Solidaridad The NeTherlaNdS 2013 aNNual reporT
Mr. Enan abblé – succEssful cocoa farMEr froM côtE d’IvoIrE. rEad hIs story on thE back covEr.
2 TheSolidaridad2013AnnualReport
CoNTeNTS
ForewordRecognitionthatmatters 3
resultsandimpactConclusionsfromprogrammeevaluations 5Globalresults 6Processandfunding 8Resultspercommodity 10AboutSolidaridad 12
CommodityprogrammesCoffeeFocusonfoodsecurityandclimate 14TeaMainstreamingsustainability 16CocoaUrgentneedtorestructurethesector 18Fruit&vegetablesFreshproduceforlocalmarketsandexport 20CottonEngagingallactorsinthesupplychain 22TextilesThemovetowardsresponsiblefashion 24GoldReachingouttonewminers 26SoyPositiveimpactsofresponsiblesoy 28PalmoilFrequentandbettersmallholdersupport 30SugarcaneTurninganewleaf 32LivestockLivestockbecomespartofthesolution 34
Aquaculture25,000shrimp&fishfarmersformgroups 36
TheSolidaridadNetworkintenregionsSolidaridadSouthAmericaInnovationwithsustainablecommodities 39SolidaridadAndesScalingupe-learningforcoffeefarmers 40SolidaridadCentralAmericaBreakthroughsinsustainablepractices 41SolidaridadWestAfricaMovingbeyondcertification 42SolidaridadSouthernAfricaRapidgrowthandexpandedoutreach 43SolidaridadEastandCentralAfricaEmbracingfarmersupportprogrammes 44SolidaridadSouthandSouth-EastAsiaWaterefficiencyinindianagriculture 45SolidaridadChinaDevelopingsustainablebusinesscases 46SolidaridadtheNetherlandsHigh-qualitybusinesspartnerships 47SolidaridadNorthAmericaBuildingpartnershipstosupportproducers 48
MarketdevelopmentandcommunicationCampaignswithapositiveapproach 50
SupervisionandmanagementTheSolidaridadNetwork 54
Financialreport 59
SolidaridadNetworkadresses 68
4C CoffeestakeholderandcertificationplatformARM AllianceforResponsibleMiningBCI BetterCottonInitiativeBonsucro Globalsugar-caneRoundtableBSCI BusinessSocialComplianceInitiativeBMI BetterMillInitiativeCIDIN CentreforInternationalDevelopmentIssues
RadboudUniversityNijmegenCSO CivilSocietyOrganisationDEG GermandevelopmentorganisationETP EthicalTeaPartnershipECOM Aglobaltrading/processingcompanyFLO FairtradeInternationalGRSB GlobalRoundtableforSustainableBeefHivos ADutchdevelopmentNGOIDH TheSustainableTradeInitiativeIFC InternationalFinanceCorporationKPMG Audit,taxandadvisorycompany
LEI Social-economicresearchinstituteofWageningenURM&S Marks&SpencerretailcompanyNORAD TheNorwegianAgencyforDevelopment
CooperationOECD OrganisationforEconomicCo-operationand
DevelopmentRJC ResponsibleJewelleryCouncilgoldRSPO RoundtableonSustainablePalmOilRTRS RoundTableonResponsibleSoyAssociationRVO NetherlandsEnterpriseAgencySAC SustainableApparelCoalitionSAI Globalfoodanddrinkindustryinitiativefor
sustainableagricultureSNV InternationalNGOwithanemphasisonreducing
povertyUtz UtzCertifiedWBF WorldBananaForumWWF WorldWildlifeFund
gloSSary
TheSolidaridad2013AnnualReport 3
Photo:EljeeBergwerff
Foreword
reCogNiTioNThaTMaTTerS
onceagaintherehasbeendynamicgrowthinourbudgetandourstaffing.in2013theincomeofthenetworkorganisationincreasedto€33.8million(comparedtolastyear’s€26.9million).in2014thisgrowthisexpectedtoaccelerate,withabudgetofover€42million.Numbersofstaffgrewworldwidefrom176to276 full-timejobsintenregionalofficesonfivecontinents.
The rapid growth of the operations of Solidaridad Networkcanonlybeunderstoodagainstthebackgroundoftheshiftingparadigmfromaidtotradeinthepublicdomain.Moreover,inthe private domain future scarcity of resources and supplychain concerns of traders and brands have created a willing-nessinmanycompaniestoinvestingoodbusinesspractices.Theydothistoincreaseyields,toraisequalityandtoenhancesustainability among producers. Solidaridad is well able toaddressthesechallengesandrespondtotheseopportunities.
We are well positioned due the choice we made to becomea network organisation for international cooperation. Thischoice led to fundamental changes in governance andmanagement.Inthenewstructuregovernanceisprovidedbyfivecontinentalsupervisoryboardsandasingleinternationalsupervisory board composed of dedicated, experiencedmen and women. Management is provided by directors,who manage their own regional offices and are collectivelyresponsible for setting policy at the global level in the BoardofDirectors.
Regional and global programming are interlinked and care-fully balanced. Regional offices with local staff have clearmandates. After all, only empowered staff can serve theneeds of empowered partners. A local presence and strongcapacityforimplementingprogrammesarekeyassetsofSoli-daridad. Regional programmes are making strong contribu-tions to global programming that focuses on sector changein our chosen commodities. A new delivery mechanism isbeing tested. No longer top-down with instructions fromcentral management, but creating the discipline needed todeliver results by involving people who participate in globalpolicy setting. This feeling of ownership of global policiesand a shared understanding of the agreements made withglobal funders and partner companies create a commit-menttocontributetomakingthesepoliciesandagreementssuccessful.Andthisishappening.
In 2013 we saw also the emergence of a ‘claiming’ culture. Inrecent decades we witnessed the growth of a complianceculture.Certificationencouragedanattitudeinwhichpeoplesometimes pretended to comply with sustainability criteriasimply by following a checklist. For-profit firms created newbusiness in auditing. But we have learned that just achievinga sufficient score on a checklist does not lead to continualimprovement or encourage further innovation. A value-
based approach delivers much more than a control-basedapproach.
Andnowwearewitnessingtherapidgrowthofanotherbusi-ness: monitoring and evaluation. Not primarily for learningand innovation, but in order to claim results and impact.To guarantee continuous funding, positive results in inde-pendent, objective evaluations are decisive. In this annualreport we also report on such results. And with some pride.But let’s be cautious. Funders can claim too much. The realcontributions to success come from producers who areimproving their practices, workers who are organising them-selvesandminersstrugglingforlegalisation,aswellascoura-geous women who are breaking through cultural barriers.Theircontributionisbeyonddispute.
We sometimes see certification programmes claiming hugeresults. This is like judging a school system by controllingthe quality of diplomas and not that of the curriculum. Thetraining programmes offered by implementing organisationscontribute so much more than the auditors who registertheirresults.Weseeorganisationsthatplayavaluableroleinbringingthesectortogetherclaimingtheactualworkdonebyallofthepartners.
At Solidaridad we need to be critical and modest about ourown contribution. We claim very little. Those we do it for –thoseforwhomthechangewebringaboutmatters–theyarethe people who make the real difference. And, in the end, it’stheirrecognitionthatmatterstous.
NicoRoozen
TheSolidaridad2013AnnualReport 5
ConClusions from programme evaluations
in 2012-2013 solidaridad commissioned one internal and nine external evaluations of programmes and projects carried out in the period 2009-2012. these studies contain summary conclusions about support for smallholders, gender equity as well as sustainable market development.
support for smallholder produCers
Producer support mainly involves organising smallholdersin producer groups, providing training in good agriculturalpractices,marketing,genderequityandothertopics.Inmanycasessupportwasalsoprovidedforachievingcertification. Farmers note numerous benefits from being membersof producer groups. These include marketing their produceat a good price, better access to information and training,participating in a forum for exchange of ideas and buildingsocial capital. Producers become more professional, thereis improved trust and joint motivation because farmers aremore united as a group and share knowledge of good prac-tice. TheevaluationsconcludethatSolidaridad’strainingmodelforproducersworkswell,asmostofthetargetedfarmerswhoattended the training courses increased their level of knowl-edgeandarenowimplementingwhattheyhavelearned. Acriticalsuccessfactorwiththistrainingmodelisthemoti-vation of lead farmers to continue training other farmers.This calls for strategies to transform voluntary systems intosustainable business models. Another point of attention isthat continued support for young farmers in particular isnecessarytoensurefutureproductionlevels. The courses also resulted in safer working conditions,especiallyrelatedtothecorrectuseandapplicationofpesti-cides and use of protection measures (Personal ProtectiveEquipment(PPE),storagefacilities,disposal,etc.). Thepositionofsmallholdersvis-à-vischainplayerssuchasinput providers, traders, mills, crushers and large corpora-tionshasimprovedasaresultofourinterventions. Mostevaluationsshowedthattheinterventionsresultedinincreasedfarmerincomes(seeTablebelow).Higherincomesaretypicallydrivenbyhigheryields(production),lowercostsofproductionandhighermarketprices.
gender equity
Training has resulted in increased awareness of discrimi-nation, resulting in more women attending courses and,in some cases, in equal payment of female workers. In thesoy programme in India, land ownership issues preventedinvolving women in the project. NGO partners have regis-tered specific groups of women so that female producerscould qualify for RTRS certification as well. An evaluation ofthe cocoa programme in Ivory Coast showed that the focusof the programme on farmers registered with a producergroup tended to exclude women and young workers fromtheprogramme.Acoffee-sectorevaluation,withcasestudiesin Ethiopia and Kenya, shows that independent membershipof cooperatives by females, female land/tree ownership andmore female education can improve their bargaining posi-tion.
sustainable market development
The commitment of major international companies topurchase certified products from smallholders – notablycoffee and cocoa – gives them confidence about growingmarkets.Typicalweaknessesofcertificationprogrammesaretheir high costs, complex procedures, the perceived lack oftransparencyoftheauditingprocessandpremiumpayments,andalackofmarketuptakeofcertifiedproducts. Inpalmoil,soyandsugarcaneagrowingnumberofglobalcompaniesareinvolvedinsourcingfromsustainablesourcesandco-investinginproducersupportprogrammes.AsfortheGold programme, the evaluation concludes that, due to Soli-daridad’sprogramme,supplierstojewellersbecameactiveintheFairtradeandFairminedStandard(FT-FM)market.
a more comprehensive article including a list of impact studies is available on www.solidaridadnetwork.org
effects on farmer income and yield
Commodity/Countries period income increase yield increase due to
Tea,Kenya 2010-2012 23% (7.7%peryear) 11% (3.7%peryear) Improvedyields,lowerinputcosts,higherpricesandtheeffectoftheUTZpremium
Soy,India 2009-2012 139% (35%peryear) 54% (13.5%peryear) Improvedyields,lowerinputcosts,higherprices
Sugarcane,Belize 2010-2012 Notreported 67% (22%peryear) Improvedyields
PalmOil,Malaysia 2010-2012 Notreported 108% (36%peryear) Improvedyields
Cocoa,Ghana 2010-2012 110% (37%peryear) 20% (6.7%peryear) Improvedyields,higherprices
6 TheSolidaridad2013AnnualReport6 TheSolidaridad2013AnnualReport
Thepeople
Global results per commodity
45 meters
90 meters
X2,618,803
=1,073,280ha.
heCTareSuNderSuSTaiNableMaNageMeNTworldwide
ToTaloF1,073,280heCTare(eXCludeSgoldaNdaquaCulTure)
SolidaridadNeTwork
globalreSulTS
FarmersWORLDWIDESUPPORTED
571,769
MinersWORLDWIDESUPPORTED
5,420
workersWORLDWIDESUPPORTED
179,169
externalevaluationsin2013concludedthatthepositionofsmallholdershasimproved.interventionsresultedinincreasedfarmerincomes,higheryields,lowercosts,andhighermarketprices.
TheSolidaridad2013AnnualReport 7 TheSolidaridad2013AnnualReport 7
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
...
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GrowinG proGramme investments
actuals 2012 and 2013, budGet 2014
8 TheSolidaridad2013AnnualReport8 TheSolidaridad2013AnnualReport
proCeSSaNdFuNdiNg
CoreaCTiviTy:SuSTaiNablevalueChaiNS
● Training
● Strengtheningorganisations
● Developingregionalfoodmarkets
● Reinforcingmarketpositions
●Directcontactwithsustainableproducersandbuyers
● Increasingthesupplyofsustainablerawmaterials
● Gettingsustainablerawmaterialsfromsourcetoconsumer
producers Traders
SuSTaiNablelaNduSe,beTTerliviNgaNdworkiNgCoNdiTioNS,FoodSeCuriTy,
dyNaMiCproduCerorgaNiSaTioNSFairaNdTraNSpareNTTrade
raiSiNgaNdMulTiplyiNgFuNdSForparTNerSaNdaCTiviTieS
whereourFuNdSCoMeFroM
63% goverNMeNTS
aNdMulTilaTeralorgaNiSaTioNS
19% privaTeFuNdS
aNdiNdividualdoNorS
18% Co-FuNdiNg
byCoMpaNieS
originoffunds1
supply chains are the key workinG area for solidaridad. to meet our Goals we orGanise interventions with all actors in 12 commodity chains.
TheSolidaridad2013AnnualReport 9 TheSolidaridad2013AnnualReport 9
● Dobusinessdirectlywithsustainableproducersandtraders
● Increasethesupplyofsustainablerawmaterials
● Communicateandmarketsustainability
● Raiseawarenessaboutsourcesandproductionmethodsofsustainableproducts
● Supportlabels
● Raiseawarenessaboutwhattobuy
Companies Consumers
CorporaTeSoCialreSpoNSibiliTy,biobaSedeCoNoMy awareCoNSuMpTioN
parTNerSMulTiplyourFuNdS weCoNTraCTparTNerSForiMpleMeNTaTioN
prograMMeaCTiviTieSwiThbeTTerreSulTSaNdiMpaCT
programmmeactivities
MaTChFuNdS
M
aTChFuNdS
MaTChFuNdS
M
aTChFuNdS
FuNder
Solidaridad
FuNder
Solidaridad
implementingpartner2 3 4
10 TheSolidaridad2013AnnualReport10 TheSolidaridad2013AnnualReport
peopleSupporTed
77,290
27,579
6,000
Tea
CoFFee
COMMODITY
137,290
HECTARESSUSTAINABLYMANAGED
9,869
126,328
MARKETCOMPANYPARTNERSHIPS
67
10
FarMerS
FarMerSaNdworkerS
produCerFaMilieS
liveSToCk
150,000CoTToN
167,427 13FarMerS
119,703TeXTileS
20reTailerS
105 FaCTorieS
aFFeCTed#oFworkerS
91,270CoCoa
80,034 18FarMerSTraiNed
9,570palMoil
71,365 24
4
8
produCerSaNdworkerS
5,420gold
23MiNerSaNdworkerS
89,635Soy
388,419 7produCerS
120,859SugarCaNe
91,175produCerSaNdworkerS
10,431 1,373 25FarMerSaNdworkerS
FruiTaNdvegeTableS
10,431farmers and workers
SolidaridadNeTwork
results per commodity
peopleMakeadiFFereNCe
globalreSulTSSolidaridadNeTworkperCoMModiTy
TheSolidaridad2013AnnualReport 11 TheSolidaridad2013AnnualReport 11
howweworkTowardSSuSTaiNableiMpaCT
ThereSulTSChaiN
1Sectoranalysis
2intervention
3businessmodel
4Targetgroupperformance
5Sustainable
sectordevelopment
6Sustainableimpact
Assessmentofthetargetgroupsandissuesinthesector.
Weidentifiykeyconstraintsandkeyactorswhocanbe
involvedinchange.
ChangeisinitiatedbytheinterventionofSolidaridad
andpartners
Trigger reaction
Thesearecombinedforthetargetgroup
Changetakesplaceasaresultofadoptednewpracticese.g.:
–Increasingyields–Reducingpesticideuse
–Higherreturnsoninvestment
Basedoneconomically,sociallyandenvironmentally
sustainablepractices.Reducingbad
practices.
