ANNUAL REPORT 2019
A DEMOCR ATIC FOOD SYSTEM
WITH SMART INNOVATIONSHIGHLIGHTSFOREWORD

47

1.1 NEWS
1.2 FACTS
1.3 PROMISING TRENDS

8
10
12

2.1 HOW, WHAT, WHY
2.2 A NEW STRATEGY: AN EYE FOR INNOVATION

1415

3.1 VERSTEGEN & COOP: NUTMEG
3.2 VERSTEGEN: SUPPLY CHAIN TRANSPARENCY
3.3 JUMBO
3.4 FRESH PRODUCE CENTRE
3.5 DUTCH POSTCODE LOTTERY
3.6 THE COFFEE QUEST

16
18
19
19
19
20

1 THE STATE OF THE FOOD SYSTEM

2 OUR RIGHT TO EXIST
3 PARTNERSHIPS

4 INNOVATION
4.1 TRACE: TRACE YOUR FOOD FROM TREE TO PLATE
4.2 ALIGN: GUIDANCE TOOL ON LIVING WAGES AN INCOME

5 SHARING KNOWLEDGE

8

14

16

21
21
22

23

5.1 THE ONLY WAY IS UP! CONFERENCE
23
5.2 LIVING WAGE LAB
26
5.3 TECHNICAL CENTRE FOR AGRICULTURAL AND RURAL COOPERATION
AND WAGENINGEN UNIVERSITY & RESEARCH
27

6 ABOUT US

28

6.1 WAY OF WORKING
6.2 TEAM
6.3 SUPERVISORY BOARD
6.4 ADVISORY BOARD
6.5 RISK ANALYSIS
6.6 INTEGRITY
6.7 FINANCES

28
28
32
33
34
34
34

7.1 TRACE AND TRABOCCA
7.2 VERSTEGEN, PART 3
7.3 ALIGN 2.0

36
36
36

8.1 FINANCIAL FORECAST 2020

37

FINANCIAL STATEMENTS 2019

39

7 FULL STEAM AHEAD!

8 FINANCIAL FORECAST 2020

36

37

ANNUAL REPORT 2019 ~ 3

Since 2019, the NUTMEG
we put on the BLOCKCHAIN
together with Verstegen Spices & Sauces is available toeveryone in the Netherlands
at Coop supermarkets (see 3.1.)

We announced the launchof our new TRACE platform,a traceability tool thatallows everyone to map
their food chains using
blockchain

We launched the ALIGN tool, which helps to guide food businesses on their way towards living wages and income
A collaboration with Hivos, Rainforest Alliance and the German Federal Ministry
for Economic Cooperation and Development, implemented by the German bureau
for development cooperation GIZ

We organised several sessions of the
LIVING WAGE LAB, a breeding
ground for constructive discussions
and new collaborations
A collaboration with Hivos

Together with the Technical Centre
for Agricultural and Rural Cooperation (CTA), we organised a SERIESOF WEBINARS on what blockchain
can do for farmers' incomes

We traced the very
first coffee beansof coffee importer
TRABOCCA, which
we'll tell you much
more about in 2020

Our highlights in 2019
We organised the THE ONLY WAYIS UP! Conference on living wages
and income; with over 300 visitors wewere more than sold out

At that conference many important commitments were made,including one by nearly all Dutch supermarkets to sell only
FAIR BANANAS from 2025 onwards. A collaboration with
the German Federal Ministry for Economic Cooperation andDevelopment, the Dutch Ministry of Foreign Affairs, Rainforest
Alliance, Fairtrade, Hivos and IDH The Sustainable Trade Initiative

4

We travelled to SOUTH
AFRICA to kick off a special
project with local citrus farmers, with whom we’ll workon creating a direct connection to the EU market,
without any intermediaries
A collaboration with Fresh Produce
Centre, Total Produce and local partners

The Dutch Postcode Lottery supported our work again this yearwith 500 THOUSAND euros

Together with CTA and Wageningen University & Research, we published a report on the potential ofblockchain in agrifood:

A CHAIN OF POSSIBILITIESANNUAL REPORT 2019 ~ 5

WEL
COME

FOREWORD

Suddenly, there we were: gathered with over 300 people from all over the world, each contributing to better
food in his or her own way. The Only Way is Up! Conference: a two-day conference in Rotterdam on living
wages and incomes in agrifood in the Fall of 2019. Completely sold out. Full house, fiery speeches, thunderous
applause, trending on Twitter. We hadn't dared dream of such incredible enthusiasm for such an incredibly
complex subject.
I spoke to politicians, farmers, scientists and people who make our food fairer by building ingenious tools or
doing the same through their work at an NGO. It's moments like this that give me, and the rest of the Fairfood
team, a tremendous energy boost. Inspiration too, and above all: the confirmation that we are not alone, that
we are doing and must do this together.
Over the years, Fairfood has increasingly sought out fruitful collaborations that have a positive impact on the
global food system. We found partners in public institutions, agri-food companies and NGOs who, just likeus, look to smart innovation to achieve their ambitions and goals. We all make use of the Fourth Industrial
Revolution to realise more equality, to democratise the world of our food. Call it tech for good, or call it anunavoidable new reality.
With that new focus on innovation, words like big data, blockchain and self-sovereign identities inevitably
entered our office walls. As a bunch of autodidacts, we followed the developments of the Fourth Industrial
Revolution very closely. We put all our newly gained knowledge into practice during our own pilot projects(coconut on the blockchain!). Over the past two years, we've perfected our work in collaborations such as theone with Verstegen Spices & Sauces, which allowed us to make the entire production chain of nutmeg
transparent.
2020 is the year it will all come together: knowledge and experience gained over the years, (blockchain)projects and partnerships are culminating in Trace – an accessible traceability tool that agrifood companies
can use to explore their production chains and expose socio-economic challenges, to then effectively tackle
them. This makes Fairfood a catalyst for tech for good. We strongly believe these smart solutions must beaccessible to everyone.
While we were finalising this annual report, 2020 turns out to become a year in which humanity is getting aserious wake-up call. The corona crisis strikes with massive force and while I am writing these words, the world
has only just begun to understand what the consequences will be on a global level. For one, the people behind
our food are again faced with big challenges; the International Labour Organization warned that alreadyvulnerable groups will be pushed over the edge where they will be confronted with unemployment and poverty.
You can only imagine what this means for the people who are already struggling to make ends meet.

Sander de JongManaging Director Fairfood

Fairfood is currently exploring how our work, solutions and partnerships can contribute to averting thishumanitarian crisis – how we can add to the resilience that the people behind our food have so often
demonstrated, when faced with floods, droughts and issues of social sustainability.
Hard times, that once again remind us to look after each other. Let’s push for a food system that emerges
from these unprecedented times better, stronger and more just.

