Making HistoryTransFair USA, Annual Report 2009

In 2009, the Fair Trade movement ushered in a new era. Our eleventh year of certifying Fair Trade products saw social consciousness emerge as a top priority for consumers, and the numbers reflected it. Yet in many ways it was the first year forward after a decade of gathering valuable experience. Throughout the country and throughout the world, the feeling that 2009 marked a new beginning was palpable. A sea change seemed to be occurring in the way people saw their place on the planet, and Fair Trade was ready for the world to turn our way as people embraced the concepts of environmental, economic and social sustainability.

In 2009, we certified over 100 million pounds of coffee for the first time, more than was certified in our first seven years of business combined. We saw opportunities for farm workers broaden as we expanded from fewer than 30 Fair Trade product categories to more than 100. As this expansion occurred, we saw schools and clinics being built, farmers learning new methods of production, and women armed with pride and leadership skills. We watched children proudly take their first steps down newly paved roads to schools where they would encounter opportunities that their parents would never have even dreamed of.

As we move forward, we have renewed hope for economic recovery and continued growth in sales of Fair Trade products. This next phase of Fair Trade is just beginning, and the accomplishments of 2009, though monumental in their own right, are but a small step towards the ultimate goal of alleviating poverty through a revolutionary economic model.

Sincerely,

Paul Rice President & CEO

About UsTransFair USA is a nonprofit, mission-driven organization that tackles social and environmental

sustainability with an innovative, entrepreneurial approach. We are the leading independent,

third-party certifier of Fair Trade products in the United States, and the only U.S. member of

Fairtrade Labelling Organizations International (FLO).

We license companies to display the Fair Trade Certified™ label on products that meet our strict

international standards. These standards foster increased social and economic stability, lead-

ing to stronger communities and better stewardship of the planet. Our goal is to dramatically

improve the livelihoods of farmers, workers and their families around the world.

Our MissionTransFair USA enables sustainable development and community empowerment by cultivating

a more equitable global trade model that benefits farmers, workers, consumers, industry and

the earth. We achieve this mission by certifying and promoting Fair Trade products.

Letter from the President & CEO

Dear Friends,Contents04 2009 Accomplishments

06 Fair Trade Certified Apparel

08 Social Sustainability

12 Community Empowerment

22 Environmental Sustainability

24 Building the Movement

28 Industry Momentum

32 Fair Trade Imports & Products

38 Supporters

42 Financial Summary

2009 AccomplishmentsCoffee Reaches Historic MilestoneTransFair USA certified 109 million pounds of Fair Trade coffee in 2009, more than we certified in our first

seven years combined.

“ $1.2 Billion in U.S. Retail Sales. ”

Farmers Make ProgressIn 2009, U.S. companies sourced Fair Trade products from 325

farming cooperatives around the world. This powerful partnership

generated $48 million in above-market prices and additional income

for hardworking farming families. Funding for Fair Trade community

development projects increased 25 percent to nearly $14 million.

Industry Partners Grow Over 800 U.S. businesses joined our movement by year’s end,

10 percent more than in 2008. With the expansion of product

categories available for certification, the number of Fair Trade

Certified™ products available to U.S. consumers skyrocketed past

6,000.

Imports on the RiseCertified coffee and sugar import volumes jumped more than 25%,

despite the recession, while bananas – our second-highest volume

category – doubled. In newer, smaller categories, imports increased

an impressive 500 percent for wine, 300 percent for rice, 400 percent

for mangoes and 1,000 percent for avocadoes.

New Products LaunchTransFair USA significantly increased the number of certified choices

available in the United States, introducing all remaining products

certified through our international network, Fairtrade Labelling

Organizations (FLO). These new offerings include quinoa, Brazil nuts,

olive oil, spices and herbs, vegetables, and even sports balls.

Access to Credit ExpandsTransFair USA and Starbucks joined forces to create the Small

Farmer Sustainability Initiative, which provides farm loans, technical

assistance and market linkage to small-scale coffee farmers.

Starbucks pledged to increase its farmer loan programs to $20

million by 2015.

Apparel Standards Go Live After a decade working to improve livelihoods on farms, TransFair

USA moved to address the plight of factory workers in the apparel

sector. To ensure impact and integrity, we incorporated multi-

stakeholder input and public comment in our pilot factory standard,

which extends the strict social, economic and environmental

protections found on Fair Trade farms to benefit garment workers.

The first Fair Trade Certified apparel and home goods hit U.S. retail

shelves in fall 2010.

Skoll Renews Support In 2009, TransFair USA received its second grant from the Skoll

Foundation for $1 million. Paul Rice was first honored by the

foundation in 2005 as one of the inaugural recipients of the Skoll

Award for Social Entrepreneurship. The award invests in, connects

and celebrates leading social entrepreneurs with the potential for

large-scale positive impact.

Retailers InnovateWhole Foods Market nearly doubled the number of Fair Trade

Certified products on its shelves to end the year with almost 1,500.

Sam’s Club, Costco, Target, Trader Joe’s and scores of other retailers

expanded their certified product offerings as well, despite the

recession.

Our Efforts are RecognizedThanks in part to these many accomplishments, TransFair USA was

named one of Entrepreneur Magazine’s Top 100 Brilliant Companies

for the second year in a row.

5TRANSFAIR USA ANNUAL REPORT 2009

New Standard for ApparelExtending Fairness From Farm to FactoryIn 2009, we laid the foundation for Fair Trade Certified™ apparel by developing rigorous pilot standards, a worker training program, and tools to monitor sewing facilities against the standards.

Fair Trade Starts with Higher StandardsIn 2009, we developed a new, unprecedented standard for Fair Trade

Certified™ apparel, benefitting not only underprivileged cotton

farmers but also garment workers at the other end of the supply

chain. Our rigorous pilot standards build on core International

Labor Organization (ILO) standards. But beyond the basics, the

distinctive Fair Trade principles of better livelihoods and democratic

organization of farmers and workers are central to this ground-

breaking initiative.

Core factory labor standards address:

What makes this standard unique, relative to other codes of conduct

in the apparel sector, is that both cotton farmers and factory

workers will earn a significant “Fair Trade premium” for each item

sold with the Fair Trade Certified label. This premium, set at 5-10

percent of the factory cost of each garment, effectively doubles

the wages of factory workers over time. Workers can decide to

distribute Fair Trade premiums as cash bonuses or invest them in

community development projects. The pilot Fair Trade standards go

beyond most existing codes of conduct by requiring manufacturing

companies to raise wages over time to a true living wage.

During the public comment period on the pilot standard, we

received input from 55 organizations in 15 countries. In response

to input, we strengthened the standard as it applies to living

wage requirements, environmental sustainability and women’s

rights. TransFair USA will review the apparel standard again at the

end of the two-year pilot, based on multi-stakeholder evaluation

of field results.

Worker TrainingMost factory training programs today are geared towards

management and do not give workers the tools needed to advocate

for their basic legal rights. Our approach to Fair Trade clothing starts

with workers. Worker training is an essential requirement for facilities

seeking to sell certified apparel.

Worker training programs will feature:

• Local educators who use local-language curriculum

• Peer training that builds capacity and develops leadership

• Project management skills needed to implement

development projects

Rigorous Factory MonitoringTransFair USA partnered with Verité, a highly-respected monitoring

organization that supports fair labor practices worldwide, to develop

tools that will measure factory compliance with Fair Trade standards.

After conducting a test audit at a facility in Rwanda, Verité helped us

develop a more robust and rigorous monitoring protocol.

Our monitoring approach highlights worker participation:

• Worker representatives participate in opening and closing

meetings of the audit

• Auditors directly interview workers at work and at home

• Auditors solicit input from local NGOs and unions

Lending a Hand to Cotton FarmersSmall, family-run cotton farms in India and West Africa often struggle

just to survive. Fair Trade standards help certified farmers get a

better price for their harvest and support sustainable agriculture.

Until now, Fair Trade Certified cotton products have only been

available in Europe. With the launch of our pilot apparel standard

in 2010, certified cotton farmers will finally gain access to the U.S.

market and the promise of a better livelihood for their families.

• Wages and Benefits

• Health & Safety

• Child Labor

• Forced Labor

• Freedom of Association

• Non-Discrimination

• Environmental Management

• Women’s Rights

TRANSFAIR USA ANNUAL REPORT 2009 7

Social SustainabilityImproving Income & Quality of LifeEvery day, millions of farmers in developing countries diligently cultivate the land to grow products that Americans both love and take

for granted. For a variety of reasons, ranging from lax government regulations to predatory local middlemen, farmers often cannot sell

their crops for what they’re worth. The result is a cycle of poverty that harms not just individual farmers and their families, but entire

communities and ecosystems.

The Fair Trade system has helped almost 1.5 million families in 70 developing countries develop viable export enterprises, receive better

prices for their products, and steadily improve their quality of life.

Our Fair Trade PrinciplesFair PricesOur unique commitment to fair prices and community development

distinguishes the Fair Trade Certified™ label from all others. Farmers

are ensured a price that covers the cost of sustainable production

with premiums for community development projects and certified

organic crops.