Ultimategoalsare:–Improvedlivelihoods–Futureperspectives
–Foodsecurity–Abetterenvironment–Aninclusiveeconomy
Train,sell,build
Buy,use,apply
woMeN’SeMpowerMeNT
STarTSwiThreCogNiTioNoFTheirpoTeNTial
If only I could buy some land
If only I had time to attend that meeting
I wish I could decide what to use our income for
I wish they would allow me to follow
that training
12 TheSolidaridad2013AnnualReport12 TheSolidaridad2013AnnualReport
CoMModiTy
COFFEE
TEA
COCOA
FRUIT/VEGETABLES
COTTON
TEXTILES
GOLD
SOY
PALMOIL
SUGARCANE
LIVESTOCK
AqUACULTURE
OTHERPROJECTS
ToTal
abouTSolidaridad
huMaNreSourCeS
regioNaliNveSTMeNTSiNglobalCoMModiTyprograMMeS
--
3 32
54
19
17
30
14
7
8.5
89
NorthAmerica
CentralAmerica
TheNetherlands
WestAfrica EasternandCentralAfrica
SouthernAfrica
SouthAmerica
Andes
SouthandSouth-EastAsia
China
a GrowinG work force of solidaridad experts in ten reGional centres
per solidaridad expertise centre x 1,000 euro
ensuringqualityoflifeandahealthyplanetforallofusisnosmallfeat.That’swhyweneedtostepupourgameinsafeguardingfoodsecurity,acceptablelabourconditions,responsibleminingandasolidtransitiontoabio-basedeconomy.Solidaridadisgreatatfiguringouthowtodojustthatindifferentindustriesanddifferentgeographiclocations.exposingthecommongroundbetweensmallholderfarmers,businessandgovernmentiswhatwedobest.affectingchangethatmatters.Joinourcauseatwww.solidaridadnetwork.org
ToTal**
0 0 1,290 43 185 327 8 0 2,690 50 2,726
4 0 92 76 0 0 490 17 94 0 733
0 3,873 0 0 40 11 0 0 1,332 8 4,150
11 18 886 10 16 51 243 0 204 0 1,382
229 627 233 90 0 0 53 189 3,821 10 3,326
0 0 0 0 0 0 237 71 1,466 8 1,715
0 422 31 23 0 254 0 0 639 8 1,005
339 0 0 2,303 0 0 356 137 1,520 25 3,396
0 1,976 0 174 240 384 191 0 1,697 36 3,291
93 0 195 372 13 0 439 0 2,042 8 1,373
205 0 73 917 90 0 116 0 568 25 1,434
0 0 0 0 0 0 233 0 94 8 334
102 0 131 343 0 0 27 82 2,709 0 860
982 6,915 2,931 4,352 584 1,027 2,391 497 18,876 186 25,726
southern africa
west africa
eastern & central
africa south
america central america andes
south & south-east
asia china the
netherlands*
north
america
* Netherlandsinvestmentsinclude€12.3millionbudgettranferstootherSolidaridadexpertisecenters.** Thenettotalexcludes€12.3millionbudgettransfersbetweenSolidaridadexpertisecenters.
14 TheSolidaridad2013AnnualReport
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CoFFee
FoCuSoNFoodSeCuriTyaNdCliMaTe
in2013Solidaridadlaunchedamajorfoodsecurityprogrammeineastafricawhichintegrateshorticulturewithcoffeeproduction.inlatinamericaaclimate-smartcoffeeproductionprogrammewaslaunchedtohelpfarmersadapttoclimatechange.increasedrainfalltherecausedaseriousoutbreakofcoffeerust,makingrenovationofplantationsurgent.
prograMMeSeTTiNg
Fair trade coffee has been on the market for a quarter of acentury. A new report by the Sustainable Commodity Initia-tive reveals that 40% of world coffee production is nowcompliant with one of the seven mayor standards (2012data). The seven standards in order of volume are: 4C, UTZ,CAFÉ practice (Starbucks), Fair Trade, Rainforest Alliance,TripleAAA(Nespresso)andOrganic.Between2008and2012annualgrowthof26%wasachieved. In the coffee sector there is consensus that sustainablecoffee needs more than certification. Research shows thatthe impact of certification is limited and not enough to liftfarmersoutofpoverty.Anumberofcompaniesarecurrentlyimplementing ‘Beyond Certification’ programmes. Solidari-dad’s Beyond Certification programme, which started twoyearsago,focusesonfoodsecurityandclimatechange.
reSulTS
In2013foodsecuritywasintegratedinthecoffeeprogrammesin East Africa and Central America. Income from productiondepends on harvest volumes and the world market price.Even a doubling of production levels – Solidaridad’s target –is often no guarantee of sufficient income for smallholders.Dependingonthelocalsituation,farmerscanchoosetogrowadditional crops, which generate both food for their familiesand income through selling surpluses. Most opt for horticul-tureandhoneyisalsopopular. In Latin America adapting to climate change is the mainfocus of a programme funded by Norad, which integratesproducing coffee for export with food security initiatives.Coffee farmers often lack sufficient food for their family – asituation which is exacerbated by lower productivity dueto climate change. This programme helps farmers adapt toclimatechangeandreducesGHGemissions,whileidentifyingnew options for farmers, such as long-term credits for reno-vationofcoffeeplantations. Work on developing a farmer support methodology thatis widely accepted and integrates sustainable coffee produc-tionbasedonfarmers’prioritieswiththerequirementsofthemainstandardshasstartedinVietnamandPeru.Thisisdonethrough the Sustainable Commodity Assistance Network(SCAN), which is a platform with members from standards,research,developmentandUNorganisations. Programmes designed to involve young people continuedin Peru and started in Kenya. In Peru students at high schoolare taught good coffee practices to motivate them to
continueworkingonfamilyfarms.InKenya,youngpeoplearegiven the opportunity to lease land from poorly maintainedcoffee farms and trained in Good Agricultural Practices aswellashowtoofferneighbouringfarmersspecialisedservicessuchassprayingandpruning.
iMpaCT
In 2013 an impact study commissioned by Solidaridad andpublished by CIDIN confirmed earlier conclusions thatinterventions are needed that move beyond certification.The study compared the benefits of UTZ-certified farmerswith FLO-certified farmers over five years. CIDIN foundthat farmers who have received training, joined coopera-tives and diversified by growing for local markets improvedyields, quality and livelihoods. East African coffee farmersreceivedonlymarginallymoreincomeasaresultofcertifica-tion. Although certification is not enough to lift them out ofpoverty,itisausefultoolthatcandrivesustainability.Solidar-idad will continue to focus on sustainable coffee farms withfinancialsupportfromIrishAidthroughIFTN.
MarkeTparTNerShipS
Cooperation has been established with the largest coffeeroaster of the world: Nestlé – the main partner in the foodsecurity programme in East Africa, in which nine other part-nersparticipate.Theseincludeexporters,aresearchinstituteandproducerorganisations.
ChalleNgeSahead
The main problem the coffee sector is facing is how to makecoffeefarmingattractiveforthenextgeneration.Addressingfoodsecurityandclimatechangearepartofthat.Intheyearsahead,Solidaridadintendstostimulatedebateatthenationallevelaboutatransitiontofewer,youngerfarmerswithlargerfarms in order to support revenues and employment in thesector.
MarketpartnersNestlé,ECOM,Armajaro,Volcafé,LouisDreyfus,NeumannKaffeeGruppe,CafédelMar,Bewleys,SustainableHarvestdonorsIrishAid,RVO,NORAD,EUNicaragua,ACDI-VOCA,DutchEmbassyinColombia,theregionalgovernmentofAntioquia,FNC,theBillandMelindaGatesFoundationthroughDEG,SECO,ArgidiusandCordaid
TheSolidaridad2013AnnualReport 15
-
JanekimothopracticeslandconservationmethodsastaughtbytheSustainableManagementServicesgroup.Shehas650treesproducing3,000kgofcoffeeandanannualincomeof€1,400.Sheisawidowwithonedaughterincollegeandaseconddaughterinprimaryschool.
Totalnumberoffarmerssupported
Totalvolumeofcertifiedcoffee(metrictonnes)
TotalnumberofcompaniesengagedwithSolidaridad
budgetsandactualfiguresforcoffee
actual2013€2,726,000
realised201377,290farmers
realised2013131,816 mt
realised201367 companies
Budget2013€3,338,000
Actual2012€2,269,000
Canada,Colombia,Ethiopia,Guatemala,Honduras,Ireland,Kenya,Mexico,theNetherlands,Nicaragua,Peru,Switzerland,Tanzania,Uganda,UnitedStatesofAmerica,Vietnam
Planned201355,220 farmers
Planned2013120,661 mt
Planned201363 companies
Budget2014€ 2,479,000
Planned2014116,526 farmers
Planned2014104,420 mt
Planned201449 companies
Photo:H.P.AltingvonGeusau
Solidaridad’scoffeenetwork
16 TheSolidaridad2013AnnualReport
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Tea
MaiNSTreaMiNgSuSTaiNabiliTy
in2013SolidaridadfocusedonmainstreamingsustainabilityintheteasectorbyimplementingtheTehlestariandTrusteacodesinindonesiaandindia.inChina,kenya,Srilanka,indonesia,Malawiandargentina,over12,000smallholdersweresupportedwithaccesstoinputsandadoptingcertifiedsustainablepractices.
prograMMeSeTTiNg
Smallholders – now the main global tea producers – arecritical suppliers to tea packers. However, lack of access totechnical know-how and inputs and declining yields, coupledwith low global tea prices, often result in poor quality tea,inadequate returns, poor working conditions and low wagesforlabourers.Bybuildingsupplychainpartnershipsinvolvingproducers, traders, brands, retailers and governments, Soli-daridad is supporting technology transfer, organisationaldevelopmentandmakingsurethatsmallholdersgetaccesstoservicesandinputs.
reSulTS
Solidaridad is partnering with a range of companies to helpthem source sustainably from smallholders in East andSouthern Africa, South America, China, India, Sri Lanka,Vietnam and Indonesia. Solidaridad helped develop the draftTrustea code, audit protocol and implementation guides,and hosted farm support centres in the field. Four large tea-producing groups will soon be verified under the Trusteadraft code, thus sustainably transforming 4.5 million kilos ofteaproduction. In Sri Lanka, support was provided to 2640 workers and187 smallholders were trained in internal control systems tofacilitate Utz certification. In Indonesia, together with Busi-nessWatch,Solidaridadcontinueditssupportfor12,000teasmallholders under the Teh Lestari sustainability standard. InKenya, Solidaridad supported 7200 smallholders attached tofiveKenyanTeaDevelopmentAuthority(KTDA)teafactorieswithclimatechangeadaptationandmitigation. In Malawi, 500 lead farmers were trained in Good Agricul-tural Practices (GAP). Solidaridad partnered with the EastAfrica Tea Trade Association (EATTA) and developed a teaproduction curriculum and training materials, which wereused for capacity building. Sixteen master trainers wereequippedwiththeknowledge,skillsandtoolsneededtotrainotherfieldstaff,farmersandproductionstaff. InArgentina,1750hectareswerebroughtundersustainablemanagementpracticesand4200tonnesofteawerecertified.Around90%ofthesmall-scaleteafarmerswhohaveadoptedsustainable practices also produce Yerba Mate; so the nextstep is to scale up to Yerba Mate, an infusion that is widelyconsumedinArgentina,Paraguay,BrazilandUruguay.
iMpaCT
The Sustainable Trade Initiative (IDH) commissioned a studyby Aidenvironment in April 2013 to describe and analyze theLestari Tea Standard. The standard’s establishment, its func-tioning and the business case it presents to smallholders,were all considered. The study revealed that the introduc-tion of the Lestari certification scheme has had a significantimpact on tea smallholders. It has positively affected theirlivelihoods and strengthened relationships within the supplychain.Forfurtherupscalingofthestandard,threemainchal-lengeshavebeenidentified:(1)createdemand,(2)buildtech-nical and organisational capacity and (3) finance the neces-saryinvestmentsatthefarmlevel.TogetherwithUtzCertifiedandLEI(WUR),along-termimpactstudywasstartedinKenyaand Malawi in 2010. This showed that average sustainabilityscoreshaveincreased,alongwithsignificantimprovementsinhealth,safetyandenvironment.TheselessonswereanalysedandarenowbeingintegratedinSolidaridad’steaprogramme.
parTNerShipS
The Sustainable Trade Initiative (IDH), Hindustan UnileverLimited and Tata Global Beverages are funding the TrusteaprogrammeinIndia,andIDHisalsoinvolvedinEastAfrica.DEFoundation is the funding partner in Sri Lanka. Implementa-tion partners are Business Watch Indonesia and Sariwangi inIndonesia,theCentreforSocialDevelopmentandEthicalTeaPartnershipinSriLanka,andKTDAandEATTAinEastAfrica.
ChalleNgeSahead
The Kenyan Tea Development Authority (KTDA) modelhas long been seen as the only successful way to addresssmallholders’ sustainability issues. It has worked very well inKenya but is difficult to replicate in Asia, where smallholdersprimarily cater to domestic markets. There’s a need for localownership of sustainability standards, as has been shownwith the fast uptake of the Lestari standard in Indonesia andthe potentially massive impact of the Indian and Chinese teastandards. Finally, it’s crucial for Solidaridad to engage in teatrade policies and connect the sustainability discourse withdemand,supply,qualityandpriceissuesatthegloballevel.
TheSolidaridad2013AnnualReport 17
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inSrilanka,supportwasprovidedto2,640workersonteaplantationsincludingmedicalcare,children’seducationandmorenutritiousfoodforworkersandtheirfamilies.
Totalnumberoffarmersandworkerssupported
Totalnumberofhectaresundersustainablemanagement
TotalnumberofcompaniesengagedwithSolidaridad
budgetsandactualfiguresfortea
actual2013€733,000
realised201327,579farmers/workers
realised20139,869 ha
realised201310 companies
Budget2013€595,000
Actual2012€592,000
Argentina,China,Kenya,India,Indonesia,Malawi,SriLanka
Planned201314,165 farmers/workers
Planned201310,077 ha
Planned20137 companies
Budget2014€ 1,608,000
Planned2014166,378 farmers/workers
Planned201476,400 ha
Planned20148 companies
Photo:StijnvanGeel
Solidaridad’steanetwork
18 TheSolidaridad2013AnnualReport
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CoCoa
urgeNTNeedToreSTruCTureTheSeCTor
Thecocoaprogrammefocusesontrainingfarmersandbuildingthecapacityofprivatesectorpartnersandgovernmentagencies.Thenextstepistorespondtogrowingdemandandcompetitionforscarcelandandotherresources.Newprogrammesdesignedtointensifycocoaproductionareneededtosecurethefutureofcocoafarmingworldwide.
prograMMeSeTTiNg
Almost all traders and brands have adopted the 2020 goal ofincreasing cocoa supply by 1,000,000 MT to meet growth indemand. Producing country governments are strengtheningtheirgriponthecocoasectorandthereisincreasingcompe-titionwithothercrops,suchasoilpalmandrubber.Thesevenlargest traders and brands – organized in the SustainableCocoa Leadership – took the initiative to draw up a masterplan for cocoa sustainability. It is broadly understood thatcocoa certification is only a limited solution to the problemsthesectorisfacing.
reSulTS
In 2013 there was training in good agricultural, social andenvironmental practices in Ghana, Ivory Coast and Nigeria,reachingover91,000farmers,78,500ofwhomadoptedthesepractices. Almost 81,000 hectares of land are now farmedsustainably. In Ivory Coast a toolbox is being developed to reach 75%of unorganised farmers, in collaboration with three buyingcentres.Andanewprogrammewasstartedtodelivertraining,planting material and fertilisers, together with Mars andCargill.Inover100workshops,staffofgovernmentextensionservices, cooperatives and private sector partners in Ghana,Ivory Coast and Nigeria were trained in sustainable produc-tion.Twenty-threecivilsocietyorganisationsand450trainersarenowinvolved.Solidaridadplaysanincreasinglyimportantrole in developing national sustainability strategies on cocoasustainability,workingwithover26governmentagencies. Thecocoaprogrammeisimplementinganewstrategywithaclearerfocusoneconomicbenefits.InGhanaaconsortiumof government partners, key private sector partners andknowledge institutes was formed to develop new modelsfor cocoa intensification and rehabilitation. The consortiumobtained €7 million of funding from the Dutch Embassy inAccra for the next four years. To diversify the income ofproducers – and impact food security – 1,250 lead farmerswere trained in plantain sucker multiplication and nurserydevelopment.
iMpaCT
KPMG evaluated the cocoa programme in the period 2008-2012.Interventionswereconsideredtobesuccessfulandtheprogrammehasmadethecaseforsustainablecocoaproduc-tion, leading to change in the sector. It engaged with private-sector partners, who account for 40% of global cocoa trade
andtriggeredco-investmentofover€5.8million.AreportbyCOSAwasalsopositiveabouttheimpactsoftheprogramme.In 2013 an impact assessment of programmes in Ghana andIvory Coast was started with Wageningen University. Themainconclusionofallthesestudieswasthattheprogrammehashelpedfarmersprofessionalise,oftenresultinginproduc-tivity increases of around 40%. However, a number of socialandenvironmentalissuesstillneedtobeaddressed.
parTNerShipS
Existing partnerships were strengthened and new onescreated.BaselineresearchwithCargillshouldprovideinsightsinto the impact of programmes as well as input for strategydevelopment.WithMarsanagreementwassignedfordevel-oping tools to reach unorganised farmers. ‘For the love ofchocolate’, a multimedia exhibition with photographer Kadirvan Lohuizen was launched in Amsterdam’s National Mari-timeMuseumandisnowtravellingtootherlocations.
ChalleNgeSahead
The main producing countries will become middle incomecountriesinthenearfuture.Competitionfromothercropsisbecomingfierceandyoungpeoplearenotinterestedintakingover low-yielding farms. New business models and financingfor service delivery are needed, as well as new productionmodelssuchaslargerfarmsandout-growersystems.
