ANNUAL REPORT 2017

1

WELCOME

7

THE FOOD SYSTEM IS BROKEN

8

THE FACTS

10

2 OUR PURPOSE

12

VISION AND MISSION

12STRATEGY: HOW TO CHANGE THE FOOD SYSTEM

13

3 PROJECTS

14

THE CAMPAIGNS14COCONUT

14

OPEN FOOD BLOCKCHAINS

17

COFFEE ON THE BLOCKCHAIN

18LIVING WAGE LAB

18

WHERE DO WE MEET

19

THE FOOD-COVENANT: WHY IT DIDN'T WORK20

INITIATIVE RESPONSIBILITY LAW CHILD LABOUR

20

SDG’S

21

4 THE WHOLE-LOTTA-AMBASSADORS-PLAN

22

FAIRFOODIES22

OUTPUT VS. OUTCOME

22

IN THE MEDIA

23

5 ORGANISATION

24

FAIRFOODIES TEAM

24

SUPERVISION AND MANAGEMENT

26

ADVISORY BOARD

27

PARTNERS27

RISK ANALYSIS

28

6 FULL STEAM AHEAD!

29

FOLLOW-UP COCONUT CAMPAIGN

29

NEW CAMPAIGN: COFFEE

29

5-YEAR PLAN

29

7 FINANCIAL FORECAST 201830

BUDGET 2018 IN FIGURES

30

FINANCIAL REPORT 201733

ANNUAL REPORT 2017 ~ 3

We put anentire COFFEECHAIN ON THE
BLOCKCHAIN

We sold 615 of our
FAIR COCONUTS
at the Parade festival in Utrecht(80.000 visitors!)

We popped up in
the Dutch media over
22 TIMES, includingin the Volkskrant,
Trouw (twice!), Leeuwarder Courant, Het
Parool and De Morgen

6 NEW
FAIRFOODIES
joined ourteam

our highlights of 2017
We sat down with some of
the main coconut players,
including UNILEVER,NESTLÉ, CARGILL, MARS,WILMAR, AHOLD DELHAIZE
We were invited toshare our coconut
story at Dutch
television shows
GROEN LICHT
and RTL LIVE4

We conducted
LIVING WAGE RESEARCH
on the Indonesian islandsof Java and Sulawesi

In July, we sent a#kokosnoodsignaal(#COCONUTALARM)
to 75 major players in
the industry and media

We celebrated
the second
anniversary of
the LIVING
WAGE LAB
with more thanfifty agrifoodcompanies

We put 1,000
COCONUTS ON
THE BLOCKCHAIN,
with a fair reward
for the 55 Indonesian
coconut FARMERS
involved
This made us the
FIRST DUTCH PARTY
ever to put a foodproduct on a blockchain (and one of
the first worldwide)!
ANNUAL REPORT 2017 ~ 5

WELCOMEWEL
COME

And before you know it, we've made our way through 2017. We at Fairfood just can't
stop talking about it: what an amazing year it was! A very special year in many ways,
not in the least because our corporate style got a drastic make-over, as did our Fairfood Team. Looking back, we can honestly say that 2017 is the year that the rock-solid
foundation of the new Fairfood was laid.
In April we kicked off Fairfood new style with all of our friends at the Royal Tropical
Institute. That awesome event was also the official kick-off of our coconut campaign,
which we look back on with some well-earned pride. We were just short of a global
first, but definitely broke ground nationally when we put coconuts on the blockchain.
The campaign worked, with wonderful publicity as a result. We sent a #kokosnoodsignaal(#coconutalarm) to the world's largest coconut processors, such as Unilever and
Nestlé. They still have some work to do and are ultimately the ones who can make adifference for farmers who are currently getting the short end of the stick. Behind thescenes, we're still working hard, but we're happy to report that our campaign is having a real effect.
We do what we do because we love food. We want to help you, as a consumer, makethe very best choices. With our food, we want to contribute to the solution, not the
problem. That's why we are committed to fair food. In a fair food chain, everybody
counts. We work for the people who make our food. They deserve a fair income, but
don't receive one. That’s what we’re going to change!
Our work is made possible through the generous contributions of our donors, such as
the much-appreciated support from the Dutch Postcode Lottery. Our power comes fromour knowledge and network. Our new team and way of work, which are continuing toevolve in 2018, is set to put these strong points to optimum use. We're approaching our
future with a great deal of confidence and enthusiasm.
So, without further ado, we proudly present our annual report; offering an overview ofour main developments and achievements of 2017. This annual report was approvedby the Supervisory Board on April 16, 2018.

Sander de JongManaging Director
6

Jolande Sap
Chairman Supervisory Board
ANNUAL REPORT 2017 ~ 7

October 24: The Italian

1 THE FOOD SYSTEM IS BROKEN

We've got news for you: the food system is broken. As a consumer, you unknowingly contribute to
exploitation, hunger and child labour, simply by doing your daily shopping. The people behind our food
don't receive fair payment for their work, which weakens their position in the production chain. We thinkthat's unfair – both for the people behind our food and for you, the consumer. You deserve the chance
to make a conscious choice.
We could tell you about all the things that are going wrong, but we’d rather just show you. Althoughmuch of the suffering behind our food is safely tucked away in ambiguous food chains, every now andthen something gets picked up by the media. In 2017, some of the defects in the food system made thenews as well. The most remarkable stories:

aia
December 1: Ghan

tomato industry

Two of Italy's largest foo
d companies were conn
ected to migrant
exploitation in 2017. This con
cerns people who also pickthe tomatoes wefind in our Dutch supermark
ets. Corporate giants Mutti
andConserve Italia
were accused of profitingfrom extreme exploitation.
The
Italian tomato
industry was put under amicroscope after Abdullah Muhammed, a47-year old Sudanese mig
rant, died of a heart attac
k wh ile at wo rk.
Th e all eg ati on in thi s pa
rtic ula r ca se wa s tha t Mu
hammed could
have been saved, had hebeen allowed to go to thehospital. Like
thousands of other worke
rs, Muhammed would oft
en work as manyas 12 hours a day, witho
ut breaks, with minimal pay and no accessto medical staff.

April 3: The
Indian suga
rcane indus
In Apritry

l 2017, Al Ja
zeera wrote
sugarcane
about issu
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ake a livingg to end th, and many
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committedndreds of thousa
suicide in thnds havee past three decades.
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January 9: va
nilla from Ma
dagascarA Dutch va

August 22: B

razilian oranges

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rs of all theorange juice
from Brazil. Th
in Dutch sup
ere are manyermarkets coissues withinpickers andmesthat country’s
farmers areorange indus
paid far too
pesticides. Th
try:little and are
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exposed to ton SOMO als
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co reported ory and childn known caselabour in 2017
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radio station
last year andBNR
disclosed som
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utch newspa
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January 4:

plantations
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ng
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go
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There's a lo
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or travel elsewhe

ANNUAL REPORT 2017 ~ 9

THE FACTS*
Did you know that in the next 40 years we'll
consume as much food as we did in the last 8.000
years? Our food supply chains are quickly
becoming more complex in order to continue
feeding a rapidly growing world population. The
result: less transparency, leaving more room forabuse and fraud.

70%of all the foodproduced globallyis produced bysmall-scale farmers

Despite theirfundamental role,
many of these farmers
live below thepoverty line:

in Bolivia
83%

in Ethiopië
48%

⅓

in Vietnam
over 50%

Each year,
3,46 billion acresof land are used
to produce foodthat is wastedof all the foodproducedworldwide iswasted800 milllion
suffer fromhunger&520 m
iin Asilalion
243 m
in Afriillionca
42 milLatin lion ina n d t h A m e r i ca
e Car
ibbea
n

more thanhalf a billion
areunderweight**Meanwhile,

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

13% of adults
worldwide areobees

while in
Sub-SaharanAfrica and South/
South-West Asia
that's just 13-24

Of the 152 million
children involved inchild labour

worldwide, 70,9% workin the agrifood sector
60 million children
involved in child labour
are under 12 years old

107,5 million
boys and girls

That's10More thanhalf of all working
people in the world
work in the agrifood
sectories,
When it comes to fatalitdinjuries and work-relate
ctor
illnesses, the agrifood3 setis one of the top moswo
dangerous sectors toth rk
in, together wi
construction and mining*Facts in this annual report are based on research carried out by Fairfood. Sources available on request.

