ANNUAL REPORT 2018
THE DIGITAL REVOLUTION: BET TER FOOD
WITH INNOVATIVE TECHNOLOGIESPREFACE

1FIRST THINGS FIRST: THE CURRENT STATE OF THE FOOD SYSTEM 8(HARD) FACTS

10

WE CAN WORK WITH THAT: INSPIRING TRENDS

12

2 OUR RIGHT TO EXIST

14WHAT WE WANT AND WHY

14

HOW DO YOU CHANGE THE FOOD SYSTEM?

15

3 THE CAMPAIGNS16

COCONUT-UPDATE

16

COFFEE: SHAKING COFFEE CUPS AND LOTS OF AMBASSADORS

16

THE SUPER-BAD SUPERMARKET AT THE PARADE FESTIVAL

19

4 THE PROJECTS22FAIR FOOD THANKS TO INNOVATIVE TECHNOLOGIES

22• MOYEE

22• WAKECUPCALL

23• VERSTEGEN SPICES & SAUCES

23

LIVING WAVE LAB: STRONGER TOGETHER

25• TWO YEARS OF LWL

25• FIRST STEP TOWARDS A TOOL25SCOPING THE POTENTIAL OF BLOCKCHAIN FOR AGRIFOOD

25

5 THIS IS US

26(RESPONSIBLE) WAY OF WORKING

26

TEAM FAIRFOOD

27

UPERVISION AND MANAGEMENT

30

RISICOANALYSE

32

6 FRIENDS OF FAIRFOOD

33

PARTNERS33

AMBASSADORS

33

IN THE MEDIA34

OUR REACH

35

7 FULL STEAM AHEAD!

36

BLOCKCHAIN TOOL

36

MORE TRANSPARENT CHAINS36

INTERNATIONALE CONFERENTIE LIVING INCOME & WAGE

36

8 FINANCIAL FORECAST 2019

cover: Nutmeg farmer
Muslima is part of ourblockchain project with
Verstegen Spices & Sauces

7

37

BUDGET 2019 IN FIGURES

37

FINANCIAL REPORT 201839

ANNUAL REPORT 2018 ~ 3

We welcomed
5 NEW
FAIRFOODIESThe Dutch Postcode
Lottery decided tosupport us for another
3 YEARS, with a yearlystipend of
500 THOUSAND EUROWe appeared
IN THE MEDIAOVER 55 TIMES,
including in Parool,
NRC, Volkskrant,
BNR News Radio andtv show Koffietijd.

We published a
STUDY onblockchain's
potential for theagrifood sector

The UNITED NATIONS
invited us to share our story
at the World Investment Forum

our highlights of 2018
We put three
FOOD CHAINS
on theBLOCKCHAIN
At the WORLD FOOD DAY
EVENT in Den Bosch, we
officially kicked off our new
partnership with VERSTEGEN
Spices & Sauceswith an EXHIBITION and aninterview on the MAIN STAGE
4Over 230
THOUSANDvisitors tookcare of their
number ones
and twos at
our super-badbathrooms AT
THE PARADE
FESTIVAL

We launched our
COFFEE CAMPAIGN
together with 33 frontrunners: coffee labels thatlead by example(the picture on this pageshows the build up)

ANNUAL REPORT 2018 ~ 5

WEL
COME

PREFACE

Muslima (54) lives on the beautiful Sangihe islands in Indonesia, together with her husband,daughter, two nieces and her niece’s son. Over the years, she has used her healthy entrepreneurial
spirit to further expand the nutmeg and coconut plantation she inherited from her parents. Througha chain of go-betweens, Muslima’s nutmeg eventually ends up in a Verstegen spice jar, and maybe
even in your kitchen. Our colleague met Muslima when, together with Verstegen, we introduced ablockchain project to one of their nutmeg chains. With that project, a QR code will soon give youaccess to a lot more information about that nutmeg. Not only will you know exactly where yournutmeg comes from, but you will also know whether Muslima makes a good living from it.
This is all in line with the new course that Fairfood took a few years ago. We saw new opportunities
arise, that could help us solve the issues behind our food. New technologies for example, such as
blockchain, which eliminate trust issues within the chain and bring us one step closer to absolutetransparency. We’ve also noticed a new wind blowing in food land. One that’s all about getting
down to business, thinking in solutions, and working together. Supermarket chains are introducing
ambitious human rights policies and embracing themes like chain transparency and living wages
and incomes. Food companies – including the big boys – are seriously starting to wonder what the‘true price’ of their products is, and who exactly is supplying those products.
We were happy to play a part in their wake-up call in 2018. The year was mainly devoted to blockchain
projects. Verstegen was the first commercial party to take the plunge. Other ambitious frontrunners
have stepped forward since then, and there are some promising new projects in the pipeline. We’dalso like to use this annual report to follow up on an announcement from our newsletter: in 2019,
Fairfood will launch an accessible ‘entry-level’ blockchain tool, which middle and small foodcompanies can apply to their supply chains as well. This is made possible with financial support
from the SIDN Fund. Our tool will allow anyone to make their chains transparent – for themselves,for consumers and, of course, for the people at the very start of the chains.
This is how we restore the connection between you and the people behind your food. By the endof 2019, we hope that apart from Muslima, the farmer behind your nutmeg, you’ll also know thepeople behind your chocolate, tomatoes, avocados and coffee. In the meantime, we want toencourage you to keep spending your euros consciously in the supermarket and, above all, to ask
critical questions. For example, send your favourite brand an email and ask them if they can tell
you exactly where your food comes from. Because you have the right to know if your money isn’t
contributing to exploitation.

Sander de JongManaging Director Fairfood

6Last, but not least: our work wouldn’t be possible without the generous contributions of our donors,
including the much-appreciated support from the Dutch Postcode Lottery. And now, we proudly
present our annual report, in which we offer an overview of our developments and achievements
in 2018. This annual report was approved by the Supervisory Board on April 18, 2019.

ANNUAL REPORT 2018 ~ 7

1 FIRST THINGS FIRST:
THE CURRENT STATE
OF THE FOOD SYSTEM

A sustainable and healthy food system, free from
exploitation, hunger and child labour – we’re not there
yet. A lack of transparency and openness allow
abuses to continue to exist, without you as a consumer
being aware of them – that’s what you’ll be spending
your money on. Every once in a while, something comesto light, when a smart journalist uncovers something,or when things really get out of hand. The issues in thefood system that made the news last year offer a crosssection of the current state of affairs. That’s why we
present: some of the most noteworthy news.

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8

ANNUAL REPORT 2018 ~ 9

70%(HARD)FACTS *These news stories are not about isolated events, as the hard facts and figures
show. Here's one of those figures: according to the latest forecasts, there will be
about 10 billion people on this earth by 2050. All those people will need foodand water. In October 2018, leading scientific magazine Nature wrote that thismight be possible with some necessary adjustments – think more plant-based
food and reducing food waste by fifty percent. And, of course, making thoseadjustments without taxing the environment. Sounds good in theory, but there
are still some hurdles to take. We're not even able to feed the 7.6 billion people
living right now. Last year, the number of people living with hunger rose for thethird year in a row, to 821 million. Think about that for a second: that's about one
in nine people in the world. Some more facts and figures about our food system:

821 miljoen
people suffer fromhunger&over
half a billion
areunderweight*of our foodis grown by smallscale farmers
worldwideabout
500 miljoen
small-scale farmers.
live below thepovertyline:

in Bolivia
83%

in Ethiopië
48%

⅓

in Vietnam
ruim 50%

Every year, 1.4 billion
hectares of land is used
to produce food that iswastedof all foodproducedworldwide iswasted515 m
ilin Asilaion
256 m
in Afriillionca
42 milli
Ameroi n in Latint h e C ca a n d
aribbean*Meanwhile

13 percent
of adults
worldwide are

In Europe andNorth America,
210-255 pounds offood are thrownaway per capita
every year,

obese

while in Sub-Saharan Africa andSouth-West Asia,
that's just 13-24
poundspoverdtrivying

is the mainehind
force b ur
child labo

Of the 152 miljoen
children involved inchildlabour

worldwide, 70,9 % work It is es
in de agrifood sector that abo timatedut
people wo 1.3 billion
60 milion childrenragrifood sk in thein childlabour are
ector,
nearly ayounger than 12of allworking people
That's107,5 miljoen
boys and girls

⅓

In times ofclimate change
and declining natural
resources, the foodsector faces a serious
challenge:
between 2012 and
2050, global foodproduction must
increase by% in order to feednearly10 billion people
by 2050.