MarketpartnersMars,Cargill,Touton,Ecom,InternationalCocoaOrganization(ICCO)donorsTheDutchEmbassyinGhana,TheSustainableTradeInitiative(IDH),WorldCocoaFoundation
TheSolidaridad2013AnnualReport 19
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ThelastofthecocoabeingremovedfromacontainerattheCargillfacilityintheportofamsterdam,wherecocoaisstoredonarrivalfromwestafrica.TogetherwithCargillandMars,SolidaridadsetupanewfarmersupportprogrammeinCôted’ivoire,whichmakestraining,plantingmaterialandfertilisersavailabletofarmers.
Totalnumberoffarmerstrained
Totalnumberofhectaresundersustainablemanagement
TotalnumberofcompaniesengagedwithSolidaridad
budgetsandactualfiguresforcocoa
actual2013€4,150,000
realised201391,270farmers
realised201380,034 ha
realised201318 companies
Budget2013€3,654,000
Actual2012€3,625,000
Brazil,France,Germany,Ghana,IvoryCoast,theNetherlands,Nigeria,Switzerland,UnitedKingdom
Planned2013138,000 farmers
Planned2013140,000 ha
Planned201316 companies
Budget2014€1,981,000
Planned2014170,115 farmers
Planned2014135,510 ha
Planned201426 companies
Photo:KadirvanLohuizen
Solidaridad’scocoanetwork
20 TheSolidaridad2013AnnualReport
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FruiT&vegeTableS
FreShproduCeForloCalMarkeTSaNdeXporT
TherenewedFruit&vegetables(F&v)programmeistakingshape.Collaborationwithretailersandbusinessplatformsisgainingmomentum,whilecompaniesareincreasinglywillingtoinvestinsustainability.inseveralSolidaridadregionalexpertisecentresinitiativeshavebeendevelopedthatfocusonexportaswellasnationalmarkets.
prograMMeSeTTiNg
Traders, retailers and NGOs signed a covenant for sustain-able F&V to develop projects that will improve sustainabilityin developing countries. The World Banana Forum (WBF),a multi-stakeholder platform, is now linked to this covenant.In the juice sector cooperation with the European sectororganisationAIJNwasestablishedaswellaswiththebusinessplatform SAI. Food security and nutritional value are beingaddressedbyimprovingtherobustnessoflocalfoodproduc-tionanddistributionsystems.Asthesustainabilitychallengesdiffer significantly per product and region, a one-size-fits-allapproach will not work. Solidaridad is developing a tailoredregionalapproach.
reSulTS
Solidaridad has conducted sustainability analyses for Fries-landCampinaRiedelonorangesinBrazil,SouthAfrica,Mexicoand Belize, mangos in India and Peru, as well as bananas andpassion fruit in Ecuador. A study of the sustainability land-scape related to the sector found that producers vary fromsmall-scalesubsistencefarmers(mangoinIndia,passionfruitin Ecuador) to large-scale professional farms (South Africaand Brazil). Major issues are labour rights, low productivity,lack of knowledge, lack of access to inputs, pollution, waterstress,erosionandlossofbiodiversity. Solidaridad worked with WBF on developing a web-basedplatform – hosted by Bioversity on the Promusa website –for sharing best practices throughout the banana sector anda proposal for co-funding this initiative was approved. Soli-daridad also played a leading role in building a coalition withleading banana companies and retailers in the UK, the Neth-erlands and Germany to develop a proposal for improvinghealthandsafetyinthebananasector. Solidaridad is developing a portfolio of food security-related projects in Bangladesh, Kenya, Ethiopia, South Africa,Mozambique and Ghana. Income from export crops canallow farmers to improve crops for domestic consumption.The food security programme in Kenya and Ethiopia – withcontributionsfromNestlé,Ecomandothercompanies–isanexampleofthisapproach,targeting120,000farmers.
iMpaCT
In Peru, Solidaridad broadened its scope to build a sector-wide initiative in cooperation with farmers, governments,fruittradersandNGOs.Thisplatformidentifiessustainabilityissues related to water and pests and provides lasting solu-
tionstourgentproblems.InthehorticulturalsectorinKenya,training materials were developed and more than 10,000farmers were trained in Good Agricultural Practices, groupdynamics, financial management and enterprise develop-ment. New local markets were developed, including UchumiSupermarketandTruFoodsLtd,aswellaslinkstolocalagents.In South Africa, farmers were trained to produce greenmango achar in partnership with Selbourne Food Manufac-turers, standards organisation SIZA and Woolworth. Theseexamplesshowthattheactiveinvolvementofchainpartnersis a key success factor. This is why Solidaridad is focusing onpartnership development throughout the chain in the fruit,bananaandvegetablesectors.Creatingthesepartnershipsiscrucialtosectortransformation.
MarkeTparTNerShipS
FrieslandCampinaRiedel(FCR)isthemainpartnerinthefruitjuicesector.ByworkingtogetherwithFCR,Solidaridadbroad-ened the collaboration to the European juice business asso-ciationAIJNandtheSAInetwork.Theseorganisationsrepre-sent companies that are working towards significant changein the sector. Solidaridad sits on the executive committeeof the WBF and works with leading banana companies suchas Chiquita, Dole and Fyffes and retailers such as Tesco andAhold. Solidaridad is working with them on a project toimprovehealthandsafetyinandaroundbananafarms.
ChalleNgeSahead
In order to strengthen F&V production systems, Solidaridadmobilises technical knowledge and access to high-qualityinputs. The bargaining position of banana companies in rela-tion to retailers has deteriorated in recent decades. Solidar-idad therefore encourages retailers to commit to sustain-ability. Fruit producers often produce mainly for the freshmarket,withleftoversbeingsoldtothejuiceindustry.SoSoli-daridad aims to align initiatives in the fruit juice sector withthoseinthefreshfruitsector.
MarketpartnersFrieslandCampinaRiedel,WBF,AIJN,SAI,UchumisupermarketsdonorsNetherlandsEnterpriseAgency,DutchembassiesinKenya,BangladeshandColombia,OIKOS,FoundationforHumanRights.
TheSolidaridad2013AnnualReport 21
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inperu,Solidaridadbroadeneditsscopetobuildasector-wideinitiativeincooperationwithfarmers,governments,fruittradersandNgos.
Totalnumberoffarmersandworkerssupported(includedhorticultureandfoodsecurity)
Totalnumberofhectaresundersustainablemanagement
TotalnumberofcompaniesengagedwithSolidaridad
budgetsandactualfiguresforfruit&vegetables
actual2013€1,382,000
realised201310,431farmers/workers
realised20131,373 ha
realised201325 companies
Budget2013€2,127,000
Actual2012€1,107,000
Bangladesh,Belize,Brazil,Colombia,Ecuador,Ethiopia,Ghana,Germany,India,Kenya,Mexico,Mozambique,theNetherlands,Peru,SouthAfrica,UnitedStatesofAmerica,UnitedKingdom
Planned20131,225 farmers/workers
Planned2013217 ha
Planned201317 companies
Budget2014€ 3,686,000
Planned201418,261 farmers/workers
Planned201415,935 ha
Planned201460 companies
Photo:GrupoHualtaco
Solidaridad’sfruit&vegetablesnetwork
22 TheSolidaridad2013AnnualReport
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CoTToN
eNgagiNgallaCTorSiNTheSupplyChaiN
Solidaridad’scottonprogrammeisenteringacrucialphase.goodresultshavealreadybeenachievedandthereisgrowinginterestamongbrandsandretailers,aswellaswillingnesstoco-investinfarmsupport.however,thecommitmentoflargefrontrunnerstosourcesustainablecottonmakesup-scalingsupplyacriticalchallenge.
prograMMeSeTTiNg
Sustainablecottonisonitswaytobecomingthenorm,hope-fully in the next decade. The four main initiatives – organic,FairTrade,CottonmadeinAfricaandtheBetterCottonInitia-tive(BCI)–nowhaveatotalcapacityofover5%andvolumesare growing fast. On the demand side, the main players havepublished their commitments. The frontrunners have prom-ised 100% sustainable cotton sourcing within the next fewyears. There are strong signals from game changers suchas IKEA and H&M. Yet the response of actors in the supplychain to such signals remains an issue. In order to keep themomentumgoing,thisgapneedstobeclosed.
reSulTS
Solidaridad has a long track record of supporting farmers inimproving their social, economic and environmental perfor-mance. Such improvements are badly needed, as cotton isstill grown under unacceptable conditions, leading to devas-tatingsituations:damagetohealthduetopesticideuse,poorlabour conditions, water scarcity, and poverty due to lowyields and incomes. The programme is multi-standard, whileacknowledging growing demand for Better Cotton. Solidar-idadisoneofthemainpartnersintheBCI,withprogrammesin India, China, Brazil and sub-Saharan Africa. In 2013 the BCIprogramme was expanded to Kenya, Senegal and Mozam-bique. Solidaridad is also actively involved in shaping andmaintaining the BCI as a credible multi-stakeholder initiative,withaseatonthecouncil. In 2013 the cotton programme grew significantly, reachingoutto150,000farmersin10countriesanditisnowlinkedtothesupplychainof12majorbrandsandretailers.Keyperfor-mance indicators include the self-reliance of local partners.Under Solidaridad’s mentorship, such partners becomefinancial and organisationally independent and can thuscontinue to grow sustainable cotton on their own. Anotherstrategyistofocusnotonlyoncotton,butalsoonimprovingbasic farming practices, such as intercropping and rotationcropping. In Southern Africa a programme making the linkbetweencottonandfoodsecurityisbeingdesigned.
iMpaCT
The most important indicators of success are achievementsat the farm level. Within BCI, farmer data are collected andanalyzed and BCI smallholders in India, Mali, China and Brazilare performing better in terms of increasing yields, reducingwater and pesticide use, and profitability – compared to a
group of control farmers. In addition to quantitative data,farmer stories are collected in order to capture qualitativeinformation. Stories from Solidaridad’s programme in Mali,in partnership with APROCA and CMDT, are a good exampleof this. Women farmers explain how training in literacy, lead-ership and communication has changed their lives. Based onthesestories,thisprojectwontheBCIprizein2013.TheBetterCotton Fast Track Programme (BCFTP) finalised an externalimpact study in 2013. Their assessment of the impact at fieldlevel was very positive. Solidaridad has been advocating anintegrated approach for years: gaining more insight into thesourcingstrategyofbrandsandretailers,collaboratingmorewithsuppliersandestablishinglinkages.
parTNerShipS
Partnership with brands and retailers is crucial to theprogramme. These organisations are best placed to drivefurtherchangeintheindustry.In2013,Solidaridadpartneredwith 12 brands and retailers, indirectly through the BCFTP aswell as directly, for example with Bestseller, Decathlon andTommyHilfiger.Thiscollaborationincludesfinancialsupport.
ChalleNgeSahead
Current projects have clearly contributed to impact at thefarm level, but their scope is a challenge when it comes totransforming the entire sector (around 50 million farmerscurrently cultivate cotton). This is why it is important to findsolutions that are scalable, to focus on self-reliance, cost-efficient replicable farm support systems, and embeddingstrategies in local and national policy. The other challenge istolinksupplyanddemand.
donorsBCFTF, Dutch Ministry of Foreign Affairs (Farmer SupportProgramme), GSRD Foundation, CFC, Rabobank Foundation,LibertyFoundation,DeNederlandscheBank(DNB)brandsandretailersBestseller,Decathlon,TommyHilfiger,VFCorporation(NorthFaceandotherbrands)andpartnersintheBCFTPinitiativesBetter Cotton Initiative, Textile Exchange, Better Cotton FastTrackProgramme
TheSolidaridad2013AnnualReport 23
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workers’quartersinguoxin,China.Solidaridadimprovesworkers’accommodationbyprovidingelectricityandwarmshowers.
Totalnumberoffarmerssupported
Totalnumberofhectaresundersustainablemanagement
Totalnumberofcompaniesengagedinsupplychainprogrammes
budgetsandactualfiguresforcotton
actual2013€3,326,000
realised2013150,000farmers
realised2013167,427 ha
realised201312 companies
Budget2013€ 2,195,000
Actual2012€2,391,000
Brazil,China,India,Kenya,Mali,Mozambique,theNetherlands,Scandinavia,Senegal,Tanzania,Uganda,UnitedKingdom,Zambia
Planned2013153,134 farmers
Planned2013189,900 ha
Planned201312 companies
Budget2014€1,239,000
Planned2014155,571 farmers
Planned2014229,890 ha
Planned201413 companies
Photo:JosKuklewski
Solidaridad’scottonnetwork
24 TheSolidaridad2013AnnualReport
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TeXTileS
TheMoveTowardSreSpoNSibleFaShioN
Thetragicaccidentsinbangladeshin2013broughthomethechallengesinthetextilesupplychain.Solidaridad’stextileprogrammeoffersaneffectivestrategythatcanaddresssocialandenvironmentalproblemsbyworkingwithfactoryandmillownersinbangladesh,indiaandChina.
prograMMeSeTTiNg
Fashionislifestyle;ithelpspeopleexpresstheiridentity.Italsocreatesmillionsofjobsindevelopingcountries.Thedemandforapparelcontinuestogrow,becauseofpopulationgrowthandincreasingconsumption.However,therealcostsofover-consumptionarepaidbythosewhomakeourclothesandbytheenvironment.Unacceptablepracticesarestillprevalentinthis industry, as we’ve seen in Bangladesh and more recentlyin Cambodia. Many people and organisations demand mean-ingfulchange.
reSulTS
Solidaridad concentrates its textile efforts in Bangladesh,China and India, the top three in global apparel production.These include training, technical support, capacity buildingand skills development in textile mills and factories, with afocusonsocialandenvironmentalaspects.InBangladeshthewet processing programme Partnership for Cleaner Textilesis in its first year of operation, while a new programme inChina (the Better Mill Initiative, BMI) was launched in 2013.Bothprogrammeshaveanimpactonhundredsofmills,whichare linked to the supply chains of major brands and retailers,such as H&M, C&A, Inditex and Primark. Another priority isimproving labour conditions in sewing factories. SolidaridadisimplementingafireandbuildingsafetyprogrammeinBang-ladesh,togetherwithBestsellersuppliers. Solidaridad also plays an active role in the SustainableApparel Coalition, which brings together key stakeholdersin the sector (over 400 members and >40% coverage of theapparelmarket).Ratherthancreatingacertificationstandard,it aims to measure and communicate the impact of apparel.The tool used is the Higg Index, which enables customers tocompare products and brands. As a result, sustainability isbecoming a competitive parameter, alongside quality andprice.
iMpaCT
The global textile team is working on a comprehensivemanagement system, which makes it possible to compareprogress with targets in the multi-annual strategy. A partnerfactory has, for example, reported a reduction in waterconsumption from 120 to 60 litres per kilogramme of fabric.ThefacilitymoduleintheHiggIndexwillallowbenchmarking,whilealsoprovidinginsightintosocialandlabouraspects. Programmes on wet processing not only cover the condi-tionsinmills(water,energy,chemicals,etc.),butalsomonitor
brands and retailers. This is at the heart of Solidaridad’sstrategy: creating impact in the supply chain through collab-oration with companies. The monitoring system will capturechangesinawareness,commitmentandactions.