POVERTY TRAP
We call something a poverty trap
when an economic system is arranged
in such a way that escaping poverty without any external help becomes
impossible. It's a daily reality formany of the people behind our food.
For example, farmers usually don't
have any access to capital markets
for investments, face the depletionof agricultural land, have inadequate or outdated knowledge andare forced to deal with poor infrastructure.

ANNUAL REPORT 2017 ~ 11

2 OUR PURPOSE

Our work is guided by our core values: pragmatism, constructivism, innovation, optimism. What that meansis that despite all the adversity, we’re not throwing in the towel. We are going to make the food system fairer,
one step at a time.

STRATEGY: HOW TO CHANGE THE FOOD SYSTEM
We believe that fair food is possible. That's why we are literally and figuratively sinking our teeth into thetransition towards a fairer food chain. By and large, we focus on three things:

VISION AND MISSION
Fairfood sides with the people behind our food who can barely make a living. Our mission: to fill our plates onlywith food produced by people who are able to live in dignity, that is produced with respect to the environment,
and that improves life, socially and economically, for everyone involved. Small-scale farmers and workers in thefood sector deserve a living income, so they can contribute to changes that generate social and economic
prosperity for everyone.
We realise there's no simple solution, but we do believe that everyone should do whatever they can to help fix
the problem. Supermarkets, producers and food processors should protect the rights of everyone involved intheir production chains – including the people at the beginning of those chains. That's what we're working
towards. We believe that Fairfood plays an important and bridging role in the transition towards a sustainable
and transparent food system.
That mission and vision motivates everything we do. We are an organisation that campaigns for awareness.
In the process, we build partnerships and projects, with or without the industry itself. Everything we do isdedicated to creating a fairer and more sustainable food system.

LIVING INCOME
A living income is the compensation that a self-employed person orworker receives for a standard work week, and that’s sufficient for that
person and his or her family to be able to afford a decent standardof living. Meaning that person can provide his or her family withenough food and water, a roof over their heads, healthcare, transport and clothing. The compensation they receive should also allow
room to save something for a rainy day. In this report, we use 'living
income' as an umbrella term. Usually, a distinction is made between'living wage', which refers to people who are employed, and 'living
income', which refers to those who are self-employed, such as mostof the farmers behind our food.

12

EDIBLE CAMPAIGNS
Fairfood is a consumer movement. We want to make you, theconsumer, aware of what's on your plate. That's why we launcha series of product campaigns and bring fair, poverty-free
products to the Netherlands ourselves. Products selected on
impact, to make the consumer aware of the poverty that is hiding
behind our food. We also investigate the abuses behind ourfood as part of our campaigns, and lobby towards supermarkets and food producers.

MOVEMENT OF FRONT RUNNERS
For every campaign, we seek to create a coalitionof companies willing to take the lead and set theright example for the entire sector. Public-private
partnerships are increasingly important to accelerate change. We share lessons from our edible
campaigns and pioneer new technologies, suchas the blockchain technology, which help increasesustainability and transparency.

SHARINGWe actively share the knowledge we gain, for example in
our Living Wage Lab and Open Food Blockchain alliance(also see chapter 3). Together we profit from the lessons
we learn, and we put them into practice.

ANNUAL REPORT 2017 ~ 13

3 PROJECTS± 1 in e
you finvery 20 prodd
ket con in the supe ucts
tain co rmarconut

So we love a good chat here at Fairfood, but we get even more excited about doing. On a given work day,you might find one of us numbering coconuts in Indonesia, while someone else is sifting through farmers'
household management books and another is hammering out deals at the negotiating table. Eh, what?
Yeah, maybe it's time to let you in on what it is we actually do at Fairfood.

and can therefore
make a considerable
difference

THE CAMPAIGNSFirst and foremost, Fairfood is a campaign organisation. We take on product after product in what we callour public campaigns. Each public campaign is followed by a behind-the-scenes industry campaign, whichboils down to speaking with the parties that we believe still have work to do. Those conversations should
be followed up with concrete actions and projects that help realise living wages and incomes.

COCONUTThis past year was pretty much dominated by our coconut campaign. That's because there’s a lot going wrong
in that industry. Fairfood examined the coconut chain from farmer to the factory where the coconut oil isprocessed. We did that on Java and Sulawesi, Indonesia. The two oil refineries that the Netherlands gets mostof its coconut from, both have a factory in Northern Sulawesi. After talking to farmers, farmer organisations,collectors, factories and the government, we figured out how long and how obscure the production chain reallyis. Most of the money paid by the coconut consumer never actually reaches the farmer, because of all the
go-betweens.
Take the 'collectors' for example: coconuts are the main source of income for many farmers, but can only be
harvested four times a year. That means that a large part of the year there's no money coming in. Because ofthat, the farmers often go into business with 'collectors'; people from the community with a little more money,
entrepreneurial spirit and access to transport. They buy coconuts from different farmers and sell them on to othergo-betweens or factories. These collectors also ensure that the farmers have some money in between harvests.
Sounds great, but it really isn't. The money they offer the farmer is, of course, some type of loan, obligating thefarmer to sell their next harvest to the same collector. As a result, he or she is not in the position to negotiate
the price. And there's another problem: lack of attention from the government and knowledge amongst farmers,
means that coconut farmers invest far too little in their trees. That means that the production of coconuts ismuch lower than it could be, partly because old trees aren't being replaced.
The life of a coconut farmer obviously isn’t all sunshine and rainbows. That's why the next generation would
rather look for a job in the city. To ensure that we can keep using coconut oil, it's important to provide coconut
farmers with a dignified life and a fair wage. Basically, offer them a living income.
A LIVING INCOME FOR THE FARMER
A living income guarantees the farmer and his or her family the provision of their basic needs and an
opportunity to save. Small-scale farmers usually scrape together an income from different resources – inaddition to the sale of coconuts, they might also sell corn and eggs, for example. So then how do you decide
which part of the living income should come from the sale of coconuts? Do you look at the time spent on
it, the part of the income currently coming from coconut sales, or at how much of the land is taken up bycoconut trees?
Our living wage & livelihoods expert Anna travelled to Indonesia in May last year, where she dug deep
into all this and eventually established the fair price for a single coconut. On Java, she worked together
with our partner Aliet Green, an exporter of coconut sugar produced by coconut farmers in the area. Anna
and a team of Aliet Green's community workers visited and extensively interviewed different coconut farmers.
They went through household management books together to figure out what the sources of income andthe expenditures of farming families are.

14

The Netherlands
is the world's
second largest
importer ofcoconut
oil

56% of all

small-scale coconut
farmers in thePhilippines live
below thepoverty line

The coconut oil that is processedin the Netherlands requires thework of roughly a quarter of amillion small-scale coconut
farmers*

84% of the coconots import-

ed by the Netherlands, comesfrom the Philippines* Worldwide, there
are about 16 million
small-scale coconut
farmers

Anna used this information to determine the cost of a 'dignified life' on Java. That dignified life includes,for example, a nutritious diet. The Indonesian government previously calculated the costs of a nutritious
diet per capita per month in different provinces. When you add the costs of healthcare, education, housing
and transport to that, plus 10% extra for savings, you get to a living wage. In this area on Java, the living
wage came down to 1,589,897 Rupiah (or 104 euro) per month. By multiplying that wage with the average
number of people per household and dividing that by the number of working people per household, you
get to the living income. In this area on Java, that came down to 3,008,084 Rupiah (or 197 euro) per month.
Now for the bad news: it turns out that the coconut farmers earned just one third of what they'd need tolive a dignified life.
THE FAIREST COCONUTS THANKS TO BLOCKCHAIN TECHNOLOGY
Paying coconut farmers a fair wage sounds simple
BLOCKCHAIN
enough, but a coconut’s journey from tree to plate is long
A blockchain is a decentralised, distributed database,and complicated. We believe that could change. To prove
which consists of a growing list of records. Each record
it, we brought 1,000 fair coconuts to the Netherlands
can be seen as a 'block' – hence the name blockchain.
ourselves. After Anna finished her living wage research,
A block can be a transaction – John gave Marie X euro
we knew how much a coconut farmer needs to earn per– but also a bit of computer code. This allows you tococonut to make a decent living. That allowed us to pin
record information and processes as well.
down a premium of 60 eurocents per coconut, which we
paid on top of the price that the farmers usually get.