50

se ct or,Th e ag ri fo od w
to ge th er it h d
co ns tr uc ti on anth e to p 3
m in in g, is in daerou sof th e m os t orngk in : at
se ct or s to w ag
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arye
w or ke rs di e

Most population growth
will take place indeveloping countries.
10*Facts in this annual report are based on research carried out by Fairfood. Sources available on request.

ANNUAL REPORT 2018 ~ 11

WE CAN WORK WITH THAT: INSPIRING TRENDS
Of course, we're not trying to bring you down here. We’re always encouraged by good news. And we get truly
inspired and energised when that good news appears to be part of a bigger trend that promises more goodthings to come. Therefore: some promising (food)trends.
CONSCIOUS CONSUMER GETTING MORE CONSCIOUS
In the supermarket, you can load up your basket with more and more products that are made with care forpeople, animals and the environment. Big gamechangers are, thanks to an increasingly aware consumer, Beter
Leven (meat) and ASC (sustainable fish). At the moment, 1 in every 7 euros we spend at the supermarket isspent on products with a quality mark. At the same time, things are more confusing than ever: fair, eco, bio,organic, sustainable, circular... Do all these labels mean the same thing or not? And does the promise equal
the expectation? When stressed about too many choices, people tend to choose what they know: that whichis good and cheap. And it can be quite confusing, with the current excess of quality marks and even somelogo's that pretend to be quality marks. Public information organisation Milieu Centraal (Environment Central)wants to offer a solution to that problem and, together with the help of Fairfood and other organisations, created
a comparative list of all quality marks. This resulted in a top 10 of quality marks which are worth keeping an eye
out for: ASC, Beter Leven 2 and 3 stars, Demeter, EKO, EU Organic logo, Fairtrade, MSC, On the way to
Planetproof, Rainforest Alliance and UTZ.

LIKE A BOX OF CHOCOLATESAt Fairfood we are even more excited about Tony's Chocolonely's Open Chain-platform, which aspires to serve
as a practical solution for social abuses in cocoa, than we are about their ‘dark milk pretzel toffee’ bars. The
platform allows chocolate companies access to knowledge and tools that help them tackle their own chocolate
chains. Why did we decide to add this to our ‘trends’ list? Because it's working. Albert Heijn took the lead andjoined the platform first with home brand Delicata. But much more is happening in chocolate land, which
encourages us to speak of a trend towards better chains: Milka announced a complete switch to sustainably
grown cocoa – by the end of 2019, their entire product range should meet the requirements of the sustainablecacao sourcing programme Cocoa Life. Full steam ahead!

“It would be nice to learn more about what happens with the nutmeg further on in the chain.
I honestly have no idea how the nutmeg is being processed, or where it's exported to. I think
I could make more money if I knew what you like to buy over there. All I want to do is growold here in this village, but it would be nice if my children can build a better life elsewhere.
As long as they come back once a year for Eid al-Fitr.”~ Hetty Heler, nutmeg farmer

TRANSPARENCY IS THE NEW GREEN
In Germany and France, companies are already obligated to have a good understanding of risks within theirown chains and to inform the outside world about them. In the Netherlands, this happens on a voluntary basis,but members of Parliament and NGOs are working hard to enforce transparency measures – for example, by
requiring transparency for companies to participate in trade missions. “In about ten years, transparency is the
new normal,” our own Marten predicted in an interview with Belgian research platform EOS Tracé. The firstsigns are already there: Albert Heijn made the chain of their orange juice transparent using blockchain technology,
Walmart requires all of its suppliers of leafy green vegetables to hook onto its blockchain before September
2019, and Carrefour uses blockchain to trace chicken, eggs and tomatoes to their original source.
TAKING RESPONSIBILITY THROUGH INNOVATION
Tech giants – think Uber or Facebook – fell of their pedestal in 2018. We as consumers are concerned about
their enormous power, its harmful side effects and how they handle our data. Even the blockchain-bubble wasabout to burst in 2018. The high energy consumption of Bitcoin, money-wasting trial balloons, data hacks; justa few of the arguments used to dismiss blockchain technology as an empty promise. But the major disappointment
in blockchain technology is no more than a necessary phase in the ‘Hype Cycle’ that innovations go through,tech connoisseurs will say. Sky-high expectations are followed by a hard reality check. But it is precisely thisdrop-out moment that allows the technology to make a healthy restart– with more focus on sustainability andprivacy, and a fair distribution of data ownership within the chain. Fairfood stands for responsible innovation– technology that takes all possible consequences for humans, animals and the environment into account on
the drawing board. We can see great possibilities for blockchain technology when it comes to food chains,because it allows us to make digital connections between players in the chain that didn't know about eachother before. This generates a mutual exchange of knowledge and information, which offers farmers opportunities
to improve on their entrepreneurship and ultimately improve their income. Is this all going a little too fast foryou? Then check out our road map further on in this annual report.

12

ANNUAL REPORT 2018 ~ 13

2 OUR RIGHT TO EXIST

When you say Fairfood, you say optimistic, constructive, pragmatic, innovative, and a healthy dose of idealism.
It’s almost exhausting, the enthusiasm with which we start up projects, and head into the office each morning.
Together with everyone and anyone who can and wants to help, we are going for it, all the way: making
all food on our plate honest. We spot the issues in our food system, alert the right parties about them andlook for fitting solutions together.

WHAT WE WANT AND WHYWith facts, figures and news reports, we have mapped out the problem before us. In a nutshell: the foodsystem is broken. A weighty and technical word, ‘food system’. And that’s illustrative of what a food system
is: an entanglement of complex production chains, in which much too often very little attention is paid toboth humans and the environment.

E
CHANG
U
O
Y
O
HOW D

Fairfood wants to put the focus back on those people. Our mission: to only have food on our plate that is
produced by people who can live in dignity. We want them to be able to take care of themselves as well as theearth; to invest in sustainable production methods. Small-scale farmers and workers in the food sector deserve
a living income. Ultimately, the money we spend in the supermarket should contribute to social and economic
prosperity for everyone involved in the production of our food.
We understand that there’s no simple solution, but we do believe that everyone should accept their responsibility.
Supermarkets, producers and food processors should protect the rights of everyone involved in their production
chains – including the people at the very beginning of those chains. That’s what we’re working towards. We
want to play a connecting role in the transition towards a sustainable and transparent food system and makeconsumers aware of the impact their own choices have. Meanwhile, we are busy building partnerships andprojects that allow us to reach the people behind our food directly. Long story short: everything we do, we dofor a fairer and more sustainable food system.

YSTEM?
S
DO
THE FO

1. Back to the start:
reconsidering our fo
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FARMER: kn ge and strengthen yo
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We find the pain points, tell the true story and start
conversations
with the industry, politicians and consumers

stem

2. Set the right example:
start a movement of frontrunners

3. No mucking about:fair tech-projects for transparency

af teeveryone is equal
We work towards an inclusive food system, in whichand people inians(recognising the challenges of getting politic
ts on board)
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EMPLOYEE: gain a voi

Together with industry frontrunners,
4. Make it happen: working together, towards solutions, we create custom strategies to eliminate risks,solve problems and realise
towards Sustainable Development Goals 1 and 2 –living wages & incomesno poverty, no hunger
We go back and restart the cycle with lobbying and advocacy,
5. Nothing to hide:reuntil everyone’s on board
turn
to 1
sharing knowledge

r 5?

14

We join hands with the industry and collaborateon the sustainable ambitions of frontrunners

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so they y’s future, andiltheir fam

ANNUAL REPORT 2018 ~ 15

3 THE CAMPAIGNSWhat do you, as a consumer, really know about the people behind your food? With our campaigns, we want
to reduce the distance between you and them. We tell the true story, and we collaborate with the industry
and politicians to improve that story.

COCONUT-UPDATE
Our coconut campaign dates back to 2017,
but steadily continues behind the scenes.
Quick reminder: it was all about honest
coconuts. Did you know that about 1 in 20
supermarket products contains coconut?
Lucrative business, you might say. But notfor the coconut farmers. Since we like facts
and figures: 84% of all coconut imported by
the Netherlands comes from the Philippines.
Of all the small-scale coconut farmers in thatcountry, 56% live below the poverty line. So
basically, that’s poverty on your plate.