MarkeTparTNerShipS
Twenty brands and retailers such as H&M co-invest in textileprogrammes and are closely involved in their design andimplementation. With some brands there is also collabor-ation on cotton projects in a move towards more strategicpartnerships.
keyChalleNgeS
Improving sustainability in the textile supply chain is longoverdue. The programmes we have today are effective andwill reach reasonable scale in the years ahead. The real chal-lenge, however, is to transform the whole sector – togetherwith all those involved: mill owners, factory owners andretailers.
donorsASNBank,InternationalFinanceCorporation(IFC),theDutchEmbassyinDhaka,DutchMinistryofForeignAffairs(FarmerSupportProgramme)brands&retailersH&M,Bestseller,C&A,Inditex,Kapphal,Lindex,G-Star,Primark,Tesco,ICA,NewLook,Carrefour,WEFashion,Walmart,s.Oliver,Mothercare,LeviStrauss&Co,Falcon,ChasinandTedBakerinitiativesMADE-BY,SAC,BusinessSocialComplianceInitiative(BSCI)
TheSolidaridad2013AnnualReport 25
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inbangladeshthewetprocessingprogramme‘partnershipforCleanerTextiles’,whichisinitsfirstyearofoperation,isamongotherthings,helpingtosavewater.
improvementprojectsaffect(numberof)workers
Totalnumberoffactoriessupported
Totalnumberofbrands/retailersengagedinasupplychainprogramme
budgetsandactualfiguresfortextiles
actual2013€1,715,000
realised2013119,703workers
realised2013105 factories
realised201320 brands/retailers
Budget2013€ 294,000
Actual2012€477,000
Bangladesh,China,India,theNetherlands,Scandinavia,UnitedKingdom
Planned2013150,000 workers
Planned2013200 factories
Planned201315 brands/retailers
Budget2014€ 1,954,000
Planned2014213,000 workers
Planned2014268 factories
Planned201420 brands/retailers
Photo:MariekeWeerdesteijn
Solidaridad’stextilesnetwork
26 TheSolidaridad2013AnnualReport
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gold
reaChiNgouTToNewMiNerS
duetomajorchangesinthecertificationstandardforsmall-scalemining,uptakeofresponsiblegoldstalledtemporarilyin2013.however,withrisingdemandandsuccesseswithminingcommunitiesinperuandghana,Solidaridadsecuredfundingforexpandingtoeightnewsmall-scalegoldminingcommunitiesinthosecountries,andbegananewprojectinargentina.
prograMMeSeTTiNg
Early in 2013, the Alliance for Responsible Mining (ARM) andFairtrade International (FLO) ended their partnership tojointlycertifyartisanalandsmall-scalemines.Asaresult,theyindependentlyissuednewstandardsattheendoftheyear. Solidaridad contributed to updates for all three stand-ards available for third-party certification of gold mining– Fairmined, Fairtrade and Responsible Jewellery Council.Stronger criteria and more flexibility for buyers are expectedtoincreasedemand. As gold certification systems multiply and evolve, Solidari-dad’sworkatmineswillbelargelyunaffected.ThisisbecauseSolidaridad’s objective is to enable miners to improve theirpractices and livelihoods. Certification can be a useful tool;however it is not the final goal. Miners still need trainingto legalise and to improve their environmental and socialpractices to achieve certification. They also need access tomarketsatfairprices.
reSulTS
In 2013 Solidaridad expanded its work through four newprojects.InPeru,wereceivedafour-yeargrantfromtheEuro-pean Union to enable new artisanal and small-scale mining(ASM) communities to achieve certification, while workingwithlocalgovernmentstosupportaresponsibleASMsector.Also in Peru, Solidaridad received funding to extend its workintheMadredeDiosregionoftheAmazonbasinfortwomoreyears. A new grant will enable Solidaridad to add two newindustrial mines to its pilot project for Responsible JewelleryCouncil certification. The mines that join will also commit tosupporting nearby small-scale miners towards better prac-tices. Finally, in the Jujuy region of northern Argentina, Soli-daridad will support the ASM miners of EcoAndina, who useno toxic chemicals, to achieve eco-premium certification.Work in Colombia is on hold pending further review due tothe increased involvement of illegal armed groups in goldmining. To raise awareness of the harsh conditions in the miningsector, Solidaridad and the European Youth Olympic gamesjoined forces to award the first-ever ‘good gold’ medalsduringthecompetitionin2013.Themedalscontainedadropof pure Fairtrade gold from certified miners in Solidaridad’sprogramme in Peru. Three-time Olympic gold medal winnerPietervandenHoogenband,aDutchswimmer,presentedthemedals. He served as Solidaridad’s ambassador to advocatefor all future Olympic gold medals to be made from certi-
fied gold mined under the best conditions. These medalswould then represent the highest standards for the ultimateachievementinsport.
iMpaCT
In 2013 Solidaridad commissioned an independent evalua-tion of the design and pilot phases (2009-2013) of its GoldProgramme. During this time, the programme’s primaryfunding partner was the Adessium Foundation. The resultswere positive, confirming the value of Solidaridad’s strategyofworkingacrossthesupplychainfromminestoretail.Localpartners in the Global South and standards bodies, such asFairtradeInternationalandtheResponsibleJewelleryCouncil,clearly appreciate this approach. However, there is a need tomoreclearlycommunicateSolidaridad’sstrategy,targetsandimpacts as new initiatives are taken up in the sector. A newwebsitewillbelaunchedin2014topresenttheprogrammeinmoredepthandtoexplainitsimpacttodate.
MarkeTparTNerShipS
In 2013 Solidaridad worked behind the scenes with majorbuyers of gold in European markets. Leading internationaljewellery brands are planning to cooperate with Solidaridadand will announce new commitments in 2014. These includesourcingtargetsfromcertifiedminesintheGoldProgrammeas well as investments in better practices in mining commu-nities. In addition, Solidaridad continued partnerships withDutch jewellery designer Bibi van der Velden and SteltmanJewellers.
ChalleNgeSahead
So far, certified gold from ASM mines amounts to only400 kilograms annually and the mining companies that aremembersofRJCrepresent3percentofglobalannualproduc-tion of gold. Given rising demand for responsible gold, Soli-daridadwillworkwithbuyerstoencouragemineownersandrefinerstocommittocleaner,transparentpractices.
MarketpartnersSteltmanJewellers,BibivanderVeldendonorsEuropeanUnion,DutchNationalPostcodeLottery,HumanityUnited,AdessiumFoundation,ComicRelief
TheSolidaridad2013AnnualReport 27
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Jamesblamefull,aged41,Malibumine,ghana:‘asaresultofattendingtrainingcoursesinowhaveanewjob.i’mresponsibleforensuringthateveryoneinandaroundourmineobservessafetyrulessuchaswearingprotectiveclothing.i’mproudtobeabletodosomethingtomakeourworksafer.’
Totalnumberofminersandworkerssupported
Totalvolumeproduced(kg)
refinersandjewellerybrandsengagedbudgetsandactualfiguresforgold
actual2013€1,005,000
realised20135,420miners/workers
realised20131,286 kg
realised201323
Budget2013€ 682,000
Actual2012€332,000
Argentina,Bolivia,Colombia,Peru,Ghana,Kenya,theNetherlands,Tanzania,Uganda
Planned20135,782 miners/workers
Planned2013875 kg
Planned201320
Budget2014€ 932,000
Planned20145,347 miners/workers
Planned20141,700 kg
Planned201425
Photo:AnnemariekevandenBroek
Solidaridad’sgoldnetwork
28 TheSolidaridad2013AnnualReport
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Soy
poSiTiveiMpaCTSoFreSpoNSibleSoy
responsiblesoyproductionisdeliveringpositiveeconomic,socialandenvironmentalimpactsworldwide.inindia,anindependentevaluationreporteda54%increaseinproductivityandsubstantialsocialandenvironmentalbenefitsafterjustthreeyears.SolidaridadencouragescompaniestogetrTrScertification,butalsofocusesonworkingwithproducers,basedontheir interests.
prograMMeSeTTiNg
The soy market is rapidly becoming a sellers markets: therole of premium markets, such as the EU, with its additionalsustainability requirements, is decreasing. Demand for RTRSsoy is weak and not keeping up with the increased volume ofcertified production. Nevertheless, Solidaridad emphasisestheaddedvalueofresponsibleproductionforfarmers.
reSulTS
In South America – as manager of the IDH Soy Fast TrackFund – Solidaridad achieved huge increases in RTRS certi-fied volume (270,000 tonnes produced by newly certifiedfarmers). And 1.9 million tonnes are almost ready for certifi-cation. The disappointing level of demand for RTRS soy is amajor challenge. In Bolivia Solidaridad organised the processof national RTRS interpretation, bringing together the mostimportantstakeholdersintheBoliviansoychain. An important milestone was reached in China, the largestimporter and user of soy globally. Sinograin, a large Chinesecompany – through cooperation with Solidaridad – got25,000 hectares of soy under RTRS certification (to beformalizedin2014).And,incooperationwithSinograin,2,500Chinese soy smallholders are being trained in good prac-tices.SolidaridadChinaplayedacrucialroleinorganisingthesuccessful RT8 in Beijing in 2013, bringing together Chinesestakeholders with companies, producers and civil societyorganisationsfromothersoyproducingandbuyingcountries.InIndia75,000farmersarenowparticipatinginimprovementprogrammes. The lessons from India and China will be used to furtherexpand the soy programme in Mozambique, Malawi andGhana, where there are farms of similar size and there iscomparable scope for improving agricultural practices. Amulti-annualcooperationwasstartedin2013withtheBritishretailerMarks&Spencertosupportsmallholdersoyproduc-tioninParaguay.
iMpaCT
The most important external evaluation in the past year wasthat of the soy programme in India (2009-2012) by MART.The main conclusions are that 30,000 participating farmersincreasedyields(onaverage)by54%,theamountoffertiliserusedwasreducedbyanaverageof23%,andincomefromsoyproduction doubled (admittedly increases in market pricesplayed a role here). There are also considerable environ-mental and social benefits, including more farmers planting
treesontheedgesoffields(from33to81%),ahugedecreasein crop residue burning (from 79 to 5% of farmers), andconsiderable increases in wages, plus equal compensationfor men and women and a reduction in child labour from 53to17%.
MarkeTparTNerShipS
Solidaridad continues to seek cooperation with frontrunnercompanies. An important achievement was the signing of athree-year cooperation between Solidaridad and the Britishretailer Marks & Spencer. M&S has committed to contributeto a soy smallholder project in Paraguay, working with localcooperatives. In India partnerships with the largest Indiansoy processor Ruchi Soya and the Pro Terra Foundation gotunderway.
ChalleNgeSahead
The low willingness of companies to pay for sustainabilityremains a major challenge. Solidaridad will continue toencourage working with RTRS, but will also increase coop-eration with soy producers, stressing the added value ofresponsible production for farmers. A probable new focuswill be increasing cooperation with governments on regionalapproaches and the use of soy as an efficient and cheapsourceofproteintoimprovefoodsecurity.
MarketpartnersFrieslandCampina,ARLANetherlands,Keurslagers,CONOCheese,GEBANA,NASFAM/NASCOMEX(Malawi),Sinograin(China)andalargenumberofcompaniesthroughtheIDHSoyFastTrackFund.donorsDutchMinistryofForeignAffairs(FarmerSupportProgramme),IDHSoyFastTrackFund,AgentschapNL,NORAD,MooreFoundation,EuropeanCommission
TheSolidaridad2013AnnualReport 29
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SoyfarmingfamilygopifromMadhyapradesh,india.gopiandhiswifekumariliveinanextendedfamilywithhisparentsandtwobrothersandtheirfamilies.hejoinedthesoyprogrammeand–withtheadditionalincome–hecannowaffordtopayfortheeducationofhiseldestdaughter.
Totalnumberofproducerssupported
Totalvolumeofcertifiedsoy(metrictonnes)
TotalnumberofcompaniesengagedwithSolidaridad
budgetsandactualfiguresforsoy
actual2013€3,396,000
realised201389,635producers
realised2013296,269 mt
realised20137 companies
Budget2013€ 1,152,000
Actual2012€1,706,000
Argentina,Bolivia,Brazil,China,Ghana,India,Malawi,Mozambique,theNetherlands,Paraguay,UnitedKingdom,UnitedStatesofAmerica
Planned201394,437 producers
Planned2013641,362 mt
Planned20137companies
Budget2014€ 3,061,000
Planned2014161,220 producers
Planned2014750,000 mt
Planned20148 companies
Photo:SiddharthTripathy
Solidaridad’ssoynetwork
30 TheSolidaridad2013AnnualReport
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palMoil
FrequeNTaNdbeTTerSMallholderSupporT
inlatinamerica’stopfiveproducercountriesthereisnowsector-widecommitmenttosustainableproduction.butnotallproducersseethebusinesscaseforcertification.inafrica,anincubatorwasdesignedtorolloutasuccessfulplantationrestorationapproach.
prograMMeSeTTiNg
Palm oil is the main vegetable oil on the world market: 58million tonnes were produced in 2013. Although the uptakeof certified sustainable palm oil has been rapid (now 15%;8 million tonnes), traditional market approaches involvingcertification and sourcing guidelines have limited additionalimpact, as 80% of the market is in Asia, where there are fewcertification requirements. In addition, at least 40% of theglobal palm oil area is managed by smallholders, who faceseriousconstraintswhenitcomestocertifyingtheirproduc-tion. In Latin America, with its long history of certification,RSPOisnowvirtuallya licensetooperate.However, inAfricaandAsia,thebusinesscaseforcertificationislimitedtonicheplayers and global multinationals. For smaller producers, thepalmoilprogrammeappliesafarmer-firstapproach.
reSulTS
A consortium of eight cooperative and corporate HonduranPalm Oil producers (PASH) comprises 80% of nationalproduction and all members have committed to RSPO certi-fication between 2014 and 2016. In Guatemala, five mills– covering 30% of sector output – have joined forces toimprovelabourconditions. InColombia, Indupalmahasbeenaudited against RSPO and fourteen additional companieshave committed to certification. In Ecuador, Natural Habi-tats Group, which have certified their mill and all suppliers,areworkingwithsectororganisationAncupatoextendgoodagriculturalpracticestohundredsofsmallholders. In Ghana, Solidaridad has established 30 sites, wherebest practice is demonstrated. Improved maintenance andharvesting techniques among smallholders have alreadydelivered higher yields than commercial plantations. Solidar-idadishelpingmiddle-sizedmillstoimproveefficiencyandanincubatorwillfurtherprofessionalisethesector. In South East Asia innovative projects address the chal-lengespresentedbyindependentsmallholdersandlabourers.Innovative approaches include working through a majorcredit union (Keling Kumang) in West Kalimantan and a localdealership in the Cargill supply chain in Malaysia. Verité isdeveloping a labour assessment tool that will enable certifi-cation bodies and companies to improve the quality of theirauditsandtheimplementationofRSPOstandards.
iMpaCT
Evaluation of the 2009-2012 Palm Oil Producer SupportInitiativerevealedthatrelationshipsbetweenmillsandsmall-
holdersimproved,leadingtomorefrequentandhigherqualitysupport as well as increased delivery of palm fruit bunchesto mills. Improved plantation practices led to reduced ferti-liser applications and fewer accidents. Certification of small-holders has enabled the sale of palm kernel meal certificatestoDutchdairycooperativeConoKaasmakers.
MarkeTparTNerShipS
The past year was the last of a three-year RSPO grant toSolidaridad, with support provided to projects in Honduras,Colombia, Ghana, Malaysia and Indonesia. From 2014onwards,SolidaridadwillparticipateintheRSPOSmallholderSupportFund,apermanentfacilityfinancedwithRSPOcertif-icate trade revenues. Solidaridad’s palm oil programme wasalsofinanciallysupportedbyJohnson&Johnson,HenkelandConoKaasmakers.
ChalleNgeSahead
AlthoughRSPOhasbeenamajorsuccessintermsofmember-ship,certifiedvolumesandbusinessmodel,itisunlikelythatallpalm oil producers will become certified under this scheme.So, to address the sustainability issues among domestic andAsianmarkets,otherinstrumentsneedtobedeveloped,suchas improved productivity, efficiency and a local license tooperate.
donorsConoKaasmakers,Henkel,Johnson&Johnson,RoundtableonSustainablePalmOil,NetherlandsMinistryofForeignAffairs(DGIS-DDE),RoyalDutchEmbassiesinAccraandBogotá.partnerswithmatchfunding8palmoilcooperativesandmills,WWFandSNVinHonduras;5plantationgroupsinGuatemala;5plantationgroupsinColombia,NaturalHabitatsGroupinEcuador,ADMandAgropalmainBrazil,Unilever,TOPPandBOPPplantationsinGhana,Cargill,NestléandWildAsiainMalaysia;AsianAgri,CUKK,SetaraandGoodReturninIndonesiaandNewBritainPalmOilinPapuaNewGuinea.
TheSolidaridad2013AnnualReport 31
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Cleaninganoilpalmplantationinghana.Solidaridadhasestablished30sites,wherebestpracticeisdemonstrated.improvedmaintenanceandharvestingtechniquesamongsmallholdershavealreadydeliveredhigheryieldsthanoncommercialplantations.