6

ANNUAL REPORT 2019 ~ 7

1 THE STATE OF THE
FOOD SYSTEM
1.1 NEWS
Here at Fairfood, we are constantly sharing
articles, reports and updates with each other,that caught our eye for one reason or another.
Usually, these are amazing and inspiring pieces about solutions and ambitions. Unfortunately, they're also very often articles and reportsthat starkly remind us of why we are doing
what we do. That's why, once again, we arepresenting a cross section of the state that
our food system is currently in, based on themost eye-catching bad news reports:

ntilles
A
h
c
n
re
F
e
h
nas from t
a
n
a
b
:
5
2
2019,
r
e
Octob
mon issue; inides is a comof pestic
the news forxcessive use
e
r,
o
ct
se
ntilles made
a
A
n
h
a
c
n
n
a
e
b
Fr
e
e
th
ith
th
In
associated w
yanmar and
ly
M
n
o
s,
o
m
m
La
co
m
o
e
a pesticid
bananas fr
idely
hlordecone is, it was still w
C
75
.
n
19
so
in
a
S
re
U
t
exactly tha
ench
anned in therch at the Fr
agent was b
a
e
se
th
re
h
f
g
o
u
o
d
h
a
lt
cancer. A
93. The heyear:
ntilles until 19
the BBC last
A
ld
h
to
c
n
h
e
rc
Fr
a
e
se
used in th
for all
Medical Ree same goesr Health and
th
fo
;
d
te
e
u
it
ct
st
fe
In
in
l
Nationaare currently
l land is
astal waters
ll agricultura
a
co
f
ll
o
a
t
f
n
o
e
d
rc
ir
e
“One thicides inn. 30 to 50 p
aces of pesttrg is forbidde
in
w
o
sh
fi
sh
s
–
d
n
rs
la
the rive
prostate
ults on the ishigh rates of
Almost all ad
h
c
.”
d
su
s
te
a
a
h
in
d
m
rl
conta
ce in the wo
no other pla
d
n
a
d
o
lo
b
their
Martinique.
eloupe and
d
a
u
G
s
a
r
cance

Turkey
m
o
r
f
s
t
u
ed
: hazeln91rs co n s u m
t
e
u
b
ln
e
z
m
a
e
nuts
Sept
o f a ll hmple. The
quartersexao s t t h re e
utella forlmNars work
s
in
r
w
o
ro
,
The picke
ssed
.
e
c
n
Tu r ke y g
ro
re
p
d
il
n
h
u
c
the
– eatenincludingording to
,
c
c
ts
A
n
.
ra
e
worldwide
ig
g
by m
them
imum way pickeds, most of
an a min
rd
a
th
h
s
s
rc
are mostl
oletrnbour ishazelnu
rs and ea
d child lathousandna00long hou
n
4
o
t
ti
u
s;
a
o
of exploit
ey has ab
ction chain
u
m
d
le
ro
b
p
ro
d
p
n
BBC, TurkThe
lisendersta
ily farms.
eks to rea
ficult-to-u
e
if
s
d
,
–
x
a
le
small fam
ll
p
te
om
trace
ind Nuist within crand beh
ntly able to
b
e
rr
e
u
able to ex
th
c
–
is
t
020 bur example
the year 2yb
Ferrero, fo
y
it
il
b
on.
nt tracea
e plantati
thtots
100 perceusn
rcent of it
just 39 pe

November 19: sugar canefrom Zimbabwe

S u b -S a h a ra n
A fr ica h a s the h ig h e st n ulabourers in th
m b e r o f c h il de world; it is estimated that 59 m
between theillion children
ages of 5 an
d 17 currently
Internationalw
ork there. The
Labour Organisation (ILO
one in five Afr)
estimates that
ican children
are being exp
to do very danloited and forc
gerous work aedgainst their w
dove deep into
ill. The Guard
the country’s
iancane sugar inand stumble
dustry last yea
d upon manyrissues there
Tapiwa, who th
too. 9-year-oey saw workinld
g on a cane su
told them: “I hgar plantation
ave never bee,
n to school. Th
helping my gisis all I do. I'm
randma. If I d
on't work, we
d e a th .” H is'll both starve
p a re n ts d ietodin 2 0 17. Ta p
grandmother b
iw a a n d h isoth make abo
ut two dollars
every two wee
ks.

December 12: coffee from Brazil

8

ng poured worldwide comes from
More than a third of the coffee bei
billion-dollar industry. More thanBrazil – for the country itself it's acome from the state of Minas
half of all Brazilian coffee beans
ndation closely examined that
Gerais. The Thomson Reuters Fou
extensive slavery. The coffee fromindustry for six months, exposing
by workers of whom more thanMinas Gerais is grown and pickeda result, they are not entitled to
two thirds are undocumented. As
severance pay or benefits.
a minimum wage, overtime pay,

est Africa
W
m
o
fr
a
o
c
o
c
:
5
June

ar thisn't be surprised to he ated
wo
ly
ab
ob
pr
u
Yo
.
cocoa sectort you. It’s estimChild labour in theod sector than abou ory Coast and
fo
e
th
t
ou
ab
e
or
m
ys
Iv
– something that sa n work on cocoa plantations in there. About 20 years
ild
es
ch
tri
n
un
io
ill
co
oducingthat 2.1 m
pr
a
co
co
n
ai
m
's
t an end to
world
world promised to pu ns. Theye
Ghana, two of the
th
in
es
ni
pa
m
co
ocolater production chaiago, the largest ch
ild labour from theichactually
n
ba
to
g
in
go
and their target has
es
lin
ad
this; they were
de
n
ow
r
ei
have been put
many of thhave already missed , 70 percent of all child labour should
2020
issed.
been adjusted: bydeadline they've m
r
he
ot
an
's
at
Th
d.
to an en
ANNUAL REPORT 2019 ~ 91.2 FACTS *70%

It's going to be quite a challenge: feeding 10 billion mouths in 2050
without completely exhausting the world's resources. With the 7.7billion people currently inhabiting the world, we are already facing
a great deal of issues. With the United Nations Sustainable
Development Goals (SDGs), we have all set ourselves the goalof eradicating hunger from the world by 2030. But the Food andAgriculture Organization (also part of the United Nations) knowsthat the number of people suffering from hunger has actually beenon the rise for the past three years after falling slowly for decades– at the moment, one in nine people worldwide are suffering fromhunger. That's one food fact. Here are a few more:

821 million
people suffer fromhunger&over
half a billion
areunderweight*

peomvaeinrdtrivying

is thdforce behinurochild lab

73 milion children
in child labour are
younger than 12

The farmers
who work onthese farms
often live inpovertyin Bolivia
83%

in Ethiopia
48%

in Vietnam50%

Every year, over a quarterof all agricultural land
(1.4 billion hectares) isused to produce food thatis eventually wasted or lost

⅓of 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 areobese

Of the 152 million
children involved inchildlabour
worldwide, 70,9 % workin de agrifood sector

107,5 million
boys and girls

In times ofclimate change
and declining natural
resources, the foodsector faces a serious
challenge:

That's

It is esthat aboutimatedtpeople wo 1.3 billionragrifood sk in theector,
nearlyof allworking p
eople

⅓

10

of all ourfood isgrown onsome 475
millionsmall-scale
farms

between 2012 and
2050, global foodproduction must
increase by% in order to feednearly10 billion people
by 2050

50*Facts in this annual report are based on research carried out by Fairfood.
Sources available on request.

se ct or,Th e ag rif oo d wi
th
er
th
to ge
d
co ns tru ct io n an
p3
to
e
th
in
is
g,
in
m in
ou s
er
ng
da
t
os
of th e m
at
:
in
rk
wo
se ct or s to
d
oo
rif
ag
0
00
0.
17
t
as
le
ar
ye
y
er
ev
e
di
s
wo rker

Most population growth
will take place indeveloping countries
ANNUAL REPORT 2019 ~ 11