Better Working ConditionsWorkers on certified farms can count on more than just better

wages. They are guaranteed freedom of association, safe working

conditions and protection from dangerous agrochemicals. Child

labor, forced labor and discrimination are strictly prohibited.

Market AccessMost Fair Trade farmers develop the business capacity to export their

own harvests, which allows them to bypass middlemen and plug

directly into the global marketplace to get significantly higher prices.

Access to CreditU.S. importers are encouraged to offer commercial credit to farmers,

either directly or in collaboration with financial intermediaries.

Access to timely credit allows farmers to increase export capacity

and improve product quality.

Empowerment and TransparencyEmpowerment is an essential goal of Fair Trade. Small-scale farmers

typically form cooperatives that allow them to process and export

their harvests competitively. Workers on larger farms organize

Worker Councils that plan and manage their own community

development projects. Both types of organizations are audited

annually for transparency, democratic process and sound financial

management.

Community DevelopmentU.S. companies pay premiums that allow farmers and workers to

invest in community development projects. These projects improve

families’ access to clean drinking water, health, education, housing

and other basic social services.

Environmental SustainabilityFair Trade has one of industry’s highest standards for sustainable

agriculture and environmental conservation. These standards

strictly prohibit the use of most toxic agrochemicals and GMOs,

promote active conservation of soil and water resources, and protect

surrounding forests. In 2009, nearly half of all Fair Trade products

were certified organic.

Rigorous Certification StandardsBehind the Fair Trade Certified™ label is an audit process widely

considered to be the most rigorous and transparent social auditing

system in existence today. We track transactions along the supply

chain between more than 800 U.S. companies and the farmer

groups from whom they source. In 2009, our certification team

audited more than 40,000 transactions between producers,

importers and manufacturers. Our team makes certain that the

Fair Trade price is paid and holds companies accountable when

standards are not met.

TransFair USA is one of 24 member organizations that collaborate

under the Fairtrade Labelling Organizations International (FLO)

umbrella. Based in Germany, FLO is a nonprofit, multi-stakeholder

association of Fair Trade certifiers and farmer groups from Africa,

Asia and Latin America. TransFair USA is the only FLO-affiliated

certifying body in the United States market.

Development of Fair Trade StandardsFLO develops global Fair Trade standards based on academic,

industry and field research. All standards are vetted through a

multi-stakeholder consultation process that reflects best practices

in the fields of social and environmental certification. TransFair USA

sits on FLO’s Board of Directors and several operating committees,

including the Standards Committee, to help guide the expansion of

the global Fair Trade market.

Certification on the FarmThe international certification agency FLO-CERT, a wholly owned

subsidiary of FLO, has developed a global network of highly-trained

field auditors. These social audit professionals monitor cooperatives

and companies to verify their strict compliance with Fair Trade

social and environmental standards, as well as their investment of

community development premiums. Offering certification services

in 70 countries around the globe, FLO-CERT gained accreditation in

2008 by the International Standards Organization (ISO), based on

the strength of its audit and certification processes. It is the only

social certification that is ISO 65-accredited.

PRODUCERS MANUFACTURERSIMPORTERS

Audits & Report Validation

Audits & Report Validation

Reports & Data Sharing

Fairtrade Labelling Organizations International (FLO)

TransFair USA

Fair Trade Certification Process

The Label: The Fair Trade Certified™ label represents a unique, powerful symbol for consumers that the farmers and workers behind the product got a better deal. It is more than a certification stamp, more than a seal of approval that reassures consumers that their purchases are responsible. It is the end result of a rigorous global inspection and monitoring system. And it is a call to action.

LICENSEES

Quarterly Reports &

Supporting Documents

Supply Chain Audit and CertificationTransFair USA has built a highly-qualified certification team that

audits transactions between U.S. importers, manufacturers and

distributors and the farming organizations from which they source.

We verify the chain of custody to ensure that the companies

licensed to display the Fair Trade Certified label meet our strict

standards. A commitment to transparency and traceability lies at

the heart of our certification model and is one of the advantages of

the Fair Trade approach.

Commitment to Continuous ImprovementWe constantly evaluate and improve our certification process to

ensure the integrity of our label. TransFair USA audits companies

with a two-pronged approach: a desk audit review of transactions

combined with on-site audits. Our on-site auditors visit partner

companies and carefully review their files, inventories, internal

control systems and traceability protocols. This deep-dive audit into

how companies manage their Fair Trade product flow has proven

highly valuable to encourage transparent accounting and full

compliance with our standards.

To learn more about FLO and FLO-Cert, visit www.fairtrade.net.

“ Transparency and traceability is key to the credibility of any certification label. ”

TRANSFAIR USA ANNUAL REPORT 200910

Community InvestmentFair Trade standards require U.S. buyers to deliver an established

premium to producer organizations to fund community

development and environmental conservation projects.

Community members come together to assess and prioritize local

needs and then manage premium investments in community

development projects, such as:

• Microloans for housing projects and small businesses

• Schools and scholarship programs

• Health care coverage for workers and their families

• Deep wells and clean water supplies

• Childcare facilities

• Training programs supporting women and youth

Community EmpowermentA Safety Net Against Market FluctuationsNo other label in the world offers farmers the combination of sustainability, price and community development premiums that Fair

Trade certification provides. In fact, other certification systems deliberately avoid the sticky issues of low wages and commodity prices in

developing countries. The Fair Trade minimum price gives farmers a safety net when global commodity markets fluctuate wildly. When

market prices fall, our farmers still receive a harvest price that allows them to cover the cost of production, protect the environment through

more sustainable cultivation and care for their families.

Benefiting Producers and Their FamiliesThere were 865 certified producer organizations in 70 countries by

the end of 2009, representing more than 1.5 million farmers and

workers. Fairtrade Labelling Organizations estimates that more

than five million people worldwide directly benefit from Fair Trade,

including certified farmers, their families and dependents. One

has only to visit a certified farm to realize that the uplifting social

and environmental benefits of Fair Trade have a ripple effect that

touches millions of lives in the surrounding communities.

YEAR 2008 2009

Coffee 152 183

Tea 41 42

Produce 13 32

Cocoa 17 19

Flowers 21 16

Sugar 4 7

Wine 4 7

Vanilla 5 5

Rice 5 4

Honey 4 3

Total 266 318

Number of Producer Organizations Selling to the U.S. Market.

13TRANSFAIR USA ANNUAL REPORT 2009

Fair Trade On the Ground:Global Producer ServicesThe dramatic growth of Fair Trade in the United States has created

new market opportunities for certified producers. However, doing

business with global companies can be a challenge for many

producer organizations in the developing world, which often lack

access to the latest production technology, market information,

working capital and management expertise.

TransFair USA launched its Global Producer Services (GPS) program

five years ago to address this challenge and help producer

organizations maximize the benefits of Fair Trade certification. Our

close relationships with importers, retailers and producers give us

a unique perspective on global supply chains and allow us to easily

identify mutually-beneficial trade and investment opportunities.

We work directly with producers to help them capture these

opportunities, develop strong relationships with U.S. business

partners, and grow their Fair Trade sales.

Our projects focus on a few common challenges faced by most farmers as they strive to build profitable enterprises and achieve sustainable development:

• Improving product quality

• Building business and financial management capacity

• Helping cooperatives gain access to working capital

• Connecting farmers to U.S. buyers and forging strong

commercial relationships

Our implementation model is lean and cost-effective. We have

cultivated a network of NGOs, development agencies and industry

experts to deliver high-quality, results-oriented training and

investment services that help farmers overcome specific barriers to

business growth. Ultimately, we measure project effectiveness and

impact in terms of the return on investment for beneficiary farmers,

assessing both their short-term and long-term income generation

potential.

Success Stories of 2009, By the Numbers The hands-on approach of GPS helps create concrete results around

the world that lead to lasting change. There are many examples of

this impact worldwide, but we would like to highlight three origin

countries that had especially successful years and have invested

heavily in the future.

Small farms and cooperatives in every corner of war-torn Rwanda

have embraced Fair Trade in the quest to rebuild their economy and

country, and in the process have instituted some completely unique

ideas. The women of Rwandan coffee have hit the ground running,

and in 2009 alone five women’s associations were formed, three of

which participated in the Women’s Entrepreneurship Program. This

led to a special “women’s coffee” being marketed by 130 members

of the women’s associations. In just its third year in Rwanda, GPS

saw 2,520 farmers benefit from Cooperative Governance and Fair

Trade training, and 1,352 farmers receive a $50,000 grant from the

International Labour Organization. In a nation where educational

opportunities are scarce, 90 percent of children in Fair Trade

cooperatives attend school. Education is the best investment

that can be made, and sowing the seeds of training programs for

farmers and consistent schooling for their children will yield a future

as strong and bright as the midday Rwandan sun.

The GPS program in the West African nation of Cote D’Ivoire seeks

to build a sustainable cocoa industry that focuses on quality. In

2009, over 1,400 Fair Trade farmers were trained in agronomy best

practices, and another 246 cooperative members were trained in

cocoa quality assessment. A health clinic was constructed this past

year with Fair Trade premiums, bringing medical care directly into

the community. Members of two producer groups were given six

motorcycles, a welcome alternative form of transportation for the

incredibly heavy burlap sacks of cocoa beans.