Totalnumberofproducersandworkerssupported
Totalnumberofhectaresundersustainablemanagement
Numberofmillsthatimplementedimprovedequipmentand/orimprovedpractices
budgetsandactualfiguresforpalmoil
actual2013€3,291,000
realised20139,570producers/workers
realised201371,365 ha
realised201324 mills
Budget2013€ 3,850,000
Actual2012€1,214,000
Belgium,Brazil,China,Colombia,Equador,France,Germany,Ghana,Guatemala,Honduras,India,Indonesia,IvoryCoast,Malaysia,theNetherlands,Nigeria,PapuaNewGuinea,Switzerland,UnitedKingdom,UnitedStatesofAmerica
Planned20139,602 producers/workers
Planned201363,649 ha
Planned201340 mills
Budget2014€5,002,000
Planned201414,198 producers/workers
Planned2014128,936 ha
Planned201454 mills
Photo:JabulaniSithole
Solidaridad’spalmoilnetwork
32 TheSolidaridad2013AnnualReport
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SugarCaNe
TurNiNgaNewleaF
againstabackgroundoffallingsugarpricesandincreasingbonsucrocertification,Solidaridad,iFCandfourmillingcompaniesinindiahavejoinedforcesinthelargestprojectforsmall-scalesugar-canegrowersworldwide.Thisprojectsupportedmorethan110,000growers,whilereducingwaterusedforirrigationandincreasingfinancialliteracy.Majorbrandsandregionalgovernmentsarenowkeentogetinvolved.
prograMMeSeTTiNg
The global price of sugar continued to decline in 2013 dueto surplus production and the competitiveness of ethanolcoming under pressure in Brazil. This presents financial chal-lenges to millers and growers, discouraging investments inlong-term business viability and sustainability. At the sametime, leading food and beverage companies are increasinglycommittedtoverifiedsustainablesources,suchasBonsucro-certified sugar and alcohol. Solidaridad helps growers andmillersrespondtothesemarketandsustainabilitychallenges.
reSulTS
The past year marked a transition for Solidaridad, withprojectssupportedbytheSchoklandFundcomingtoanendand those within the Farmer Support Programme startingup. Solidaridad reached out to more than 120,000 growersand workers worldwide, ranging from large-scale, well-estab-lished rain-fed growers in Brazil to first-generation irrigatedcanegrowersinSwaziland,whoarerelativelynewtogrowingcane. A new feature is supporting improved labour conditionsand reducing child labour in Mexico, in cooperation with theILO-SIMAPRO programme. As in Bolivia, projects combineimproving labour productivity and labour conditions, whilereducing downtime due to accidents or labour unrest. InBrazil,1,885canecutterswereretrainedtotakeupbetterjobsinmechanicalharvestingoroutsidetheindustry. Bonsucro is now connected to networks throughoutthe Americas, Southern Africa and India. Solidaridad alsocontributed to reviewing the Bonsucro standard. Soli-daridad continued to invest in multi-stakeholder platformsfor disseminating learning and experience and promotingdialogue about sustainable production in India, SouthAmerica and Southern Africa. A well-received positive inter-national campaign entitled ‘How to change the world withsugarcane’isincreasingawarenessandcreatingengagementfromstakeholdersworldwide.
iMpaCT
TheprogrammewasreviewedaspartoftheSchoklandFundfinalevaluation.Casestudiesonsugar-caneprojectsinBelizeand Malawi confirmed double-digit productivity increasesand effective adoption of better agricultural practices. Theevaluation stressed the importance of strengthening growerorganisationsandthecriticalroleofmills.Recommendationsincludedbetterarticulatingthebusinesscaseforinvestments
in sustainable production and focusing more on addressingroot causes, which may lie outside the supply chain. An IOBevaluationofDutchforeignpolicyinLatinAmericaconcludedthat, ‘thanks to the Solidaridad project with Argos EnergiesandUNICA,thereisnowenoughBonsucro-certifiedethanolavailable to meet EU demand for the next few years’. Theproject that helped achieve this ended in 2013 (for furtherdetails,seetheSolidaridadwebsite).
MarkeTparTNerShipS
Solidaridad and Unilever entered into a formal partner-ship to work on the sustainability and certification of canesugar production in Mexico and Central America. This wasannounced at a Solidaridad event in London entitled ‘Let’sturnanewleaf’andattheBonsucroSummitinMexico.
ChalleNgeSahead
Food and beverage companies are increasingly approachingSolidaridad to work on sensitive and often highly polar-ised issues, such as labour and land rights. Improving thesituation on such issues is novel and it requires relationshipsoftrust.Solidaridadinvestsinbuildingsuchrelationshipsandin careful learning-by-doing on a pilot scale, always takingsharedinterestsasthestartingpointforitsprogrammes.
MarketpartnersUnilever,ArgosEnergies,Mondelez,SABMiller,InternationalFinanceCorporation,Raízen,andmanyothermillgroupsandgrowercompaniesworldwide.donorsNetherlandsMinistryofForeignAffairs(FarmerSupportProgramme),GlobalSustainableBiomassFund,Porticus.
TheSolidaridad2013AnnualReport 33
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Totalnumberofproducerssupported
Totalnumberofhectaresundersustainablemanagement
Totalnumberofworkerssupportedbudgetsandactualfiguresforsugarcane
actual2013€1,373,000
realised2013119,219 producers
realised201391,175 ha
realised20131,640 workers
Budget2013€ 1,201,000
Actual2012€977,000
Argentina,Belize,Bolivia,Brazil,Honduras,India,Malawi,Mexico,theNetherlands,Pakistan,Paraguay,SouthAfrica,Swaziland,Switzerland,Tanzania,UnitedKingdom,UnitedStatesofAmerica
Planned2013104,867 producers
Planned201356,600 ha
Planned20131,500 workers
Budget2014€ 2,380,000
Planned2014179,975 producers
Planned2014298,276 ha
Planned20141,900 workers
Solidaridadhaslaunchedanewcampaign:howtochangetheworldwithsugarcane.duringthelaunchinlondonSolidaridadandunileverannouncedanewpartnership.
Photo:CharlotteFielding
Solidaridad’ssugarcanenetwork
34 TheSolidaridad2013AnnualReport
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liveSToCk
liveSToCkbeCoMeSparToFTheSoluTioN
in2013Solidaridadstartedaseriesofnewprojectsthatfocusonlivestockonthreecontinents,coveringbeefanddairyproduction.Solidaridadisanactivememberofmulti-stakeholderplatformswhichpromotelivestockasanefficientuseoflandandotherresources.Thisisincreasinglyseenaspartofthesolutionforsustainabledevelopment.
prograMMeSeTTiNg
Witharapidincreaseinglobaldemandforlivestockproducts,the pressure on farmers to produce beef and dairy productsin more efficient and sustainable ways is mounting. Cattlehave often been seen as responsible for deforestation andrelatedgreenhousegasemissions.Butthisdoesn’tneedtobethe case. In fact, proper pasture management plays a crucialrole in maintaining productive land in several ecosystems.This is why fostering best practice and developing alterna-tives with committed partners is key to our new projects.Solidaridad is happy to contribute to working towards moresustainablyproducedanimalproteins.
reSulTS
Through its Farmers Support Programme (FSP), Solidaridadnow has eight livestock projects in Africa, Asia and LatinAmerica, working with around six thousand farming fami-lies, targeting close to a million hectares. FSP projects focuson best practices as well as local and/or international marketdevelopment. Besides the FSP projects, a major dairy developmentprojectstartedaspartofafoodsecurityprogrammeinBang-ladesh, targeting 15,000 farmers. Work on dairy immediatelydrewattentionfrommajorindustryplayersinthesectorandSolidaridad started to engage with the Dairy SustainabilityFramework. As a founding member of the Global Roundtable forSustainableBeef(GRSB),Solidaridadcontinuedtocooperateon developing its governance structure as well as its ‘Princi-ples and Criteria’ for defining global sustainable beef. Theseareexpectedtoberatifiedinthesecondhalfof2014. In Brazil a first version of the Rural Horizons tool for Live-stock (meat production) has been developed and testedin the field together with regional farmers associationAcrioeste.Theresultsoftheself-assessmentledtothedesignof three pilot farms, which will take shape in 2014. Also inBrazil, Solidaridad partnered with the International InstituteforSustainabilityandtheInstitutoCentrodeVidainaprojectthatencouragespastureintensificationandlandusemappinginordertoincreaseproductivityandthusreducepressureonforests. In efforts to develop international markets, cooperationwith retailer COOP Denmark and importer ZandbergenWorld’s Finest Meats in the Netherlands continues to befruitful.
iMpaCT
Thelivestockprogrammeis justgearingupandit istooearlyto expect measurable impacts. Solidaridad is a welcomepartner in many countries. Its solution-oriented approachand presence in Roundtables facilitates access to a broadnetworkofvaluechainactorsworldwide. Renewed attention to optimal land use as the basis forsustainable food, fibre and fuel production bring sectorstogether. Integrating livestock, agriculture and forestry –alongside spatial planning – brings us closer to a new land-scapingapproach.
parTNerShipSwiThglobalCoMpaNieS
COOP Denmark’s Savannah Fund and Solidaridad’s FarmerSupport Programme jointly invest in improving beef produc-tion among communal livestock farmers in Namibia. COOPDenmark imports beef from MeatCo in Namibia under itsSavannah brand of quality products from Africa. Part of theturnover is set aside for investments in sustainability andimprovinglivelihoods.
ChalleNgeSahead
The livestock programme will continue to grow and, withratified GRSB principles and criteria for sustainable beef,Solidaridad and its partners will move on to translate thesenorms into concrete activities on the ground. Developingbetter produced beef product lines will take time and it willrequire careful market positioning. Furthermore Solidaridadwill explore opportunities for strengthening its commitmenttoresponsibledairyfarming.
NonprofitpartnersAcrioeste,AliançadaTerra,GTPS,ICV,IIS(Brazil),CIAT(Nicaragua),SavoryInstitute(SouthAfrica)RainforestAlliance(Uruguay),UNDP(Paraguay)MarketpartnersZandbergenWorld’sFinestMeat(theNetherlands),COOP(Denmark),MeatCo(Namibia),LandInnovationsLimited(Kenya)donorsDutchMinistryofForeignAffairs(FSP&SaFal),NORAD,MooreFoundation,EuropeanCommission,PorticusFoundation.
TheSolidaridad2013AnnualReport 35
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westbahia,brazil.usinga‘ruralhorizons’tooltoidentifychallengesandbestpracticesinasemi-aridenvironment.
budgetsandactualfiguresforlivestock
Argentina,Bangladesh,Brazil,Denmark,Kenya,Namibia,theNetherlands,Nicaragua,Paraguay,SouthAfrica,Uruguay
Photo:AdrianoLupinacci
actual2013€1,434,000
Budget2013€ 700,000
Actual2012€138,000
Budget2014€ 2.923.000
Solidaridad’slivestocknetwork
...properpasturemanagementplaysacrucialroleinmaintainingproductivelandinseveralecosystems.Thisiswhyfosteringbestpracticeanddevelopingalternativeswithcommittedpartnersiskeytoournewprojects....
36 TheSolidaridad2013AnnualReport
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aquaCulTure
25,000ShriMp&FiShFarMerSForMgroupS
despitethepoliticalcrisisin2013,theaquacultureteaminbangladeshworkedwith25,000fishandshrimpfarmerstoformproducergroups.TheSeafoodTradeandintelligenceportalteamcollecteddatafromover40fishprocessingfactoriesinbangladeshandMyanmarandexpandeditspartnerstoincludeeuanduSseafoodbusinesses.
prograMMeSeTTiNg
Withongoingdiseaseproblemsinshrimpproduction,itwasagoodyearforthosewhomanagedtokeeptheirfarmsdisease-free. For shrimp buyers worldwide, however, competitionwas fierce, especially for buyers in the EU and US, who faceincreasing competition from emerging markets, combinedwithevermorestringentmarketrequirementsathome.Oneof Solidaridad's private-sector partners went bankrupt in2013, and recently another was on the brink of bankruptcy,whichreflectsthecontinuingchallengesinthesector.
reSulTS
In 2013, Solidaridad kicked off its aquaculture programmein Bangladesh with the selection of a significant number offish and shrimp farmers. The programme, which is part ofthe Sustainable Agriculture, Food security And Linkagesprogramme (SAFAL), will focus on product-market combin-ationsthatwillallowfarmerstoestablishbetterfarmingprac-ticestoincreasetheirincomewhilesafeguardingtheenviron-ment. About half of the producer groups are composed ofextensive monoculture shrimp farmers; the other half havefreshwater polyculture farms. The business cases involvelocalprivatesectorplayers,suchaspremiumretailers,aswellasinternationalshrimpbuyers. A small number of large-scale semi-extensive shrimpfarmers will be assisted with the implementation of an inter-national sustainability standard. An integrated supply chainmodel focusing on at least one of these farms will forgecollaborationwithsmall-scalefarmersinthesamegeograph-ical area, ensuring both access to high-quality inputs andmarketsforthesaleofproduce. With China turning into a net importer of farmed seafood– while still producing over 60% of all aquaculture produceworldwide – the competition for raw materials has reachedanother high. The Seafood Trade and Intelligence Portal(STIP), which expects to expand its peer-group membershipbase to the USA in 2014, has reveiled key supply-chain andfactory information relating to over 40 EU certified seafoodprocessors in Bangladesh and Myanmar. This will allow inter-nationalseafoodbuyerstoefficientlysecuresupplyfromthebestcompaniesandmeetmarketdemand.TheofficiallaunchoftheSTIPisexpectedinMay2014.
parTNerShipS
In2013,theSeafoodTradeIntelligencePortalpeergroupwascomposed of the following members: RutgerKooij Zeevis-
handel, Amacore, Esro Seafood, Den Heijer, Heiploeg andWAB Trading GmbH. A memorandum of understanding wassigned with the Bangladesh Frozen Food Exporters Associ-ation.ThescopingworkandSTIPdatacollectioninMyanmarwasfacilitatedbytheMyanmarFisheriesFederation. The SAFAL programme is funded by the Dutch Embassyin Bangladesh, while leading international social-economicresearchinstituteLEIWageningenUR,isavaluablepartnerintheprogramme.
ChalleNgeSahead
The volatility of the sector constrains the introduction ofsustainable practices. Moreover, the implementation ofleading sustainability standards will be difficult in view ofthe diversity of production systems worldwide. Solidaridadseeks to build alliances with producers, buyers and certi-fiersinordertofindtailoredsolutionsthatpayoff–bothforproducers and for market players. Starting in Bangladesh,Solidaridad will work with a leading Dutch retail company toconnectsmall-scaleshrimpfarmerstoEuropeanretailchains. In 2014, Solidaridad’s aquaculture programme expects tomove into new countries, building on scoping work with LEI-Wageningen UR in Myanmar and opportunities for the STIPin Ecuador, Peru and Indonesia. New partnership opportuni-ties with Asian, European and American businesses will leadtoscopingworkinthemangroveareasofsouth-westBangla-desh,Indonesia,ChinaandWest-Africa.
TheSolidaridad2013AnnualReport 37
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in2013,Solidaridadlauncheditsaquacultureprogrammeinbangladeshwiththeselectionofasignificantnumberoffishandshrimpfarmers.Solidaridadseekstobuildallianceswithproducers,buyersandcertifiersinordertofindsolutionsthatpayoff–bothforproducersandformarketplayers.
budgetsandactualfiguresforaquaculture
Solidaridad’saquaculturenetwork
actual2013€ 334,000
Budget2013€ 969,000
Actual20120
Bangladesh,Germany,Myanmar,theNetherlands,UnitedStatesofAmerica
Budget2014€ 1,825,000
Photo:MarnixPoelman/WageningenUR
...Solidaridadseekstobuildallianceswithproducers,buyersandcertifiersinordertofindtailoredsolutionsthatpayoff–bothforproducersandformarketplayers....
TheSolidaridad2013AnnualReport 39
SolidaridadSouThaMeriCa
iNNovaTioNwiThSuSTaiNableCoMModiTieS
Farmersfeel‘triggers’thatdrivethemtocontinuallyimprovetheirpractice:inputandlabourscarcity;risingdemandforrisk-free,certifiedandlegallycompliantsupplysources;robustforestrylaws;andtheneedtodesignsustainablelandscapes.SolidaridadSouthamericaaimstodeliverinnovativesolutionswhichmakethiskindofchangehappen.
eXTerNaldevelopMeNTS
Legal compliance helps make the transformation to sustain-ableagriculture.Traditionalpremiummarkets,whetherintheEU,USAorJapan–withtheirvoluntarystandards–aregradu-ally losing out to home markets and to Asia. Working withlarge brands, local businesses, communities, civil society andgovernments are creating low-risk, legally compliant farminglandscapes.
MaiNaChieveMeNTSaNdparTNerShipS
Major programmes include encouraging and helping 120miners and 2270 families who are farming 690,000 hectaresto implement voluntary sustainability standards. The mainpartners are Unilever, Rainforest Alliance (tea), Agropalma,RSPO(palm),Bonsucro,Shell/Cosan(sugarcane),Anapo,LosGrobo, INTA, Fapcen, Syngenta, DAP, RTRS, IDH, and SALSApartners(soy). RuralHorizonsisanexpertsystemthatsupportscontinualimprovement in a ‘race to the top’ approach. It involveshundreds of beef, sugar-cane, soy and cotton farmers whofarmmorethan70,000hectares. Together with Norad, Moore, IDH, and FSP as donors, andICV, Moises Bertoni, UNDP, ProYungas as partners, sustain-ablelandscapinghasbegunintheAmazon,AtlanticRainforestandChacoregions.Integratedon/off-farmincentivesprovidemetricdataforregionalmulti-stakeholderdialogues. Solidaridad South America provides the following servicesto the Solidaridad Network: RBM training, IPC livestocksupport,andFSP/FSLAgovernanceandadministration.