1.3 PROMISING TRENDS
A lot of beautiful things are happening in the world of our food too. New technologies, legislation and awarenessare generating trends that trigger constructive change. These are a few of the trends that have boosted our
optimism and inspired us this past year:
THE FOURTH INDUSTRIAL REVOLUTION, BIG DATA AND SELF-SOVEREIGN IDENTITY
Technology is changing the way we work and communicate with each other. Within this revolution, the interest indigital innovation that helps us towards a better world is growing. This past year, the Fairfood team has spent a lotof time expanding their knowledge about ‘big data’ and finding answers to the question of what exactly farmers
can do with it. Increasingly, start-ups are releasing smart tech solutions that allow small-scale farmers to strengthen
their position within the production chains of our food. If we look at Africa, for example, we can see that there areat least 390 smart farming tools being actively used at the moment. Nearly 60 percent of these tools were launchedin the past three years.
These solutions – for example, an app that tells farmers more about weather forecasts using satellite data, or that
automatically pays out insurance money when satellite images identify a flood – also generate a lot of data on
those farmers. A farmer can share their data on location, harvest or transactions, and receive data that could benefit
his or her harvest/partnerships/communication in exchange. Sounds like a pretty good story, right? But who will
ensure the farmers' privacy?
More and more tech companies are starting to think about this – they're looking for ways to keep the farmer incontrol of their personal data and possibly even allow them to sell that data to the highest bidder. Is information
about yield per acre or the impact of the weather on harvests perhaps worth any money to anyone else? That leads
us to another trend that's reverberating in our network: the self-sovereign identity. In order to maintain control overtheir own data, a farmer must be able to prove that he or she is actually the person behind the data in question.
At present, however, there are more than 1.1 billion people worldwide without any (official) form of identification.
Blockchain technology could play a role in providing them with an alternative identity; the technology consistently
records interactions between different individuals and parties. All these interactions put together can serve as analternative form of identification – a digital, self-sovereign identity.

budget last year that is geared towards the wellbeing of man and nature rather than economic growth. Last
December, the Dutch government was reprimanded by sustainable business network MVO Netherlands when
it presented a plan that put economic growth at the heart of the government's plans for coming years (’thegrowth limit of our country has been reached', claims MVO), but some companies are starting to show a lot
more ambition. We're thinking of B Corps (commercial companies that received a certificate given for "doinggood" by the NGO B Lab), such as Tony's Chocolonely and Dopper. And we are thinking of all the partners
that we have found in the business world, such as Verstegen Spices & Sauces and Trabocca (see chapter 3).
Onwards towards a new economy, with an eye for social profit!
TRANSPARENCY
True, we already discussed this trend in our previous annual report, but it is so closely related to our work that
we want to include it again this year: we can clearly see a growing need for transparency. For more food safety,
for better business practices, for sustainability. The consumer wants to know where his or her food comes from;in 2016, American research showed that 37 percent of consumers are willing to switch brands if the new brandoffers more transparency. Governments are also committing to transparency; in the Netherlands, for example,
the Child Labour Act was recently adopted, which obliges companies to actively prevent selling goods andservices that involve child labour. In Germany and France, they’ve already reached the point where companies
are obliged to have a good understanding of possible risks within their chain. Big companies feel the pressureor recognise the potential of transparency themselves; Albert Heijn, Walmart, Carrefour – they're all experimenting
with blockchain for more transparency. A revolution to our food system?

"Transparency can improve the income of the people who grow your coffee.
Quality and quantity can also increase. Farmers will gain confidence when
they know what price they'll receive if they deliver a certain quality."
Tesfaye, coffee supplier Trabocca

A NEW ECONOMY
Success is often measured in money. Governments strive for an ever-increasing Gross Domestic Product (GDP)to demonstrate and monitor the vitality of their economy. But there is little regard for the negative by-productsof that growth – things such as damage to the climate or increasing inequality. More and more people are
beginning to reconsider GDP growth for exactly those reasons. Last year, British journalist George Monbiot
asked on TV programme Frankie Boyle's New World Order: “Since when was GDP a sensible measure of humanwelfare? And yet everything that governments want to do is to try to boost GDP. They say, "Oh, we're not asking
for a lot of growth. Just 3 percent a year". That means doubling in 24 years. We're bursting through all theenvironmental boundaries and screwing the planet already, and you want to double it?”
In her book The Value of Everything, American-Italian economist Mariana Mazzucato suggests that we should
reinvent the concept of value in its entirety. She takes down the pursuit of an increasing GDP defeats by saying:“How we value sectors affects our calculations of growth rates, which in turn affects how we steer the economy.
In other words, how we measure the GDP is determined by how we value things, and the resulting GDP number
can determine how much we produce of a particular product.”
The good thing is that it doesn’t all end with criticism and thought experiments. New Zealand presented a

12

ANNUAL REPORT 2019 ~ 13

2 OUR RIGHT TO EXIST

It's pretty clear from the previous chapter that there's an incredible amount of work to be done within our
food system. That's why Fairfood exists. We'd like to take some time to tell you a little more about ourselves
and the world we are working towards:

2.1 HOW, WHAT, WHY
Fairfood strives for a world in which everyone can enjoy good food. A world without hunger, in which the people
who produce our food can build an existence, and in which food is made with respect for humans, animals andthe environment.
We are actively working on the transition towards a sustainable food system. We're doing so by developing
innovative solutions that allow companies to improve their business practices – open and accessible solutions
that are going to democratise the world of food. We see an active role for everyone in the production chainsof our food to improve the living conditions of farmers and food workers. Fairfood invests in partnerships toaccelerate change towards that sustainable food system together.

O YOU
HOW D

14

YSTEM?
S
DO
THE FOE
G
N
A
CH

2.2 A NEW STRATEGY: AN EYE FOR INNOVATIONIn recent years, we have carefully examined the value that Fairfood adds to the NGO landscape in the
Netherlands and beyond. In the coming years, we'll be developing ourselves further as a mission-driven
innovation organisation, shifting our focus from campaigning to developing innovations that contribute to theprosperity of the people behind our food.
A growing number of organisations, NGOs and governments recognise how digitisation can contribute to the
Sustainable Development Goals of the United Nations. Fairfood has been championing this tech for goodfrom the very beginning. In the coming years, we'll continue to explore the potential of innovative technologies.
To this end, we are launching new solutions to enable agrifood companies to explore their own supply chains
and identify (socio-economic) problems, to then effectively tackle them.

"Fairfood has undergone a fantastic transformation in recent years. From
campaigning to fair tech solutions that show whether the farmer who makes
your coconut, coffee or nutmeg receives a fair wage. Fairfood will continue towork hard to ensure that the people behind our food receive a fair income. I'mvery proud of the amazing team that has pulled all of this off."
Jolande Sap, Chairman of the Supervisory Board

ANNUAL REPORT 2019 ~ 15

3 PARTNERSHIPS

The project also appeared in the media almost 40 times, including in Trouw, De Volkskrant, De Telegraaf,
Het Financieele Dagblad (the Dutch Financial Times) and in specialist journals (including
Levensmiddelenkrant (Dutch Food Newspaper), AGF, EVMI, Duurzaam Ondernemen (Sustainable
Enterprise) and Distrifood).

Your food passes through many hands before it ends up on your plate. The production chains of our food arelong and complicated. The bottom line is that no one can solve the problem of dishonest food on their own.
We need to work together and build strong partnerships. These are the partnerships that Fairfood forged in2019.