WAKEcUPSIn true Fairfood-fashion, we sent out 50 WAKEcUPS
to major coffee players – supermarkets, roasters, coffee
bar chains – to invite ourselves over for a cup of coffee.
We wanted to hear from them where they think the
problem lies. Over 20 companies were so polite toinvite us over. A few things stood out to us from theconversations we had with them. The employees ofthese companies, here in the Netherlands, often don’teven know where their coffee comes from and have torely on information they get from quality marks or international headquarters. Both supermarkets and large
coffee roasters are stuck in an opaque web of global market prices, intermediaries and intense competition
with each other, in which price is still a deciding factor.

“We always sold our coffee to a trader and then it all went onto one big pile with the coffee
of other farmers. What happened to it after that – I don’t know. At the time, the costs werehigher than the proceeds, so everyone always had a second job as well. Many farmers in theregion still work as pickers on other plantations or in construction. The reason we keep growing
coffee anyway? It’s tradition. We’re proud of our product.”~ Juan Pablo, coffee farmer

Our coconut alarm was heard, and several coconut processors joined us for an honest discussion. In 2017and 2018, we spoke to Nestlé, Mars, Ahold, Delhaize, Unilever, and more, and were able to advise severalof them on the sustainability programmes they had already implemented or were planning to introduce totheir coconut chain. Cargill, for example, had just launched a pilot project for Filipino coconut farmers. Mars,
Barry Callebaut and Nestlé told us that they were launching programmes as well.

COFFEE: SHAKING COFFEE CUPS AND LOTS OF AMBASSADORS
You’re sitting in a nice little café, about to take a sipof your cappuccino. Suddenly your cup starts ringing
and shaking. This is your WAKEcUPCALL! That’s what
happened to the unsuspecting extras in our campaign
video, which surely popped up on your timeline. Sorryfolks, it was for a good cause.
May 17, our WAKEcUPCALL initiative finally kicked
off. At seven o’clock in the morning, comedian Guido
Weijers was the first to put his cup of coffee on
Instagram. Then the hashtag #WAKEcUPCALL got rolling, and our special campaign website got filled tothe brim with ambassadors; people like you and I, who drink coffee at work, in a coffee shop with friends, orlate at night to stay awake for a deadline. They all helped to wake up the coffee world, together with online
influencers such as GrowThinkers, Lush and as many as 33 coffee bars, baristas and coffee roasters who arecommitted to truly good coffee. Because it’s pretty bizarre: in the Netherlands alone, we drink about 30 million
cups of coffee every day, yet the average coffee farmer barely manages to keep their head above water. And
on coffee plantations, there are still many issues regarding underpayment, overtime and forced labour. Researcher
Isa collected all the facts and figures for our report Time for some Truly Good Coffee.

16

ANNUAL REPORT 2018 ~ 17

THE SUPER-BAD SUPERMARKET AT THE PARADE FESTIVAL
Remember the summer of 2018? Hot as hell, dry as a bone, long, sweaty evenings, way too hot to sleep?
That was the summer that Fairfood managed the toilets at your favourite theatre festival – the Parade. Say what?
You heard that right, we were in charge of the bathrooms. Sounds dirtier than it was, really. Together with ouramazing designer Buro RuSt – who definitely deserves a little shout-out in this annual report as the designer of
its lay-out – we decorated the toilets in Utrecht, Rotterdam, Den Haag and Amsterdam from top to bottom. We
christened the final product our ‘super-bad supermarket’: a price-stunting supermarket in the front, and in theback – in the bathroom stalls – hard facts about the dark sides of shrimp, tomatoes, pineapples, and other products that we all like to drop into our shopping carts. This way, we gave the more than 230 thousand visitors
some numbers and figures to think about while taking care of their number ones and twos.

TRANSPARENT COFFEE
We regret that. We believe that transparency from farmer to barista is the first step towards making thecoffee chain fairer and more sustainable. Because only when you know who’s part of your chain, can you
enter into a real conversation with each other. To show that this is possible, we’ve been working on our own
blockchained WAKEcUP coffee from Colombia. We presented it at World of Coffee, the largest internationalcoffee fair in the world. We were especially pleased with the reactions we got from Indonesian, Tanzanianand other coffee farmers: "You can put one of those QR code on my coffee too, so I’ll at least know who
drinks my coffee.”
ROUND TABLE
In October 2018, following the WAKEcUPCALL campaign, Fairfood was invited to the Round Table for
Sustainable Coffee, an initiative by Nestlé and trade association Koffie Thee Nederland (Coffee Tea the
Netherlands). We sat at the table with more than ten coffee parties, the Ministry of Foreign Affairs and anumber of quality marks. The outcome: the main issues cannot be tackled from within the Netherlands alone.
The initiators are now scaling up internationally, with Fairfood obviously joining the process.
With the help of all our Fairfood ambassadors, we were able to wake up the coffee world in 2018. Reading
our coffee grounds for the coming year, we see a future in which Fairfood is even more committed to making
the coffee chain transparent; a crucial step towards getting truly good coffee.

To give an extra boost to our coffee campaign, we offered the donations that visitors left at these toilets to
a project of ambassador The Coffee Quest. These coffee buyers work closely with La Victoria, a cooperativein Colombia. Their mission: producing top quality sustainable coffee. With the donated money, a local trainer
can be hired who will train the younger generation of farmers in particular, to upgrade the quality of theircoffee berries, and measure that quality themselves. For those who were away on holiday during the Parade
festival, we set up a crowdfunding project with Give the Change, a donation platform of the Triodos
Foundation. And there’s more: the Triodos Foundation was so impressed by the project and all the efforts wemade, that they doubled the amount that was donated. In total, we were able to give 9,310 euro’s to The
Coffee Quest. Keep an eye out for our newsletter for updates from Colombia.

“For The Coffee Quest, I often travel to countries where coffee is grown, where I tend tofind like-minded partners to create a chain with, despite cultural differences. Amongthem are many enterprising small-scale farmers. As a connecting party between two
worlds, we work hard to join producers and coffee roasters together for the long run,which helps support the sustainable production of quality coffee. This is what it’s allabout – personal collaboration, connected by a shared passion for coffee.”~ Friso Miguel Spoor, co-founder of The Coffee Quest Europe

THE FACTS*

Black coffee is the Dutch favourite (28%)
closely followed by cappuccino (21%)
Millennials like to drink latte macchiato and are less committed to brands
The classic cloud of milk is especially popular outside the three major Dutch cities
Almost half (44%) of Dutch consumers are willing to pay more for coffee thatearns farmers a fair price
8 out of 10 Dutch people say that the ball is in the court of the coffee brands,
who need to guarantee that fair price.
41% of them are willing to switch to a fairer brand18*Facts based on research carried out by Motivaction commissioned by Fairfood

ANNUAL REPORT 2018 ~ 19

Rafael bein
g the best v
ersion ofhimself he could possib
ly be:
talking abo
ut that won
derfulblockchain
technology

Marten giving
blockchain lessons
to Indonesian
nutmeg farmers

We launched our partnership with
Verstegen with a nutmeg
exhibition on World Food Day.
And nutmeg ice cream.
(Yes, that’s a thing)20

Our cashier at the Parade
teaching kids about
how to spend
their allowance wisely

ANNUAL REPORT 2018 ~ 21

4 THE PROJECTSWorking together, tackling issues, solving problems. That’s how Sander described the fresh air blowing
through food land. Fairfood doesn’t want to impose solutions from an ivory tower, but wants to get down
to the root of issues together. Food, that’s everyone’s business. Together for us means together withsupermarkets, with food brands, with other NGOs, with governments, with farmers and with factory workers.

FAIR FOOD THANKS TO INNOVATIVE TECHNOLOGIES
Step three on our road map: fair tech-projects. Fair tech, that’s a generic name we use for all the technologies
we utilise to make our food chains transparent and subsequently fair. In 2018, an important technology for
us was blockchain, which we used in three different projects. In chronological order:
MOYEE
Moyee Coffee roasts and packages its coffee in the country of origin – Ethiopia – to send more of the profits
back into the local economy. The brand also claims to pay coffee farmers 20 percent on top of the market price.
Blockchain seemed a very logical next step: transparency to actually prove the claims they make. Moyee invited
Fairfood to map their supply chain. Together with Bext360, we built a platform that allows each player in the
chain – farmers, roasters, but also consumers – access to the data that is recorded about the coffee along theway. Take that 20 percent claim: we designed a system that allows the farmer to confirm that a certain price ispaid when he or she sells their coffee beans to a trader. That’s done through a verification text or a digital
fingerprint. That means that the consumer can check the price that Moyee claims to pay. Thanks to blockchain
technology, Moyee can also sift through their supply chain and identify any inefficiencies. The farmers areultimately given more insight into the further course of the chain.