NeTworkSTraTegy
Rural Horizons addresses farmers’ needs in sustainability,certification and legal compliance. Spearheaded by smartland use and food security, missions took place to Colombia,MozambiqueandGhanain2013.Inreturn,valuableinputwasreceived from the Network on commodities, strategic rela-tions, systemic development and communication. As condi-tions vary considerably in different regions, expertise clearlyneedstobetailored.
orgaNiSaTioNaldevelopMeNT
With financial growth of 40%, the regional staff grew from 9to19people,andfromonetothreelegalentities,withcountryleaders based in Argentina, Brazil and Paraguay. ThroughparticipationinRoundtables,thinktanks,sectoralinstitutions,standard setting bodies, producer associations and commu-nicationgroupsknowledgeistransferredtotheNetworkandtransformedintovaluablemarketintelligence,whichhelpstobuildtheSolidaridad‘brand’.
a Xavante leader managing his genetically enhancedherdintheamazon.
solidaridadnetwork.org/southamerica
Coffee 43,000 Tea 76,000 Fruit&vegetables 10,000 Cotton 90,000 Gold 23,000 Soy 2,303,000 Palmoil 174,000 Sugarcane 372,000 Livestock 917,000 Other 343,000
Totalprogrammeinvestmentsineuros 4,352,000
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
personnelatSolidaridadSouthamericainFTes
investmentsbySolidaridadSouthamericaineuros
2010 2011 2012 20134 8 13.5 19
Actual2012 Budget2013 Actual2013 Budget20142,772,000 1,594,000 4,352,000 3,825,000
40 TheSolidaridad2013AnnualReport
SolidaridadaNdeS
SCaliNgupe-learNiNgForCoFFeeFarMerS
ThescalingupoftrainingprogrammesdesignedbySolidaridadinColombiahasstarted.inthepastyear,240extensionworkersfromeightexportcompaniesand20cooperativesparticipatedinlow-costdistancelearningcoursesonsustainablecoffeeproduction.asaresult,theyarenowabletomoreeffectivelyreach36,000farmers.
eXTerNaldevelopMeNTS
Responsible gold production faces major challenges in theAndean region. The Peruvian government has, in effect,declaredwaronillegalgoldmining.Atthesametime,growingdemandforresponsiblegoldininternationalmarketsexceedscurrentsupply.Thousandsofsmall-scaleinformalgoldminersstruggle to meet government formalisation criteria withoutmissingoutonthesemarketopportunities.
MaiNaChieveMeNTSaNdparTNerShipS
Through partnerships with Agrobiz in Colombia and theNatural Habitats Group in Ecuador, 12,888 hectares of RSPOplantations are ready to be certified in Colombia, and inEcuador,93smallholderoil-palmproducersexpecttoreceiveRSPOcertification.InPeru,115localcoffeepromotersplayedthe role of ‘live’ demonstration centres for 1,076 producers,who subsequently rehabilitated 961 hectares by engaging inpracticeslearnedatthecentres. Minersorganisations’effectivemanagementoflegalisationprocedureswhilemovingtowardsformalisationandcertifica-tion is crucial for developing a responsible gold supply chaininPeru.Over1,500minersreceivedtrainingin66workshops.
STraTegy
Solidaridad works on sustainable banana production inNorthern Peru, supporting a platform that brings togetherthe main stakeholders: 16 producer organisations, fourgovernment entities, three export companies, three tradingcompanies and four NGOs. Within this framework it was
possibletoattractUS$285,000offundingfromtheprovincialmunicipalitytoimprovethebananaprocessinginfrastructureof two producer associations. Similarly, under the Colom-bian national coffee platform, a specialty coffee manual wasproduced with the support of the Antioquia Government,the National Federation of Coffee Growers, and five coffeegrower cooperatives. Working at the sector platform level ispartofSolidaridad’sglobalstrategy.
orgaNiSaTioNaldevelopMeNT
Solidaridad Andes opened an office in Colombia with sevenfull-time staff. This facility supports the technical secretariatfor the Sustainable Trade Platform. A website was launchedfor this programme, presenting the main principles of theplatform (www.comerciosostenible.org). The Results-BasedManagement approach was adopted for selected largeprojects.
CoffeefarmersinColombiaworkingwithnewtrainingmaterials.
solidaridadnetwork.org/andes
Coffee 372,000 Cocoa 11,000 Fruit&vegetables 51,000 Gold 254,000 Palmoil 384,000
Totalprogrammeinvestmentsineuros 1,027,000
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
personnelatSolidaridadandesinFTes
investmentsbySolidaridadandesineuros
2010 2011 2012 201312 25 26 30
Actual2012 Budget2013 Actual2013 Budget2014353,000 2,526,000 1,027,000 1,615,000
TheSolidaridad2013AnnualReport 41
SolidaridadCeNTralaMeriCa
breakThroughSiNSuSTaiNablepraCTiCeS
withthesupportofanational-technicalcommittee,hondurasbecamethefirstcountryintheworldtodevelopanationalinterpretationoftheglobalprinciplesandcriteriaoftheroundtableforSustainablepalmoil(rSpo),usingtheguidelineforcountriesproducinglessthan5%oftotalglobalpalmoilproduction.
eXTerNaldevelopMeNTS
Despite challenging market and climatic conditions in 2013,there was a clear shift towards social and environmentalsustainabilityinitiatives.Producersofallsizes–growingpalmoil, sugar cane, livestock, coffee – worked on strengtheningtheirsustainablesupplychains.
MaiNaChieveMeNTSaNdparTNerShipS
Solidaridad-ledinnovationsinstrategicalliances,co-financingmodels, climate-smart agriculture and tool developmenthave accelerated this shift in Central America and Mexico.Solidaridad Central America strengthened strategic partner-ships with WWF, SNV and ILO, made a financial agreementwith Henkel and signed an MOU with Unilever. Solidaridadis emerging as a regional leader that is able to scale up pilotprojects into sector-wide interventions with the potential totransformentireindustriesandsupplychains.In2013sector-widepalmoilprojectswerelaunchedinHondurasandGuate-mala,pilotprojectsinsugarcaneandlivestockinMexicoandNicaragua, while the innovative Back (Bringing Agriculture,Carbon and Knowledge) to REDD project in Chiapas, Mexicohelpedcreateresilienceforcoffeefarmersintheregion. Allprojectsapprovedandlaunchedin2013involvedarangeof actors, complex relationships, and urgent interventionsthatfocusonsustainablesocialandenvironmentalpractices.Major achievements included developing the RSPO NationalInterpretation for Honduras, a Proforest-led process thatinvolvedpublicconsultationswiththeprivatesector,govern-mentandcivilsociety.
STraTegy
The commodities that are grown in region are vitally impor-tant for national economies and their impact on society, theenvironment and food security. All projects involve sustain-able use of land and water, and labour and social issues arealso increasingly important. Synergies and operational effi-ciencieswithotherregionsarebeingsought.
orgaNiSaTioNaldevelopMeNT
Solidaridad Central America focused on monitoring andevaluation, knowledge management, and ensuring sufficientquality management capacity in order to strengthen projectoutcomes and increase the potential for their replication.Interregional cooperation includes network experience inpalm oil, sugar cane, coffee, cocoa, livestock and gold. Newstaff with external communication capabilities will be avail-ablein2014.
Thisformercattlefarmernowgrowspalmoil.hisincomehasincreasedandheownssharesinapalmoilmill,refineryandbio-energyplant.
Coffee 185,000 Cocoa 40,000 Fruit&vegetables 16,000 Palmoil 240,000 Sugarcane 13,000 Livestock 90,000
Totalprogrammeinvestmentsineuros 584,000
solidaridadnetwork.org/centralamerica
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
personnelatSolidaridadCentralamericainFTes
investmentsbySolidaridadCentralamericaineuros
2010 2011 2012 2013– 7.2 10.2 7
Actual2012 Budget2013 Actual2013 Budget2014221,000 1,506,000 584,000 1,527,000
42 TheSolidaridad2013AnnualReport
SolidaridadweSTaFriCa
MoviNgbeyoNdCerTiFiCaTioN
Thereweremanyachievementsacrosstheregion,butthehighlightwas€7millionofmajorfundingfromthedutchembassyinaccratoimplementtheCocoarehabilitationandintensificationprogramme(Corip).Thisprogrammemakesitpossibletomovebeyondcertificationtowardsintensificationinthecocoasectorofghana,thusensuringlong-termsustainability.
eXTerNaldevelopMeNTS
Solidaridad West Africa received greater commitment fromgovernments and other stakeholders to develop sustainablecommodity chains. Such platforms and opportunities wereusedtodeepenexistingrelationships,influencepolicy,initiateinstitutional reforms and implement sustainability projects.However, the fall in the world market price of gold resultedin periodic shutdowns by mines, impeding progress towardsmeetingsustainabletargets.
MaiNaChieveMeNTSaNdparTNerShipS
In 2013, the cocoa programme up-scaled its sustainabilityprojects and engaged in activities beyond certification,together with private companies. Key partners includecompanies and government agencies such as NobleResources,ECOM/Mars,Armajaro,Cargill,Touton,theIvorianConseil du Café Cacao and the Ghana Cocoa Board. In theoil palm programme, Solidaridad partnered with the Inter-national Plant Nutrition Institute, Proforest Initiative and OilPalm Research Institute to establish thirty best managementpractice plots. Together with the RSPO a road show and thefirst RSPO Lead Auditor Training Course were organised.Funding was received from the Farmer Support Programme(FSP) for a cotton project in Senegal. Other partners in thecottonprogrammmeincludeAPROCA,CompagnieMaliennepourleDevelopmentdesTextilesandSODEFITEX.Afive-yearsustainablemaizeprojectfundedbytheNetherlandsMinistryof Foreign Affairs was also secured with Yara and Wienco aspartners.
STraTegy
In 2013 Solidaridad West Africa deepened its sustainabilityinitiatives by building strategic partnerships as well asthrough learning and innovation. Improving productivity,making service delivery more efficient, developing busi-ness cases, climate smart agriculture and focusing on foodsecurity issues and gender remain central to the strategy.There is also increased emphasis on accurate data and agro-economicanalyses.
orgaNiSaTioNaldevelopMeNT
The Continental Board met twice in 2013 to discuss progressand plans. The number of staff grew by 15% (from 47 to 54)and the Côte d’Ivoire office finally acquired a certificate ofregistration. The budget increased from €6 million to €10million. After a successful external audit of the qMS, theGhanaOffice’sISO9001;2008scopewasexpandedtocoverthegoldandoilpalmprogrammes.
workersona‘bettermanaged’oil-palmplotinghana,demonstratingtheuseofweighingscalesforstandardisation.
Cocoa 3,873,000 Fruit&vegetables 18,000 Cotton 627,000 Gold 422,000 Palmoil 1,976,000
Totalprogrammeinvestmentsineuros 6,915,000
solidaridadnetwork.org/westafrica
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
personnelatSolidaridadwestafricainFTes
investmentsbySolidaridadwestafricaineuros
2010 2011 2012 201322 32 47 54
Actual2012 Budget2013 Actual2013 Budget20144,475,000 7,993,000 6,915,000 5,912,000
TheSolidaridad2013AnnualReport 43
SolidaridadSouTherNaFriCa
rapidgrowThaNdeXpaNdedouTreaCh
SolidaridadSouthernafricagrewsignificantlyin2013andnowhasanofficeinMozambique.Fromfourprojectsimpacting20,000smallholdersin2012,ithasextendeditsprogrammetoreach60,000smallholdersin2013andplanstoreach90,000.itnowworkswithsevenagriculturalcommoditiesanditssmallholder’self-assessmenttoolimprovesyieldsandquality.
eXTerNaldevelopMeNTS
Theregionsuffersfrompoliticalandeconomicinstabilityandcorruption is rife, while many food-insecure countries areclassifiedasLeastDevelopedCountries,withsupportcomingfromtraditionalfundingsourcesinOECDcountriesaswellasglobal funding organisations. Standards are becoming morerelevant and Aid-for-Trade applies to middle-income coun-triesintheregion.
MaiNaChieveMeNTSaNdparTNerShipS
In 2013 Solidaridad received more funding for farmer-ledinitiatives in horticulture, livestock and grains, legumes,cassavaandsoy,mainlyforprocessing(includingthefarmer-led Mumbwa cotton gin in Zambia and mango processing inSouth Africa). Work has begun using a regionally designedself-assessment tool for smallholders to assist them inapplyingbetteragriculturalpractices.Thisworkissupportedby the Dutch Embassy and there is currently a significantpartnership with the Sustainability Initiative of South Africa(SIZA)tousetheirinternationallyrecognisedethicalstandardas the basis for a suite of tools cutting across various agri-cultural commodities. Solidaridad’s greatest achievementsremain its partnerships, which stretch across the privatesector,farmers’organisations,otherNGOs,governmentsandfunding agencies. Retailers are joining programmes, notablythrough new partnerships involving Woolworths and DanishCo-op. BCI-verified cotton is produced through FarmerSupportProgrammes.
STraTegy
Solidaridad aims to add value to smallholders’ produce, forexample by deriving more products from each crop (seedcake and fibres), mango processing, and targeting moreaffluent markets (e.g. large supermarkets such as Wool-worths).Theobjectiveforgenderequityis30to36%inmostsectors. Given the risk to agriculture in the region, climatechangeisamajorconcern,asislandscapemanagement.
orgaNiSaTioNaldevelopMeNT
Solidaridad Southern Africa has a small permanent staff,who are responsible for monitoring and evaluation, finan-cial systems and governance, plus it has technical expertsthroughout the region. A local office has been set up inMozambiqueandsimilarrepresentationisplannedforZambiaandMalawi.Solidaridadcommunicateswithkeystakeholdersthroughanannualconference.
Solidaridadreceivedmorefundingforfarmer-ledinitiativesincludingthoseinvolvinglivestock.
Tea 4,000 Fruit&vegetables 11,000 Cotton 229,000 Soy 339,000 Sugarcane 93,000 Livestock 205,000 Other 102,000
Totalprogrammeinvestmentsineuros 982,000
personnelatSolidaridadSouthernafricainFTes
investmentsbySolidaridadSouthernafricaineuros
2010 2011 2012 2013– 2 7 8.5
Actual2012 Budget2013 Actual2013 Budget2014542,000 966,000 982,000 1,811,000
solidaridadnetwork.org/southernafrica
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
44 TheSolidaridad2013AnnualReport
SolidaridadeaSTaNdCeNTralaFriCa
eMbraCiNgFarMerSupporTprograMMeS
Solidaridadisreaching29,500farmersthroughfarmersupportprojectsineastafrica.Cottonyieldshaveincreasedby44%and25%ofcottonfarmerscannowaccessloansandenhancefoodcropproductioninuganda.Theintegrationofmanagementinformationsystems(MiS)insugarcaneinTanzaniainvolvedestablishingresourcecentreswheresugar-canefarmerscanaccessinformation.
eXTerNaldevelopMeNTS
The weather was favourable for agriculture, leading toincreased production of commodities and pasture, albeit atreduced prices, especially in the case of tea. Private coffeecompanies faced challenges in Kenya and Tanzania due topolicy changes that interfered with coffee marketing. Exten-sion of the African Growth and Opportunity Act initiativeopened up economic opportunities for the region. The civilwar in Sudan led to an influx of refugees in neighbouringcountries, affecting their economies and leading to greaterinsecurity.
MaiNaChieveMeNTSaNdparTNerShipS
Solidaridad launched the Food security project FOSEK inKenya and Ethiopia, targeting 120,000 farmers. A BetterCotton Initiative (BCI) was also initiated, reaching 6,000farmers, increasing productivity by 44% and 25% of thesefarmers now receive financial support from Boresha SACCOinKerioValleyKenya.ThesigningofMOUswithratingagencySCOPEInsightforassessmentsofcreditworthinessandbank-ability and with the Centre for Promotion of Imports fromDeveloping Countries (CBI) – for export coaching of SMEsinKenya–hadconsiderableimpactontheregionintermsoffinance,marketingandimprovedincomes.
STraTegy
The strategy remains to support producer groups byimproving the quality and quantity of products, whileaddressingsocialandenvironmentalconcerns.Trainingtools
designed to enhance producer group management wereimproved. Financial access through established saving andcredit cooperatives, the provision of seed capital and MISenhancedsustainability.ThroughtheEthicalTeaPartnership,a gender-mainstreaming handbook was written to help inte-gratewomeninteaproduction.
orgaNiSaTioNaldevelopMeNT
A Project Country Manager for Tanzania and an Office Assis-tant for Nairobi were engaged and programme managersparticipated in global commodity meetings. The staffmembers were trained on quality Management Systems andSolidaridad maintained its ISO 9001:2008 certification. Soli-daridad East and Central Africa hosted the Annual GeneralMeetingsoftheContinentalSupervisoryBoard.PMEtrainingon reporting methodology and recording key performanceindicators was organised in Uganda for project and partnerstaffintheregion.
Trainingdesignedtoenhancethewayproducersorganisewasimproved.
Photo:H.P.AltingvonGeusau
Coffee 1,290,000 Tea 92,000 Fruit&vegetables 886,000 Cotton 233,000 Gold 31,000 Sugarcane 195,000 Livestock 73,000 Other 131,000
Totalprogrammeinvestmentsineuros 2,931,000
solidaridadnetwork.org/eastcentralafrica
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
personnelatSolidaridadeastandCentralafricainFTes
investmentsbySolidaridadeastandCentralafricaineuros
2010 2011 2012 201310 9 12 14
Actual2012 Budget2013 Actual2013 Budget20142,671,000 2,513,000 2,931,000 3,114,000
TheSolidaridad2013AnnualReport 45
SolidaridadSouThaNdSouTh-eaSTaSia
waTereFFiCieNCyiNiNdiaNagriCulTure
SolidaridadandhindustanunileverFoundationhavejointlylaunchedoneofthelargestwaterefficiencyprogrammesinindia(target:0.4to1trillionlitresofwatersavedoverthreeyearsthroughsustainableagriculture).Thiswillaffectthesugar-cane,cotton,soyandteasectorsacross38districtsofninestatesinindia(nearly700,000hectares).
eXTerNaldevelopMeNTS
By2050Asia’spopulationisexpectedtoreach5.3billion.Life-style changes have led to increased demand for land, feed-stock,fibre,bio-fuelandtimber.Yetthereisalreadyaseriousshortage of land, water and energy in the region. Solidaridadisdevelopinganintegratedsustainableland,waterandenergyuseapproach,togetherwithleadingbusinesses.