Fair Trade coffee farmers in Brazil are on a mission to break down

the conception that Fair Trade coffee is somehow of lesser quality.

They are doing so through massive infrastructure improvements

and trainings, made possible by Fair Trade premiums. Four new

producer groups became Fair Trade Certified™ in 2009, joining

12 other groups in this investment project. It resulted in the

construction of a cupping laboratory, 57 drying patios being paved

and the installation of a mechanical coffee sorter and 14 hulling

machines. This infrastructure investment manifested itself in

education as well as construction. There were 313 producers directly

trained in coffee quality, 60 days of cooperative governance training

and over 300 hours of administrative and accounting training. When

all was said and done, over 26,000 pounds of high quality coffee

was sold in the second annual Fair Trade Cupping Competition

Auction, and $100,000 was granted to producer organizations for

further infrastructure improvements. Just like their compatriots in

the Beautiful Game, Brazilian Fair Trade coffee farmers cannot be

stopped when they set their eyes on the goal.

TRANSFAIR USA ANNUAL REPORT 200914

1

23

Developing Economic Sustainability

Brazil: Responsible Sourcing Partnership

Since 2007, TransFair USA has partnered with USAID, Walmart

Foundation, Sam’s Club, Walmart Stores and Brazilian partner

SEBRAE to boost the income and sustainability of small-scale

Brazilian coffee farmers. Through training and infrastructure

development, this three-year project has enabled over 5,000 Fair

Trade coffee farmers to achieve three strategic goals: improve coffee

quality, increase co-op management capacity, and strengthen

direct market linkage with U.S. buyers. To date, this project has

achieved a 5:1 return on investment for participating farmers.

Rwanda: Rebuilding with Coffee

Rwanda’s efforts to rebuild its coffee industry have garnered

global recognition. TransFair USA works closely with government

ministries, USAID, the Clinton-Hunter Development Initiative, and

U.S.-based coffee companies to help small farmers take advantage

of Rwanda’s re-entry into the global coffee market. Since 2006,

TransFair USA has invested in infrastructure and training to boost

coffee quality, enabling farmers to negotiate better prices for

their harvests. We have trained more than 9,000 farmers in our

“Cooperative 101” governance and management program. These

programs are enabling the cooperatives to become more efficient,

profitable, democratic and transparent.

TransFair USA also assists coffee cooperatives in securing working

capital and building stronger relationships with U.S. buyers.

With our support, the COOPAC Cooperative received pre-harvest

financing from the international Progreso Fund to purchase coffee

cherries from members that ensured fulfillment of their contracts.

This loan is the first for Progreso in Africa, and the organization will

expand its services to other Rwandan cooperatives if successful.

Thanks to these and other efforts, in 2009 every available Fair Trade

Certified coffee bean in Rwanda was sold on the international

market under Fair Trade terms.

“ Seeing firsthand TransFair USA’s work with coffee cooperatives in Rwanda confirms my enthusiasm for our family’s charitable investment in this wonderful social enterprise. ”− Ron Cordes, Cordes Foundation

Producer OriginPartnership Projects

13

Cote D’Ivoire: Supporting Cocoa Farmers

Our program in the West African nation of Cote D’Ivoire supports

small cocoa farmers around the challenges of product quality, farm

productivity and market access. In 2009, we trained over 1,400

Fair Trade farmers in agronomic best practices and cocoa quality

improvement. We also linked cocoa cooperatives to U.S. chocolate

manufacturers to help boost sales. As a result, participating farmers

built a new health clinic this past year with Fair Trade premiums,

bringing medical care directly into their community for the first

time. Two other cooperatives used their premium funds to purchase

motorcycles for hauling heavy burlap sacks of cocoa beans from

their farms to community collection stations – a small but poignant

example of progress in the countryside.

2

Land to the TillerUnião dos Pequenos Agricultores de Santana da Vargem, Brazil

União dos Pequenos Agricultores de Santana da Vargem (UNIPASV)

is a coffee cooperative in the state of Minas Gerais in southeastern

Brazil. In 2000, the 74 small-scale coffee growers in the community

united to form a cooperative in order to pursue a common dream of

a better life. At that time, 80 percent of the co-op’s members were

either sharecroppers or renting farmland at continually higher prices.

Like farmers everywhere, these families all dreamed of owning

and cultivating their own land. But that dream remained painfully

elusive, due to the high cost of land and coffee production relative to

the low prices paid by local buyers for their coffee harvest. Life was

precarious, full of hardship, with little hope for change.

In 2003 the community found a solution in Fair Trade certification.

They made their first Fair Trade sale to the U.S. market a year later,

earning more than double the price they had received the year

before. With higher income, land ownership became a reachable

goal for these humble farmers the first time in their lives.

Francisco Alves has been co-op president for nearly eight years. His

personal story as a sharecropper-turned-landowner mirrors that of

many of his neighbors. Francisco and his wife Teresa could never

afford to buy their own land. No matter how hard they worked and

tried to save, they just barely made ends meet. But once they began

selling to the Fair Trade market, things changed, and they were

able to set aside part of their earnings after each harvest. In 2008,

after years of patiently saving and hoping, Francisco and Teresa had

enough money to buy their own four-acre coffee farm. Today,

90 percent of the co-op’s members are landowners. “Life feels full

of possibilities,” says Francisco.

The community has also used Fair Trade premiums to support

local schools and build a new cooperative headquarters. Now that

most co-op members have land, Francisco and other community

leaders have turned their attention to coffee quality, enrolling

their farmers in TransFair USA’s quality development program.

Their ambitious aim is to boost quality scores, coffee sales and net

income in the next few years.

“ As sharecroppers, my wife and I had to turn over half our harvest each year to the landowner, who is one of the richest men in our region. We never dared to complain and lived in constant fear of losing our land. Our poverty was unending. For us, the only escape from this nightmare was to buy our own land. We took the first step when we organized the cooperative. But it wasn’t until we joined the Fair Trade movement that our dreams began to come true. ” − Francisco Alves, UNIPASV farmer

“ Today many Brazilian coffee farmers are disillusioned. Many have abandoned their fields, due to high production costs and low harvest prices. But through Fair Trade, our community gets a decent price for our coffee. With last year’s premium, we repaired the roof on the schoolhouse and added an extra classroom so our kids can get a better education. ”− José Milton Bento, UNIPASV farmer

TRANSFAIR USA ANNUAL REPORT 200918

The Women of Hinga KawaAbakunda Kawa Cooperative, Rwanda

The women of Abakunda Kawa Coffee Cooperative often gather

outside the Rushashi coffee washing station in the late afternoon to

relax after a day’s work and gaze out over the countryside. A nation

about the size of Vermont, Rwanda stretches across thousands of

hills and valleys to create a breathtaking landscape. Sixteen years

after the devastation of war, Rwanda is a place of renewal and hope.

Nowhere is this more visible than in its coffee communities.

Coffee is one of Rwanda’s most important export crops and its

primary source of foreign exchange. Ideal growing conditions,

combined with the astonishing work ethic of the farmers, make it

possible to cultivate coffees renowned for their unique flavors. The

women of Rwanda are the heart of its coffee culture.

Rwanda has an unusually high female population as a result of the

war, and one-third of all households are headed by women. Over

62 percent of those families live in poverty. Many women struggle

to reconstruct their families and villages while learning to be

successful farmers and businesswomen.

In 2006, a group of 26 pioneering farmers from the mountains

of Gakenke province – all women – came together to discuss

the plight of their community and start to organize. They called

themselves the Hinga Kawa Women’s Association. Faced with

very low coffee prices in the local market, these women joined

a local Fair Trade cooperative and pitched the idea of marketing

their harvest separately to Fair Trade buyers interested in women’s

empowerment.

The idea was an immediate success. In their first year, they sold

four tons of coffee at a premium price, using this niche-marketing

approach. With the extra money they earned, the women were able

to keep their kids in school and pay for health care.

Over the next few years, things got better for them, and word

of their success spread. By 2009, Hinga Kawa had grown to 155

members, and their export volume topped 18 tons. To find a

market for their expanded production, the women decided to

send Esperance Nyarigumafura, their President, to the 2009

Specialty Coffee Association of America (SCAA) Conference in

Atlanta, Georgia. It was a dream come true for Esperance and

her colleagues, since none of them had ever travelled outside of

Rwanda. By the second day of the conference, Esperance had not

only found a buyer for their coffee, selling the entire harvest to an

American coffee importer on Fair Trade terms, but she had also built

relationships with dynamic women in the U.S. coffee industry that

would help them realize other dreams in the future.

In late 2009, the women of Hinga Kawa participated in their

first-ever entrepreneurship trainings focused on financial literacy,

accounting and general administration. The women leveraged

the initial trainings offered by TransFair USA to strengthen

organizational and management practices at both the household

and cooperative levels. Always building on positive experience, the

women subsequently developed a project proposal for continued

training in leadership, social dialogue, health and sanitation, and

income diversification – a project which they hope to fund in 2010.

Hinga Kawa’s success has inspired women in other regions of

Rwanda to launch women’s associations and take on leadership

roles in their cooperatives. It appears that a movement has been

born. Women in Rwanda have become the center of an effort that is

driving real change and a positive future for the country as a whole.