3.1 VERSTEGEN & COOP: NUTMEG
2019 will be remembered as the year in which we put‘blockchained’ food in the supermarket for the very first time.
That supermarket was Coop, and the food was the nutmegof our partner Verstegen Spices & Sauces. The Verstegenfamily company asked Fairfood to trace a shipment of
nutmeg from tree (in Indonesia) to plate (in the Netherlands).
We also connected nutmeg farmers to the blockchain thatwas custom-made for Verstegen. The farmers could verify
whether an agreed price had been paid and all transactions
were consequently logged on to the blockchain.
Verstegen wants to invest in a sustainable and future-proof
food system and lead the way for other businesses. The spicehouse is already building sustainable relationships with allof the partners within their chain. By working together with
their chain partners closely and on a long-term basis, thecompany wants to keep the quality of their products as highas possible. Director Michel Driessen put it nicely: “I wanteveryone in our production chains to have the same
opportunities as we have here in the West. Verstegen wants
to actively work with the different partners in our chains sothat we can take care of each other and the world together.”
Only when farmers can take care of their families and ofthemselves, can they start to think about caring for the world.
That's the idea.
New technologies are going to help Verstegen achieve that goal. Blockchain creates transparency and thus
a greater understanding of the chain. There's another goal: to give farmers a voice in the production chains
and to provide them with access to new information, for example on the quality of their product or consumer
preferences. Verstegen hopes that this will encourage entrepreneurship among farmers, so they can personallywork towards generating a better income as well. In line with all this, we carried out a study on the incomeof nutmeg farmers for Verstegen. Verstegen wanted to know: do they earn a living income? The answer wasno, most of them don't. That’s something that Verstegen is going to change in the coming years.
You can see exactly which farmers took part in the project, how much nutmeg they harvested and what journey
their nutmeg took on a publicly accessible website.

16

ANNUAL REPORT 2019 ~ 17

3.2 VERSTEGEN: SUPPLY CHAIN
TRANSPARENCY
Sustainability starts with mapping your chain, all the way
to the farmer. You can only work towards creating a positive
impact when you know what your chain looks like. That's
why we started a follow-up project with Verstegen. We
already mapped out their nutmeg's journey from Indonesia,
but in this second project we wanted to investigate thejourneys of Verstegen's other herbs and spices. Together,
we took a deep dive into 20 product chains of Verstegenherbs, to map them all the way back to the farmer. A
challenging project, since all the partners in the chain had
to offer completely transparent insight into their business.
We used our Trace platform to safely store and share all
the partner and product information.

"Together we can achieve more, as we've seen in our collaboration with Fairfood
in recent years. We have set ourselves the goal of making the chains of ourherbs and spices completely transparent. To realise that we looked at blockchain technology. That technology has already offered us a lot, including more
knowledge about the main player in the chain, the farmer. Through sustainable
collaboration with the farmers, we can keep the chain fair, transparent andsustainable from tree to plate. Even in the future."
Marianne van Keep, Director Sustainability Verstegen

3.3 JUMBO
We had productive conversations with Jumbo, too. The supermarket chain operates on the basis of a numberof beautiful sustainability principles, including: conservation of natural resources, the environment andeverybody's health. And also: treat man and animal with respect. We found each other in a shared goal:
caring for future generations. Currently, we're setting up a joint project with the ultimate goal of creatingtransparent and future-proof product chains for all of Jumbo's overseas potatoes, fruit and vegetables. This
year we kicked off with the mango chain, and we'll be scaling up the project in coming year.

3.4 FRESH PRODUCE CENTRE
Dutch companies selling fruit and vegetables find each other through the Fresh Produce Centre association.
All members together account for 80 percent of the total turnover of fruit and vegetables in the Netherlands.
That creates great opportunities to make an impact. In 2019, we investigated the possibility for a collaboration
with the Fresh Produce Centre that would guide the way towards greater transparency and traceability formembers of the association.
After a thorough investigation, we decided to kick things off with a group of citrus farmers in South Africa.
Last year, our Lonneke travelled to the area where the farmers are located, where she kicked off the project.
Together with the Fresh Produce Centre, we will give the farmers insight into the global production chains of
their fruit, and we'll make sure that they have a direct connection to the EU market. In the end, we want touse blockchain to also create a direct connection with the consumer, at the very end of the chain.

3.5 DUTCH POSTCODE LOTTERY
A huge shout-out to the Dutch Postcode Lottery, which has been our partner
for quite some time now. They've supported Fairfood with 500.000 euros ayear since 2009. Without the support of the lottery and its participants,
Fairfood could never have been where we are today. This is not just the casefor us – the lottery has the generous policy of putting at least 40 percent of
its revenue towards organisations that make the world a better place in termsof the environment, human rights and development cooperation.

"It is our mission as a charity lottery to contribute to a green andjust world. Fairfood has been one of our beneficiaries since 2009,
and we support them in the fight to create a fair and transparent
food chain. Fairfood ensures that the most vulnerable in the foodindustry earn an income that allows them to live a good life. Thanks
to the 3 million participants of the Dutch Postcode Lottery, Fairfood
has received a total contribution of € 6.1 million for their work."
Margriet Schreuders, head of charities at Dutch Postcode Lottery

18

ANNUAL REPORT 2019 ~ 19

3.6 THE COFFEE QUEST
We’re going a bit further back in time. It’s the year2018 when Fairfood turns the bathrooms at theatre
festival De Parade into a super-bad supermarket,
to teach the visitors something about the world
behind their food. The donations we collected there
were doubled by the Triodos Foundation and theirGive the Change platform, taking us to an
impressive sum of nearly 10.000 euros. We thendonated that money to The Coffee Quest. The
coffee importer has used that money last year todevelop a training programme for coffee farmers,
so they can increase the quality of their coffee, andsubsequently their income. In 2020, the training
programme, which now has an agronomist on board,
will be rolled out in Santa María, Colombia.

4 INNOVATION

A frame from the Trace-animation

Solution-oriented? That is our second name. We see the problems and actively work to bring a fitting solution.
The past year we worked on Trace and ALIGN.

4.1 TRACE: TRACE YOUR FOOD FROM TREE TO PLATE
Much thought went into the creation of our solution Trace last year. With this accessible traceability tool, wewant to enable agrifood companies to explore their production chains and expose socio-economic challenges.
The accessibility comes from the user-friendliness and (financial) accessibility of the tool, allowing smallscale agrifood companies to use it as well.
Trace took shape through our own pilot projects with coconut and coffee, and through partnerships such as
those with Verstegen and Jumbo. The only way to get people at the beginning of the food chain out of trouble
is to know who they are and to give them back their rightful position in the chain – to give them a voice inthat chain and treat them as the equal chain partners they are. That is why the solution to our problems
starts with traceability and transparency: knowing where our food comes from and being transparent about
it to the outside world. Trace allows companies to take that first step.
What matters to us most is: anyone canwork with Trace. Trace is available indifferent sizes – basic for small
companies with small chains andbudgets, pro for the big players. In
2019, we were hard at work behindthe scenes to build this solution. In
2020, we will officially launch Tracewith coffee importer Trabocca as
our partner.

20

ANNUAL REPORT 2019 ~ 21

5 SHARING KNOWLEDGE
If you read our monthly newsletter, if you follow us on social media, if you've heard us speak at events, thenyou probably know this already: we do not keep the knowledge that we acquire to ourselves. Knowledge ismeant to be shared and to inspire. Together, we can do so much more.