“The purchase price of coffee
should triple. That is a fair
price to be able to live andsave for a pension or a holiday.
We would like to take avacation to discover new
destinations and see the sea.”~ Mercedes and Paulino,coffee farmers

WAKEcUPCALL
Following our blockchained coconuts (2017), we traced andshared the entire journey of a shipment of coffee in 2018,as part of our WAKEcUPCALL campaign (see previous
chapter). Two claims are verified for the coffee’s drinker
using blockchain technology: good quality and good price.
Together with our partners ID Coffees, Bext360, and others,
we mapped the journey of Colombian coffee and madethat journey transparent. As a consumer, you cansee precisely where your cup of coffee comes from, whether
that coffee is indeed of excellent quality, and whether or
not the coffee farmer received the agreed premium in return.
We presented it at the grand World of Coffee fest, in frontof a room packed with coffee enthusiasts: the coffee bag
and its supplementary interface, which guides you throughthe coffee chain. The sounds coming from the room, as wellas the conversations we had with other attendees during
the day, indicate that the coffee industry is crying out for
more transparency. We hope that this project will serve asa source of inspiration for the entire coffee industry. .

VERSTEGEN SPICES & SAUCES
You probably know Verstegen Spices & Sauces from the salt and pepper inyour kitchen. And from your collection of turmeric, paprika, laos and nutmeg,
just to name a few. Behind this broad range of products hides a small andhard-working army of farmers from every corner of the world. Verstegen wants
to gain a better understanding of their working and living conditions. The
Dutch family business wants to invest in a sustainable and future-proof foodsystem, with supply chains that are short and transparent. Verstegen is actively
building sustainable relationships with all actors in their supply chains andwants to share their knowledge to work towards the best quality, together. Thisis one of the ways in which the company wants to achieve living incomes.
According to CEO Michel Driessen, a living income ultimately allows farmers
to take better care of the earth as well.
To start, we made the supply chain of Indonesian nutmeg traceable all the way
to the farmer. This made two claims verifiable for the consumer: good price andgood quality. In the beta-version of the interface, the journey of the nutmeg could
be followed live from December 2018, and it will be available at Coop supermarkets
from June 2019.

22

ANNUAL REPORT 2018 ~ 23

Better position for the farmer
By actively involving farmers in the production chains and giving them access to
new information through blockchain technology, Verstegen wants to boost theirentrepreneurship. At the same time, the position of the farmer is strengthened,because he or she can confirm whether the agreed price was actually paid. In theend, this should also make the profession more attractive for future generations,
to be practised in a sustainable way, of course.
Identification farmer
Verstegen’s nutmeg is grown by a large number of small-scale farmers. Between them and Verstegen stand,among others, a so-called collector and supplier. Thanks to the blockchain-project, Verstegen learns more
about the farmers behind their nutmeg, and about their living conditions. Ultimately, Verstegen wants tocollaborate with them to establish the best quality nutmeg and sustainable trade relations.
Claim verification
An important outcome of this project is that consumers can personally verify Verstegen’s claims of goodprice, best quality. Verstegen chooses to make the confirmation of the farmer’s payment visible to theconsumer. In addition, the verification of quality claims, which takes place in laboratories, is added to theblockchain. Another element of their quality claims that is added to the blockchain is the result of theaflatoxin test, a toxic substance that can nest in nutmeg.
RESEARCH ON LIVEABLE INCOME
This is quite possibly the most amazing part of the
project: Fairfood carried out a study on the height of aliving income for nutmeg farmers on the Indonesian
Sangihe Islands. At the moment, Verstegen pays apremium on top of the usual market price for nutmeg,
but the family business wants to know if this is enoughfor the farmers to make ends meet. Based on the resultsof our study, we will examine how to make adjustments,
if necessary, to end up with a living income. We thinkthat’s a rather revolutionary ambition for a food companyof this size.
World Food Day
We will remember the 2018 World Food Day event in Den Bosch for a long time to come. Not only because wewere able to walk around without a jacket in mid-October (23 degrees Celsius!), but mostly because we wereable to publicly announce our collaboration with Verstegen. During an on-stage interview with Marijn Frank(Keuringsdienst van Waarde, a Dutch TV-programme about the quality of consumer products) and with an actual
nutmeg exhibition.

LIVING WAVE LAB: STRONGER TOGETHER
We also got a lot of energy from our Living Wage Lab this year. That’s the Lab we set up together with
Hivos, in which agrifood companies help each other find solutions to paying living wages in their supply
chains. Let’s be clear: the problem of low wages often cannot be solved by these companies alone. The
Living Wage Lab brings everyone together: the government, trade unions, the production branch,supermarkets, NGOs, certifiers and researchers. Think of supermarket format Jumbo, the Dutch Office forEnterprise and UTZ/Rainforest Alliance. The confidential and private character of the Lab allows questions
and issues to be discussed openly. Together we work towards finding solutions.
TWO YEARS OF LWLIn February 2018, we celebrated our Lab’s two-year anniversary. We were very proud of the special anniversary
publication, Towards a Living Wage in the agrifood sector, and of the turnout: over 50 agrifood companies.
Willem Lageweg (Transition Coalition Food) and Kirsten van den Hul (political party PvdA) received the
publication first, with the latter saying, to our great joy: "It is very special that businesses, policy-makers
and NGOs sit down together to tackle an important issue like this, which needs to be addressedinterdisciplinary."
FIRST STEP TOWARDS A TOOL
No mucking about, it could be our motto. That’s why, in 2018, the need arose to do more at the Living Wave
Lab than the sessions alone. At the same time, during talks with Rainforest Alliance, the idea of a ‘living
income tool’ was raised, which should actively help companies realise living wages within their chains. Firstof all, we tasked True Price with carrying out a needs assessment. True Price spoke to 23 companies in theagrifood sector and evaluated 26 existing tools. A gap analysis was done to compare supply and demand.
The preliminary result is the Living Wage Tool Needs Assessment report, which addresses the challenges
companies face on their way to living wages, and the ways in which a tool can help them overcome thosechallenges. Next step: develop tool! More about this over the course of 2019.

SCOPING THE POTENTIAL OF BLOCKCHAIN FOR AGRIFOOD
We’ve been talking a lot about blockchain technology. We consider ourselvespioneers in applying technology in the agrifood sector, but we also want to learn
from others and from relevant developments. That’s why, in 2018, we began studying
the lay of the land, together with Wageningen Centre for Development Innovation
and with financial support from Food & Business Knowledge Platform. The study
is specifically focussed on the potential of blockchain technology for the agrifood
sector in low and middle-income countries. Where does the technology stand,what problems does it solve, and what are the existing (international) applications?
In the first half of 2019, we’ll publish the corresponding report.

“I want everyone in our production chains to have the same
opportunities as we have in the West. Verstegen wants to actively
work with the different partners involved in our chains so that we
can take care of each other and the world together."~ Michel Driessen, CEO Verstegen Spices & Sauces
24

ANNUAL REPORT 2018 ~ 25

5 THIS IS US
Fairfood is a small organisation with a dedicated team, which complements each other in many different ways.
Together we have created a work culture that we’re quite proud of, actually. More about that below.