ANNUAL REPORT 2017 ~ 15

The coconuts didn't get any certification. They didn't need it: all the steps from tree to plate were registeredin full detail and documented using blockchain technology. Each coconut got a unique (QR-)code, allowing the consumer to view all the different steps and know exactly who picked his or her coconut. And whatmattered most to us: what price that person got for it. Call it the coconut’s digital passport. And might wejust add, with a little bit of pride, that we are the first in the Netherlands and one of the first in the world
to have sold blockchained food? Isn't that amazing?

CARDS ON THE TABLE: TALKS WITH THE INDUSTRY
We took some of those fair coconuts and the individual stories behind them and sold them – online and at
the Parade festival in Utrecht (that was a blast!). 75 of our coconuts were selected to shake up the industry.
We called this the #kokosnoodsignaal (#coconutalarm): on July 20, the main players in the coconut industry
and selected media received our coconuts in the mail, together with a fact pack, a pressing letter and an
invitation to join the conversation and address the issues to help find possible solutions.
This resulted in some great discussions with Unilever, Nestlé, Ahold-Delhaize, Barry Callebaut, Mars andCargill, among others. We also spoke with several industry organisations. The responses to our #kokosnoodsignaal were largely positive. And the conversations we had were encouraging. Cargill had alreadylaunched a pilot project for coconut farmers in the Philippines. And by now, we can report that Mars, Barry
Callebaut and Nestlé have also kicked off improvement programmes for the coconut farmers. That makes
us pretty proud!

thathains too: the digital passports
ckc
blo
se
the
m
fro
ing
eth
som
r product andYou as a consumer can gain
will tell you who worked on you
y
log
hno
tec
this
h
wit
e
eiv
rec
supermarket products
instantly decide
QR-code. So basically, you can
the
ng
nni
sca
by
t
jus
n,
bee
has
what its journeynable? Fair?
ds. Is it organic? Vegan? Sustai
whether a product fits your nee

OPEN FOOD BLOCKCHAINSARJO WIYADI
This is Arjo Wiyadi (56), proud owner of 35 coconut trees. He grows
his coconuts on the Indonesian island of Java, in the village of Hargotirto, where we were warmly received by him and his wife. During
one of our conversations, he stressed how proud he is of the work hedoes – how he hopes that his children also become coconut farmers
and that the coconut-centred culture in the village will continue to exist.
Still, he had to admit that it was hard work – he doesn't make enoughmoney from coconuts alone, so he also taps the trees to make coconut
sugar. That sugar earns him four times as much as the coconuts. You'dthink that's a good thing, but he also needs to climb trees as high as
100 feet about forty times a day for it. Without any protection. And
that's just as dangerous as it sounds.

16'BLOCKCHAIN' was one of the most commonly used words in our Fairfood team in 2017. You see, according
to us, blockchain technology can offer some much-needed transparency in currently very obscure foodchains. Since there's no overarching authority in blockchains – all parties have access to the blockchain –small-scale farmers and food workers have more power over what happens with their products and how
much is being paid for them. What gets us really excited about this is the efficiency that blockchains bringto the process. Blockchains can streamline administrative processes – invoicing, payment, inventory – saving
a lot of costs. Actors that cost money but don't add any real value can easily be singled out. And we'd liketo fantasise about this a little bit further: more cost efficiency means more money can go to the underpaid
farmer, without you as a consumer having to pay anything extra.
We're working very hard to create open food blockchains. We want to show you, as a consumer, what thepotential value of this technology could be, while also getting the industry on board so that the position of
farmers and food workers can truly be improved. What we need in order to do this is well-functioning, scalable
blockchain technology that's accessible to farmers and food workers in developing countries. No such technology exists at the moment, so every farmer cooperative, every producer and every brand that wishes tomake their chain fairer by using blockchains, is facing a huge challenge. This creates a giant waste of timeand money, even though apart from the differences, there are also a lot of similarities between different
chains.
An affordable, open source blockchain toolkit for fair food chains could be a great resource for companies,
allowing them to positively impact the beginning of many food chains. The development and implementationof these open food blockchains is what we at Fairfood are currently working on. We're pioneers in doing
that, but we're certainly not doing it alone. Partnerships with relevant parties are in the making and ourgoal is to have solidified a strong core coalition for Open Food Blockchains by the summer of 2018. Membersof that coalition are going to collaborate on blockchain projects and share their results, so that we cancreate a roadmap based on real and tested needs that will result in a functional set of applicable andaffordable blockchain applications.

ANNUAL REPORT 2017 ~ 17

COFFEE ON THE BLOCKCHAIN
Our programme manager, Marten van Gils, worked some serious overtime last year. After the coconut,
the final two months of 2017 were entirely dominated by coffee. Together with Fairchain Foundation andMoyee Coffee, we've been hard at work developing and implementing a blockchain application for their
Ethiopian coffee chain. While the coffee harvest was well underway, we examined the possibilities within
the set framework, decided the right direction to go in and directed blockchain builder Bext360 as they
constructed an amazing application.
We travelled to Ethiopia in order to map the local coffee production process in minute detail. From there,
we examined which steps in that process could be helped by a blockchain application. The core claims ofMoyee – good, honest, Ethiopian – could each be logged and, therefore, guaranteed by using blockchain
technologies. The blockchain powered coffee is set to go live in April 2018. So, less talk and more action.
We at Fairfood have been able to expand on and deepen our knowledge and skills throughout this project.
And we’re putting that knowledge and skill set to use in our future projects.

LIVING WAGE LAB
In 2015, we kicked off what we believe to be a very fitting collaboration between Hivos and Fairfood. Out ofthat collaboration, the Living Wage Lab was born. Since the issue of low wages and incomes can't be solved
by individual companies and organisations alone, we use our Lab to bring together different stakeholders
from the agrifood sector. Together with those stakeholders – think of supermarkets, producers, quality
marks, the government – we want to find practical solutions that we can instantly put to the test within ourLab environment.
The Lab is a platform for co-creation and experimentation. We call it a lab because we use it to test out newideas and combinations in order to find new methods and prototypes that might help solve problems regarding
living income. The Lab works according to the 'change lab' approach: a social innovation process that allows
stakeholders to work on complex issues together. Solutions are found in new technologies, new policies, newbusiness models and other types of collaboration.
In 2017, we organised a total of four sessions, each with more than fifty participants, in which we included
topics such as due diligence processes and the link between good procurement and liveable incomes.

TWO YEARS OF LIVING WAGE LAB
In November 2017, we celebrated the two-year anniversary of our Living Wage Lab. We did so by organising a very well received breakfast session. We'll admit: it wasn't technically in 2017, but just past the new
year's deadline. Do you remember the biggest storm in decades that raged in the Netherlands on January
18? Yeah, on that day. Willem Lageweg, Coordinator and Initiator of ‘de Transitiecoalitie Voedsel’ (theFood Transition coalition), and Kirsten van den Hul, PvdA member of the Dutch House of Representatives,
were present to accept a specially designed composite publication. Van den Hul called the Living WageLab a "wonderful project with a diverse field of participants." "It's quite extraordinary to see the business
community, policy makers and NGOs taking on an important subject like this, which needs an interdisciplinary approach, together", she said. "Generating a living income is not just a smart investment, it's theright investment."
The Living Wage Lab wants to attract an even bigger group of participants in 2018. We're also slightly
tweaking our method: within the Lab, different themes will be taken on by smaller, specialised groups. At
the end of 2018, the Lab hopes to have developed more tools that make it easier for parties to get started
on guaranteeing living incomes. In the fall, we plan to organise a conference to share insights and lessons
regarding living income with interested parties.

r Anna!
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DEVELOPMENT TOOL
Together with Rainforest Alliance/UTZ, the Living Wage Lab is currently developing a living-income-tool for
agrifood companies who want to realise a living income within their supply chain. Glasses were raised tothis collaboration in December 2017, and we set up a concrete plan, a timeline and a budget for thedevelopment of the tool. During the development process, we'll work together closely with the intended users,
so that we can test the tool's relevance and usability as we go.