TRANSFAIR USA ANNUAL REPORT 200920

Stringent Environmental StandardsFair Trade principles assert that social and environmental

sustainability are inextricably linked. Nowhere is this logic more

evident than in the developing world’s agricultural sector, where

decades of deforestation and “modern” agriculture have led to

depleted soil, polluted water sources, ravaged ecosystems and

declining household income for farmers. By embracing sustainable

agriculture, Fair Trade farmers are enhancing their own well-being

and that of generations to come. To support this journey, our

rigorous environmental standards address the critical elements of

ecosystem sustainability:

• Restricted use of agrochemicals. Fair Trade standards impose

the most stringent restrictions of any non-organic product

certification on the use of harmful herbicides and pesticides.

To achieve Fair Trade certification, farmers must agree not to

use the dangerous agrochemicals found on the World Health

Organization’s Class Ia & Ib lists, the Pesticide Action Network’s

“Dirty Dozen” list and the United Nations Environment Program’s

Prior Informed Consent Procedure list.

• Smarter farming practices. Fair Trade farmers must implement

integrated crop management systems based on leading

agroecological principles. This model dramatically reduces the

need for pesticides and other agrochemicals by employing

natural farm management techniques such as composting,

crop rotation and biological pest management. Farmers must

demonstrate continuous improvement of soil and water

conservation practices, as well as implement recycling and waste

disposal systems. The result: lower production costs, higher

profitability and greater environmental sustainability.

• Saving the forest. Farmers must develop forest and watershed

management plans for any forest lands on or around their farms.

This helps reduce soil erosion and protects water sources while

supporting biodiversity.

• No Genetically Modified Organism (GMO) crops. Fair Trade

environmental standards prohibit the use of GMOs on all

certified farms.

Healthy Land and Healthy PeopleRestricting agrochemical use has a positive effect on public health

and safety. Reduced usage of toxic chemicals on Fair Trade farms is

helping eliminate the contamination of groundwater sources. More-

over, by reducing their exposure to harmful agrochemicals, farmers

report dramatic reductions in pesticide intoxication and related

health issues that once were prevalent in most farming regions.

Environmental SustainabilityProtecting Our Planet’s FutureEnvironmental conservation is a key element of international Fair Trade standards. More than half of all Fair Trade farms are certified organic,

one of the most environmentally friendly forms of agricultural production. Ultimately, Fair Trade empowers farming families to become

successful stewards of their land and defenders of our entire planet.

Organic ConversionFair Trade’s strong environmental requirements are complemented

by financial incentives that motivate farmers to explore organic

conversion. For major Fair Trade commodities such as coffee, cocoa

and bananas, farmers are ensured a 15-20 percent price premium

for crops that are also certified organic. This incentive has lead

thousands of farmers to seek organic certification in order to satisfy

growing market demand for “double-certified” products. In 2009,

47 percent of all Fair Trade Certified products imported into the U.S.

market were also certified organic.

Technical assistanceTransFair USA collaborates with companies, NGOs and farmers

on technical assistance projects that improve land stewardship.

Key program activities include organic conversion, reforestation,

reduced water usage in processing, solar drying infrastructure

and farmer training in sustainable agriculture. We believe that

technical assistance programs are essential to achieving continuous

improvement in environmental conservation.

Fighting Climate ChangeA growing body of literature now indicates that climate change,

both in local ecosystems and at the planetary level, is linked to

destructive agricultural practices. Fair Trade standards address this

challenge head-on. By adopting progressive agricultural practices,

reducing the use of petroleum-based agrochemicals, encouraging

energy-saving processing methods such as solar drying, managing

watersheds, and supporting forest management and reforestation,

our farmers are actively sequestering carbon from the atmosphere

while dramatically reducing their own carbon emissions. By

committing to smarter agriculture and environmental stewardship,

over 1.2 million Fair Trade farmers make a powerful everyday

contribution to our shared future.

“ Protecting the environment goes hand-in-hand with improving lives and developing communities. ”

23TRANSFAIR USA ANNUAL REPORT 2009

“ Given the continuing rise of the ethical consumer right through the economic crisis, Fair Trade Certified is one of the brands most likely to succeed. ”– Doug Miller, Chairman, GlobeScan

Ethical Consumerism on the RiseFrom our humble roots in grocery cooperatives and independent

coffee houses, Fair Trade Certified™ has grown to encompass

a wide variety of products available in more than 50,000 retail

outlets. Across industries, pioneering brands continue to innovate

the category, expanding into new food products and ingredients

sourced from 70 developing countries.

Every week, an estimated 50 million American consumers choose

retail outlets and products based on their desire to be part of a

solution to global poverty and sustainability. From a morning coffee

and bowl of fruit to wine with dinner and a piece of chocolate

before bed, Fair Trade helps us all make a profound difference in

the lives of hardworking farming families simply by choosing to

purchase the right products.

In 2009, TransFair USA and our European colleagues commissioned

a major global consumer study to better understand awareness

and attitudes toward Fair Trade. The international research group

GlobeScan conducted the study by surveying consumers in 15

countries with well-established Fair Trade markets.

The study found that:

• Nearly nine in 10 American consumers believe that companies

that source products from poor countries should pay workers

fairly and ensure safe working conditions.

• Eighty-one percent of American consumers believe that

companies sourcing from developing countries should

contribute to community development.

• The Fair Trade Certified label positively affects brand perception

for 81 percent of American consumers.

• Fifty-seven percent of Americans say they would spend at least

five percent more for Fair Trade Certified products.

• More than half of American consumers believe that the best

way to verify a product’s social or environmental claims is by

certification via an independent, third party organization.

Building the MovementRaising AwarenessMillions of consumers actively support social responsibility and environmental sustainability through their purchasing decisions.

The Fair Trade Certified™ label is a call to action and a powerful symbol of this groundswell of conscious consumerism.

Celebrating Fair Trade Month31 Days, 31 WaysTransFair USA’s Fair Trade Month campaign brings together

brands, retailers, NGOs, consumers and the media to promote

Fair Trade. Grassroots events, producer tours, media relations,

online marketing and distributer promotions all help to galvanize

supporters and build consumer awareness. The end result is more

products sold and more farmers served.

October 2009 marked the sixth annual Fair Trade Month in the

United States, commemorated with a major online community-

building campaign: 31 Days, 31 Ways. Each day of the month was

marked by a different Fair Trade fact and a simple action that

enthusiasts could take to support the movement. These facts and

actions were spread virally through our growing social networks on

Facebook and Twitter with the help of our industry partners, NGOs

and enthusiastic consumers.

By the end of the month we had reached our goals of 31,000 fans of

Fair Trade Certified on Facebook and 3,100 followers of @FairTradeUSA

on Twitter. These growing online communities play a critical role in

our efforts to raise awareness and demand for Fair Trade products.

“ Fair Trade Month is a great example of companies, activists and consumers collaborating for the common good. The end result: more consumers are awakened and empowered to vote with their shopping dollars for a better world. ”– Paul Rice, President and CEO of TransFair USA

25TRANSFAIR USA ANNUAL REPORT 2009

Fair Trade Month 2009 Highlights:

Igniting Citizen Consumers: Fair Trade TownsThe Fair Trade Towns campaign began in this country in 2007 as

an authentic grassroots initiative to mobilize local communities.

Taking the credo of “think globally, act locally” to heart, community

activists work to raise consumer awareness, expand the availability

of Fair Trade products in local stores, and promote the movement in

local media. Ultimately, by boosting sales of Fair Trade products in

their communities, the Towns activists have a direct, positive impact

on farming families and communities around the world.

The movement began in the United Kingdom in 2000 when

Garstang, England, was recognized as the first Fair Trade Town in

the world. Since then, the number of Fair Trade Towns has grown

to 800 across the United Kingdom and Europe. TransFair USA has

played a leadership role in the Fair Trade Towns USA campaign since

its inception and this year launched a significant fundraising effort

to expand the program.

During 2009, the movement grew from nine to 13 declared Fair

Trade Towns while activists launched more than 40 new campaigns

around the country. To learn more about Fair Trade Towns, please

visit www.FairTradeTownsUSA.org

Fair Trade Towns

Media, PA; Brattleboro, VT; Milwaukee, WI; Amherst, MA; Taos, NM;

Northampton, MA; San Francisco, CA; Montclair, NJ; Ballston Spa, NY;

Chico, CA; Bluffton, OH; Burlington, VT; Highland Park, NJ

Achieving Fair Trade Town StatusMunicipalities must meet five goals to become official Fair Trade

Towns. The five goals are intended to build a platform for long-term

Fair Trade advocacy.

1. A local Fair Trade Steering Committee is formed and

meets regularly.

2. Fair Trade products are readily available in local stores, cafés

and other retail locations.

3. Local community organizations and institutions use and serve

Fair Trade products.

4. The campaign attracts visible support and media attention.

5. The City Council passes a resolution to support the campaign

and commits to procure Fair Trade products.