(RESPONSIBLE) WAY OF WORKING
Although there’s obviously someone around that we call our director, we don’t believe in hierarchy here at
Fairfood. That means that everyone sets the lunch table at some point or another, but what’s more, we all
have space to share and use our personal expertise. At times, we like to speak of a flat organisational structure,with short lines of communication, which allow us to carry out our mission effectively and efficiently. We thinkof our work as both important and fun, and try to make it even more fun by actively working on a positive work
culture. By organising a monthly inspiration-and-knowledge-sharing session, for example, and an annual multiday vision session.
Personal development is important to us. We want to make Fairfood a place where people can thrive and grow– if you want, even in competences that don’t fall under your official responsibilities. That’s why, for example,
we all had a one-to-one mini-performance interview with each of our colleagues last year. You suddenly get tosee yourself through someone else’s eyes. With a list of all our strong points and points for improvement inhand, we then wrote a personal development plan, after which we were matched to another colleague – yourbuddy – with whom that plan is regularly reviewed. So next year, we’ll all be even better at what we do.
We also occasionally connect in areas besides fair food. You’ll suddenly find yourself taking part in the Week
Without Meat with the entire team (we do vegetarian lunches anyway), or you might run into each other during
a Climate March, or watch a documentary about the soy industry together. Isa, Rafael and Channa even liketo hang out together on a climbing wall from time to time. We also want to create opportunities for relaxation
during working hours, in order to avoid excessive stress. That’s why we introduced our office dog and vegetablegarden in 2018. You get stressed out, you get sent to the park to take the dog for a walk. Or: “Hey, why don’t
you go check on the peas?” Next year we’ll examine how we can get the balance between our work andprivate life even better and healthier. Rule number 1 currently stands: during holidays you leave the Whatsappgroup (which is not allowed to be used outside of work hours anyway) – we introduced this rule when one of
us was answering our much too boring questions with their skis still strapped under their feet. But enoughabout us, this is who we are:

26

MARTHE VAN ANDEL“What a gift, that Marthe”, is what Marthe’s family must have said on
the day she was born, but which we’ve definitely said the first day she
walked into our office. Since Marthe’s arrival, no one else has ever been
the first one in the office. Or the one with the highest heels. Marthe
strides from her home to the office on the highest of heels, where she
continues to amaze us all day, every day, with the vast amount ofknowledge she has acquired in her very short life. We’re just glad to beable to call this former programme developer (Heifer) and programmemanager development and quality assurance (PharmAccess) our very
own programme manager living wage and income. Not in the least
because, ever since Marthe joined our team, Monday after-work drinks,
Tuesday after-work drinks, Wednesday after-work drinks and Thursday
after-work drinks are no longer the exception.

CHANNA BRUNT
There is always a good reason to bring a lemon meringue tart to the office.
And if there isn’t, Channa will find one. As our communication manager,
she’s not only the voice, but also the conscience of Fairfood. Whatever
we do – whether we’re in the middle of a big project or philosophising
about our next BHAG (Big Hairy Audacious Goal) – Channa’s famous
mental eye-roll and determined voice will unavoidably make an
appearance: “But what does this mean for the people at the beginningof the chain?” If we can’t satisfyingly answer that question, we’re sent
back to the drawing board. She also single-handedly maintains a deep
divide between the office millennials and the pre-1980 generation by
constantly reminding us of the things we do ‘because we are old’. She
did manage to get all her colleagues to use Lush’s packaging-free soap
and shampoo.

LONNEKE CRAEMERS
Lonneke C. is an interesting mix of dry wit, entrepreneurship, clear vision
and a generous pinch of stubbornness. At her arrival in 2018, she
impregnated our team with a healthy dose of structure, Excel sheets
and project-based working. If our business developer does anything,she does it well. She was previously crowned windsurfing queen andconquered the Nepalese Annapurna on her mountain bike as if it werenothing. Her mind never seems to stop running either: during lunches
and drinks, she’ll often casually present new business plans for, forexample, a recycled cigarette purse (at the moment, that’s all we cansay about that). Recently took a Monday off work because she wasgoing to Carnival that weekend, and subsequently became the ultimate
embodiment of the "work hard, play hard" principle.

ANNUAL REPORT 2018 ~ 27

LONNEKE VAN GENUGTEN
At a team workshop, Lonneke learned that her personality-type is thecolour yellow. Slightly dismayed, she glanced at the corresponding board,on which a drawing of partying puppets was accompanied by statements
such as, ‘please like me!’ and ‘there are no strangers, only friends I haven’t
met yet’. We are not very enthusiastic about that description of perhaps
the finest personality within our team either. Lonneke knows what’s up. In
the theatre, at a film festival, but also in the world of coffee, at work andin your love life. More than the what, she’s interested in the how. As
programme manager responsible innovation, she keeps her finger on thepulse of all ongoing processes and can suddenly hit you out of nowherewith terms like data sovereignty and privacy by design. And that’s how
she makes everything we do a little better. On top of that, Lonneke is our
zero waste policy – at the end of a working day, half a bell pepper, threecrunchy bread slices and an avocado-as-soft-as-butter will quietly
disappear into her bag. Let’s just assume it’s for her worm hotel.

MARTEN VAN GILS
Sometimes we have no idea what’s going on in Marten’s head. For hours
on end, he’ll be completely immersed in his computer screen, and all we
can say is that the world always becomes a little bit brighter when here-emerges. That moment always comes unexpectedly, usuallyaccompanied by a generous smile, a highly interested personal question
and a complementary intense gaze, or even a dinner-tip. With the sameease with which he puts entire food chains on the blockchain, ourprogramme manager fair tech regularly pulls fairly surprising yet
impressive taste combinations out of his hat. During our multi-day teamoutings, he commands the kitchen with a stern look and efficiently shortcommands, nearly terrifying all of us. But this is all immediately forgiven
when we take our first bite. Deals in Bitcoins as eagerly and effortlessly
as in white truffles from Italy.

RAFAEL DA COSTA GUIMARAES
Newest and youngest member of our family. Once upon a time hestarted out as an intern, but we were so impressed by all that Rafael isable to teach us about blockchains – and by the way that he does –that we were quick to make things official. Junior business developer
blockchain, is what his business cards now say. By the way, don’t let his
name fool you. Rafael only barely speaks Spanish. "Spanish-speaking
women always say I speak very cute Spanish," he once said, just a little
too proud. Mondays have become a lot more bearable ever since Rafael
spruces up our lunches with scintillating, extremely detailed stories about
his weekends. Listening to those with a healthy dose of empathic power,
it’s almost as if you’re 23 again.

28

SANDER DE JONG
Three years ago, Sander was as fearless when rebranding Fairfood
as he was when he founded the Dutch Weed Burger. We currently
do not know exactly how many bikes our managing director owns.
Depending on the weather conditions and his work schedule, hecycles to the office on either some rusted up outdated model, or amodest racing bike, or the least modest racing bike ever. In the latter
case, he strides into the office with an – if humanly possible – evenbigger smile. Once he’s in, a Friesland-related joke is usually followedby some honest hard work, but his supreme concentration can always
be disrupted to spice up a project, question or problem with optimism,
enthusiasm and a fresh perspective. He leaves the office withunabated energy, to then put on his skates for a lesson in ‘advanced
ice skating’ just a few hundred meters down the street – he’s notnamed Sander Bob de Jong for nothing.

ISA MIRALLESIsa found ‘the one’ last year: ‘fluffy cloud’, as she calls our office dog
Dorus. When they run towards the horizon together, they may look evenmore athletic than when Isa does it alone. She must get more exercise
than anyone else in the Netherlands: football, cycling, running, padel
and climbing. This stands in stark contrast to the hours she spends as a
researcher, completely still and in absolute concentration behind her
laptop: cross-legged, headphones on, slightly pinched eyes, dead serious
look on her face. If we get a little too crazy and the headphones no longer
suffice, we’ll be subtly admonished to silence with a strict “guys...”.
Fortunately, the very next moment, she’ll grace us with one of her very
best jokes. Or a rant against disposable plastics. And she’s gathered somany facts about that, you never know when she’ll stop talking again.

HANS MOLENAAR
Silent force Hans came to Fairfood along with our fair tech-projects. As
our new finance and business management colleague, he streamlines
our projects as they flow in. He used to do the same for Mileudefensie(Environmental Defense) and Friends of the Earth, which entitles him
to call himself ‘financial expert non-profit’. He can call himself a lot morethan that by the way. In the spirit of ‘you’re never too old to learn’, Hans
used his weekends over the past few years to train as a psychodynamic
therapist. And you may view that as some covert marketing for his newlylaunched practice.

ANNUAL REPORT 2018 ~ 29

JOLINE, JESSAMINE, MASJA, DYLAN
Without some of the nicest interns in the world, 2018 would have looked very different. Joline, thank you foralways being ready to get down to business – even in the scorching heat – and for making sure everything
went smoothly at the Parade festival this summer. Your jokes and buffoonery are still cracking us up. Jessa,
thank you so much for completely throwing yourself into the project with the Coffee Quest and Triodos
Foundation. And for painting sidewalk signs, which you also did with amazing skill. Masja, thank you forgetting on the train at 6:30 every morning while the whole of the Netherlands was suffering from winterdepression. Dylan, we’re so glad that your man found you and brought you over to the Netherlands.
We wonder if New York knows what it’s missing.