WHERE DO WE MEET
Important core values such as freedom, openness and happiness are under threat in the Netherlands too.
Different communities seem to be increasingly opposed to each other, as differences are being stressed.
Populism feeds polarisation by fuelling fear of 'the other'. That's why we decided to lock arms with Hivos,
Oxfam Novib, Greenpeace, Partos and others in a week-long campaign in the onset of the Dutch vote for
the House of Representatives: if we lose each other, where do we meet? The campaign was meant to contribute to breaking down the culture of fear and encourage people to talk to each other. A temporary website reached 9,5 thousand unique visitors and the campaign reached over 300,000 people on Facebook.
18

ANNUAL REPORT 2017 ~ 19

THE FOOD-COVENANT: WHY IT DIDN'T WORKSDG’SThe Dutch government stimulates Dutch sectors to come to joint agreements on a collaborative approach
to risks concerning (international) socially responsible entrepreneurship (ISRE) in sector specific covenants.
In light of the covenant for the food industry, Fairfood spent about two years at the negotiating table.
These negotiations came to an end in 2017. Together with UNICEF, Oxfam Novib, Hivos, Natuur &Milieu and Save The Children, we came to the conclusion that the drafted proposal offered no solidbase for the covenant. We also noticed that the other organisations were no longer willing to negotiate
any further.
We were especially disappointed by the fact that the covenant would only be signed by the sector'sorganisations and not by individual companies. That means that those companies are not taking the
responsibility needed to bring about actual change. Also, concrete goals were missing and transparency
in the implementation of the covenant was not sufficiently safeguarded.
That's a real shame, because an ambitious covenant could encourage Dutch companies to finally workon improvements in the areas of sustainability and social aspects in their production chains in a morestructured way.
As impact-oriented organisations, we can only support a covenant if we believe in its potential to accelerateor achieve actual progress.

After the Millennium Development Goals set by the United Nations, we now have the Sustainable Development Goals (SDGs). These seventeen Sustainable Development Goals are supposed to have effectively
put an end to poverty, inequality and climate change by 2030. Fairfood is actively taking part in six of theseseventeen goals: 1. End poverty, 2. End hunger, 5. Equality between men and women, 8. Decent jobs andeconomic growth, 10. Less inequality, 12. Sustainable consumption and production.
2 ZERO HUNGER
1 NO POVERTY

5 GENDER EQUALITYINITIATIVE RESPONSIBILITY LAW CHILD LABOUR
The Dutch House of Representatives voted for a Responsibility Law for Child Labour with a large majority
in January 2017. That law is supposed to force companies to investigate whether or not child labour exists
within their production chains. If it turns out that it does, they are asked to take action against it. Sounds
reasonable right? Taking some effort to find out if injustices are taking place in your production chains?
The Dutch Senate didn't necessarily think so. On December 19 last year, the Senate was set to vote on thelaw. The most commonly voiced objection was that the law would put too much pressure on the corporate
world. We were all pretty shocked by that, so NGOs, the business community and engaged political players
joined forces and sprang into action. Tony's Chocolonely initiated a petition that was signed over 13,000
times, and together with Max Havelaar, Oxfam Novib, SOMO, Stop Child Labour Coalition and UNICEF
Netherlands, we wrote a pressing letter that appeared in Dutch newspaper NRC. Among others, Heineken
and G-Start Raw urged the Senate to pass the law. Also striking: the initiated law already had the supportof major companies such as Verkade, Auping, PLUS Supermarkets, Rabobank and ASN bank.
We would have loved to finish this story with "and then they passed the law and we all lived happily
ever after, yay!" Unfortunately, we're going to have to keep you in suspense for a while longer: the final
vote was delayed and as we write this, hasn't taken place yet.

‘it's very simple: we want only
fair food on our plates, so thatthe people behind that foodcan afford a decent meal as well’
20

10 REDUCEDINEQUALITIES

12 RESPONSIBLE
CONSUMPTION
AND PRODUCTION

8 DECENT WORKAND ECONOMICGROWTHANNUAL REPORT 2017 ~ 21

4 THE WHOLE-LOTTAAMBASSADORS- PLAN

Even if our team was 100 men strong, we still wouldn't be able to intrinsically change the food system by ourselves. In order to do that, we need wider support for our goals. We can only motivate the industry to truly takeon the existing issues if we have a convincing constituency of supporters who join us in our request for change.
That's why we're devoting the following chapter to those supporters. To you, that is. Congratulations, you!

FAIRFOODIESı

20 juni 2017 week 25

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van A

AMSTERDAM - Hoe
krijgt de verduurzaming van de Nederlandse levensmiddelensector een flinke
boost? Daarover gingen fabrikanten, retailers en anderepartijen uit de foodsector met elkaar indiscussie tijdens
Foodpolicy Outbreakcongres 2017. Daarnaast gaven prominente sprekers, zoals
Hugo Byrnes van
Ahold Delhaize, een
kijkje in het duurzaamheidsbeleid van
hun bedrijf. Fairfood
toonde met haarnieuwe strategie
weer terug te zijn op
de markt.

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Congressen | door Marije de Leeuwd):airfoo
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keten

Jo
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Sand

44

Foo

Fairfood has always been a foundation with an active set of supporters and thousands of ambassadors.
Thanks to some active 'community building', as hip marketeers call it these days. We need to approach ourgoals together, shoulder to shoulder. That’s why we involve all Fairfoodies in our endeavours through our
campaigns, through petitions, and by sharing our story on social media, in a newsletter and by organising
events. Ultimately, we want to provide you as a consumer with all the information you need to make wellinformed choices. That's how we aim to create a consumer movement that stands for responsible andsustainable food consumption. If we as consumers stand together, we can bring about positive change inthe lives of the millions of people behind our food. Ultimately, you are the change-maker.

reak

42 OutbdPe

rso nality juni 201

Duurzaamheid

Fairfood is weer terug op de markt en

7gaat zelf producten verkopen

Foodpolicy Outbreak toont duurzame
ambities

Sander de Jong heeft Fairfood weer nieuw

Hugo Byrnes, vice president product

Stickeren

17

6-20

13-0

albert Heijn is volgens Hugo Byrnes
namelijk vrij vergevorderd op dit
gebied. “Bij aH wordt maar voor
1,5 procent aan voedsel weggegooid, dat is niet heel veel. andere
takken van ons bedrijf kunnen veel
leren van de manieren waarop de

7:29

18:1

7

leven ingeblazen.

Fairfood, de NGO die in 2002 werd
stelling: ‘Zonder transparantie
opgericht en toen met veel tamtam
in de voedsel- komen over het
productieproces van ditdeketen kun je voedsel ook niet
eerlijkmarkt bestormde, boette de laatste
product. Je kunt de boer in Indonesië,jaren
verdelen’. De Jong: “Als een consument
waar
aan betekenis in. Maar de organisatieeen
de kokosnoot vandaan komt, zelfs
heeft
product koopt in de supermarkt,
een appje
zichzelf onder leiding van Sander
heeft hij
sturen en hem extra bitcoins toestoppen
de Jonggeen idee of de boer die aan dedieweer teruggevonden. Fairfood
basis stondworden omgezet in geld”, legt
heeft eende directeur
van dit product wel een eerlijke
nieuwe strategie: de NGO komt
prijs heeftuit.
zelf metgekregen. Maar ook niet hoeveel
producten op de markt. Hiermee
energie er
Het systeem dat Fairfood bedacht
wil Deis gebruikt om het product teheeft, ismaken, hoe
Jong ‘de concurrentie met grote
volgens De Jong uniek in Nederland.
bedrijvende werknemers die het productNogaangaan op ethiek en transparantie’.
hebbenniet eerder is de voedselketen
van eenbewerkt, zijn behandeld. Wat
als je dit wél
Fairfood is en blijft namelijk een
product zo inzichtelijk gemaakt,
activistiweet?”stelt hij.
sche organisatie die opkomt voor
Het is overigens niet de bedoelingeen
Fairfood
dat
de
heeft
een oplossing bedacht omeerlijke verdeling van eten tussen
producten die Fairfood via demensen.
website gaatde hele voedselketen inzichtelijk“We hebben er als maatschappij
te maken.
verkopen, ook in de schappen
een zooitje
van superHet systeem maakt gebruik van
van gemaakt”, stelt De Jong. “Ereen ‘blockmarkt
terecht komen. “Dat is niet onzezijn veel
chain’. In een blockchain delenmensen op deze wereld die met
deelnemenambitie. We willen met dit systeem
honger naar de partijen álles
laten
met elkaar, niets blijft
bed gaan, terwijl er dagelijks ook
zien wat je allemaal met deze
30 tot 40
technologie
geheim. Er kan daardoor niet
geknoeid
procent van ons eten wordt weggegooid.
kunt bereiken. We hopen dat
de industrieworden met gegevens. “Wij gaanAan de andere kant zie je dat
zo’ngeïnspireerd raakt en dat meer
het aantal
blockchain opzetten voor kokosnoten
producenmensen met obesitas toeneemt.”
dieten, retailers en andere spelers
we gaan verkopen in Nederland.
in deDaarom geeft Fairfood de strijd
Consumen- foodbranche zo’nniet op. In
transparante blockchain
ten die via onze website zo’n kokosnootapril is er een nieuwe versie van
op gaan zetten.” Voorlopig is dede organibestellen en aan huis laten bezorgen,kokosnoot
satie live gegaan. De NGO heeft
het enige product dat Fairfood
nu dekunnen via dit systeem alles tevia haarweten
website verkoopt.