“ Fair Trade is like an international farmers market, and now our citizens have the ability to affect social change by becoming conscientious consumers. ” – Tom Barrett, Mayor, City of Milwaukee, WI

“ Fair Trade Towns USA empowers socially responsible community groups and businesses around the country that are committed to raising consumer awareness around a simple truth: every dollar we spend is a powerful decision, with ramifications that echo across continents. ” – William Linstead Goldsmith, National Coordinator of Fair Trade Towns USA

• TransFair USA’s President and CEO Paul

Rice joined Starbucks Senior Vice

President of Coffee & Tea Dub Hay at the

Starbucks headquarters in Seattle for

a live Q&A session that was broadcast

on USTREAM. More than 5,000 people

viewed the broadcast, which is currently

available online.

• TransFair USA teamed up with the Fair Trade Boston campaign and the Boston Faith & Justice Network to give 25,000

Boston T riders coupons for free hot or

iced Fair Trade Certified™ espresso bever-

ages from Dunkin’ Donuts. Dunkin’ Do-

nuts also hosted a campaign on Facebook

and Twitter to promote Fair Trade to the

company’s massive online audience.

• Green Mountain Coffee launched the

Eat, Drink & Be Fair campaign, which

included a website, daily Fair Trade trivia,

a major culinary event and plenty of free

Fair Trade Certified coffee.

• Divine Chocolate hosted a Share the

Love campaign, sponsoring dozens

of chocolate sampling events in cities

throughout the country, including New

York City, Washington and San Francisco.

• Global Exchange partnered with Equal Exchange, Alter Eco, Sweet Earth Organic Chocolates, La Siembra and

Coco-Zen for the third annual Reverse

Trick or Treat campaign, in which hun-

dreds of children in the United States and

Canada handed out Fair Trade Certified

chocolate and educational materials to

adults on Halloween.

TRANSFAIR USA ANNUAL REPORT 200926 27TRANSFAIR USA ANNUAL REPORT 2009

A Community of Leading BrandsLeading brands and retailers, spanning scores of product categories, have made Fair Trade the success that it is today. In 2009, more than

80 new companies joined the movement to offer Fair Trade Certified™ products, bringing the total number of U.S. industry partners to 813.

In addition to the hundreds of companies that carry single-ingredient products such as coffee, tea, sugar and bananas, many businesses

now carry composite products that contain multiple certified ingredients. From ice cream to beverages to cosmetics, Fair Trade Certified

ingredients now appear in more than 6,000 products.

Industry Momentum A Symbol of Fairness & QualityTo earn the license from TransFair USA to use the Fair Trade Certified™ label on their products, companies must buy from certified farms, pay

Fair Trade prices and community development premiums and submit to a rigorous supply chain audit. This process necessitates a high level

of transparency and traceability in their global supply chains. Today, our partner companies range from small, mission-driven coffee roasters

to some of the largest international corporations in the world.

U.S. retail sales of Fair Trade Certified products was an estimated $1.2 billion in 2009, a increase of seven percent over 2008.

TRANSFAIR USA ANNUAL REPORT 2009 29

Raising AwarenessIn 2009, Dunkin’ Donuts prominently added the Fair Trade™ Certified label to all hot

espresso beverage cups sold in the United States. Notably, Dunkin’ has exclusively

purchased Fair Trade beans for all of its espresso drinks since 2003.

Dunkin’ Donuts also joined TransFair USA and hundreds of Fair Trade supporters in a high-

profile promotional effort to distribute coupons to Boston transit riders for free Fair Trade

Certified espresso beverages.

America’s ‘First’ Tea Honest Tea became the first bottled-tea manufacturer in the United States to market a

Fair Trade Certified product when it launched Peach Oo-la-long in 2003. Since then, the

company has expanded to nine Fair Trade flavors.

In 2009, the company was honored to learn that President Barack Obama’s favorite

beverage is Honest Tea Black Forest Berry. The news inspired the company to convert this

item to 100 percent Fair Trade Certified ingredients, ensuring Fair Trade’s rightful place in

the White House.

Driving InnovationWhole Foods Market, the leading retailer of natural and organic foods, is committed to

supplying food that is beneficial to consumers, producers and the earth—a commitment

underscored by its highly visible ethical sourcing program, called the Whole Trade™

Guarantee.

After doubling its Fair Trade offerings in 2008, Whole Foods kicked off 2009 with an

impressive 860 Fair Trade Certified products and nearly doubled the number of Fair Trade

products over the course of the year, ending with 1,500. From tea, coffee, sugar and

chocolate to energy bars, flowers, jams, cosmetics and wine, Fair Trade Certified products

are now available in almost every aisle, in part because Whole Foods Market has actively

encouraged its vendors to convert their product lines to Fair Trade. Much of the product

innovation and category expansion of Fair Trade in 2009 is a direct result of Whole Foods

Market’s leadership and encouragement.

Toasting Fair TradeTarget introduced a Fair Trade Certified wine collection at 800 stores nationwide in 2009.

The Wandering Grape collection includes an award winning Malbec-Merlot blend from

Argentina and a Cabernet-Shiraz blend from South Africa. Target has also been selling Fair

Trade Certified chocolate and coffee for several years.

Frontier Launched Fair Trade Certified Spices Frontier Natural Products Co-op became the

first company in the United States to offer Fair

Trade Certified organic spices to consumers

and ingredient manufacturers. The company’s

16 new organic spices all hail from Sri Lanka,

and include cinnamon, nutmeg, mace and

both black and white pepper.

Peak Organic Brewing Introduced First Fair Trade Certified Beer TransFair USA is pleased to announce the arrival of

Fair Trade Certified™ beer: Peak Organic Brewing

Company‘s Espresso Amber Ale. This Portland,

Maine-based brewery teamed with its friends down

the street at Coffee By Design to create a robust ale

infused with flavorful Fair Trade espresso.

Alter Eco Introduced Fair Trade Certified Olive Oil Alter Eco unveiled the first Extra Virgin Olive Oils

from Palestine, which are certified organic, Fair Trade

and carbon neutral. These GMO-free, gluten-free

and vegan oils originate from Rumi and Nabali olives,

both native to Palestine.

Adina and Steaz Among BevNET’s BestBevNET.com’s sixth annual “Best Of” awards

recognized the year’s best new product launches,

including two TransFair USA partner companies—

Adina Holistics and Steaz Teas. Adina’s innovative

product design and delicious taste made it BevNET’s

Best New Non-Carbonated Beverage. Steaz took

home both the Best New Organic Beverage and

Best New Carbonated Beverage honors with its Zero

Calorie Sparkling Green Tea.

Rishi Tea Won Big at World Tea Championships Competing among 41 different companies

who submitted nearly 300 teas, Fair

Trade champion Rishi Tea took home an

unprecedented 28 awards, including a

stunning victory of 11 First Place winners at

the 2009 World Tea Championship.

Kenneth Davids and The Coffee ReviewEvery year, world-renowned coffee

expert Kenneth Davids evaluates

coffees from across the globe for The

Coffee Review. In 2009, eight Fair Trade

Certified varieties scored 90 or above

on a 100-point scale and six others

scored in the 88-90 range, a record

number for Fair Trade coffees.

Fair Trade Certified Firsts & Honors

TRANSFAIR USA ANNUAL REPORT 200930 TRANSFAIR USA ANNUAL REPORT 2009 31

Coffee Quality & Market LinkagesAccording to the International Coffee Organization, nearly 70 per-

cent of the world’s coffee farmers are small-scale growers who own

fewer than 20 acres of land. These family farmers often sell to local

middlemen at very low prices, locking them in a cycle of poverty.

These are the families we support and empower through capacity

building, market linkage and collaboration with industry partners.

Coffee continues to be the predominant Fair Trade product in

the United States. In 2009, U.S. companies achieved an historic

milestone by importing more than 109 million pounds of Fair Trade

Certified™ coffee, a volume increase of 25 percent over 2008. These

imports generated almost $11 million in community development

premiums for coffee farmers and their families, helping improve

lives with vital social services and infrastructure.

1998-2009 Pounds Certified

2009 Pounds Certified

2009 Percent Organic

448,275,603 109,795,363 47%

2009 Coffee Market GuideEach year we publish the Coffee Market Guide in English,

Portuguese and Spanish. Part of our farmer capacity building

program, this guide is distributed to coffee cooperatives around

the world. It offers data and insight into the U.S. coffee market and

helps cooperatives improve their coffee sales and production.

Specialty Coffee Association of America The annual Specialty Coffee Association of America (SCAA)

Conference is the leading event for the global coffee industry.

Members include coffee retailers, roasters, producers, exporters

and importers. The conference gives farmers a unique opportunity

to do business directly with U.S. buyers, promote Fair Trade and

participate in valuable training sessions.

At the 2009 SCAA conference in Atlanta, Georgia, TransFair USA

hosted 150 farmers representing 55 coffee cooperatives from 15

countries. These producer organizations sold an estimated 3.7

million pounds of coffee, thanks to their participation in the show,

the equivalent of about 120 million cups.

Imports & ProductsRecord GrowthThe demand for Fair Trade Certified™ products has grown rapidly nationwide and made 2009 a banner year for TransFair USA and our

partners. We certified over 100 million pounds of coffee for the first time in our eleven-year history. Demand for Fair Trade Certified wine

quadrupled, bananas doubled and avocados increased tenfold. We opened up new opportunities for Fair Trade Certified grains, nuts,

olive oils and sports balls.