5.1 THE ONLY WAY IS UP! CONFERENCE
The international conference on living wages and income, The Only Way Is Up!, was a huge success. On
November 5 and 6 last year, governments, NGOs and the private sector gathered in the Van Nelle factoryin Rotterdam for two days to investigate how we are going to make a positive impact, and realise living
wages and incomes in the agrifood sector. It was more than sold out, with over 300 people attending.
A wonderful collaboration with the German Federal Ministry for Economic Cooperation and Development,
the Dutch Ministry of Foreign Affairs, Rainforest Alliance, Fairtrade, Hivos and IDH The Sustainable Trade
Initiative. During workshops, panel discussions and other meetings, we learned from positive and negative
examples, we actively built new partnerships and we explored how to increase our collective impact.

4.2 ALIGN: GUIDANCE TOOL ON LIVING WAGES AND INCOME
At our The Only Way Is Up! Conference, we presented the first version of ALIGN: a tool that guides agrifood
businesses through the world of living wages and incomes. Because once you've committed yourself to paying
everyone in your production chains a living wage or income, where do you start?
ALIGN is an outcome of the Living Wage Lab. This breeding ground aims to provide its participants with pragmatic
solutions to problems that are in the way of realisingliving wages and incomes. We asked social enterprise
True Price to investigate what exactly the greatest
need of participants of the Lab was. Their answer: atool that helps us see the forest for the trees again.
Together with Hivos and Rainforest Alliance, we use
ALIGN to offer agri-food companies an interactive
guide that helps them towards the solution in four
steps. What research has been done on living wages?
Which research institutes can I turn to? Can I do thisalone, or do I need partners? Who could thosepartners be? ALIGN answers these questions bycollecting and simplifying the work done by leadingorganisations and experts.

A FEW HIGHLIGHTS:

Dutch supermarkets (almost all of them, with the exception of Aldi and Lidl)announced that they would work on living wages for banana-growing workers. From2025 onwards, they want to only sell bananas from plantations that pay their workers
a living wage.
Olam, one of the world's largest cocoa suppliers (besides many other products),
stated that between now and 2030 they want to eliminate all child labour from theircocoa chains and, in addition, achieve a living income for 150.000 cocoa farmers"The biggest environmental problem is poverty" and "a living income is a businessnecessity". Antonie Fountain, foreman of cocoa industry watchdog Voice Network,
made the subject of living wages and incomes evident and understandable in a way we
had never seen done before, in an impressive opening speechWith special thanks to the German Ministry for
Economic Cooperation and Development for thefinancial support, and to the German bureau fordevelopment cooperation GIZ for the implementation.

22

ANNUAL REPORT 2019 ~ 23During the conference, all organisation partners organised their own sessions, which took place alongside
the plenary programme. Fairfood hosted two panel discussions which, as to be expected from us, dealt
with potential new solutions to the problems our food chains face today.
The first session – Small farmer, big data – questioned existing solutions, apps and tools. How inclusive
are they? How do you design tools in such a way that they actually benefit the farmer? Frederik Claasen(Solidaridad), led an interactive session in which the audience could ask all their questions to the panel:
Mariska Lammers (policy officer for food security at the Dutch Ministry of Foreign Affairs), William Matovu(Uganda country director at American NGO Heifer), Panos Loukos (senior insights manager at GSMA,
the trade association for mobile network operators and service providers), Jan Top (senior scientist foodinformatics at Wageningen University & Research) and Jayadeep Akkireddy (senior manager learning andinnovation IDH).
At the panel discussion 'where sustainability meets tech', we presented an ideal future for our food using
a number of positive examples. Together with the panel, Chris Georgen (blockchain platform Topl) examined
the role that innovative technologies can play in delivering on our sustainability ambitions. Many thanks
to an enthusiastic, ambitious panel: Genevieve Leveille (founder and CEO of blockchain company
Agriledger), our own Marten van Gils, Sander Reuderink (commercial director at coffee importer Trabocca)
and Ad Rietberg (director at mobile bank account Agri-wallet).

As we concluded two constructive
and inspiring days, all organisingpartners took to the stage.

Laura Jungmann(team leadsustainability
Albert Heijn)tells us about thecommitment of
Dutch supermarkets:
living wages in thebanana sector.

24

ANNUAL REPORT 2019 ~ 25

5.3 TECHNICAL CENTRE FOR AGRICULTURAL AND
RURAL COOPERATION AND WAGENINGEN
UNIVERSITY & RESEARCH
Together with the Technical Centre for Agricultural and Rural Cooperation (CTA)and Wageningen University & Research (WUR), we published the report A Chainof Possibilities last year, in which we examined the potential of blockchain technology
for the agrifood sector in low- and middle-income countries.
Later in the year, we entered into a larger-scale collaboration with CTA, which
was fully focused on sharing knowledge. We produced three info sheets, three
webinars and eleven extensive (guest) blogs. The overarching topic: better foodwith blockchain. Together with each other, experts, and anyone interested in
discussing the issue, we examined how farmers can stay in control of their own
data, how to improve the design of production chains and how to restore theconnection between the consumer and the origin of their food. Want to know
more? Visit the community page.

5.2 LIVING WAGE LAB
We are proud of the strong content of the Living Wage Lab sessions. Last year, among other things, westudied how to make the subject of living wages and incomes more understandable and, more importantly,
what the best strategy is to calculate the level of living wages and incomes in your production chains.

"CTA works with and for small-scale
farmers in Africa, the Caribbean and
the Pacific. Working with softwaredevelopers, entrepreneurs andfarmers' associations in the region, we
can clearly see opportunities to tackle
inequality in the production chainsusing blockchain, to ultimately
improve farmers' incomes."
Chris Addison, senior programme
coordinator Data4Ag at CTAA]"It's been very interesting toraise awareness of blockchain's
potential for the agri-food sector
together with Fairfood. They've
helped us reach a new audiencefor our message about digital
identities and transparency inthe production chains, and how
they can be applied in low- andmiddle-income countries."
Ken Lohento, senior programme
coordinator ICT4Ag at CTA

Together with Hivos, we founded The Living Wage Lab in 2016; a breeding ground for constructive discussions
and new collaborations. Participants from all branches of the agrifood sector meet here and discuss: how
are we going to improve the sustainability of the production chains? Because it's only when government,
trade unions, supermarkets, producers, NGOs and certifiers work together that things will actually begin tochange. Participants in this year's sessions included Jumbo, Albert Heijn, Aldi, Verstegen, EOSTA, the SocioEconomic Council and the Dutch Ministry of Foreign Affairs.

26

ANNUAL REPORT 2019 ~ 27

6 ABOUT US
As a team, we got to know each other even better in 2019. As it turns out, we all have an extreme adversity
to passively waiting around and get really happy when we undertake action. Trial and error collectively doesn't
seem to scare us. That results in a high work tempo and good results. Allow us to tell you a little bit more about
ourselves.

6.1 WAY OF WORKING
A few months ago, as a team, we literally got hands-on. We did so at Jan Huygen's farm the Eemlandhoeve.
"Wow," Jan and his colleagues said, ten minutes after they’d asked us to prepare a cow barn for winter, "that's
fast." A good example of the effective collective approach we were just talking about. Also, a good example
of a team that’s perfectly tuned to each other. That's because we talk to each other a lot, share knowledge,
but also because we maintain a ‘flat organisational structure’, as it's so beautifully called. As colleagues wekeep lines of communication short and we have no hierarchy (even the director sometimes prepares lunch).
At Fairfood, we also value personal development. Fairfood is a place where you do your job, but where you
can also grow as a person. A place where you, if you want to, can develop competences that aren’t necessarily
in your job description.
And, of course, we sometimes find common ground in shared interests besides fair food. That means that you
might suddenly find yourself taking part in the Week Without Meat with the entire team (we do vegetarianlunches anyway), it could mean splitboarding with a colleague (which the rest of us had to Google first) or
playing Rummikub while enjoying a beer together until the small hours. We also want to provide space forrelaxation during work hours, to avoid excessive stress. That's why we're delighted with our office dog Dorus
and our vegetable garden. If you're stressed out, you're sent to the park to take the dog for a walk. Or, "why
don't you go check on the pods?"