integrity:‘Ahold Delhaize kan leren van deals wij nederlanders over ahold
Delhaize spreken, denken wij algauw aan albert Heijn. Het onlangs
gefuseerde bedrijf bestaat echtermaar voor 15 procent uit aH. tochkan ahold Delhaize de nederlandse
supermarktketen wel als voorbeeld
nemen als het gaat om het reduceren van voedselverspilling.

Foto’s: In tHe PIcture FotograFIe

verand

Die
op
dw
ruimt
kker
alleenft
als Foo aar er isvan Wa
club
l. “M
Een
succesr hee’
de zaar het
eren
rug uit Kijk naa
r Die
om
jong
n.
akke
n de nog een tip ?
’partijek vabrui millennials versnellen
wat W ms ook is Supermarkten.
k ge
ch
de
aa
ies tezelf de
is
wij
sat
ben
‘M
ak
n
bo
: ma
Jum
t so
t: heborganitast
worde de orhappen f
d in
len zijn boodsc
Tot slozel
t fan ritant he l, mvo-managervoobijr het gebouw
amhei nd te wil
jehouden alleen
et ze
e
rza
als
’s
h
mo
ere
rk,
duu
n
ir
d
ar ngo ngo’s is
daar
gge
r bel
je we
, ma
En ja,“Zonde keuze, op
ige bij.”ard.
‘Ik vin ezet, hoe ent daar Zo“Van spalijkndonieeket heel blijr. He
rden.
dingeneolat last
zijn
wo
ust
Do
ten
mige
erd
us
nded
bew
akke
sum
e mi
go’s rich opom som trade bannatuur wel wa
etc. ald aan herinnde con r Dier heb
eens
gle issu r eens. “N
doet
neerg
fair
eten
ook
isatie
nog
kke
omdat
koop
k sin

verspillingsaanpak van Albert Heijn’nederlandse marktleider verspilling
marktketen erg lastig consumenten
aanpakt. stickeren van producten die
te bewegen minder eten zomaar
tegen de tht-datum aanzitten gebeurt
weg te gooien. “Ik hoop dat deal heel lang in onze aH-winkels. In
jongere generatie, de zogenoemde
het buitenland is dat helemaal niet
millennials, meer bewust is vanzo vanzelfsprekend. Daarnaast heeftvoedselverspilling. Maar ik denk wel
albert Heijn een aantal mooie initidat retailers consumenten moeten
atieven op touw gezet om voedselblijven sturen.”verspilling tegen te gaan. Kijk maarahold Delhaize heeft de doelstelnaar Instock, deze restaurantketen
ling om tegen 2020 op mondiaal
kookt met overgebleven voedsel
niveau 20 procent minder voedvanuit onze aH-vestigingen. Zo’nsel te verspillen. Daarnaast wil het
initiatief zorgt natuurlijk niet voor een
bedrijf tegen die tijd dat 45 procent
enorme verspillingsreductie, maar
van haar assortiment eigen merken
zet het onderwerp wel op de kaart”,
uit gezonde producten bestaat.
verklaart Byrnes.
Bovendien moet het aanbod tonijn inen dat laatste is erg belangrijk, stelt
2020 voor honderd procent duurByrnes, want het is voor een superzaam zijn, laat Byrnes weten.

Hugo Byrnes van Ahold Delhaize:“Bij AH wordt maar 1,5 procent van
het voedsel weggegooid.”

44

OUTPUT VS. OUTCOME
Did we mention our massive make-over of 2017? That make-over particularly did wonders for our website.
That was very important to us, since that's our main channel of communication. On our site you can always
find the most recent information about our campaigns and projects, success stories and the newest blogs.
The love we feel for our supporters, goes both ways. The figures:in 2017…
we organised a kick-off event with 85 invitees
we hosted 7 blockchain-events
we sent out 8 newsletters
we produced 16 videos
we sent out 145 tweets
we posted 150 Facebook-posts

the results:
33,5 duizend websiteses
33,5 thousand website sessions (25k unique visitors)
3,7 thousand subscribers to our newsletter
93,1 thousand Facebook-followers
173 thousand views on our best viewed video
13 thousand Twitter-followers
22

IN THE MEDIA
Much of the attention that we and our campaign got was thanks to all the wonderful media attention we
received. We especially loved the episode of Dutch television programme BNN/VARA's Groenlicht, where
we talked about the problems in the coconut industry. Another highlight was our performance at Dutch talkshow RTL Live. And they're still pinned to our wall: the two articles in Trouw and the piece that appearedin the Volkskrant. All this makes us more than a little proud, so we'll just keep going: we were featured in,among others, the Leeuwarder Courant, het Parool, on Duurzaambedrijfsleven.nl, De Morgen, Voor de
Wereld van Morgen, OneWorld and we were interviewed by radio station NH Nieuws. We appeared in
the media a total of 22 times! Thanks media!

Nooit meer nepproducten
De impact van blockc

hain op de retail(/)

ZoekenHome (/)

Nieuws (/Nieuws)

Blockchain kan belangrijke rol vervullenin leverancierbeheersing

PrintenToevoegen aan Mijn VMTvan Drunen – van Meerendonk
Den Bosch, 18 juli 2017 11:00 | Marlous
n__van_Meerendonk)(/Schrijverspagina/Marlous_van_Drune

December 2017
Vergroten

werkt het?
Gevarenanalyse grondstoﬀen: Hoe
alyse_grondstoﬀen(http://www.vmt.nl/Nieuws/Gevarenan
170728094613)
halo’ binnentreden?
paleis_binnentredenKunnen ongezonde producten de ‘healthngezonde_producten_het_gezondheids(http://www.vmt.nl/Nieuws/Kunnen_o170726182519)
onderzocht
opnieuw
kwaliteitsmanagers
derzochtRol en positie
sitie_kwaliteitsmanagers_opnieuw_on(http://www.vmt.nl/Nieuws/Rol_en_po
170717104508)
zamelt drankenkartons in voor
97% van de Nederlandse gemeenten
nkenkartons_in_voor_recyclingrecycling_Nederlandse_gemeenten_zamelt_dra(http://www.vmt.nl/Nieuws/97_van_de170717100507)[column]
Is de claimswetgeving 'fit for purpose'? _de_voedings(http://www.vmt.nl/Nieuws/Column_Isfor_purpose_KTBA_en_gezondheidsclaimswetgeving_fit_
170705134600)
Meer berichten uit: Voedselveiligheidsegment=Voedselveiligheid)

in de voedselketen
toekomst mogelijk de transparantie
Blockchaintechnologie kan in devoedingsmiddelenindustrie?
toepassingen van blockchain in de(/Nieuws?

vergroten en voedselfraude voorkomen.