2009 imports of Fair Trade Certified products into the United States (in millions of pounds).

Coffee 109,795,363 Tea 1,372,157 Cocoa 2,629,411 Rice 971,454 Sugar 10,963,627

Produce 50,272,722 Vanilla & Spices 149,344 Flowers 9,539,8591 Honey 242,671 Wine 1,450,7172

1 Unit measure for flowers is stems. 2 Unit measure for wine is 750ml bottles.

Coffee Producer Advisory CouncilOur Coffee Producer Advisory Council gives farmers an opportunity

to play a leading role in developing strategies for expanding the

Fair Trade market. This Council is comprised of 10 highly-regarded

grassroots leaders Latin American and African cooperatives, who

gather with us to study market dynamics, discuss strategies and

address producer concerns.

In 2009, we convened the Council three times for joint meetings

with leading importers and roasters from the U.S. coffee industry.

The meetings focused on understanding and reacting to emerging

challenges and opportunities in the growing Fair Trade market. Key

issues included the rise in production costs faced by coffee farmers

and lack of access to farm credit.

Fair Trade Certified Cupping CompetitionOur second Fair Trade Certified Cupping Competition, part of the

Responsible Sourcing Project, took place in 2009. Held in Minas

Gerais, Brazil, the competition recognized the best Brazilian Fair

Trade Certified coffees and the farmers who produced them. An in-

ternational panel of eight experts judged the coffees, and the win-

ning farmers received generous rewards. The winning coffees had

the added benefit of fetching above-market prices when auctioned

off after the competition. However, the real prize was the industry

recognition of the high-quality coffee that these farmers produce.

33TRANSFAIR USA ANNUAL REPORT 2009

Fair Trade Certified Product OverviewsFresh ProduceProduce continues to be a leading product category in terms of

growth. Market demand for Fair Trade Certified™ produce increased

even more sharply in 2009 than in 2008 as volumes nearly doubled,

as did community investment funds back to farmers and workers.

Banana volumes almost doubled from 2008, while avocados

increased by a factor of 10 and mangoes quadrupled.

Sales of Fair Trade bananas continued to rise in the U.S. market for

the third year in a row. The result was an impressive $1 million in

premium funds in 2009 to support scholarships, microloan programs

for small businesses, environmental programs and many more

sustainable community development projects in Latin America

Product 2004-2009 Pounds Certified

2009 Pounds Certified

Avocados 610,550 554,550

Bananas 102,574,890 49,270,680

Mangos 1,114,754 303,777

Sugar Fair Trade Certified sugar continues to be a success story with growth

of more than 25 percent from 2008 to 2009. This versatile product

reaches the U.S. market as packaged sugar and as an ingredient in

an ever-growing list of consumer packaged goods such as chocolate

bars, bottled beverages, jams and spreads.

The continued market expansion of sugar is exciting for consumers

and a sweet deal for farmers. Since the introduction of the Fair

Trade Certified sugar category to the United States, companies have

paid more than $1 million in Fair Trade premiums to small-scale

sugar farmers in Paraguay, Malawi and Costa Rica. These premium

payments contribute to the alleviation of poverty in these countries,

as well as much needed improvements in the livelihoods of the

producers, their families and their communities.

2005-2009 Pounds Certified

2009 Pounds Certified

2009 Percent Organic

32,170,469 10,963,627 85%

CocoaAfter a booming growth year in 2008, Fair Trade Certified cocoa

imports scaled back in 2009 as cocoa importers sold off their

remaining 2008 inventory. The percentage of organic imports,

however, continued to grow and represented 85 percent of Fair Trade

cocoa in the U.S. market. Furthermore, our community of partners

that use Fair Trade cocoa has continued to grow—85 companies now

source certified product. The use of Fair Trade Certified cocoa butter

in body care products is on the rise, and cocoa powder has started

to appear in ready-to-drink beverages, baking mixes, ice cream and

energy bars. Looking ahead, 2010 promises to be a growth year for

cocoa, since many top global chocolate companies have pledged to

strengthen their commitment to Fair Trade sourcing.

2002-2009 Pounds Certified

2009 Pounds Certified

2009 Percent Organic

12,200,171 2,629,411 91%

TeaIn spite of the difficult economic climate, imports of Fair Trade

Certified tea remained stable in 2009 at around 1.3 million pounds.

Almost 5.5 million pounds of Fair Trade Certified tea have been

sold in the U.S. market since 2001, generating nearly $2 million in

premiums for farmer organizations in nine different countries. These

organizations have invested in programs to enable better access to

health care and education, support women’s initiatives and protect

the environment. Beyond the premium benefits for producers, the

Fair Trade standard also supports better wages, the right to organize

and a safe working environment on large tea estates.

While traditional Asian origins (India and Sri Lanka) continue to

be the largest source of Fair Trade tea in the U.S. market, African

teas—especially Egyptian herbal and Rwandan conventional teas—

grew sharply in 2009. Other notable trends: China is becoming an

increasingly important origin for certified tea, while Fair Trade herbal

teas are expected to report strong growth in the coming years.

In 2009, many industry partners expanded their lines of Fair Trade

teas. Meanwhile, 13 new tea manufacturers joined the Fair Trade

community, bringing the U.S. total to just over 100 tea companies.

Fair Trade Certified tea is now prevalent in the specialty market and is

picking up momentum in mass markets nationwide.

2001-2009 Pounds Certified

2009 Pounds Certified

2009 Percent Organic

5,454,842 1,372,157 78%

WineIn 2009, Fair Trade Certified™ wine grew in leaps and bounds,

marking a successful end to the first complete year since its launch

in the U.S. market. Argentina took the lead as the largest origin of

Fair Trade wine, but a steady contribution was seen in South African

and Chilean imports, too.

In South Africa, Fair Trade wineries have implemented special

programs to support post-apartheid economic empowerment. In

2009, TransFair USA hosted South African wine producers Fairhills

and Stellar Organics to participate in market linkage opportunities,

including an exciting cross-country tour during Fair Trade month,

meetings with interested buyers, wine tastings and educational

talks. We celebrated the impact of Fair Trade in South Africa at two

special events held at the South African Embassy in Washington,

D.C., and the South African Consulate General in Chicago.

The amount of community development premium funds has

increased by more than 500 percent since Fair Trade Certified wine

first hit U.S. shelves, which demonstrates the remarkable impact

that this product can have on farmers and vineyard workers.

2008-2009 Bottles Certified

2009 Bottles Certified

2009 Percent Organic

1,708,677 1,450,717 14%

Fresh FlowersFlower imports were virtually flat in 2009. Nevertheless, loyal

retailers such as Whole Foods Market and Shop Rite purchased

nearly 10 million stems from 16 certified farms in Kenya, Ecuador

and Colombia. These imports generated almost $300,000 in

community development premiums, which were paid back to

farmers and workers on certified farms. These funds helped pay

for medical clinics and treatment, clean water, better housing,

scholarship programs and other vital social programs benefitting

the workers and their families.

2007-2009 Stems Certified

2009 Stems Certified

20,025,719 9,539,859

HoneyFair Trade Certified honey imports, which are entirely organic, have

remained modest since the program’s U.S. launch in 2008. The

U.S. market is largely driven by the dedication of a few visionary

companies who remain committed to delivering continued impact

to beekeepers and their families across Mexico.

As honey extends beyond the food industry to the body care

industry, and as TransFair USA looks to expand supply into new

origins, Fair Trade honey is expected to take off in the coming years.

2008-2009 Pounds Certified

2009 Pounds Certified

509,055 242,671

South African Ambassadors Honor Fair Trade Certified Wine LaunchOn June 25 and July 1, 2009, the South African Embassy in

Washington, D.C. and the South African Consulate General in

Chicago feted TransFair USA and Stellar Organics in celebration

of the U.S. launch of Fair Trade Certified wine from South

Africa. These festive and collaborative events were attended

by a wide variety of TransFair USA allies including business,

government, foundation, media and grassroots partners, and

were a powerful debut for Fair Trade Certified wine in the

United States.

A keynote speaker at the gatherings was Berty Jones, Head

of the Joint Body of Stellar Organics in Trawal, South Africa.

Mr. Jones touched hearts by telling his story of rising from

a concrete-layer who couldn’t speak English to his current

position as cellar master.

“ You cannot imagine what it is like for someone like me to come all this way to tell someone like you about the impact of Fair Trade and the difference that it is making, ”– Berty Jones, head of the Joint Body of Stellar Organics

in Trawal, South Africa

TRANSFAIR USA ANNUAL REPORT 200934 35TRANSFAIR USA ANNUAL REPORT 2009

Vanilla Fair Trade vanilla imports support the livelihoods of farmers in rural

regions of India and Uganda, giving them a larger portion of the final

selling price. In 2009, vanilla imports rose 20 percent and farmers

received more than $26,000 in community development premiums.

In India, these funds are channeled through the Eco-Agri Research

Foundation, a nonprofit organization that supports small-scale

vanilla farmers in Karnataka and Kerala states. Training programs

funded by Fair Trade premiums educate farmers and school children

on sustainable and organic farming techniques that both improve

crop quality and protect delicate ecosystems.