MARTHE VAN ANDEL
Our program manager living wage & income by day, unrivalled Rummikub
queen at night. One of those people who casually converts five rows
on the table with one hand to get rid of one tile. And that's exactly how
she solves puzzles at work; setting up projects until all plans are
impeccably layed out. Marthe has changed working late into working
early – because why wouldn't you start work at 7.30 AM? That way she'll
never have to miss out on drinks, a pub quiz or a Rummikub match. Her
weapon of choice is most definitely her look, which can turn you to stone.
When needed she'll use it to put entire projects to a halt until further
notice.

CHANNA BRUNT
There's always a reason to bring lemon meringue pie to the office. And if
there isn't, Channa will think of one. As head of communication, Channa
isn't just 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 beginning of the chain?"
If we can't answer that question to her satisfaction, it's back to the drawing
board. We couldn't have asked for a better Officer of Integrity.

6.2 TEAM
These are the people behind Fairfood:
LONNEKE CRAEMERS
Observing her as an outsider, you probably couldn't tell what role
Lonneke plays in the Fairfood team even if your life depended on it. If
needed, Lonneke will enter any meeting to effortlessly advise anyone
who wants to be advised – whether it be on a communication issue, apiece of project management or pure strategy. As our businessdeveloper, she'll effortlessly switch between absolute concentration andcheerfully celebrating our victories. Lonneke's personal motto is:"participating is more important than winning." She proved that once
again when she managed to give impressively few correct answers
during last year's pub quiz, although she did manage to give morecorrect answers than Channa.

28

ANNUAL REPORT 2019 ~ 29

MARTEN VAN GILS
Marten can take any conversation to new heights, merely
by asking a question that will stop everyone in their tracks
for a moment. We suspect that he usually already knows theanswer, but this way he does manage to wake up the teamand help them to think clearly again. Tucked away behind
his computer screens, equipped with a wireless headset thathas proven to work all the way up to the toilet, our program
manager fair tech is a silent force to be reckoned with. But
he’s not afraid to raise his voice when he steps to the stage,
where he manages to silence entire crowds while sharing
our story in an extraordinarily charismatic, humorous andcompelling manner.

RAFAEL DA COSTA GUIMARAES
Every now and then Rafael will turn up to the office all suited up,
his lion's mane neatly tucked away in a bun. On those days, his
chest is usually adorned with a brooch with a B on it which, as he's
explained to us, stands for bitcoin. On those days, Rafael is
expected to host a webinar, speak on stage or give a guest lecture
to a class full of online marketing students. Nothing is ever too
much for our blockchain & growth agent. We suspect that students
nowadays are all taught the skills of networking, because while
we used to quietly stay in the background at his age, Rafael leaves
congresses with an average of 50 business cards and 120 new
LinkedIn contacts.

DEREK HARDWICK
We ran into Derek at one of our workshops last year. He
casually introduced himself as an old Fairfoodie – from wellbefore our time, it turned out. One thing led to another. And
when we heard that this guy likes to hang on the climbing wallin his spare time, we instantly knew: we want him back on our
team. Which means that nowadays, you're not only likely tospot Isa, Rafael and Channa at your local climbing hall, you
might also run into our new product owner Trace. With theintroduction of smart tools, Derek brought the efficiency of team
Fairfood to unexpected new heights. That is until he stops us
all for a good ten minutes to tell one of his many stories. Thosestories always end with a great roaring laugh; the signal that
we can all go back to work.

30

SANDER DE JONG
Our managing director is as Frisian as they come. Always
down to earth and with a dose of energy that will blow
your socks off, Sander's endless enthusiasm seems to be
more contagious than, for example, the cold that struck
down a few of our team members last year. His continual
optimism has become decisive for the direction that
Fairfood is taking, and it never fails to help with thechallenges we face. You want honest food? Leave it tothis team of nine. A blockchain tool for more transparency?
We'll make one to measure!

ISA MIRALLESIsa has opinions. Well-founded opinions that will survive any
discussion. It usually goes like this: seemingly from the side-lines,
our impact researcher lets everyone speak, to then take the stage
herself at the very last moment. Calmly, but with a compelling
voice, she'll throw an intricately put-together series of facts ourway, in a way that would put the world's best public speakers toshame. And her speeches are so fool proof that after she's done,
we can do nothing but jump on the bandwagon.

HANS MOLENAAR
Last year, Hans took the entire Fairfood team on a trip to hishometown of Amersfoort. After a tapas restaurant he took us toa café and then to a karaoke bar. Hans took it all in with a big
smile on his face and a beer in his hand. Our colleague financeand business always chooses his words carefully and never fails
to exert a tremendous sense of peace. That comes in handy in
his second role; Hans has recently trained to become a
psychodynamic therapist. And we believe that's a very good
example of the old adage 'you're never too old to learn’.
With huge thanks to volunteers Karina Fensterseifer and Lotte
Duursma, who helped us out last year whenever we needed
them, and to interns Dylan Foley, Daniel Kist, Katherine Novoa
and Loretta Le, who have inserted new knowledge from all over
the world into the team.

ANNUAL REPORT 2019 ~ 31

6.3 SUPERVISORY BOARD
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.
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 supervisory role of the Supervisory Board with regards to 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 have impressive CV’s and a combined know-howthat will blow you away. Know-how we're excited to have direct access to. Our lines of communication with
the Board are short, and informal consultations and rounds of feedback are not uncommon. Sometimes theentire Board joins us for after-work drinks or a Christmas dinner, so everyone on the team knows everyone on
the board and knows how to find them when needed. Our Supervisory Board of 2019 consisted of:
JOLANDE SAP
Independent sustainability adviser, supervisor and commissioner for corporate and social organisations, aswell as a sought-after speaker and chairman of the day. From 2010 to 2012, Jolande was chairman of politicalparty 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 atgovernmental and private organisations and has a broad knowledge of socio-economic and development
issues. Jolande has been the Board's chairman since January 2014.
MAXINE TILLIJ
Director of Strategic Analysis & Policy at TNO. Maxine is highly experienced with strategy development,
business development, alliance management and legal affairs. Maxine moves around within an ecosystemof professionals who share a belief in sustainability, equality and transparency. Previously, as project director,
she developed the joint venture between the Port of Rotterdam and energy network operator Gasunie, for theconstruction of a large-scale heat infrastructure in South Holland. She was also one of the driving forces
behind the development of the Heat Alliance South Holland. She started her career as a lawyer at De Brauw,
Blackstone & Westbroek.

FRITS KREMER
Director of Mediaset Business Events, chairman of sustainability network Foodpolicy NL and member of theAdvisory Board of the Good Fish Foundation (Viswijzer). Frits is also a regular columnist for FoodPersonality
magazine. He was head of corporate communications at supermarket group Laurus from 2003 to 2006. At
the same time, he collaborated with Natuur & Milieu and Oxfam Novib to lay the foundations for a sustainability
policy for supermarket format Super de Boer, which later merged with Jumbo.
PIETER GOUDSWAARD
Independent marketing specialist Pieter Goudswaard helps innovative and sustainable entrepreneurs increase
their social impact and business success. He also helps companies future proof their international production
chains. He does this through his own company Abre and the agrifood-team of MVO Netherlands, among
others. Pieter has many years of experience in the fields of marketing, commerce, innovation and sustainability
within Procter & Gamble, Unilever, Danone, People4Earth, Jumbo and Generous Minds.

