brug 1. januar Informationspakke: pakke indeholdende tema med Fairtrade-mærkede produkter.

10 10 2. Antallet af danskere der forbinder Fairtrade-mærket med meget høj eller høj troværdighed skal fastholdes. Baseline ultimo 2007: ukendt Baseline ultimo 2008: 60 % (survey december 2008) Baseline ultimo 2009: 60 % Baseline ultimo 2010: 72 % Baseline ultimo 2011: 83 % 3. Der skal bringes minimum 2 artikler i FairNok om forholdene og Fairtrade-projekterne i producentlandene, herunder 1 fra Afrika. Baseline ultimo 2009: 2 (ingen fra Afrika) Baseline ultimo 2010: 3 (1 fra Afrika) Baseline ultimo 2011: 5 (2 fra Afrika) 4. Antallet af besøgende på Fairtrade Mærket Danmarks hjemmeside skal stige med minimum 5 %. Baseline ultimo 2009: Baseline ultimo 2010: Baseline ultimo 2011: (fjerde kvartal ikke medregnet) 5. Antallet af presseklip fra aviser, magasiner og elektroniske medier, hvor Fairtrade 7 nævnes, skal stige med minimum 3 %. Baseline ultimo 2009: Baseline ultimo 2010: Baseline ultimo 2011: Der skal gennemføres 0 presserejse (gennem sponsorater), så vidt muligt til et producentland i Afrika. Baseline ultimo 2009: 1 Baseline ultimo 2010: 0 Baseline ultimo 2011: 0 7. Antallet af modtagere af Fairtrade Mærket Danmarks generelle nyhedsbrev skal stige med minimum 0 % 8. Baseline ultimo 2009: Baseline ultimo 2010: Baseline ultimo 2011: Alle kommunikationskanaler FairNok Hjemmeside Nyhedsbrev Presse Presse Presse Nyhedsbrev Hjemmeside Repræsentativ survey blandt forbrugere Registrering af artikler Registrering af antal besøgende Monitorering af medier Rejserapporter Registrering af antal modtagere 7 Der monitoreres på Fairtrade, Fair Trade og Fairtrade Mærket i de landsdækkende trykte medier. 8 Nyhedsbrevet justeres til et businessnyhedsbrev. Alle almindelige forbrugere flyttes til Facebook i 2012

11 Tværgående Antal Fairtrade Byer og læreranstalter skal stige med minimum 2. Baseline ultimo 2009: 3 Baseline ultimo 2010: 9 Baseline ultimo 2011: Per capita forbruget af Fairtrade-mærkede produkter skal stige med minimum 6 %. Rådgivning, proceskoordinering, igangsættelse af styregrupper Alle Udnævnelse/ Diplomoverrækkelse Salgsrapporter fra licenshavere Baseline ultimo 2007: kr. 54,- / år Baseline ultimo 2008: kr. 69,- / år Baseline ultimo 2009: kr. 73,- / år Baseline ultimo 2010: kr. 83,- / år Baseline ultimo 2011: kr. 100,- / år 2. Antallet af meget tilfredse eller tilfredse licenshavere, detailkæder og catering-grossister skal stige med minimum 3 %-point. Baseline ultimo 2007: ukendt Baseline ultimo 2008: 84 % Baseline ultimo 2009: 84,9 % Baseline ultimo 2010: 90 % Baseline ultimo 2011: 88 % 3. Omkostningerne til FairNok skal være dækket af minimum kr i annonceindtægter svarende til en procentvis dækning på ca. 50 % (2 udgivelser). Baseline ultimo 2007: kr ,- og 51 % dækning (4 udgivelser) Baseline ultimo 2008: kr ,- og 36 % dækning (4 udgivelser) Baseline ultimo 2009: kr ,- og 41 % dækning (2 udgivelser) Baseline ultimo 2010: kr ,- og 45 % dækning (3 udgivelser) Baseline ultimo 2011: kr ,- og 41 % dækning (3 udgivelser) Enhver henvendelse behandles professionelt og fortroligt Fairtrade Mærket tilbyder korte svartider Fairtrade Mærket yder brugbar rådgivning Brug af ekstern annoncesælger Arbejde målrettet med annoncesalg til licenshavere Survey blandt kommercielle interessenter Indtægter fra annoncesalg Årsregnskab

12 Tværgående 12 Strategisk målsætning 2 Opnå en vækst i Fairtrade Mærket Danmarks egenindtjening på minimum 2 % i forhold til Resultatmål Indsatsområder Indikatorer/Målemetode 1. Licensindtægterne skal stige med minimum 2 % i forhold til resultatet for Baseline ultimo 2007: kr Baseline ultimo 2008: kr Baseline ultimo 2009: kr Baseline ultimo 2010: kr Baseline ultimo 2011: kr Pro Bono ydelser skal minimum stige med 10 % i forhold til resultatet for Baseline ultimo 2007: kr Baseline ultimo 2008: kr Baseline ultimo 2009: kr Baseline ultimo 2010: kr Baseline ultimo 2011:kr Øvrige indtægtsgivende aktiviteter skal stige med minimum 0 % i forhold til resultatet for Baseline ultimo 2007: kr Baseline ultimo 2008: kr Baseline ultimo 2009: kr Baseline ultimo 2010: kr Baseline ultimo 2011: kr Alle Arbejde målrettet med sponsorydelser: - kampagnemateriale - fotomateriale - flyrejser - arbejdsindsats fra Fairtrade Fighters Fonde Merchandise Events Salgsrapporter fra licenshavere Årsregnskab Opgørelse over pro bono ydelser omregnet til kroneværdi Finansiel støtte opnået via aktiviteter Årsregnskab

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