Wat zijn deeen barcode. De consument ziet het
een digitaal paspoort in de vorm van
dat je fabriek verlaat, is voorzien vanvan de weg die het product hee�Stel je voor: ieder voedingsmiddel
ziet online direct een compleet overzicht
de barcode in op de smartphone envan blockchaintechnologie lijkt
product in de supermarkt liggen, voert
denken, maar in de huidige wereld
Toekomstmuziek zou je misschien
afgelegd vanaf de boer tot aan de supermarkt.
niets onmogelijk.
betrouwbare informatie. De databaseeen opeenvolging van ‘blokken’ met
een centrale database die bestaat uit
de data hoeven goed te keuren.
Een blockchain vormt kort gezegd
instanties, zoals een bank of notaris,
van computers zonder dat controlerende
kan worden beheerd door een netwerkdede gebruikers nieuwe informatie aankopie van de database. Als één van
op het netwerk beschikken over een
formules. Wijziging
Alle computers die zijn aangesloten
door middel van ingewikkelde wiskundige
netwerk van computers worden goedgekeurd
database toevoegt, moet dit door het
mogelijk.
niet
isvan bestaande informatie blokken
kunnen worden
voorkomen dat frauduleuze wijzigingen
wordt
Zo
toegevoegd.
wordenaan de database
Een dergelijke vorm van het delen van
Er kunnen alleen nieuwe informatieblokken
blokken met betrouwbare informatie.
ontstaat zodoende een ketting van
doorgevoerd in bestaande data. Erde food sector.
sector worden toegepast, zo ook binnen
informatie kan feitelijk binnen iederetransparantie binnen de keten
een belangrijke rol vervullen om desing kan de blockchaintechnologie
dat de gewenste
Onder andere op gebied van leveranciersbeheer
van alle schakels binnen de keten verwachten
ketenregisseur, zoals een retailorganisatie,vandoor middel van een directe invoer
te vergroten. Zo kan bijvoorbeeld een
database wordt ingevoerd. Dit kan
massabalansen, etc.) in een centrale
informatie (specificaties, certificaten,
van koppelingen met andere systemen.
kwaliteitsinformatie of aan de hand

ANNUAL REPORT 2017 ~ 23

5 ORGANISATIE

If you want to know a bit more about the people behind Fairfood, keep reading!

FAIRFOODIES TEAM
We opted for a flat organisational structure with short lines and few layers, which allows us to effectively andefficiently work on our mission. Our organisation consists of a managing director and a small team of seniorprofessionals. Apart from our many volunteers and partners, our core team is made up of the following people:
CHANNA BRUNT
No e-mail leaves the Fairfood premises without our communications
manager Channa having checked and explicitly approved the toneof-voice as being Fairfood-proof. This Dutch Studies graduate combines
some serious language purism with an unparalleled sense of style.
Sweaters, bags, even houseplants are selected on their flair andelan. Thanks to Channa, the new Fairfood-house style contains
exactly that touch of optimism we were looking for. And, not everybody
might know this, but Channa volunteers with the animal ambulance.
Not only because she literally wouldn't hurt a fly out of principle, but
because she likes the fact that she can combine her day job with thenight-time volunteering.
LONNEKE VAN GENUGTEN
Lonneke wields a facile pen and is able to write anyone into theground. Not that she would do such a thing, because 'positive' and'optimistic' might as well be her middle names. And those two characteristics come together in an explosive third – ENTHUSIASTIC! –particularly useful in her position as campaign manager. Even when
it's raining cats and dogs, this mother-of-three will hop on her bikeand sprint to the office with an indelible smile. That smile makes us
almost as cheerful as the prints she effortlessly combines in her outfits – polka dots and cats effortlessly go together with a gold/red
gingham. Her social network is limitless and her arrival at Fairfood
was accompanied by the sudden appearance of at least three visitors
a day – "Hey Lonneke! I heard you were working at Fairfood thesedays!" Good times!
MARTEN VAN GILS
It is said that Marten was one of the few people who did invest in
the Bitcoin in time. It’s quite possible that he's personally responsible
for spreading that particular rumour: as program manager blockchain you might very well lose face if you're not known for staying
ahead of the pack. Nobody ever wrote a sentence about blockchainsthat this man didn't read, and we're certain that his brain alone will
be worth its weight in gold one day. Apart from knowing his cryptocurrencies, he's also an extremely talented cook, and more often than
not he'll tell us all about last night's masterpiece while effortlessly
whipping up the sandwich-of-the-month during lunch.

24

SANDER DE JONG
Boss of the year, that was our nickname for managing director Sander in 2017. To be fair, we only had one boss. Still, we're convinced hewould've won against your boss too. We know very few people who
are that optimistic under every possible circumstance. We also know
very few people who are that excitable when it comes to a rare racing
bike, Sven Kramer and tempeh. His secret superpower is, without adoubt, bringing together people who effortlessly complement eachother’s personalities – he worked that same magic on our team andlook at us! The saying might be that when the cat's away, the mice
will play. But to be honest, Sander knows how to play and we all findit a bit of a downer when he's away.
ANNA LENTINKWe still can't agree on the moment when she's at her very, very best
– meditating on a mountain, dancing on a table or simply whenever
she's being incredibly passionate about what she's incredibly good
at: carrying out living-wage-research and coordinating as living wage
& livelihood expert. Anna saw, knows and did so much already that
we can only assume she's as old as she claims to be. Every now andthen she'll shout, 'DANCE MINUTE', and has the volume set to max
before you know what hit you. Also has the most contagious laughwe ever heard. You should be very jealous that we have Anna Lentink
and you don't...
ISA MIRALLES
She's as talented at soccer as she is at walking a tightrope and making us laugh (very talented). She might be even slightly more talented
at answering all of our question. That's why we call her research officer. Every now and then, Isa will hop on her bike and leave for a
spontaneous solo-trip to Texel or Groningen. We recently found outthat she also runs a lap every day before taking her bike to work.
She'd be the first to admit that she knows no boundaries, period, andshe approaches everything with just a little more conviction than you.
The source of all that energy
is a mystery to us, because
Isa doesn't like or eat fruit.
We repeat: Isa doesn't eat fruit!
UMAIR SHAIKH
When Umair is laughing out loud, you know something was reallyfunny. This silent force sometimes seems to work eight days a week.
He does so as the one-man-department of finance at Fairfood andthe rest of the time as his own boss. Apart from being a very hard
worker, Umair is the proud 29-year-old father of not one, not two, butthree children. And kids are hard work as well, right?

ANNUAL REPORT 2017 ~ 25

SUPERVISION AND MANAGEMENT
Fairfood is managed according to the Supervisory Board-model. The tasks and authorisations of the
management and the Supervisory Board are recorded in the statutes. The Fairfood foundation is managed by a managing director (one natural person: our Sander), who is assigned by the Supervisory
Board and is responsible for the foundation's policy and daily supervision.
The Supervisory Board is made up of at least five natural persons, who carry out their work unsalaried.
When a position opens up in the Supervisory Board, a profile is drawn up that takes the current
expertise of the Board into account. New members are appointed by sitting members.
The Supervisory Board not only monitors the management, but also keeps an eye on the general courseof affairs at Fairfood. The Board's tasks include approval of the annual plan and budget and assessmentof the annual report and financial statements. Every year, two members of the Supervisory Board, including the chairman, sit down with the manager for an assessment interview.
The audit committee consists of two members of the Supervisory Board. This commission has the taskof supporting the supervising role of the Supervisory Board when it comes to financial matters. The
audit committee meets at least twice a year with the manager to discuss, among other things, thepreliminary budget and the yearly interview with the accountant.