2006-2009 Pounds Certified

2009 Pounds Certified

2009 Percent Organic

444,031 53,261 28%

RiceFair Trade rice has been something of a sleeper category for us

since launching in 2005. But rice imports tripled between 2008

and 2009, suggesting renewed industry interest in the high-quality

Fair Trade basmati and jasmine rice varieties grown by small family

farmers in India and Thailand. Most of these farmers have turned to

organic rice cultivation as a way to reduce costs, increase income,

protect their ecosystems and achieve greater sustainability at the

community level.

2005-2009 Pounds Certified

2009 Pounds Certified

2,190,234 971,454

New Fair Trade Certified ProductsQuinoaAfter much anticipation, TransFair USA was delighted to certify

Fair Trade quinoa for the U.S. market in 2009. Sales in this first year

reached a respectable 300,000 pounds. Consumers can now find

Fair Trade Certified™ quinoa in bulk bins and retail packages in select

markets as demand for this protein-rich grain continues to grow.

Fair Trade quinoa comes exclusively from Bolivia, where it has been

cultivated for more than 6,000 years. Farmers live in conditions

of extreme isolation in the Altiplano of southwestern Bolivia,

where poverty is endemic. With their new Fair Trade community

development funds, farmers report that they are investing in

several educational and training programs, including an organic

cultivation program that teaches farming methods that don’t rely

on harmful chemicals.

Product 2009 Pounds Certified

Quinoa 304,351

Nuts and OilseedsThe launch of nuts and oilseeds in 2009 was modest, but it presents

an exciting opportunity for companies to expand their Fair Trade

offerings. We anticipate that an array of body care and chocolate bar

companies will take advantage of these new products in the future.

Fair Trade olive oil has brought much-needed assistance to

marginalized rural communities in the war-affected regions of

Palestine. Fair Trade premiums helped fund higher-education

scholarships to the children of 10 farmers per year, covering full

tuition and expenses for the students for four years of university.

In addition, there is an olive tree replanting program, a women’s

microloan program and a workers’ capacity-building program, all

aimed at enhancing production and furthering sustainability.

Product 2009 Pounds Certified

Nuts & Oil Seeds 53,001

Shea Butter 54

Olive Oil 16,867

Brazil Nuts 36,080

Sports BallsTransFair USA began testing the certification of Fair Trade sports

balls for the U.S. market in early 2009, addressing an industry that is

outside of our traditional agricultural model. Certified sports balls

include rugby and soccer balls, with the potential for footballs, bas-

ketballs and volleyballs to become available over the next few years.

This new category brings benefits to workers in Pakistan, a new

origin for the U.S. market. At Vision Technologies in Pakistan,

which has been selling Fair Trade soccer balls to Europe for several

years, workers now receive free transportation to and from the

work site, group insurance coverage, free vaccinations, subsidized

meals, and medical attention for surrounding communities.

Product 2009 Balls Certified

Sports Balls 850

Herbs and SpicesThe spice category presents exciting opportunities both as a

retail-ready product and as an ingredient in composite products.

Fair Trade Certified spices can be found with certified tea, sugar

and cocoa in chai blends and baking mixes. Bottled spices hit the

shelves in late 2009. Cloves, pepper and cinnamon represent the

bulk of U.S. Fair Trade spice imports to date. The expansion of

the standards to include additional herbs and spices in July 2009

signifies greater growth potential for the category in coming years.

In 2009, nearly $15,000 in community development funds reached

spice farmers in India, Uganda and Sri Lanka as a result of their

exports to the newly-opened U.S. market.

Product 2009 Pounds Certified

2009 Percent Organic

Herbs & Spices 96,084 100%

TRANSFAIR USA ANNUAL REPORT 200936 37TRANSFAIR USA ANNUAL REPORT 2009

SupportersPhilanthropists Showed Their SupportAs a nonprofit organization, TransFair USA depends on a community of individual, business, government and foundation donors to support

the growth of Fair Trade. We are grateful to repeat funders, including the Peery Foundation, the Skoll Foundation, RSF Social Finance,

Stichting Het Groene Woudt, the Levi Strauss Foundation, and the Marisla Foundation for renewing their commitment in 2009. We were

also honored to receive grants from new funders, including the Ansara Family Fund at the Boston Foundation, the Curtis & Edith Munson

Foundation, the Germeshausen Foundation, and the Cordes Foundation. Additional new funders in 2009 included Green Mountain Coffee,

the Green Mountain Coffee Roasters Foundation and Wal-Mart Stores, Inc.

Board of DirectorsTom BullockChairman of the Board, Mac-Gray Corporation & former President and CEO, Ocean Spray Cranberries

Susan ClareBusiness Consultant

Michael E. ConroyChairman of the Board and former Senior Lecturer & Research Scholar, Yale University’s School of Forestry & Environmental Studies

Theresa Fay-BustillosPrincipal & Co-Founder, Ideal Philanthropy, LLC

Paul HodgeFounding Chair, Global Generations Policy Institute

Rick LarsonDirector of Sustainable Ventures, The Conservation Fund

Katy MurrayExecutive Vice President and Chief Financial Officer, Taleo

Ellen PeckSenior Officer and Director of Development, Save the Children

Paul D. RicePresident & Chief Executive Officer, TransFair USA

Frank TsaiPartner, FLG Partners

Carlos Vargas LeitónFinancial Manager, CoopeTarrazu R.L. Costa Rica

Advisory CouncilKenneth J. BeebyAttorney (Consultant) & Retired Vice President of the General Council, Ocean Spray Cranberries

Andrew J. Ferren, Esq.Partner, Goulston & Storrs

Barbara FioritoFormer Chair, Oxfam America, FLO

John HannanDirector of Development, Audubon Connecticut

John HenryFormer Senior Vice President of Grower Relations & CFO, Ocean Spray Cranberries, Inc.

Tim HoranFormer Vice President Human Resources, Latin America, Gillette Company

Stephen Land, Esq.Partner, Linklaters LLP

Joshua MailmanPresident, Sirius Business Corporation

Kim Samuel-JohnsonPresident, Samuel Family Foundation

George ScharffenbergerSpecial Assistant for International Development Policy and Practice, Office of the Vice Chancellor for Research, UC Berkeley

Michael ShimkinFormer Executive Vice President, Simon & Schuster, Inc.

Management TeamJoan Catherine BraunChief Financial Officer

Lynn LohrVice President of Resource Development

Paul D. RicePresident & Chief Executive Officer

Todd StarkChief Operating Officer

* As of July 2009

TRANSFAIR USA ANNUAL REPORT 2009 39

DonorsVisionaries - $100,000 or MoreAnonymous donor – RSF Social FinanceGreen Mountain Coffee Roasters FoundationPeery FoundationSkoll FoundationStichting Het Groene WoudtUnited States Agency for International Development (USAID)Walmart Foundation

“ We support TransFair USA because it provides families and communities around the world with the dignity of work and opportunity. And, of course, because we believe Fair Trade Certified chocolate simply tastes the best. ”– Dave Peery, Executive Director, The Peery Foundation

Champions - 25,000-$99,999Cordes FoundationGreen Mountain Coffee RoastersAlan HassenfeldStephen & Jane LandLevi Strauss FoundationJerome J. LohrMarisla FoundationRonald B. RankinWhole Foods Market

Benefactors - $10,000-$24,999Ansara Family Fund at the Boston FoundationSusan Clare & Peter D. ParkerCurtis & Edith Munson FoundationGermeshausen FoundationPaul & Lorna HodgeKim Samuel-JohnsonMichael Shimkin & Barbara FioritoHarriet Mouchly-Weiss

Patrons - $5,000-$9,999Jerome DodsonRick Larson & Gair McCulloughKaty MurrayCarlos Alberto & Ana Vargas LeitónWilliam & Flora Hewlett Foundation

Partners - $1,000-$4,999Bastian+SkoogKenneth & Shelley BeebyJoan Catherine BraunThomas & Elizabeth BullockCaroline Blanton Thayer TrustMarin Community FoundationMichael Conroy & Lucy Atkin

Theresa Fay-BustillosTodd GentzelLatin America FundGeoff MassingberdEllen M. PeckPaul D. Rice & Marisol AguilarGeomar FoundationGeorge ScharffenbergerSmall Planet Fund of RSF Social FinanceFrank & Frances Tsai

Advocates - $500-$999Allen Fischer & Renate BelvilleDoña Tomás RestaurantTim & Jeanne HoranRebecca LeeLynn Lohr & Lance BelvillePedro F. MataAdrian & Kim McCarthyMicrosoft Matching Gifts ProgramMatthew MlinacSalesforce.com FoundationJane Serlin & Sam EganMaya & Dan SharpHeather SoffanThomas International USA IncorporatedPeter Wantuch