SUPERVISION AND MANAGEMENT
Fairfood is managed according to the Supervisory Board model. This Board is responsible for the appointmentof the managing director – in our case, Sander – who in turn is responsible for the foundation’s policy anddaily supervision. Each year, two members of the Supervisory Board, including the chairman, sit down withthe managing director for an assessment interview. The Supervisory Board not only monitors the management,
but also keeps an eye on the general course of affairs at Fairfood. The Board’s tasks include approving theannual plan and budget and assessing the annual report and financial statements.

“If I could see the further course of the nutmeg chain on my smartphone, thatwould be very helpful. Ultimately, I want to do everything I can to grow mybusiness. Although I can’t complain, I want to invest in my daughter’s future,
who is studying health care – I want her to have an even better life than I do.”~ Muslima Abast, nutmeg farmer

Our Board consists of six people, who carry out their work unsalaried. When a position opens up, a profile isdrawn up by Sander and the Board, taking the current expertise of the Board into account. New members
are appointed by sitting members. The audit committee is made up of two members of the Supervisory Board.
This committee supports the supervising role of the Supervisory Board in the case of financial matters. The
audit committee meets with the director at least twice a year to discuss, among other things, the preliminary
budget and the yearly interview with the accountant.
We are extremely proud of our Supervisory Board – they all own impressive CV’s and a combined know-howthat will blow your socks of. We like making use of that know-how. Our lines of communication with the Board
are short, and informal consultations and rounds of feedback are not uncommon. Sometimes the entire Board
joins us for after-work drinks or an interactive Christmas dinner, so everyone on the team knows everyone on
the board. Our Supervisory Board of 2018 was made up of:

JOLANDE SAP
Independent sustainability adviser, supervisor and commissioner for corporate and social organisations, andsought-after speaker and day chairman. From 2010 to 2012, Jolande was chairman of political party GroenLinks
in the Dutch House of Representatives. She was member of parliament from 2008 until October 2012, when
she bid goodbye to politics. She’s held several research and management positions at governmental andprivate organisations and has a broad knowledge of socio-economic and development issues. Jolande has
been the Board’s chairman since January 2014.
MAXINE TILLIJ
Advises companies and governments on projects, investments and strategic partnerships needed to promoteenergy transition and a circular economy. Maxine is greatly experienced with strategy development, businessdevelopment, alliance management and legal affairs. Maxine moves within an ecosystem of professionals
who share a belief in sustainability, equality and transparency. As a project director, she recently developed
the joint venture between the Port of Rotterdam and energy network operator Gasunie, for the constructionof a large-scale heat infrastructure in South Holland. She was also one of the driving forces behind thedevelopment of the Heat Alliance South Holland. She started her career as a lawyer at De Brauw, Blackstone,
Westbroek N.V. In 2015 and 2016 she was Fairfood’s managing director on behalf of the Supervisory Board.
HEDWIG BRUGGEMAN
Hedwig Bruggeman grew up in Dutch Flanders and trained as an animal husbandry specialist at Wageningen
University. She gained extensive international experience through several long-term missions in Africa, after
which she managed network organisation AgriProFocus for 10 years. She’s been back at Wageningen University
since November 2015, where she heads the Centre for Development Innovation of Wageningen University &Research.
FRITS KREMER
Director of Mediaset Business Events, chairman of sustainability network Foodpolicy NL and member of theAdvisory Board of the Good Fish Foundation. Frits is also a regular columnist for FoodPersonality magazine.
From 2003 to 2006, he was head of corporate communications at supermarket group Laurus. At the sametime, he worked together with Natuur & Milieu and Oxfam Novib to lay the foundation for a sustainability
policy for supermarket format Super de Boer, which later merged with Jumbo.

30

ANNUAL REPORT 2018 ~ 31

PIETER GOUDSWAARD
Independent marketing specialist Pieter Goudswaard helps innovative and sustainable entrepreneurs increase
their social impact and business success. He also supervises companies in making their international production
chains future proof. He does that with his own company Abre and the agrifood-team of MVO Netherlands,
among others. Pieter has many years of experience in the field of marketing, commerce, innovation andsustainability within Procter & Gamble, Unilever, Danone, People4Earth, Jumbo and Generous Minds.
In addition to the Supervisory Board we have an Advisory Board, which advises our managing director on
strategic issues. This board is made up of prominent experts with an extensive international network anddiverse professional backgrounds. We are very proud of the wonderful club that is taking on this task:

When Dionne Warwick sang ‘that’s what friends are for’, she probably wasn’t talking about ‘making the foodsystem fair’. Still, our friends come in handy during that mission. Our work is supported by partners, ambassadors,
volunteers, consumers, the media and other interested parties. They deserve a special place in this annual
report, as they’ll hopefully make you as happy as they make us.

PARTNERS

Guus Loomans charity manager at Rabobank Netherlands
Pierre-Louis van Hedel managing director at Rabobank Foundation
Gerrit Bruggeman managing partner RTB
Niels Penninx managing partner at Green April
Martijn melts chief marketing officer at TP VisionThis is a perfect place to give special thanks to the Dutch Postcode Lottery and all its participants. Again
in 2018, there was that beautiful check of 500 thousand euro. It’s quite simple: without the Dutch Postcode
Lottery (DPL), Fairfood wouldn’t be where it is today. Since 1989, DPL has been recruiting funds fororganisations that are fighting for a greener, fairer world. Half of their proceeds is divided amongorganisations that fight for a better world, through environmental protection, developmental collaborationand human rights – which includes us. Fairfood has received a yearly stipend of 500 thousand euro fromDPL since 2009, which we put towards campaigns and project that will fix our food system. Thanks DPL!

RISK ANALYSISAMBASSADORS

Practice what you preach: at all times, Fairfood aims to be transparent about its business operations andcommits to the effective use of resources – each euro spent, every hour worked is accounted for. Risk management
is very important to us, because we know all too well that economic conditions can change, politics can be
unstable and markets volatile. Political decisions – and the availability of funding – are difficult to predict, as
are the political forces that influence partner organisations. Fairfood works with other NGOs and lobby
organisations Partos and MVO Platform to influence political decision-making through smart lobbying andadvocacy. An example of this is the place we’ve held at the food covenant negotiating table in recent years.
With the arrival of our managing director Sander, in 2016, a new multi-year strategy was introduced. This fundraising strategy secured funding for projects running from 2017 to 2019. At the same time, we began, and stillare, actively building relationships that will keep Fairfood financially healthy far beyond 2019. Our financing
plan is focussed on long-term partnerships and funds that concern themselves with technological applications
such as blockchain, artificial intelligence and Internet of Things. The partnerships we enter into with companies
and organisations that want to contribute to a sustainable food system – think of the blockchain projects,
which we discussed in Chapter 4 – are paramount.
Even though that means that, unlike the ‘old’ Fairfood, we put less focus on campaigning, this strategy remains
close to our roots – to our vision and mission to make the food system fair.

32

6 FRIENDS OF FAIRFOOD"I saw your toilets at the Parade festival and I’ve been following your work ever since!" – we like it. ”I
saw Lonneke’s presentation at the Bio-drinks event, and I’ve been seeing your name all over the placesince" – we like it. “I’d love to volunteer for you guys” – we like it. We could debate the true meaning of
the word ‘ambassador’, but at Fairfood, we consider everyone who follows our work, thinks it’s importantand talks about it our ambassador. Last year, there were the 33 coffee bars, labels and baristas who
officially joined our coffee campaign as ambassadors – with social media posts, window stickers, posters
and flyers – who deserve a special shout-out. We also get more and more e-mails from people who wantto volunteer for our cause. Speaking of: special thanks to Karina and Swati, who regularly assist thecommunication department unremunerated. That’s what you call ambassadors. They keep us energised.
Everyone is welcome at Fairfood and we like to keep things as personal as possible. Don’t hesitate toemail us to find out how you can contribute.

“As a charity lottery, it is our mission to contribute to a green
and fair world. Ever since 2009, Fairfood has been one of ourbeneficiaries, whom we support in their fight for a fair andtransparent food chain. Fairfood makes sure that the mostvulnerable people in the food industry can lead a fair anddecent life. Thanks to the 3 million participants of the Postcode
Lottery, Fairfood has received a total contribution of €6.1 million
for their work.” ~ Margriet Schreuders, Head Charities
Dutch Postcode Lottery

ANNUAL REPORT 2018 ~ 33

OUR REACHTECH EN M

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jzen
nv
chaintechnol ragen dat de blockzal betrouw ogie doorzet. ‘Hetbamaken. Daar re handel mogelijk
om is een be
Alibaba zo ac
drtief. Als je hi ijf als
bij bent, wo
rd je ingeha er niet
ald.’

