Chapter 1: About Fairfood
Annual report 2023
1.1 WHY FAIRFOOD?
For 23 years now, Fairfood has advocated for a food system that benefits both people and the planet. Over the course of those two decades, we witnessed how international sustainability is slowly becoming the norm on supermarket shelves, while our planet continues to heat up. One thing, however, remains unchanged: hunger persists among 10% of the world’s population. A striking irony: most of the people who struggle to put food on the table, depend on agriculture for their livelihoods.
Rectifying this disparity within our food systems requires an infusion of transparency into our traditional international food trade. At Fairfood, we acknowledge the harsh reality faced by countless small-scale farmers who grapple with earning a living income from their agricultural businesses. Equipped with technology, we are reshaping the market to accommodate these farmers’ needs and ensure a just compensation for their work – one supply chain at a time. Only in poverty free supply chains can we talk about a sustainable transition.
About 9.2% of the world's population, or approximately 719 million people, are living on a daily income of less than $2.
OUR VISION
Wouldn’t it be wonderful, if everyone around the world got to enjoy truly good food? To us, good means that the value of that food is evenly distributed along the supply chain– that everyone gets their fair share, including farmers, fishermen, pickers, and factory workers. Good also means that food is produced responsibly, with respect for the planet, people, and animals. Ultimately, we strive toward food chains that bring prosperity to all.
OUR MISSION
We offer innovative solutions that enable agri-food businesses to improve their responsible business practices. Open and attainable solutions that are designed to democratise the world of food. We actively engage all supply chain actors – from farmer to retailer to consumer – aiming to contribute to the socio-economic prosperity of farmers and food workers. Fairfood believes in establishing partnerships to jointly accelerate the shift towards a sustainable food system.
1.2.1 THE PARTNER JOURNEY
The pace towards responsible business becoming the norm is picking up. Legislation and consumers are pushing companies towards more transparency about their business practices. These companies all come to our door, as a partnership with Fairfood means gaining access to our experience, tools, knowledge and network. To cater to the needs of these companies and everyone in their supply chain, we developed what we call our transparency journey.
This animation explains the journey:
1.2.2 SOLUTIONS
As part of this journey, we deliver hands-on solutions that bring value to all stakeholders involved in food production. Farmers gain access to new market information, and learn about clients’ needs. Brands and retailers develop a better understanding of their supply chain and can back up sustainability claims with robust data. Consumers can judge for themselves if the product is sustainable and fair.
Fairfood’s approach will always centre on farmer inclusion. We are convinced that making our food sustainable begins with farmers in a financial position that allows them to invest in the world. But we also see that everyone in the supply chain profits from improved trust and connectivity among the different supply chain partners, fostering sustainable business relationships, and securing future supplies.
We propose 3 solutions:
- First-mile digitisation for financial inclusion
Smallholder farmers connect to supply chains through digital solutions that enable better access to markets and finance. We prototype fair value distribution models that lead to living incomes and wages, while incentivising high-quality data collection and sharing. - Traceability to prove sustainability claims
We enable 100% traceability from verified smallholder farmers through an end-to-end technology platform. Associate sustainability data with traceable foods and back up companies’ claims on living incomes, fair value or carbon-neutral production. - Supply chain transparency for responsible sourcing
We develop public-private partnerships to increase transparency, improve companies’ environmental, social and economic practices, and deliver credible reporting. We map supply chains up to the farmer and generate quality data at the source.
1.2.3 TOOLS
Lastly, in our toolbox, you will find all the tools you need to achieve the above. In short:
Trace
Trace helps companies answer pressing questions as they map their supply chains and follow the path from farmer to consumer. The story can be shared with consumers on a public interface.
Our blockchain-enabled platform Trace not only allows for this traceability, but helps companies to properly prove the sustainability promises they (want to) make, and share a transparent product provenance story with the end-consumer.
Farmer Cards
Farmers without smartphones or Internet access can interact with our Trace platform using the Farmer Card. The card is scanned with every transaction, registering it to the farmer’s Trace account. Over time, this provides them with a digital ledger.