6.4 ADVISORY BOARD
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 and diverse
professional backgrounds. We are very proud of the wonderful team that has taken on this task:
GUUS LOOMANS
Guus Loomans is Charity Manager at Rabobank Netherlands. He aids us in our work with his infectious
enthusiasm and knowledge about strategic marketing, corporate engagement and fundraising.
PIERRE-LOUIS VAN HEDEL
The former managing director at Rabobank Foundation, our patriarch and our rock. Pierre is always ready tohelp us out with his knowledge and network.
GERRIT BRUGGEMANManaging partner RTB Transition toward Sustainability, boardroom advisor on sustainability. Gerrit brought
the cradle-to-cradle concept to the Netherlands. Always helps us raise the bar.
NIELS PENNINXManaging partner at Green April consultancy. Niels combines sharp insights and business modelling with
impeccable humour and drive.
MARTIJN SMELT
Chief marketing officer at TV manufacturer TP Vision, has invaluable knowledge of international marketing
and where and when needed advises and helps us.

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 to Africa, after
which she managed network organisation AgriProFocus for ten years. She returned to Wageningen University
in November 2015, where she currently heads the Centre for Development Innovation of Wageningen University& Research.

32

ANNUAL REPORT 2019 ~ 33

6.5 RISK ANALYSIS
Fairfood is transparent about its business operations and strives for the most effective use of resources – each euro
spent, every hour worked is accounted for. Risk management is very important to us, because we’re all too awarethat economic conditions can change, politics can be unstable and markets can be volatile. The recent corona
pandemic is causing us to be extra alert. Political decision making – and the availability of funding – are difficult
to predict, as are the political forces that influence partner organisations. Fairfood collaborates with other NGOs
and lobby organisations Partos and MVO Platform to influence political decision-making through smart lobbying
and advocacy.
Our multi-annual strategic and financial plan is aimed towards long-term partnerships and funds that deal withtechnological applications, such as blockchain, artificial intelligence and the Internet of Things. First and foremost,
we value the partnerships we enter into with companies and organisations that wish to contribute to a sustainable
food system – see Chapter 3 for examples of these partnerships.

6.6 INTEGRITY
Last year, we began to actively work on safeguarding the integrity and equality within our company, and ourCode of Conduct on Integrity. To this end, we appointed an integrity officer and internal and external confidants.
Together, we want to ensure that the integrity of Fairfood is guaranteed, even if we seriously expand in theyears to come.
Fairfood is a member of Partos, the trade association for development cooperation. That means that we also
comply with Partos' Code of Conduct. We've expanded and focused this code with our own values: inclusivity,
peacefulness, fairness, sustainability and compassion. These values guide us in our work and determine ourworking atmosphere.
We continue to ask ourselves questions such as: are we doing justice to the people and organisations we workwith? But also, with regards to our own organisation: when do we call something unjust? And what do we dowhen we encounter injustices? We are thinking of abuse of power, financial violations and interpersonal
violations. It all starts with prevention: what can you do to prevent offences or abuses? In the case of inappropriate
behaviour, we report, carefully examine, sanction if needed and take measures to care for the affected.
Our Code of Conduct on Integrity 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.

6.7 FINANCES
The annual accounts, which can be found further on in this annual report, show that the total income for2019 amounted to € 895.175. That is lower than the previously budgeted € 1.100.700 but a lot higher thanrecent years. Setting up partnerships and putting Trace on the market widely sometimes takes up more timethan we would ideally want it to.
By tempering our investment drive slightly, we ended the financial year 2019 with a positive result of €77.530. This is also lower than the budgeted € 100.000 and, again, a lot higher than in recent years. The
lower result is mainly due to delays within one of our planned projects, which will be implemented in 2020.
With this positive result, we have been able to build up our reserves, providing a comfortable financial
basis for all our future plans.

“In collaboration with Verstegen's partner Fairfood, I have been able to expand my knowledge ofnutmeg. I've always dreamed of better education
for my children so they can make their dreams
come true. If I could get a better understanding of
the food chains, that would benefit my own future
as well as the future of my children."
Riandy Kendahe, nutmeg farmer

We work with a monthly financial dashboard, which allows us to monitor the project funds, cash flow andoverall finances and to adjust them in a timely manner when needed.

34

ANNUAL REPORT 2019 ~ 35

7 FULL STEAM AHEAD!

8 FINANCIAL FORECAST 2020

That's it for now. The Annual Report 2019 – in words that is. The following pages will detail the figures.
We’ll close things off with a little sneak peak of what to expect in 2020. Because to be honest, we simply
can't wait.

With our strategic plan for the next three years, we are focussed on greater cooperation with businesses.
Our goal for 2020 is to move on to an operational budget of € 1.3 million, adding € 135.000 to our reserves.
The benefits come from collaborative projects with companies, funds and grants. We'll also start exploiting
the operating licenses for our platform Trace. We are going to realise all this with a small, flexible organisationof dedicated professionals. This budget was drafted well before the corona outbreak. At the time of writing,
Fairfood expects that the income will be € 150,000 to € 200,000 lower than budgeted, and that a financial
result will be achieved of € 70,000 to € 80,000. The continuity of the foundation is not at stake.

7.1 TRACE AND TRABOCCA
Already a highlight of 2020: the launch of Trace. Starting this April, any agrifood company can use it: one
single tool to trace your products from your position in the chain to the very first link. You share the journeyof the product on a publicly accessible interface that allows you to introduce all the players in the chain
and demonstrate that you are actually fulfilling the promises you've committed to as a brand. Behind thescenes, you are gaining new insights into the chain as well. Because, as you've heard us say before: better
food starts with a transparent supply chain.
Trace democratises the supply chains of food. Involved parties are able to safely and securely shareknowledge and value within their chain. Inefficiencies
can be uncovered, unknown partners identified, andbrand promises verified. What we're also working
towards: by sharing information about a product in atransparent way, value should be added to that
product – would you pay more for a product thatshows you exactly where it comes from and whichhands it passed through? For which other parties in
the chain is this information valuable? We see great
opportunities here to distribute that value
proportionally across the chain.

INCOMEPROJECTS PRIVATE SECTOR

300.000

PROJECTS NGOS

100.000

PROJECTS GOVERNMENTS

400.000

INCOME LICENSE

31.440NATIONAL POSTCODE LOTTERY

500.000

TOTAL INCOME

1.331.440

COSTS
STAFF:SALARIES

589.816

FREELANCERS

78.000OTHER PERSONNEL COSTS

41.520

Trabocca's kicking it all off. As our launching partner,
the coffee importer is the first to use Trace to track ashipment of Ethiopian coffee. Keep an eye on theirsocial media channels to see how it all works out!

PROMOTION COSTS

7.2 VERSTEGEN, PART 3

PROJECT COSTSCOMMUNICATION

64.200

PLATFORM COSTS
NON-PROJECT PLATFORM COSTS

56.000How do you sell traceability to people? How do you ensure a structural increase in farmers' incomes? Whatis the value of data? We will answer these questions during the third part of our collaboration with VerstegenSpices & Sauces. Together we will explore the business case for transparency – where in the chain is theinformation you bring to the surface worth money? The main purpose of this cooperation: to generate a
new income for the farmers of Verstegen. Not by simply increasing the price per kilo (although Verstegenis exploring that option outside of this project) but by creating a completely new source of income: data.
Can a farmer sell their data on, for example, soil quality and yield per hectare?