For Fairfood, the media are an important channel to share our story with the outside world and find support
a PAGINA 21
for our mission. That story could be our coffee campaign, a blockchain project, or maybe
the reason why
pagina 4, 21-03-2019©
Het Fina
we do not support the food covenant. We’re very pleased about all the attention our story
gotncielast
ele Dayear
gblad –
Volkskrant, Trouw, NRC, Parool, BNR News Radio, RTL’s talk show Koffietijd and others gave us a stage.
We appeared in the media more than 55 times this year. On average, that’s practically once a week!

34

in 2018…
We turned the toilets of theatre festival the Parade into asuper-bad supermarket
We ran 1 campaign, for which we produced 1 video
We published 3 opinion pieces in the newspapers,
namely Trouw, Parool and Volkskrant
we hosted 12 blockchain-events
we sent out 12 newsletters
we gave 19 interviews
we wrote 28 blogs
we gave 34 presentations
The results:
270 thousand people (potentially) reached online through our coffee ambassadors
230 thousand visitors at theatre festival the Parade, who took care of their
number ones and twos at our super-bad supermarket
90 thousand Facebook followers
40 thousand website sessions
27 thousand unique website visitors
21 thousand views of our WAKEcUPCALL campaign video
13 thousand Twitter followers
4 thousand LinkedIn followers
3 thousand subscribers to our newsletter
A thousand Instagram followers
55+ times in the media
33 frontrunners associated with our coffee campaign

ANNUAL REPORT 2018 ~ 35

7 FULL STEAM AHEAD

That’s it. It’s been good. We officially close the book on 2018 with this annual report. Take a bow and off
we go. The show must go on. Because our work is far from over, and we won’t stop until it is. We will try
even harder to provide the world of food with solutions in 2019. With technological innovations that help
make chains transparent and could improve the lives of so many people. A little sneak peek: this is what
we’ll be up to in 2019.

BLOCKCHAIN TOOL
We’re impatiently awaiting the launch of our blockchain tool (name and branding are being worked on),at the end of 2019: a tool that can make everyone’s chains transparent. In 2018 we presented the idea to
SIDN fund and funding was granted to us at the beginning of 2019. We are going for it together: we’ll
build a financially accessible platform that allows companies to trace their own chains from tree to plate,and verify their quality and sustainability claims – using blockchain technology. While working on our
projects over the past few years, we’ve noticed that available systems and technologies have been too
limited, closed off or expensive. Saying no is never fun, but especially not when you, as an NGO, see
ambitious, well-meaning but smaller companies not being able to benefit from incredible innovations. Forus, this development goes hand in hand with an investigation into data privacy. Responsible innovation:
how do we guarantee the privacy of everyone involved in the food chain, even at the drawing board stage?
Who owns the data?

8 FINANCIAL FORECAST 2019

Our goal is to grow our operational budget to €1.1 million in 2019, adding €100,000 to our reserves. The benefits come from collaborative projects with companies, funds and grants. We’ll realise this with a small,
flexible team of dedicated professionals. We’ll further expand our fundraising activities and prepare the strategy for the period 2020-2023.

BUDGET 2019 IN FIGURES NUMBERS IN €INCOMEINCOME FROM PRIVATE FUNDRAISING

413.100

INCOME THIRD-PARTY ACTIONS

500.000

GOVERNMENTAL CONTRIBUTIONS

187.600
1.100.700

LASTENPERSONNEL

545.800

HOUSING

22.000OFFICE

3.400

MORE TRANSPARENT CHAINSORGANISATION

64.200In addition to the blockchain tool, we’ll continue working on projects and programmes in collaboration with
ambitious frontrunners in the agrifood sector this year. We aim for more products, more chains and morecountries. Yes, we’re not afraid to be a little ambitious. We’ll collaborate with supermarket chains, NGOs,
governments and businesses to achieve fair, sustainable food chains, which we believe begin withtransparency. There are already lots of promising projects in the pipeline, but we would like to share thisone with you already: after successfully tracing their nutmeg, we will trace Verstegen’s top 25 herbs andspices from farm to factory. Verstegen wants more insight into the source of its products and the working
and living conditions of the people behind them. The company has set itself broader sustainability ambitions:realising living incomes for the farmers behind their product range is a first step towards a collective,
improved care for the world.

COMMUNICATION

30.000RESEARCH

20.000

UNFORESEEN

15.000PROJECT COSTS (NON PERSONNEL)

300.300
1.000.700

RESULT

100.000

YEAR-END RESERVES

290.569

INTERNATIONAL CONFERENCE LIVING INCOME & WAGE
With the increased focus on due diligence in the field of human rights as part of responsible entrepreneurship,
there is also growing attention towards living wages and income. Governments, companies, socialorganisations and many others are working on it, or want to work on it. That’s very good news to us. However,there is still a lack of large-scale implementation. In November this year, we’ll explore challenges andopportunities during a conference that we organise together with Hivos, Rainforest Alliance, Ministry ofForeign Affairs, Fairtrade Max Havelaar, IDH and GIZ. With this conference we want to raise awareness,offer action perspectives and facilitate commitments from governments, companies and civil society. Be
sure to put November 5 and 6 down in your calendar!

36“Fairfood and the Ministry of Foreign Affairs are working together
closely on the preparations of the international conference on living
wage and income in agri-food, that will be held in 2019. Fairfood isplaying an important part in getting this urgent theme higher on
the agenda, with the Living Wage Lab amongst others.”~ Jos Huber, senior policy advisor Ministry of Foreign Affairs

ANNUAL REPORT 2018 ~ 37

FINANCIALREPORT

39

BALANCE SHEET AS OF DECEMBER 31 2018

PROFIT AND LOSS CALCULATION FOR 2018

(after allocation of results)
31-12-2018

31-12-2017€€

59.62214.297ASSETSACCRUALS AND DEFERREDINCOME
CASH AND CASH
EQUIVALENTS

202.013297.905

TOTAL

261.635

312.202

2018

2017

€

€

INCOME FROM PRIVATE FUNDRAISING

187.965

107.037

BENEFITS FROM THIRD-PARTY ACTIONS

500.000

500.000

GOVERNMENTAL CONTRIBUTIONS-

24.500TOTAL INCOME

687.965631.537PERSONNEL COSTS

465.298

333.745

HOUSING COSTS

18.48023.057

6.309

6.524

INCOME

COSTS

31-12-2018

31-12-2017

CONTRIBUTIONS PARTNERS AND
UMBRELLA ORGANISATIONS€€COSTS OBJECTIVE

190.748209.796

LIABILITIESADDITIONAL OPERATING COSTS

58.32353.871STATUTORY RESERVESTOTAL COSTS

739.158626.993

OPERATIONAL RESULT-51.193

4.544

FINANCIAL INCOME/COSTS

-360

62

RESULT-51.553

4.606

CONTINUITY RESERVE-51.553

4.606

TOTAL

-51.553

4.606

CONTINUITY RESERVE

190.569242.122190.569242.122

CURRENT LIABILITIESACCRUALS AND DEFERREDINCOME

71.06670.08071.06670.080261.635

312.202

DESTINATION RESULTS
TOTAL

40

41

NOTES TO FINANCIAL STATEMENTS
GeneralThe registered address of Stichting Fairfood International is Mauritskade 63 in Amsterdam (registered at
the Chamber of Commerce with file number 34141098).
Principles of value and determination of results
The financial statements have been prepared in accordance with the Guideline for Annual Reporting 640‘Not-for-profit organisations’ of the Dutch Accounting Standards. Annual accounts are based on historicalcost conventions. The valuation of assets and liabilities is done at nominal value, unless stated otherwise.
Profits are assigned to the period in which they were realised. Expenses are also accounted for.
Comparative figures
The figures from the preceding year have been reclassified for comparison purposes. The budget figures
are not presented in this annual report because in 2018 the budget was not used as a direct steering
mechanism. However, regular internal reporting on the finances took place and close contact with theSupervisory Board as to whether or not commitments were enforced was maintained.

Liabilities
The current liabilities are those with a term of less than one year. These are initially valued at their fair value
and subsequently valued at amortised cost, which is similar to the face value. Accruals are valued at theirnominal value. Accruals and deferred income are stated at their nominal value.
PRINCIPLES OF THE DETERMINATION OF RESULTS
Gifts in kind
Gifts in kind are valued against fair value in the country in which they are received. The fair value is estimatedas the regular selling price of the supplier minus the reduction indicated by the supplier. Contributions fromvolunteers are not accounted for financially. Processing gifts in kind does not affect the result and the equity,
but only the volume of income and expenses. The income is accounted for ‘sponsoring in kind’ revenues.
The expenses are accounted for where they are usually accounted for.