Sociates - $100-$499Maria ArellanoNancy BakerChris BancellsElizabeth BerlikNancy BlissKevin BraunTemmie BrierCedar Lane Unitarian Universalist ChurchCheltenham HighPhilip CookChris & Kathy DudaItzel DuranSusan FarberDavid FunkhouserJohn GroceMarghi HagenLois HallenSusan HanleyNikki Neufeld & Brian HarperJohn & Diana HarringtonAmelia HolsteinGary HutchensW. Burns & Marcia Bell JonesDavid KatzLucy KoelleShade Keys LittleJim & Mary LohrDavid LyChris & Liz LyserJocelyn Mini

North Beach FoundationNumi Organic TeaJohn PeedF. Elliott RyderSaint Mark’s CathedralLara SantiagoSylvia SchellyPatricia ScofieldBetsy & Ira SilvermanChris & Margaret SinclairConnie SmithElaine SpaullSports BasementShelley WeissGladys WongYahoo Inc. Donor Advised FundDavid Zebker

Friends – Up to $99Anonymous Alice AdlerDina AngressNathan AricoAtonement Lutheran ChurchLarry BachDiane BaerCharlotte BakerCindy BallaroKatie BarrowJohn BayerRita BohlingM. BremerSarah BrownChanging the PresentWoodworth & JoAnne ChittickDan & Sue CockrumBarbara & Don CohenKayla ColeJoan ConklinLinda CouchCarol CoxClyde CramerMerredith CristNina CudneySamantha DickeyMichael DwyerEconscious MarketRebecca EnnenAndrew Ferren & Sue WilkinsCharlie FloydLinda FosterDavid GardinerDanica GardinerGoodSearchSusan GroffJustin GuayMark & Amy HamiltonMichaeli HansenBill HaydenLauren HayesElysa HaysJulie HelouJonna Hensley & Dylan HawheeJerry Hoff

Rachel Lee HolsteinEric Husby-GerryDavid IzzoLudvin JacobsonNancy JanssenDavid & Jean JonassonMichael KearneySherry KeithDeborah KimJacqueline KlippenesDonna KreisbergTannisha LambertGilbert & Elaine LessencoCarolyn LiefRoger & Joanne LindEric LloydKathy LyonsNeil MarshallJudy McEvittLinda & Mark MoriartyAmanda MorrellBarbara NoparstakKevin OlinManeesh PangasaNikki PosnickErin QuiringFrances RamirezRichard RedfernLinda RoyTricia RussellDavid & Sandra RussellSarah SaastamoinenDeborah Sanborn & Donald DavellaEmanuel Santa-DonatoNebyat ShewayeKelsey StevensErin Swenson-KlattKurt & Mary TeichmannThe Clorox Company FoundationMargaret ThomasTia Upchurch-FreeloveM. UpshawJoshua Von KorffPing Huang WangMobi WarrenRobert & Allyson WhiteAnna Wiersma

LendersCatholic Healthcare WestFord FoundationIdyll Development FoundationNonprofit Finance FundSisters of Charity of New YorkSisters of Charity of St. ElizabethSisters of the Holy Names of Jesus and MarySisters, Servants of the Immaculate Heart of MarySisters of St. Francis of PhiladelphiaSt. Joseph Female Ursuline Academy, Inc.Viva Investments Company SA

In-kind SupportersAllegro Coffee GroupAlter EcoAmerica’s Best Coffee Roasting CompanyAngus AndersonAnti-bodyAwaken CaféBay Area Rapid Transit (BART)Blends for Life OrganicsBorlaug Institute of Texas A&M UniversityBradescoBruegger’sBusiness Meets Sustainable Development (BSD)Bull Run RoastersCafé ImportsCapricorn CoffeesCarmichael Lynch SpongChoice Organic TeasClinton Hunter Development InitiativeCountercultureDe La Paz CoffeeDivine ChocolateDunkin’ DonutsEcologicaEmbassy of the Republic of South AfricaEquator Estate Coffees & TeasFair Spirits Co.Fair Trade SportsFairhillsFord FoundationGoogleGoulston & StorrsGreen Mountain Coffee RoastersHub Bay AreaIn bloom GroupJ. Lohr Vineyards & WinesKopaliKris BeschLa YapaLinklaters LLPMassachusetts Bay Transportation Authority (Boston T)Microsoft Software Donation ProgramMortarMountanos Brothers Coffee CompanyNumi Organic TeaOne World FlowersPinhalensePrestige Wine GroupRepublic of TeaRishi TeaRoyal CoffeeSalesforce.comSalesforce.com FoundationSamovar Tea LoungeSEBRAE

South African Consulate General in ChicagoSouth African International Business Linkages (SAIBL)Starbucks Coffee CompanyStellar WinerySurf City Coffee CompanySwoonbeamsTaleo Talent Management SolutionsTchoTechSoupThe RoasterieTheo ChocolateTony’s Coffee and TeaTraditional MedicinalsTravel ChocolateTully’s CoffeeWild Card RoastersWholesome SweetenersWorld FlowersZhena’s Gypsy Tea

1-800-Flowers

Partners, Allies and CollaboratorsClinton Global InitiativeEqual ExchangeFair Trade FederationFair Trade Resource NetworkFairtrade FoundationGlobal Center for Social Entrepreneurship, University of the PacificGlobal ExchangeGreen AmericaJan Vossen ConsultingLutheran World ReliefOxfam AmericaRoot CapitalSara LeeSchwab Foundation for Social EntrepreneurshipSkoll World ForumSocial Venture NetworkWalmart BrasilWorld Economic Forum

Donor Spotlight: Maya & Dan SharpMaya and Dan Sharp of Pasadena, California are true Fair Trade

devotees who have been spreading the word about Fair Trade

for years. They have hosted Fair Trade events and supported

TransFair USA monetarily as contributors. And on top of it all,

Maya is currently looking into how to introduce curriculum

about Fair Trade into her children’s classrooms.

When asked what drew them to the movement, Maya and

Dan said that they are inspired by how Fair Trade empowers

farmers and workers in impoverished countries to take the

lead on improving life for their families and communities,

instead of just receiving temporary aid. They are also

passionate about the environmental benefits of Fair Trade,

such as deforestation prevention, conversion to organic

agriculture and restriction of GMO use.

TRANSFAIR USA ANNUAL REPORT 200940 TRANSFAIR USA ANNUAL REPORT 2009 41

Financial Summary

ASSETS 2009 2008Current assets:

Cash and cash equivalents $1,299,168 $2,243,986

Investment, at market value $765,822 $310,898

License fees receivable, net of allowance $1,754,970 $1,261,467

Grants receivable $1,237,672 $1,027,500

Prepaid expenses and Other receivables $322,588 $181,012

Total current assets $5,380,220 $5,024,863

Property and equipment, net $286,424 $278,443

Deposits $50,350 $76,787

Long-term grant and contributed revenue $715,000 $505,000

Total assets $6,431,994 $5,885,093

LIABILITIES AND NET ASSETSCurrent liabilities:

Accounts payable $211,169 $226,115

Accrued liabilities $817,632 $544,349

Current portion of notes payable $70,000 $54,000

Total current liabilities $1,098,801 $824,464

Long-term liabilities:

Notes payable, net of current portion $5,220,000 $5,290,000

Accrued lease incentive $192,407 $191,478

Total long-term liabilities $5,412,407 $5,481,478

Net assets surplus (deficit):

Unrestricted ($2,347,479) ($2,278,656)

Temporarily restricted $2,268,265 $1,857,807

Total net assets surplus (deficit) ($79,214) ($420,849)

Total liabilities and net assets $6,431,994 $5,885,093

REVENUES AND SUPPORT 2009 2008License fees $6,881,181 $5,757,709

Grants and contributions $2,752,477 $3,273,512

In kind donations $245,712 $189,288

Trade show support $21,060 $41,348

Other income $121,177 $70,673

Net unrealized/realized loss on investments $19,087 ($19,035)

Total revenue and support $10,040,694 $9,313,495

EXPENSES:Program $7,809,173 $7,299,987

Management and general $1,280,896 $1,109,534

Fundraising $608,990 $656,984

Total expenses $9,699,059 $9,066,505

Net change in assets $341,635 $246,990

Grants and Contributions

License Fees

In Kind Donations

Trade Show Support

Other Income

Trade show support

0.2%Other income

1.4%

In-kind donations

2.4%

License fees

68.5%

Grants and

contributions

27.4%

2009 Revenues

Program

Management and General

Fundraising

Fundraising

6.3%

Management and

general

13.2%

Program

80.5%

2009 Expenses

TransFair USA Statements of Financial Position for the Years Ended December 31, 2009 and 2008

TransFair USA Summary of Activities for the Years Ended December 31, 2009 and 2008

The information on the adjacent page is

summarized from the TransFair USA financial

statements which are audited by Bregante

& Company LLC. Copies of the completed

audited financial statements are available

upon written request.

Photo credits Didier Gentilhomme, Christof Krackhardt,

Simon Rawles, Frédéric Raevens, Tabitha

Otwori, Jenna Payne, Gregor Dicum, Nicolas

Gauthy, Linus Hallgren, Kennet Havgaard.

This annual report was printed by a FSC

Certified printing company and only paper

that meets the internationally recognised

FSC Principles and Criteria of Forest

Stewardship has been used.

TRANSFAIR USA ANNUAL REPORT 200942

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Tel: 510-663-5260Fax: 510-663-5264info@transfairusa.org

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