MaiNaChieveMeNTSaNdparTNerShipS
Solidaridad has started a water efficiency programmeaffecting 780,000 workers and smallholders in India inpartnership with Hindustan Unilever Foundation (HUF),while in Bangladesh a sustainable dairy and aquacultureprogramme supporting food security for 200,000 peoplehas been established in partnership with EKN, Dhaka. Aninnovative model has been created for the world’s largestsugar programme in partnership with IFC, South Asia, fourleading sugar companies and 200,000 smallholders. Thesustainable soy programme emerged as the biggest in India,supporting 75,000 soy smallholders in three states. Soli-daridad is implementing the Trustea programme that aimsto transform the Indian tea market, together with IDH, HULand Tata Global Beverages. An innovative fire and buildingsafety programme for the textile sector and the launch oftheUS$11millionWaterPACTprogrammeinBangladeshwillhelp 500 factories avoid accidents, save water and preventpollution.
STraTegy
Theregionhasleadingproducersandconsumersofalmostallthemajoragro-commoditiesSolidaridadisworkingwith.Thestrategic focus is on transforming Asian producers as well asdomesticmarketsthroughlarge-scalesustainableuseofland,waterandenergy.
orgaNiSaTioNaldevelopMeNT
Staffnumbersincreasedstronglybetween2012and2013andthe number of offices has grown from 1 to 11, with 90 FTEsemployedatyear-end2013.TheregionalofficeisregisteredinHong Kong, with branches in India, Bangladesh, Vietnam andIndonesia.Amanagerandaregionalprogrammecoordinatormanage each country and commodity programme, respec-tively. quality management (based on ISO 9001-2008), PME,financeandadministrationhavebeenstrengthened.
Measuringrainfall.Solidaridaddirectlysupports779,000indianfarmers.
PhotoJayaraj
Coffee 8,000 Tea 490,000 Fruit&vegetables 243,000 Cotton 53,000 Textiles 237,000 Soy 356,000 Palmoil 191,000 Sugarcane 439,000 Livestock 116,000 Aquaculture 233,000 Other 27,000
Totalprogrammeinvestmentsineuros 2,391,000
solidaridadnetwork.org/ssea
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
personnelatSolidaridadSouthandSoutheastasiainFTes
investmentsbySolidaridadSouthandSoutheastasiaineuros
2010 2011 2012 20139 11 19 89.2
Actual2012 Budget2013 Actual2013 Budget2014544,000 3,284,000 2,391,000 8,388,000
46 TheSolidaridad2013AnnualReport
SolidaridadChiNa
developiNgSuSTaiNablebuSiNeSSCaSeS
Thescarcityofbusinesscaseshaslongbeenamajorobstacletoconvincingstakeholderstomakegenuineinvestmentsinsustainability.in2013–thankstointensiveeffortsdesignedtoaddresstheirneeds–arangeofvoluntaryeffortsweremadebyproducergroupspursuingsustainability.
eXTerNaldevelopMeNTS
In 2013 international development funds for the world’ssecond largest economy shrank further. In response to thischallenge, Solidaridad China intensified its efforts in findingconcretesolutionstovalue-chainsustainabilitychallenges.Asaresult,therewassteadygrowth,particularlyinthesoybean,cottonandtextileprogrammes.
MaiNaChieveMeNTSaNdparTNerShipS
Ensuringfoodsecurityinasustainablewayworldwidecannotbe achieved without China – the top global importer ofmultiple commodities such as soybean and palm oil. In 2013,besides ongoing support to soybean farmers in China, Soli-daridad China succeeded in building alliances with leadingorganisations such as TNC, WWF, the Chinese SoybeanIndustry Association and the Paulson Institute, to mobilizemarketdemandforsustainablecommoditiesinChina.InMay2013, Solidaridad China co-organised the RTRS’ 8th annualconferenceinBeijing,encouraging240globalsoybeanactorsto jointly explore strategies promoting sustainability andresponsibility. In close collaboration with global leaders inthe apparel industry such as H&M & C&A, Solidaridad Chinasucceeded in expanding a small pilot project on cleanerproduction into a Better Mills Initiative (BMI) designed toeliminatetheuseofhazardoussubstancesandtosavemillionsoftonsofwateramong70dyeing&printingmills.
STraTegy
Besidesofferinghands-onsupporttoproducers,Solidaridad
China has long adopted a holistic approach to promotingsustainability, i.e. setting up sector-wide stakeholder plat-forms to encourage local participation and ownership,leading to genuine commitment and long-lasting impact. Inaddition, the China team is actively exploring China’s role insupportingproducersworldwide.
orgaNiSaTioNaldevelopMeNT
Despiteincreasingchallengesintermsoffundraising,Solidar-idad China has grown steadily. In 2013 the team grew from 9to17FTEs,withastrongerpresenceinthefield.Thefinancialmanagement department was also strengthened, now withtwofull-timestafftoensuretransparencyandaccountability.In addition, a full-time position focusing on market develop-ment was created to engage with business partners and tobuildstrongercollaborationwithSolidaridadregionalcentresinLatinAmerica,Asia,andAfrica.
SolidaridadsupportsChinesesmallholders,whoconstitutethebackboneoftheworld’snumberonecottonindustry.
Photo:JosKuklewski
Tea 17,000 Cotton 189,000 Textiles 71,000 Soy 137,000 Otherprojects 82,000
Totalprogrammeinvestmentsineuros 497,000
solidaridadnetwork.org/china
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
personnelatSolidaridadChinainFTes
investmentsbySolidaridadChinaineuros
2010 2011 2012 20134 9 9 17
Actual2012 Budget2013 Actual2013 Budget2014287,000 610,000 497,000 1,043,000
TheSolidaridad2013AnnualReport 47
SolidaridadTheNeTherlaNdS
high-qualiTybuSiNeSSparTNerShipS
in2013SolidaridadtheNetherlandseffectivelyimplementedanaccountmanagementstructurefor56europeancompaniesandiscurrentlydiscussingclosestrategicpartnershipswithsevenofthesecompanies.Thismovefromaquantitativetoaqualitativeapproachhasalreadyproveditsvalueandambitioustargetshavebeensetfortheyearsahead.
eXTerNaldevelopMeNTS
Recent trends clearly show that there is a growing commit-ment by companies to invest in good business practices andto improve the sustainability performance of their suppliers.However,despitesuchcommitments,progresscanbeunder-mined.UntilrecentlySolidaridaddistinguishedthreetypesofcompanies:firstmovers,followersandlaggards.Nowthereisafourthcategory:underperformers–companiesthatdonotlive up to their commitments. An example of this was Dutchsoy importers, who did not increase their uptake of RTRScertifiedsoywithintheagreeddeadline.Thisnotonlydemo-tivates producers; it also sends a wrong signal to the market.In such cases, the challenge for Solidaridad is to combinethe role of a constructive partner with that of a – sometimespublic–critic.
MaiNaChieveMeNTSaNdparTNerShipS
When it comes to partnerships, Solidaridad the Netherlandsis moving from quantity to quality. In line with this approach,strategic partnerships are being developed with Unilever,Nestlé, Mars, Friesland Campina, H&M and M&S. Thesepartnerships are designed to achieve a market transform-ation which is sustainable and relevant for producers andcustomers alike. The Dutch government, which is making ashift from aid to trade, recognizes Solidaridad’s expertise inthisfieldandisprovidingcontinuedsupportforprogrammesaroundtheworld.
STraTegy
Solidaridad’s traditional focus has been on developing andimprovingstandardssystems,andthisiscrucialforachievingsector change. Notwithstanding this commitment, Soli-daridad sees the need for a critical debate on whether thesesystems effectively address the root causes of poverty andunsustainableproductionsystems.Asalearningorganisation,Solidaridadwillusethisdebatetoimproveitsstrategies.
orgaNiSaTioNaldevelopMeNT
The budget of Solidaridad the Netherlands was €18.9 millionin 2013, representing 57% of the total Network budget. Interms of staffing, Solidaridad Utrecht has grown from 30.7to 31.9 FTEs. The scope of this office has been broadened toaccommodate new livestock and aquaculture programmes,andtacklingfoodinsecurity.
TheFor the love of chocolateexhibitioninamsterdamattracted35,000peopleandisnowtravellingtootherlocations.
Photo:RobertAarts
Coffee 2,690,000 Tea 94,000 Cocoa 1,332,000 Fruit&vegetables 204,000 Cotton 3,821,000 Textiles 1,466,000 Gold 639,000 Soy 1,520,000 Palmoil 1,697,000 Sugarcane 2,042,000 Livestock 568,000 Aquaculture 94,000 Other 2,709,000
Totalprogrammeinvestmentsineuros 18,876,000
solidaridadnetwork.org/netherlands
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
personnelatSolidaridadtheNetherlandsinFTes
investmentsbySolidaridadtheNetherlandsineuros
2010 2011 2012 201320.3 27.1 30.7 31.9
Actual2012 Budget2013 Actual2013 Budget201416,013,000 13,932,000 18,876,000 15,132,000
48 TheSolidaridad2013AnnualReport
Coffee 50,000 Cocoa 8,000 Cotton 10,000 Textiles 8,000 Gold 8,000 Soy 25,000 Palmoil 36,000 Sugarcane 8,000 Livestock 25,000 Aquaculture 8,000
Totalprogrammeinvestmentsineuros 186,000
SolidaridadNorThaMeriCa
buildiNgparTNerShipSToSupporTproduCerS
Solidaridad’snewestregionalofficehasalreadyestablishedpromisingrelationshipswithcompanies,donororganisationsandNgosasitseekstosupportsustainablemarketdevelopmentforcommoditiesproducedaroundtheworld.Fundingfromu.S.donorsisalreadysupportingthedesignofsoyandlivestockprojectsinargentina,aswellasworkwithfemalecottonfarmersinChina.
eXTerNaldevelopMeNTS
In 2013 a number of North American companies – includingGeneral Mills, Pepsico, Safeway, Walmart and Coca-Cola –made ambitious commitments on sustainable sourcing andproducersupport,includingseveralthatrelatetoSolidaridad-supportedcommodities.Meanwhile,theCaliforniadrought–theworstin500years–hasbroughtnationalattentiontotheneedtodevelopecologicallyresilientsupplychains.
MaiNaChieveMeNTSaNdparTNerShipS
Solidaridad North America developed a partnership withWalmart Foundation to support female cotton farmers inChina, and Walmart Foundation has donated their first grant(worthUS$220,000)forcapacitybuildingamongthisgroupoffarmers. In 2013, Solidaridad became an official member of theTropical Forest Alliance 2020, a public-private partnership ofConsumer Goods Forum members, governments (includingUSA,Norway,UKandtheNetherlands)andalargenumberofcivil society organisations, working together to achieve zeronet deforestation by 2020 for the soy, palm, livestock, andpulpandpapersupplychains. During the year, Solidaridad also built relationships witha number of other networks and civil society organisations,includingtheAspenNetworkofDevelopmentEntrepreneurs,the Inter-American Development Bank, the Sustainable Agri-culture and Food Systems Funders, the Rainforest Alliance,The Nature Conservancy, Columbia University’s Earth Insti-tute,andtheStanfordGraduateSchoolofBusiness.
STraTegy
Solidaridad North America is working closely with globalcommodity teams to support market development efforts.In2013theNetwork’scapacitytointegratesmartandsustain-ablelandusebybuildingin-houseknowledgeandsupportingrelevant projects was developed. In addition, the REC isworking on developing self-financing business models toscaleupbothreachandimpact.
orgaNiSaTioNaldevelopMeNT
SolidaridadNorthAmericaofficiallybecamea501(c)(3)non-profit entity, convened its first board meeting in New YorkCity, and increased its staff to three, with a new office on theEast Coast. A communication strategy was developed andwork started on creating marketing and communicationsmaterialstailoredtoNorthAmericanaudiences.
withthesupportofwalmartFoundation,SolidaridadishelpingfemalecottonfarmersinChinatoimprovetheirlivelihoods.
Photo:JosKuklewski
solidaridadnetwork.org/northamerica
Not commodity speci�cAquacultureLivestockSugar canePalm oilSoyGoldTextilesCottonFruit and vegetablesCocoaTeaCo�ee
South America Andes Central America
West Africa South Africa East and central Africa
South and South East Asia
China Netherlands North America
total
O�ce and other costsHRMprogrammes
South America Andes Central America West Africa South Africa East and central Africa East South and South East Asia China Netherlands
East and Central AfricaSouth AfricaWest AfricaCentral AmericaAndesSouth America
personnelatSolidaridadNorthamericainFTes
investmentsbySolidaridadNorthamericaineuros
2010 2011 2012 2013– – – 3
Actual2012 Budget2013 Actual2013 Budget2014– 161,000 186,000 500,000
50 TheSolidaridad2013AnnualReport
CaMpaigNSwiThapoSiTiveapproaCh
Communicationisimportantforsustainablechange.Strategiccommunicationhelpsspecifictargetgroupstomoveintherightdirection.Solidaridadsupportsleadingbrandsincreatingawarenessandbrandvalue.ourcampaignshaveapositiveapproachandoffersignificantsolutions.Credibilityiskeytoaddingvalueforpartners,earningtrustfromdonorsandprovidingmediawithgreatstoriesaboutchangethatmatters.
MarkeTdevelopMeNT
The focus in 2013 was on building strategic and collabora-tive alliances to ensure links between supply and demand.Alliances were strengthened with existing partners directlyor indirectly via multi-stakeholder initiatives such as RoundTables.Bypartneringatastrategiclevel,Solidaridadcanhelpcompanies improve security of supply, product quality andbrandvalue. By developing direct linkages between buyers andproducers,markettransformations(movingtowardssustain-able change) are strengthened. Target groups are Europeanbased companies (retailers, as well as traders and proces-sors) operating in Europe and global companies that sourcecommoditiesindevelopingcountries.Solidaridadpartnershipmodel
STraTegiCparTNerShipS
Last year we started creating more focus in our partner rela-tions. Potential partners have been identified and first stepshave been made towards potential strategic partnershipswith companies such as Unilever and Nestlé. We establisheda strategic partnership with H&M at the end of 2013. Influen-tialpartnershipsarebuiltaccordingtoourpartnershipmodel(seeillustration).
SupplyChaiNparTNerShipS
Most of the partnerships with brands and retailers supportstandard compliance and we have taken initial steps towardsproducerdevelopment‘atthebottomofthepyramid’.
produCerdevelopMeNTparTNerShipS
In 2013 we encouraged more companies to take a positive,proactive approach by supporting projects in their supplychain. At this level of the partnership pyramid, certificationis common practice, but programmes going beyond certifi-cation also contribute to better livelihoods for the farmersinvolved. Examples are the partnership with Henkel on palmoil and with Nestlé on a food security programme in EastAfrica.
CoMMuNiCaTioNparTNerShipS
To increase the impact of producer developmentprogrammes we expanded cooperation with companies oncommunication. Successful examples include a global sugar-cane event in London (together with Unilever) and a cocoaevent in the Maritime museum in Amsterdam (co-developedwith Mars). These events engage business partners andinstitutional donors within the sector, thus contributing tobuildingstrongerrelationshipsandstrategicpartnerships.
CaMpaigNS
TowardSgoodgold
In 2013 there were various communication activitieswithin the gold campaign. These focused mainly on Dutchconsumers, with the aim of creating awareness about prob-lemsinthegoldminingsectoraswellasthesolutionsthatourprogrammesoffer. DutchDesignerBibivanderVeldentravelledtoPeru,whereshevisitedtheMadredeDiosarea.Anillustratedreportofthisjourney linked to a special edition of her Good Gold braceletledto200extradonations. Gaston Starreveld, presenter of the Dutch RTL televi-sion programme ‘Kanjers van Goud’ (Golden Whoppers,part of the National Postcode Lottery), travelled to Ghanato surprise the Solidaridad director for West Africa with anaward for his work within the gold programme in the region.Theprogrammewaswatchedby720,000people. Happinez Magazine travelled to the gold mines in Ghanaand,asaresult,produceditsspecialeditionoftheGoodGoldbracelet.Theprintrunofthemagazineis400,000. InJuly2014,incooperationwiththeOlympicathletePietervan den Hoogenband, Solidaridad is launching a scoop inthe sporting world: the first Olympic medal – for the youthOlympicGames–whichwillincludecertifiedgold.
