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 An Inspiration for Change
Fairtrade Labelling Organizations International Annual Report 2007
 
03
Message from Barbara Fiorito
05
Message from Rob Cameron
06
FLO Members
07
FLO and the FAIRTRADE Mark
09
Fairtrade Certification
11
Ethical Consumers Inspire Worldwide Growth
11
Estimated Sales Volumes by Product 2006/2007
12
Estimated Retail Value of Fairtrade CertifiedProducts
15
South to South Fairtrade
17
First Minimum Prices for Tea Introduced
18
New Fairtrade Minimum Prices for ArabicaCoffee
20
FLO Support Inspires Fairtrade Producers
21
FLO’s Presence in Producer Countries
22
Inspiring Highlights from 2007
25
FLO Summarized Accounts
26
FLO Balance Sheet
28
FLO Board and Members
30
FLO Staff and Donors
FLO’s 2007 annual report
comes at a pivotalmoment in the life of the organization. This year wecelebrated ten years of momentous growth andchange, which included these landmark events:
 1997
 
FLO was established, bringing together allFairtrade Labelling Initiatives under one umbrellaand introducing worldwide standards andcertification.
2002
 
The international FAIRTRADE CertificationMark* was launched. The Mark would eventuallyreplace the different national labels and facilitatecross-border trade.
2004
 
FLO split into two organisations to separatethe role of certification from the setting of standardsand support services. FLO-CERT carries outinspections and audits, while FLO developsstandards and supports the producers and memberorganizations.
2007
 
Inspired by the groundbreaking achievementsof our first decade, in 2007 FLO started a majorstrategic review involving all stakeholders to lookahead at Fairtrade’s future.
In this report
we outline how Fairtrade works,our achievements in 2007 and our direction for thefuture.
Inspiring achievements of 2007
—
 
Global sales increase by 47 percent—
 
First South to South Fairtrade products—
 
 Agreements are made to increase FairtradeMinimum Prices for coffee—
 
Introduction of Fairtrade Minimum Prices for tea—
 
Producer Networks became full members andowners of FLO
   *   T   h  e   F   A   I   R   T   R   A   D   E   C  e  r   t   i   fi  c  a   t   i  o  n   M  a  r   k   i  s  a   l  s  o  r  e   f  e  r  r  e   d   t  o  a  s   t   h  e   F   A   I   R   T   R   A   D   E   M  a  r   k .
 An Inspiration for Change
Fairtrade Labelling Organizations International (FLO) — Annual Report 2007
Table of Contents
02
 
2007 marked
the tenth anniversary of FLO. Theincredible growth of Fairtrade over the last ten yearshas been achieved through the dedication and hardwork of remarkable people. I would like to takethis opportunity to thank all the staff at the nationalLabelling Initiatives, FLO, partner organizations,the wider fair trade movement and licensees. Theirbelief in Fairtrade has secured a better future formillions of growers and their families. Their workhas made it possible for consumers to shop insolidarity with producers and in alignment withtheir principles. To all of those who are making thispossible I express my profound gratitude.
Looking back 
 
at the last decade I am very proudof what we have all achieved. By the end of 2007Fairtrade sales exceeded 2.3 billion euros – almostseventy times more than ten years ago. It means7.5 million people now benefit from the better dealthat Fairtrade brings.
In 2007 for the first time
producers joinedthe FLO Board. These producers can now moreactively engage in decisions that affect their future.
Representing
networks in Africa, Asia and Latin America, they will help to shape the direction ofFairtrade as equal partners.
During 2007
the newly expanded FLO Boardagreed changes to standards that will see improvedtrading conditions and better prices for coffee andtea growers. First, there will be an increase in theprice paid to coffee growers. From June 2008 theFairtrade Minimum Price for arabica coffees will riseto reflect more closely the true cost of production.This will allow farmers to make a decent living,particularly when the market price is below the costof growing the crop.
Second,
Fairtrade Minimum Prices for tea wereintegrated into Fairtrade standards to ensure thatthe price covers the cost of production. This is inaddition to the Fairtrade Premium that is used byworkers to improve their quality of life. Lookingforward we are now gearing up for the next tenyears. Led by our new CEO, Rob Cameron, ourcentral aim will be to expand and deepen theimpact of Fairtrade for disadvantaged producers.
   P   h  o   t  o  —    F  r   é   d   é  r   i  c   R  a  e  v  e  n  s
Malian woman testinga towel made with herFairtrade certified cotton
Message from Barbara Fiorito
Chair of the Board of Directors
03
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