OUR SUPERVISORY BOARD OF 2017 WAS MADE UP OF:
JOLANDE SAP
independent sustainability adviser for corporate and social organisations, commissioner, and sought-after
speaker and presenter. From 2010 to 2012, Jolande was chairman of political party Groenlinks in the Dutch
House of Representatives. She was member of parliament from 2008 to 2012, until she left politics behind.
She has filled several research and management positions at governmental and private organisations andhas a broad knowledge of socio-economic and development issues. Jolande has been the chairman of theBoard since January 2014.
MAXINE TILLIJ
owner of CorporateSense, a boutique-consulting agency focused on strategy, governance and strategic
stakeholder management in regulated markets. Maxine is also a member of the Supervisory Board of Farm
Zero, a non-profit organisation offering sustainable and commercial agricultural solutions to poor societies
and countries. She used to be Director Corporate Development on the Board of Directors at EBN B.V., anorganisation that participates in the exploration, production, storage and sale of oil and natural gasses
for the Dutch state. In this role, she bore responsibility for the strategy, business development, communication, public affairs and legal affairs of EBN. Maxine also filled the positions of senior legal counsel at
N.V. Nuon and lawyer at De Brauw, Blackstone, Westbroek N.V. and Houthoff Buruma N.V.
HANS BRUNING
former chairman of the Netherlands Institute for Multiparty Democracy (NIMD). Hans has an impressive trackrecord in developmental collaboration, civil society and politics, having worked as Director of Developmental
Organisation at ICCO and Director International Programmes at CNV. Hans joined Fairfood's Supervisory Board
in 2009 and has been the vice-chairman since 2013.
FRITS KREMER
Director of Mediaset Business Events, chairman of sustainability network Foodpolicy NL and member of theAdvisory Board of the Good Fish Foundation. Additionally, Frits is a regular columnist for FoodPersonality

26

magazine. From 2003 to 2006, Frits was head of corporate communication of supermarket group Laurus.
During that time, he worked together with Natuur & Milieu and Oxfam Novib to lay the foundation for asustainability 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 supervises (groups of) companies in making theirinternational production chains 'future proof'. He does that with Generous Minds (which he co-founded)and the agrifood-team of MVO Netherlands, among others. He has worked in the fields of marketing,commerce, innovation and sustainability for Procter & Gamble, Unilever, Danone, People4Earth andJumbo for many years.

ADVISORY BOARD
The Advisory Board advises our managing director on strategic issues. This Board consists of prominent
experts with an international network and different professional backgrounds. We're very proud of the amazing
club that's taking on this task:
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 Smelt chief marketing officer at TP Vision

PARTNERS
Actually, it's quite simple: without the Dutch Postcode Lottery (DPL), Fairfood wouldn't be where we aretoday. DPL is the largest charity lottery in the Netherlands and has been recruiting funds for organisations
that strive for a greener, fairer world since 1989. 50 percent of their proceeds are divided among charity
organisations in the fields of environmental protection, developmental collaboration and human rights.
Fairfood has received a yearly stipend of 500 thousand euro from DPL since 2009. We use that money for
projects, campaigns and partnerships that contribute to our goal of lifting all the people behind our foodout of poverty.

The Dutch Postcode Lottery is very pleased with the important work that
Fairfood does. That's why we are proud of the fixed annual contribution of €500,000
that we can offer them, thanks to our participants. We are always pleased to readabout Fairfood's innovative campaigns and projects, and we believe that they put
this money to use in the best possible ways, in order to achieve their ultimate
goal: help get the people behind our food out of poverty.

Margriet Schreuders
Head Charities Dutch Postcode Lottery

ANNUAL REPORT 2017 ~ 27

RISK ANALYSIS
Fairfood is committed to a transparent and effective use of resources. We set great store by risk management,
because we're aware that economic circumstances can change fast, politics can prove to be unstable andmarkets can be volatile. We're all too aware of the fact that sustainability is not always equally relevant toeveryone. Our campaign activities and the dialogue we're constantly working to keep going, are meant to
reduce that risk.
With the arrival of our new managing director in 2016, Fairfood has drawn up a new long-term strategicplan. Our fundraising strategy provides us with financing for the projects of 2017-2019, while we're building
relationships that should provide us with more structural and long-term financing after 2019. Our financing plan focusses on our long-term partners, and new donors who work on technological applications, suchas blockchain technology, artificial intelligence and Internet of Things. Fairfood will also enter into publicprivate partnerships (PPP) whenever possible, with organisations who wish to contribute to a sustainable
food system.
Although it's a major change for Fairfood, this new strategic plan stays close to the 'roots' of Fairfood andthe reasons why the Dutch Postcode Lottery chose Fairfood. We want to strengthen our collaboration with
the Dutch Postcode Lottery, not just through financing, but also with marketing and communication.
Political decision-making – and available financing – are difficult to predict, as are the political forces that
affect our partner organisations. Fairfood collaborates with other NGOs and lobby organisations Partos
and MVO Platform, in order to influence political decision making.

6 FULL STEAM AHEAD!

2017 was a truly wonderful year. A rock-solid foundation was laid, our vision and mission were brought into
clearer focus, our team was meticulously composed. Looking back was a lot of fun and we wrote this annual
report for you with a great deal of nostalgia. But we love to look forward too. A few highlights:

FOLLOW-UP COCONUT CAMPAIGN
Our campaign caused quite a stir in 2017 and we're going to stir things up a bit more. We're continuing the
campaign and lobby in the coming years. Together with industry organisations, we're initiating a'coalition of the willing' to realise an ambitious agenda for the coming years with various parties. We'realso kicking off public-private projects with front runners who want to actively improve the sustainabilityof their coconut chain. We are currently in the advanced stages of talks with a number of parties. We'll
keep you posted!

NEW CAMPAIGN: COFFEE
Whether you're downing a double espresso every morning, sip on a Latte Macchiato or simply throw backa good ol' cup of joe: behind every cup of coffee you drink, a personal story can be found. The story of thecoffee farmer who grew the 50 to 80 beans that were ground down to make your cup of coffee. Do you
know where that person is from? What their coffee rituals are? Probably not. Chances are you also don't
know how much that farmer makes from that coffee you're drinking. Don't be alarmed, but: off of every cup
sold at a café or coffee shop, that's generally less than 2 percent. So, your cup of joe is basically a cup ofsorrow. Not a very energising idea, is it?
That's why Fairfood has set a major goal for 2018: unite with the coffee lovers of the Netherlands and makesure that coffee farmers get fair pay for the coffee we drink each day. We don’t just want to wake up large
coffee companies, we want to show which choices YOU can make at the supermarket or café. That meansthat coffee brands need to be brave enough to be transparent about who earns what in the production
chain, from farmer to barista.
In the meantime, we're going to figure out what farmers need to earn in order to make a decent living, andwhy they're not making that right now. We want to learn from sustainable and fair-trade pioneers, from thesmall brands for the connoisseur, but also from the supermarkets who entice their customers with stunt coffeedeals. In the Netherlands, we drink about 1 percent of all the coffee grown globally each year. Imagine if
we can make that 1 percent truly fair, that might be a great start to a worldwide movement for truly great
coffee. No espresso shot can beat that.

5-YEAR PLAN
And there's more. We're not afraid of a little ambition. That's why we’ve set ourselves a few goals that we'regoing to deliver on in the next five years:
We're going to lift 1 million farmers out of poverty
We're going to put ourselves on the map as a campaign organisation with a broad and active following
We're going to become the knowledge centre for human rights in the food sector
We'll organise a coalition around open food blockchains to provide farmers with a fair income,and we will function as a blockchain-for-food-authority within it
We'll realise a growing number of coalitions of front runners as part of our campaigns

28

ANNUAL REPORT 2017 ~ 29

7 FINANCIAL FORECAST 2018

The year 2017 was the year we debuted our new strategic plan. Quite successfully, we might add: we wereable to recruit a new fund for the coconut blockchain project early in the year. We've noticed that our new
direction is catching on and that there's a real interest in our approach. 2018 promises to be a year of perseverance, with the follow-up to our current campaigns and the kicking off of new projects and programmes.
It is our goal to grow our operational budget to €1.5 million in 2019, with a small, flexible organisation ofcommitted professionals. We're expanding our fundraising activities and are creating different scenarios
for a financially sustainable future.