Foreign currencies
The accounts of the organisation are presented in euros, which is Fairfood’s functional currency. Transactions
in foreign currencies are converted to euros at the beginning of the month in which the transaction occurs.
At the end of the financial year, all accounts receivable and liabilities in foreign currencies are converted
to euros on the basis of the exchange rate as per balance date. Exchange rate results have been added
to the statement of revenues and expenditures.
PRINCIPLES OF VALUATION OF ASSETS AND LIABILITIESFixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and, where applicable, minus
impairments. Depreciation is based on the estimated useful life and calculated as a fixed percentage ofcosts, taking into account any residual value. Depreciation is recognised from the date an asset comes
into use.
Receivables
The receivables are stated at nominal value. Provisions deemed necessary regarding the risk of bad debts
are deducted. These provisions are determined on the basis of individual assessment of the receivables.
Current assets
All cash and cash equivalents are at free disposal.
Reserves
Fairfood aims to reach a discretionary net worth of 45 per cent minimum and 60 per cent maximum of theannual ongoing costs of the work organisation. This is done in order to avoid immediate issues that may
arise in case of financial setbacks.

42

43

NOTES ON BALANCE SHEET AS OF 31 DECEMBER 201831-12-2018

31-12-2017€€

NOTES TO THE PROFIT AND LOSS ACCOUNT 2018
INCOMEACCRUALS AND DEFERRED INCOME

2018

2017

€

€

PREPAID COSTS

5.459

374

RECEIVABLES

35.94213.923

INCOME FROM PRIVATE FUND RAISING

DEBTORS

18.221-

DONATIONS AND GIFTS

6.982

454

59.62214.297SPONSORSHIP IN KIND

24.68135.432

NGO CONTRIBUTIONS

43.11268.000

BUSINESS ASSIGNMENTS

112.791-

PROCEEDS CAMPAIGN-SALE

399

3.151

187.965

107.037500.000

500.000

500.000

500.000

MINISTRY OF FOREIGN AFFAIRS-

10.500MINISTRY OF ECONOMIC AFFAIRS-

14.000-24.500CASH AND CASH EQUIVALENTS
PAYMENT ACCOUNTS

80.39769.846SAVINGS ACCOUNT

121.616228.059

202.013297.905
BENEFITS FROM THIRD-PARTY ACTIONSDUTCH POSTCODE LOTTERY

31-12-2018

31-12-2017

BALANCE SHEET AS OF JANUARY 1

242.122237.517ALLOCATION OF RESULT-51.553

4.605

BALANCE SHEET AS OF DECEMBER 31

190.569242.122- GENERAL FINANCING

CONTINUITY RESERVECURRENT LIABILITIES44

CREDITORS

14.0893.500

ACCRUALS AND DEFERRED INCOME

12.478

2.420

SALES TAX PAYABLE

4.110

-

SUBSIDIES RECEIVED IN ADVANCE

40.38964.16071.06670.080

GOVERNMENTAL CONTRIBUTIONS

45

INDEPENDENT AUDITOR’S REPORT

COSTS
2018

2017

To: The Supervisory Board and Management Board of Stichting Fairfood International

WAGES AND SALARIES

342.587258.669

SOCIAL EXPENSES

53.44637.373

A. REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS 2018 INCLUDED IN THE ANNUALREPORTTRAVELLING EXPENSES

9.364

5.194

EDUCATION

1.673

-

NON-SALARIED STAFF

47.82021.846CANTEEN EXPENSES

5.178

2.842

ADDITIONAL PERSONNEL COSTS

5.230

7.821

465.298

333.745PERSONNEL COSTS

The average FTE in 2018 was 5,74 (2017: 3,96)
HOUSING COSTS
RENT

17.71020.979ADDITIONAL HOUSING COSTS

770

2.078

18.48023.057

CAMPAIGN

165.421187.162

PUBLICITY

25.32722.634190.748209.796

OFFICE COSTS

30.24535.698

AUDITING COSTS

9.942

17.457ADVISORY COSTS

18.136400

ADMINISTRATION FEE-

316

58.32353.871

INTEREST INCOME

€ 161

€ 558

BANK CHARGES€ -521€ -496€ -360€ 62

COSTS OBJECTIVE

ADDITIONAL COSTSFINANCIAL INCOME AND EXPENSESOUR OPINION
We have audited the financial statements 2018 of Stichting Fairfood International, based in Amsterdam.
In our opinion the accompanying financial statements give a true and fair view of the financial position ofStichting Fairfood International as at 31 December 2018, and of its result for 2018 in accordance with the
Guideline for annual reporting 640 ‘Not-for-profit organisations’ of the Dutch Accounting Standards Board.
The financial statements comprise:
1. the balance sheet as at 31 December 2018;
2. the profit and loss account for 2018; and3. the notes comprising a summary of the accounting policies and other explanatory information.
BASIS FOR OUR OPINION
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our
responsibilities under those standards are further described in the ‘Our responsibilities for the audit of thefinancial statements’ section of our report. We are independent of Stichting Fairfood International inaccordance with the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten(ViO, the Code of Ethics for Professional Accountants, a regulation with respect to independence) andother relevant independence regulations in the Netherlands. Furthermore we have complied with the
Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics). We believe the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
.
B. REPORT ON THE OTHER INFORMATION INCLUDED IN THE ANNUAL REPORTIn addition to the financial statements and our auditor’s report thereon, the annual report contains otherinformation that consists of:• The management board’s report;• Other information as required by the Dutch Accounting Standards Board.
Based on the following procedures performed, we conclude that the other information:•••is consistent with the financial statements and does not contain material misstatements;
contains the information as required by the Guideline for annual reporting 640 ‘Not-forprofit organisations’ of the Dutch Accounting Standards Board.

We have read the other information. Based on our knowledge and understanding obtained through our
audit of the financial statements or otherwise, we have considered whether the other information contains
material misstatements. By performing these procedures, we comply with the requirements of the Guideline
for annual reporting 640 ‘Not-for-profit organisations’ of the Dutch Accounting Standards Board and theDutch Standard 720. The scope of the procedures performed is substantially less than the scope of those
performed in our audit of the financial statements.

46

47

Management is responsible for the preparation of the management board’s report and other information
as required by the Guideline for annual reporting 640 ‘Not-for-profit organisations’ of the Dutch AccountingStandards Board.
•
C. DESCRIPTION OF RESPONSIBILITIES REGARDING THE FINANCIAL STATEMENTS•RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTSManagement is responsible for the preparation and fair presentation of the financial statements inaccordance with the Guideline for annual reporting 640 ‘Not-for-profit organisations’ of the Dutch AccountingStandards Board. Furthermore, management is responsible for such internal control as management
determines is necessary to enable the preparation of the financial statements that are free from material
misstatement, whether due to fraud or error. As part of the preparation of the financial statements,
management is responsible for assessing the company’s ability to continue as a going concern. Based on
the financial reporting framework mentioned, management should prepare the financial statements using
the going concern basis of accounting unless management either intends to liquidate the company or tocease operations, or has no realistic alternative but to do so. Management should disclose events andcircumstances that may cause significant doubt on the company’s ability to continue as a going concern
in the financial statements.

our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause a company to cease to continue as a going
concern;
Evaluating the overall presentation, structure and content of the financial statements, including thedisclosures; andEvaluating whether the financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant findings in internal control
that we identify during our audit.
Amsterdam, 23 may 2019
Ardent Adviseurs en Accountants

w.g.
T. Dijkstra AAOUR RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficientand appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute,level of assurance, which means we may not detect all material errors and fraud during our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of thesefinancial statements. The materiality affects the nature, timing and extent of our audit procedures and theevaluation of the effect of identified misstatements on our opinion.
We have exercised professional judgement and have maintained professional skepticism throughout theaudit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements.
Our audit included among others:• Identifying and assessing the risks of material misstatement of the financial statements, whether due
to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control;• Obtaining an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the company’s internal control;• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management;• Concluding on the appropriateness of management’s use of the going concern basis of accounting,and based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s reportto the related disclosures in the financial statements or, if such disclosures are inadequate, to modify

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FAIRFOOD.NL
MAURITSKADE 64
1092 AD AMSTERDAM