By scanning the card every time a farmer sells his produce – say, a big bag of coffee – transactions are stored on our platform Trace. This is an important step in digitising proof of cash payments. Via a QR scan or SMS, farmers can verify the payments and access their data.
The solution works in conjunction with a mobile application for collectors and is developed for use in areas with scarce Internet and smartphone coverage.
Connect
Traceability, to us, only counts if it goes all the way back to farm level. The fact that small-scale farmers often live in remote areas, maybe even without Internet access, tends to complicate things. That’s why we designed Connect, a new module of the Trace ecosystem. Connect caters to collectors who traverse remote farmlands to acquire harvested goods. Moreover, Connect is the ‘socket’ to plug in existing data systems and load them into Trace, making it an essential part of any company’s journey towards transparency storytelling.
ALIGN
ALIGN guides companies that have committed to achieving living wages and living incomes in their supply chains. The portal brings together research, tools, potential partners, and guidance on the steps that lie ahead. Ultimately, ALIGN aims to reduce complexity around the topic of living wage and income.
ALIGN is developed by Hivos and Fairfood, the Rainforest Alliance and the Sustainable Food Lab, with support of the German Federal Ministry for Economic Cooperation and Development, implemented by GIZ. The platform is built on the endorsement and expert contributions of the Living Income Community of Practice, the Global Living Wage Coalition and Fairtrade International.
1.2.4 IMPACT AREAS
Through the above, we aim to make an impact centred on the below 6 topics:
Fair Value Distribution
Fairfood aims to redistribute value along entire food supply chains, with the purpose of enhancing farmers’ and workers’ incomes and livelihoods. We want to demonstrate that this fairness can be a win-win for all stakeholders; while farmers gain a higher income, companies profit from future-proofing their business.
Read more in this report“Enhancing the farmer’s position within the chain goes hand in hand with making sure power is distributed in a way that allows for all actors to have an equal say in how the supply chain is governed. This can only be achieved with a clear view into the chain. Only then can partners have an equal voice to discuss where equity needs to be improved.” – Isa Miralles, Living Wage and Income Lead, Fairfood.
Transparent supply chains
Supply chain transparency ultimately serves corporate accountability. We support companies in telling a transparent story about their products and the impact they have on people and the planet. This support is built on three main pillars: 1. Mapping supply chains to determine the provenance of products and the existence of any human rights or sustainability issues, 2. Tracing products from farmer to consumer to learn about value distribution, and 3. Sharing newly gained knowledge transparently with customers and/or consumers.
Living wage & income
Poverty is a driving force behind a lot of the issues in agri-food; it has been connected to child labour, deforestation, and unsustainable agricultural practices. Yet, this fundamental issue is astonishingly complex in and of itself. To make the solution measurable, Fairfood looks at the concept of living wages and incomes, which should allow workers and farmers to afford a decent standard of living. Also read about our Living Wage & Income Lab!
Due diligence legislation
We advocate for the transition towards a fair food system, and lobby for legislation to make that happen. Moreover, as new legislation is introduced at EU level, we assist companies in their preparation to comply.
Digital inclusion and data governance
In their need for a more profound understanding of their impact on people and the planet, companies are turning to digital solutions, which requires data collection at farm level. Fairfood envisions a future where everyone benefits from this digitisation and data collection. We put the farmer at the centre of all data processes, to ultimately have them benefit from the value these processes add to the final product. In 2023, we set out to formulate our principles on fair use of farmer data. See what you can learn from them!
What’s more, in 2023 our learnings contributed to 2 big studies that aim to define what an inclusive approach to technology looks like. Check out the report by the Bill & Melinda Gates Foundation, USAID and others, or this one by IDH!
“We are offering all information according to the cooperative, and we expect these efforts to be appreciated through better prices. But we also expect that eventually the cooperative will be able to access transparent information from the roasters, from the buyers, and especially the consumers. How are the prices for a bag of beans in this process, or a cup of coffee in Europe? When we get this information, it will be clear to us that the endline is also being transparent just as much as we are.” Vincent Mushabe, farmer (and Chair of a cooperative associated with ACPCU) in Nyeibingo, Ankole region
Climate resilient farming communities
To support farmers in becoming more climate resilient, we look at agroforestry and carbon insetting. Both solutions offer new income sources and promote local biodiversity, making it a win-win for everyone involved. See our collaboration with Verstegen Spices & Sauces and Indonesian pepper farmers, for example, here.