PROJECT COSTS PLATFORM

56.740OTHER PROJECT COSTS

56.740

7.3 ALIGN 2.0

UNFORESEEN

Behind the scenes, our impact researcher Isa is already hard at work with ALIGN 2.0, the tool that helps agrifood
businesses find their way towards living wages and incomes. We launched the beta version of ALIGN in 2019at the The Only Way Is Up! Conference. This year, we will introduce the new and improved version. To do this,
we'll be consulting potential users of the tool – together we will examine what is currently in place and what canbe improved. Expect new functionalities, more research and new information about countries and products.

36

8.1 OUR 2020 BUDGET NUMBERS IN €OVERHEAD
RENT

205.281

OFFICE

28.500

ORGANISATION

5.000

UNFORESEEN:

68.0001.195.597

RESULT

135.842

YEAR-END RESERVES

403.941

ANNUAL REPORT 2019 ~ 37

FINANCIAL STATEMENTS

39

BALANCE SHEET AS OF 31 DECEMBER 2019

PROFIT AND LOSS CALCULATION FOR 2019

(after profit appropriation)
2019

2018

2019

2018

€

€

€

€

INCOME FROM PRIVATE FUNDRAISING

356.167

187.965

BENEFITS FROM THIRD-PARTY ACTIONS

500.000

500.000

GOVERNMENTAL CONTRIBUTIONS

38.933-OTHER INCOME

75-

TOTAL INCOME

895.175

687.965

STAFF COSTS

522.060

443.853

INCOMEASSETSDEFFERED ASSETS AND
RECEIVEABLES

82.10059.622LIQUID ASSETS

393.139202.013TOTAL

475.239261.635
COSTS

2019

2018

OTHER PERSONNEL COSTS

22.15921.445€€

HOUSING

21.00718.480

LIABILITIESOFFICE

2.506

1.903

STATUTORY RESERVESORGANISATION

48.30844.593

CONTINUITY RESERVES

256.599

179.069

COMMUNICATION

22.48925.327256.599

179.069RESEARCH

10.45418.136PROJECT COSTS (EXCLUDING PERSONNEL)

168.214165.421

TOTAL COSTS

817.197739.158

OPERATIONAL RESULT

77.978-51.193

FINANCIAL INCOME/COSTS

-448

-360

RESULT

77.530-51.553

GENERAL RESERVE

77.530-51.553

TOTAL

77.530-51.553

CURRENT LIABILITIESDEFERRED LIABILITIES AND
DEBTS

TOTAL

218.640

82.566218.640

82.566475.239261.635

APPROPRIATION OF RESULT

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 2019 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.
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 LIABILITIES

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.

OTHER NOTESEvents after the balance date
The outbreak of the COVID-19 pandemic has consequences for the way in which the foundation cooperates
with all its partners. The COVID-19 pandemic will also have an effect on Fairfood's financial management.
At the time of writing, nothing can be said with certainty, but it is expected that the pandemic will have noconsequences for the continuity of the foundation. This expectation is reinforced by signals from financiersand the fixed contribution from the Dutch Postcode Lottery. However, it is expected that both the turnover
and the financial result will be lower than budgeted in December 2019. A 10-30 percent drop in sales is
expected in comparison to the budget, which results in a constant or slightly growing turnover compared
to 2019. Furthermore, the financial result for 2020 is expected to be positive.

Fixed 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 2019
2019

2018

€

€

NOTES TO THE PROFIT AND LOSS ACCOUNT 2019
INCOMEACCRUALS AND DEFERRED INCOME

2019

2018

€

€

PREPAID COSTS

6.029

5.459

RECEIVABLES

286

35.942

INCOME FROM PRIVATE FUND RAISINGDEBITORS

75.78518.221

DONATIONS AND GIFTS

904

6.982

82.10059.622SPONSORSHIP IN KIND-

24.681NGO CONTRIBUTIONS

183.02943.112

BUSINESS ASSIGNMENTS

172.199112.791

PROCEEDS CAMPAIGN-SALE

35

399

356.167

187.965

500.000

500.000

500.000

500.000

38.933-38.933-LIQUID ASSETS
CASH

48

-

PAYMENT ACCOUNTS

41.33980.397SAVINGS ACCOUNT

351.752

121.616393.139202.013

BENEFITS FROM THIRD-PARTY ACTIONSDUTCH POSTCODE LOTTERY- GENERAL FINANCING

2019

2018

BALANCE SHEET AS OF JANUARY 1

179.069230.622

GOVERNMENTAL CONTRIBUTIONSALLOCATION OF RESULT

77.530-51.553

GIZ - GERMANY

BALANCE SHEET AS OF DECEMBER 31

256.599

179.069

CONTINUITY RESERVECURRENT LIABILITIESSPECIFICATION NGO CONTRIBUTIONSCREDITORS

21.77814.089HIVOS

65.32610.000

DEFERRED LIABILITIES

25.77523.978RAINFOREST ALLIANCE

47.30020.400PAYABLE LEVY TO PAY

15.970-SIDN

29.017293

SALES TAX TO PAY

13.9024.110

CTA

22.410-PROJECT MONEY TO BE SPENDED

141.21540.389KMF

18.776

11.592218.640

82.566

JMCA

200

-

MILIEU CENTRAAL-

827

183.02943.112Off balance sheet commitments:				
Fairfood has signed a lease with the Royal Tropical Institute. This agreement cannot be canceled in 2020.
The rental charge for 2020 is € 20,287.

44

45

COSTS
2019

2018

€

€

WAGES AND SALARIES

372.538

342.587

SOCIAL EXPENSES

59.53453.446

NON-SALARIED STAFF

89.98847.820522.060

443.853PERSONNEL COSTS

The average FTE in 2019 was 6,12 (2018: 5,19)
Director S.B. de Jong received a total gross salary of € 95,502 in 2019 with a full-time position of 36 hours per
week. This amount includes holiday allowance and compensation for a pension provision. No loans have been
extended to the CEO. This remuneration is in accordance with the "regulation for the remuneration of directorsof charity organizations" of Goede Doelen Nederland.				
The members of the Supervisory Board do not receive any remuneration.

OTHER PERSONNEL COSTSTRAVELLING EXPENSES

5.627

9.364

TRAINING

2.379

1.673

CANTEEN EXPENSES

3.361

5.178

ADDITIONAL PERSONNEL COSTS

10.7925.230

22.15921.445RENT

19.80017.710ADDITIONAL HOUSING COSTS

1.207

770

21.00718.480

LIVING WAGE/INCOME PROJECTS

78.873

NOT SPECIFIED

TRANSPARENCY PROJECTS

79.053

NOT SPECIFIEDOTHER PROJECTS

10.288NOT SPECIFIED

168.214165.421

INTEREST INCOME

83

161

BANK CHARGES

-531

-521

-448

-360

HOUSING COSTSPROJECT COSTS (EXCLUDING PERSONNEL)

FINANCIAL INCOME AND EXPENSES

46

48

ANNUAL REPORT 2019 ~ 49

50

ANNUAL REPORT 2019 ~ 51

FAIRFOOD.NL
MAURITSKADE 64
1092 AD AMSTERDAM