BUDGET 2018 IN FIGURES
IN €

2017

2018

ACTUALBUDGETINCOME FROM PRIVATE FUNDRAISING

131.537449.700

INCOME FROM THIRD-PARTY ACTIONS

500.000

500.000

558

2.000

632.095

951.700

SPENT ON OBJECTIVES

209.796486.675

SALARIES

333.745367.258

HOUSING

23.05719.200MANAGEMENT & ADMINISTRATION COSTS

60.89255.200SUM OF EXPENSES

627.490928.333

BALANCE OF INCOME AND EXPENSES

4.605

23.367RESERVE ASSETS END OF YEAR

242.122265.489

INCOME

INTEREST INCOME
SUM OF INCOME
EXPENSES

30

FINANCIALREPORT2017

33

BALANCE SHEET AS OF 31 DECEMBER 2017

STATEMENT OF REVENUES AND EXPENDITURES FOR 2017

(after appropriation of result)31-12-2017

31-12-2016

ACTUAL 2017

ACTUAL 2016

€

€

€

€

REVENUESASSETSTANGIBLE FIXED ASSETS--REVENUE OF OWN FUNDRAISING

131.537101.987

FINANCIAL FIXED ASSETS

-

1.974

REVENUE OF COMBINED ACTIONS

-

-

-

1.974

REVENUE OF ACTIONS THIRD PARTIES

500.000

500.000

GRANTS FORM GOVERNMENTS-

26.797

INTEREST

558

2.625

OTHER REVENUES--TOTAL REVENUES

632.095

631.409

EMPLOYEE EXPENSES

333.745486.226

ACCOMODATION EXPENSES

23.05742.417

DEPRECIATION COSTS--CONTRIBUTIONS TO PARTNER ORGANISATIONS

6.524

3.716

RECEIVABLES AND
PREPAYMENTS

14.297

CASH AND CASH
EQUIVALENTS

297.905

TOTALS

312.202

16.010257.121
EXPENSES
275.105

31-12-2017

31-12-2016

PROMOTION COSTS

209.796

196.720€€OTHER EXPENSES

54.368123.129

TOTAL EXPENSES

627.490852.208

OPERATING RESULT

4.605-220.799

FINANCIAL EXPENSES--

RESULT

4.605-220.799

CONTINUITY RESERVE

4.605-220.799

DESIGNATED RESERVE--TOTALS

4.605-220.799

LIABILITIESRESERVESCONTINUITY RESERVE

242.122237.517

DESIGNATED RESERVE--

242.122237.517

SHORT TERM LIABILITIESPAY-ROLL TAKS /SOCIAL SECURITIES-ACCRUED EXPENSES
AND LIABILITIES

70.08034.08070.08037.588312.202275.105

TOTALS34

3.508
DESIGNATION OF RESULT35

NOTES TO THE FINANCIAL STATEMENTS
GeneralThe registered and actual address of Stichting Fairfood International (registered at the Chamber of Commerce with file number 34141098) is Mauritskade 63 in Amsterdam.
Principles of pricing
The financial statements have been prepared in accordance with the Guideline for Annual Reporting 640‘Not-for-profit organizations’ of the Dutch Accounting Standards. Annual accounts are based on historical cost 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 realized. Expenses are also accounted.

Liabilities
Current liabilities are initially valued at their fair value and subsequently valued at a mortised cost, which
is similar to the face value. Accruals are valued at their face value.
Principles of the determination of the result
Gifts in kind
Gifts in kind are valued against fair value in the country in which they are received. The fair 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.

Comparative figures
The figures from the preceding year have been reclassified for comparison purposes.
Foreign currencies
The accounts of the organization are presented in euros, which is the 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 currency 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
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 of costs,
takin into account any residual value. Depreciation is recognized from the date an asset comes into use.
The assets are depreciated over a period of three or five years.
Receivables
The receivables are initially valued at their fair value and subsequently valued at a mortised cost, which issimilar to the face value, after deduction of any provisions of necessary. Provisions are recognized on thebasis of individual assessment of recoverability of the receivables.
Current assets
Fairfood has no securities of deposits in which it keeps its current assets. All current assets that are not immediately needed are kept in a savings account as ASN Bank.
Discretionary net worth and reserves
Fairfood aims to reach a discretionary net worth of 25 per cent minimum and 35 per cent maximum of total costs by the end of the year minus sponsorship in kind received in the corresponding financial year. Thisis needed to avoid immediate problems that may arise in case of financial setbacks. This is how the organization’s continuity is guaranteed.

36

37

NOTES TO THE BALANCESHEET AS AT 31 DECEMBER 201731-12-2017

31-12-2016€€

NOTES TO THE STATEMENT OF REVENUES AND EXPENDITURESREVENUES
2017

2016

€

€

DONATIONS

454

2.591

SPONSORING IN KIND(CONTRIBUTIONS)

35.43260.582

FINANCIAL FIXED ASSETSOPERATIONAL COST(OFFICE GUARANTEES)

-

1.974

-

1.974

REVENU OF OWN FUNDRAISINGRECEIVABLES AND PREPAYMENTS
PREPAID EXPENSES

374

3.025

NGO'S

68.00038.815ACCRUED INCOME

13.923

9.625

CAMPAIGN-SALES

3.151

-

DEBTORS-

3.100

107.037101.988

OTHER RECEIVABLES AND PREPAYMENTS-

260

14.29716.010500.000

500.000

500.000

500.000

REVENU OF ACTIONS THIRD PARTIESNATIONAL POSTCODE LOTERY- GENERAL FUNDING

CASH AND CASH EQUIVALENTS
ASN BANK

228.059236.434RABOBANK

68.57418.965OTHER BANKACCOUNTS

1.272

1.722

GRANTS FROM GOVERNMENTS

297.905

257.121MINISTRY OF FOREIGN AFFAIRS

10.50019.797MINISTRY OF ECONOMIC AFFAIRS

14.0007.000

24.50026.79731-12-2017

31-12-2016

BALANCE AS AT 1 JANUARY

237.517458.316EXTRACTION--

APPROPRIATION OF THE RESULT

4.605-220.799

BALANCE AS AT 31 DECEMBER

242.122237.517

-

3.508

-

3.508

CREDITORS

3.500

4.892

ACCRUED EXPENSES

2.420

29.188ADVANCED GRANTS

64.160-70.08034.080CONTINUITY RESERVE

PAY-ROLL TAKS / SOCIAL SECURITIESPAY-ROLL TAKS / SOCIAL SECURITIESACCRUED EXPENSES AND LIABILITIES

38

39

INDEPENDENT AUDITOR’S REPORT
To: The Supervisory Board and Management Board of Stichting Fairfood International

EXPENDITURE
2017

2016

EMPLOYEE EXPENSES
WAGES AND SALARIES

258.669

284.423

SOCIAL SECURITY CHARGES

37.37356.528TRAVEL EXPENSES

5.194

6.319

TRAINING-

5.548

NON-PAYROLL STAFF

21.846-

FOOD AND BEVERAGE OFFICE

2.842

1.197

INTERIM MANAGEMENT-

92.960OTHER STAFF EXPENSES

7.821

39.251333.745486.226

The average number of FTW in 2017 was 3,96 ( 2016: 6,5)
ACCOMODATION EXPENSES
RENT & SERVICE

20.97940.832

CLEANING, OFFICE SUPPLIES AND
OFFICE MAINTENANCE, OTHER
ACCOMODATION EXPENSES

2.078

1.586

23.05742.418CAMPAIGNIG

187.161

83.554

STRATEGY-

79.711

PUBLICITY

22.63433.456209.795

196.721

OFFICE COSTS

42.22243.225

AUDITS

17.45719.844

ADVICE

400

3.908

ADMINISTRATIVE COSTS

812

277

CONFERENCES FEES--TRAVEL WORK AND INTER OFFICE--LODGING--RETRENCHMENT COSTS-

59.59060.891126.844

A. REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS 2016 INCLUDED IN THE ANNUAL REPORTOUR OPINION
We have audited the financial statements 2017 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 2017, and of its result for 2017 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 2017;2.
the profit and loss account for 2017; 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.

PROMOTION COSTS

OTHER EXPENSES

40

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-for-profit 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.

41

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 STATEMENTSRESPONSIBILITIES 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.

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; and• Evaluating whether the financial statements represent the underlying transactions and events in a mannerthat 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 11 April 2018
Ardent Adviseurs en Accountantsw.s.
N.M. van Dijk RA

OUR 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:• Identifying and assessing the risks of material misstatement of the financial statements, whether due tofraud 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 not detecting
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, andbased on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
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 report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,42

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