1.3 LIVING WAGE & INCOME LAB
An important pillar of Fairfood’s work is to share the knowledge we gain during projects and in multi stakeholder partnerships. We want to see a flywheel effect in our work, where others build on our experience. One channel through which we share those learnings is our own Living Wage & Income Lab. The Lab is a place for co-creation where NGOs, knowledge institutes and companies – including our partners – take to the stage to ignite discussions on how to pay farmers a living income. Ultimately, new partnerships are created to solve the problem of low wages and prices at the beginning of agri-food supply chains.
In this factsheet, you’ll find the highlights of the Lab in ‘23.
We organised 3 sessions of our Living Wage & Income Lab, with over
participants, representing key stakeholders like the Dutch Ministry of Foreign Affairs, Cargill, Tradin Organic, Volcafe, B Lab, Rainforest Alliance, IDH, Maastricht University, Wageningen University, Oxfam Novib.
Contributions came from:
5 companies: Johnny Cashew, Fairtrade Original, Colruyt Group, Superunie, Unilever
3 research institutes/data providers: Impact Institute, ISEAL, WageIndicator Foundation
3 organisations representing farmers and workers: FNV Mondiaal, Fairtrade International, ACPCU cooperative
“The role companies play in driving demands in the supply chain involves the evolution of purchasing practices. To effectively drive change in supply chains, we must approach it in a systemic way. For example, in partnership with suppliers, other businesses, governments, and NGOs, Unilever is leveraging purchasing practices, collaboration, and advocacy to create a level playing field, and to ensure the rights of everyone to collective bargaining and a decent standard of living.” – Matteo Squire, Unilever’s Global Sustainability Manager on Social Equity and Inclusion
1.4 TEAM AND FAIRFOOD BOARD
Fairfood operates under the Supervisory Board Model. Our team and work are managed by the managing director – our very own Sander – who was assigned by the Supervisory Board. Consisting of at least five members, the board oversees Fairfood’s management and general affairs, including the approval of the annual plan and budget. Sitting members serve on a voluntary basis, and take care of appointing new ones when positions become available, as was the case in 2023. In 2023, we welcomed Mariëtte Swart and Han de Groot (treasurer, vice-chair) to form the board together with Hedwig Bruggeman (chair), Pieter Goudswaard, and Wiard Gorter (secretary).
Since 2022, an Advisory Board also helps us navigate today’s digital reality, in which tech and data have become our force for good. We like to call this new Board our Solution Advisory Board. Chaired by Jacob Boersma, digital identity and blockchain expert, the Board is made up of experts with extensive track records in traceability, digital payments, open-source technologies, and blockchains.
1.5 INCLUSION AND INTEGRITY
Fairfood actively works on safeguarding and improving the integrity and equality within our organisation. We aim for a healthy and positive team spirit, a safe work environment in which people feel heard, and good working conditions that allow everyone to do their job with confidence.
As a member of Partos, the trade association for development cooperation, we comply with their Code of Conduct. Moreover, we abide by the ‘zero-tolerance for non-acting’ principle, reflected in our own Code of Conduct on Integrity, which we’ve composed in recent years. Our integrity officer, Channa Brunt, is the Code’s ambassador. In the past years, she’s appointed internal and external confidants, and drafted an agreement with consulting agency GIMD which serves as an independent confidant and guide in case an integrity issue arises.
Our Code of Conduct on Integrity is reevaluated on a yearly basis, considering new developments and lessons learned, for example from Partos and consulting agency GIMD, which serves as an independent confidant and guide in case an integrity issue arises. The Code applies to anyone who works for Fairfood – as an employee, trainee, volunteer, hired consultant or agency worker, or member of the Supervisory Board or Advisory Board. Also, on a yearly basis, we ask our team to anonymously fill out our Happiness Barometer, to learn how they feel Fairfood is doing on topics like power balances, inclusivity, and work vs. private life balance. Ultimately, our goal is to create a safe and healthy work environment, where everyone feels welcome and motivated.