STraTegiCparTNerLong-termmarketandbusinessdevelopment
CoMMuNiCaTioNparTNerPR,corporateandmarketingcommunication
produCerprograMMeparTNerCapacitybuildingbeyondcomplianceandinnovativeprogrammes
SupplyChaiNparTNerSustainablepurchasingandcompliance
TheSolidaridad2013AnnualReport 51
ForTheloveoFChoColaTe
A high point of the year was the ‘For the love of chocolate’exhibition in the Maritime Museum in Amsterdam. This jour-nalistic initiative by photographer Kadir van Lohuizen anddesigner Jeroen de Vries, was requested by Solidaridad andpartly funded by Mars. The exhibition, which was a greatsuccess, attracted around 35,000 visitors over four and ahalf months. These included many professionals from thecocoa and chocolate sector. There was extensive publicityin international trade journals about the exhibition and thethreatening scarcity of cocoa. The Dutch daily newspaperDe Volkskrant published a six-page photographic reportas well as the front page of its ‘Vonk’ supplement the daybefore the exhibition opened. De Volkskrant and Oneworldpublished a highly successful innovative illustrated storyon the website www.dechocolaraaktop.nl. All of the majornational newspapers published full-page articles with a totalprintrunof2.2millionandanadvertisingvalueofhalfamillioneuros. There was also good online coverage, including blogsand news pages, plus an eight-minute TV report on MaxStudioLive.
howToChaNgeTheworldwiThSugarCaNe?
In 2013 a major campaign was also developed around Soli-daridad's sugar-cane programme. This was an internationalcampaign, focusing mainly on the business sector, designedto strengthen the sugar-cane programme using communica-tiontools.Ingeneralthereislittleinterestinsugarcane.Soli-daridad intends to create awareness among companies thatare influential in the chain, while making the general publicawareoftheproblemsinthesugar-canesector(badworkingconditions,poverty,environmentalproblems). Theconceptandthetoneofvoiceofthecampaign‘Howtochangetheworldwithsugarcane’wasdesignedtoappealtoa business target audience. It showed that sugar cane can bea solution for millions of people, while serving the interestsof environmental conservation, if we can tackle the currentproblemsinthesector.Fortheessenceofthestory,gotothenewcampaignwebsitewww.sugarcane-solidaridad.org. The campaign started in October 2013 during an eventorganised by Solidaridad in the sugar-cane capital of Europe,London. Coca Cola, Mondelez, Marks and Spencer, Shelland many other companies attended. A cooperation agree-ment was announced with Unilever, designed to make sugarproduction more sustainable. The event was opened witha so-called Thunderclap (almost 200,000 tweets and Face-book messages were sent out within a minute to the rest ofthe world by companies and consumers. The question theyallaskedwas:Howcanyouchangetheworldwithsugarcane?The event received good media coverage, both in the busi-nesspressandpublicationstargetingconsumers. The campaign increases the commitment of companiesand various discussions are now taking place about far-reachinginnovativecooperationinthechain. SolidaridadmadeasuccessfulproposaltotheDutchPost-codeLotteryforaprojectdesignedtopreventchronickidneyfailureamongsugar-canecuttersinCentralAmerica.
In2014wewillbuildonthepreparatoryworklastyear.Wewillcontinue to target companies, but also extend our activitiestoincludeconsumers.
FuNd-raiSiNgbyprivaTedoNorS
The goal of our fund-raising is to obtain financial resourcesfor Solidaridad’s work, in an efficient way, from a growinggroupofprivatedonorsintheNetherlands.
MoreFuNdraiSiNg,higheriNCoMe
As in 2012 the recession put considerable pressure on fund-raising. At Solidaridad we have successfully countered thistrend in 2013 through a differentiated approach to our tradi-tionalsupportersandthelaunchofnewfundraisingactivitiestargeting potential donors. In 2013 this approach resultedin a total yield of €1,060,040 from individual donations (anincreaseofmorethan13%comparedto2012).
2013 2012 2011 2010
Fundsraisedinthecharitymarket
1,060,000 940,000 1,104,000 1,150,000
Changecomparedtopreviousyear
13% – 15% – 4% 2%
CoMplaiNTS
All complaints which we receive are answered personally byone of our staff. Depending on the subject, this could be asecretary, an employee working in one of the programmesor someone in the communication department. In 2013 wereceivedeightcomplaintsasaresultofsendingdirectmail.Alloftheseweredealtwithaccordingtoourprocedures.
CorporaTeCoMMuNiCaTioN
webSiTeS
At Solidaridad we aim to ensure high-quality content for ouronline channels, while further increasing awareness of ourwork and raising our profile with existing partners, potentialpartnersandthecharitymarket.Anewinternationalwebsiteis being developed and both content production and distri-butionareunderreview,inordertofurtherimprovewebsitetrafficandoursocialmediapresence. In line with the newly developed brand strategy and witha focus on cost efficiency, we designed a new template forcampaignsin2013.Thiswasfirstusedinthecampaign‘Howtochangetheworldwithsugarcane’,forwhichwebuilttwonewwebsites: suikerriet-solidaridad.nl and sugarcane-solidaridad.org.WebsitetrafficforSolidaridad.nldroppedby20percent.This was mainly due to the fact that campaign websites andSolidaridadnetwork.org were frequently updated with newsitemsandwereusedmoreincommunication.Solidaridadnet-work.org website traffic increased by 59% to 83,000 visitors(afteranincreasein2012of+81%).
52 TheSolidaridad2013AnnualReport
SoCialMedia
An important source of traffic to our websites is socialnetworks.MorepeopleandorganisationsarenowfollowingusonchannelssuchasTwitter,Facebook,LinkedInandGoogle+.Contentisbeingsharedmorewitharelevantaudiencethanksto the active involvement of Solidaridad employees online,especially when they use LinkedIn to inform partners andpotential partners about our work. Actively engaging withourfollowersresultedinanimpactfulonlineeventduringthelaunch of the sugar-cane campaign. One message sent outwith the Solidaridad campaign title via social media reachedover181,000people.
aNNualreporT
The2012annualreportwaswellreceivedbyourprofessionaltargetaudience:companies,governments,donors,NGOsandthe press. The print edition (2000 copies) was distributedhalfwaythrough2013andthedigitalversionwasusedfortheremainderoftheyear.Theannualreportwasread1750timesonline.
publiCiTy
At Solidaridad we keep the Dutch and international pressinformed of our work. In this way, problems and solutionsrelated to the various target groups with which we work arebroughttotheattentionofthepublic.IntheNetherlands448articleswereplacedinnewspapersandmagazinesin2013.Thisfigure was considerably higher than in previous years, partlydue to a new, more extensive way of measuring impact. Thetotalprintrunfortheseplacementswasmorethan16million,withanadvertisingvalueofmorethan€2million.Internation-ally,themainfocuswasononlineprofessionaljournals,whicharewidelyreadinthesectorsinwhichweoperate.
Most publicity in 2013 was related to campaigns. In addition,thetextileprogrammereceivedagreatdealofattention.Thefactory disasters in Bangladesh, as well as our cooperationwith large clothing brands, ensured plenty of interest in themediaforthissubject.OtherkeymediamomentsforSolidar-idad included the launch of a new development cooperation
policy by the Dutch Minister Lilianne Ploumen, various publi-cations about the soy programme and the development ofdemandforsustainableteainIndia.
TheNaTioNalpoSTCodeloTTery
Since 2009, this lottery has made an impor-tant international contribution to our work.What’s more, it creates attention for ourprojectsinTVprogrammesandnationaldailynewspapers.In2013wereceivedacontributionof€1,350,000.InthiswaytheNational Postcode Lottery provides a substantial amount ofourincomefromprivatedonors,allowingustofinancealargenumberofprojects.
aSN
Thanks to the support of ASN Bank (among other banks),we were able to continue working on projects in India, Chinaand Bangladesh in 2013, which contributes to better workingconditionsinthetextileandclothingindustry.
airMileS
Solidaridad is part of the Air Miles saving programme.Supporters can choose to donate Air Miles once or save AirMiles for Solidaridad long term. For each thousand Air Milesdonated,fiveeurosaresenttoSolidaridad.
2012 114
2013 448
2011 72
2010 141
2009 78
2008 68
publicationsaboutSolidaridadindutchpublicandbusinessprintmediafrom2008-2013.
Publicatie : Trouw Regio : NederlandDatum : 12 nov 2013 Pagina : 1 Frequentie : 6x per weekcm2 : 87 Advertentiewaarde : € 2.007,00 Oplage : 103.035
SOLIDARIDAD
alleen voor intern/eigen gebruik
Publicatie : Trouw Regio : NederlandDatum : 12 nov 2013 Pagina : 1 Frequentie : 6x per weekcm2 : 87 Advertentiewaarde : € 2.007,00 Oplage : 103.035
SOLIDARIDAD
alleen voor intern/eigen gebruik
dutchnewspaperTrouwcitedandheadlinedNicoroozenontheirfrontpage:‘economicneedbetterdriverforsustainabilitythanethics’.
54 TheSolidaridad2013AnnualReport
SolidaridadSouth
America
Jeroen Douglas
SolidaridadAndes
Gonzalo la Cruz
SolidaridadCentral America
Michaelyn Baur
SolidaridadWest Africa
Isaac Gyamfi
SolidaridadEast and
Central Africa
Karugu Macharia
Executive BoardSolidaridad Network
Executive director:Nico Roozen
Solidaridad NetworkSecretariat
InternationalSupervisory BoardSolidaridad Network
Management
ContinentalSupervisory BoardSolidaridad Network
Africa
ContinentalSupervisory BoardSolidaridad Network
Latin America
ContinentalSupervisory BoardSolidaridad Network
Asia
Supervisory BoardSolidaridad Network
the Netherlands
SolidaridadSouthern
Africa
Annie Sugrue
SolidaridadSouth and South-East
Asia
Shatadru Chattopadhayay
SolidaridadChina
Martin Ma
Solidaridadthe
Netherlands
Nico Roozen
LATIN AMERICA AFRICA ASIA EUROPE
ContinentalSupervisory BoardSolidaridad Network
North America
SolidaridadNorth
America
AndréanneGrimard
NORTH AMERICA
Supervision
TheSolidaridadNeTwork
TheSolidaridadNetworkaimstobeaneffective,influential,innovativelearningorganisationwithareputationasoneofthebestengagedininternationaldevelopmentcooperation.Thisrequiresawiderangeofchecksandbalances.inrecentyearsafullyoperationalnetworksupervisorystructurehasbeenputintoplace.
NeTworkSTruCTure
SuperviSioN
The new structure is intended to ensure that SolidaridadNetwork is seen as a credible organisation with a trans-parent, responsible, cost-effective system of supervision, aswell as one that affirms Solidaridad’s vision, programme andworking methods. It is based on the following fundamentalprinciples: promoting solidarity by means of global strate-gies for commodities; ensuring a high degree of autonomyfor the regional expertise centres; maintaining a profes-sional approach, which maximises the impact of Solidaridadprogrammes;andasharedvisionandmission.
SuperviSoryboardS
The International Supervisory Board (ISB) is at the highestlevel of supervision. It monitors policies, the quality ofprogrammes, financial control and the performance of theExecutive Board of Directors. The ISB is guided by the inter-ests of the Solidaridad Network and four continental Super-visory Boards monitor the regional programmes. From 2014theseboardswilleachdelegateonemembertotheISB.Previ-ously the members of the Supervisory Board of Solidaridad
the Netherlands also comprised the International Supervi-soryBoard.
MaNageMeNT
At the global executive level, there are regular meetingsof the Directors of the ten Solidaridad organisations, whoconstitute the decision-making Executive Board of Directors(EBoD). The EBoD is the policy-making body of the Solidar-idad Network, providing policy coherence, consistency andensuringcontinuedrelevance.Itisalsoresponsibleforimple-mentingpolicy.ThechairoftheEBoDisheldbytheExecutiveDirectoroftheSolidaridadNetwork.
regioNalprograMMeMaNageMeNT
The ten Solidaridad organisations are responsible for coor-dinated global programmes, while regional management isthe responsibility of the individual directors, who lead theirregional offices and staff. The regional Solidaridad organisa-tions, which are responsible for programme development,areclusteredatthecontinentallevel,producingconsolidatedpolicy and programme development. All regional organisa-tions are affiliated to Solidaridad Network. This allows jointpolicy development and hiring and firing of directors and
SolidaridadNetwork
TheSolidaridad2013AnnualReport 55
ensures that operations are financially autonomous. The tenregionalSolidaridadorganisationsareclusteredinoneofthecontinentalentities,thusavoidingtheneedfornationalboardstructures.
SuperviSioNTheNeTherlaNdS
The Continental Supervisory Board oversees the generalaffairs of Solidaridad in the Netherlands. The Board consistsofsevenpeople,whomakethecaseforSolidaridad’smissionand who meet the requirements of the job profile drawn upby the Board. Solidaridad has a financial audit committee –oneofthestandingcommittees,whichisspecificallyrespon-sible for overseeing the financial affairs of Solidaridad in theNetherlands. To guarantee a separation of functions and to preventconflicts of interest, no close relationships are permittedwithin and between the members of the Supervisory Boardand the Management, nor through any link with an organi-sation with which Solidaridad – in the normal course of itswork–conductstransactionsthatcanbevaluedinmonetaryterms. The members of the Supervisory Board with their educa-tion and academic titles, current or past positions, term andkeypositionsheldin2013arelistedinthefollowingtable.
MembersoftheSupervisoryboardforSolidaridadtheNetherlands
SaskiaborgersMemberTermendsDecember2014– Environmentalsociology,environmentalexpert– Secretary/GeneralDirectoroftheHaarlemMunicipality– ChairofSurplus(linkingprimaryschoolsinNorthHolland)– MemberoftheArbitrationBoardoftheIntegrityOfficeforDutch
Municipalities;Netherlands
TongeurtsChairTermendsDecember2014– Masterof(Dutch)Law– ChiefProcurementOfficerforAkzoNobel– MemberoftheSteeringCommitteeTogetherforSustainability– MemberoftheProcurementLeadersAdvisoryBoard
MaartenvandergraafMemberTermendsDecember2014– Masterof(Dutch)Law– AttorneyandpartnerintheStekLawFirm
gerritMeesterMemberTermendsDecember2014– DoctorofAgriculturalEconomics– RetiredadvisoronissuesrelatedtoagriculturalpolicytotheMinistry
ofAgriculture,NatureandFoodquality– MemberoftheCouncilfortheEnvironmentandInfrastructure– MemberoftheCommitteeonGeneticModification– MemberoftheBoard,CentreforWorldFoodStudies(SOW-VU)TheoJanSimonsMemberTermendsDecember2015
– MScinChemicalEngineering– McKinsey
MariekedewalMemberTermendsDecember2014– MAinPhilosophy– Organisationalresearcherandconsultant– NetworkcoordinatorforthePartnershipsResourceCentre
RotterdamSchoolofManagement/ErasmusUniversity– ChairoftheSupervisoryBoardofIKVPaxChristi
albertJanZonnevylleMemberTermendsDecember2015– Masterof(Dutch)Law– GlobalHeadClientSolutionsatRabobankInternational– TreasureroftheBoardofDeAppelArtsCentre
The Supervisory Board met four times in 2013. The maintopicsdiscussedwere:
− Strategy:approvingthevisionandmissionofSolidaridadaswellasdiscussingthestrategyoftheDutchMinistryofForeignAffairs,evaluatingthemeetingsoftheBoardofDirectorsheldinAprilandOctober,anddecidingontheannualplanfor2014.
− Finance:approvingtheannualfinancialreportfor2012,discussingtheinterimfiguresfor2013andapprovingthebudgetfor2014.
− Management:evaluationoftheperformanceoftheSupervisoryBoard,ExecutiveDirectorandManagingDirector,ensuringthatnewstatutesareinaccordancewiththestatutesoftheSolidaridadNetworkandapprovinganewinternationalcodeofconduct.
− Evaluation:2012AnnualReportandsectorprogrammes.
InFebruarytheauditcommitteewithAlbertJanZonnevylleinthechair,MaartenvanderGraafandTheoJanSimonsadvisedthe Supervisory Board on the annual financial accounts for2012 and investment regulations. In November the auditcommittee advised the Supervisory Board on the budget for2014.
MaNageMeNToFSolidaridadTheNeTherlaNdS
Solidaridad the Netherlands is managed by the statutorydirector: N.J.M. (Nico) Roozen. He is employed by Solidar-idad,isappointedbytheSupervisoryBoard,andhasthefinalresponsibility for daily management and implementation ofallprogrammesandactivities.NicoRoozenisalsotheExecu-tiveDirectoroftheSolidaridadNetwork. Furthermore he is a member of the panel of the UnitedNationsForumonSustainableStandardsinGeneva,amemberoftheCounciloftheBetterCottonInitiative,amemberoftheBoard of Directors of ASN Investment Funds NV, a memberoftheSupervisoryBoardofASNGroenprojectenfondsandamemberoftheBoardofDirectorsofAmtradaHoldingBV.
56 TheSolidaridad2013AnnualReport
reMuNeraTioNoFThedireCTor
The Supervisory Board updates policy on salaries fromtime to time (the latest performance appraisal took place inJanuary 2014). The Dutch Wijffels Code and the VFI’s Guide-lines for the Remuneration of Directors in PhilanthropicOrganisations (Adviesregeling Beloning Directeuren vanGoede Doelen) were taken as guidelines in the evaluation.The latter proposes a maximum norm for annual incomes,based on certain criteria. The Supervisory Board found thatthe Director’s position had a Basic Score for managementpositions (BSD) score of 460 points, for which the full-timemaximumannualincomeis€124,233. The actual annual income of the Director for 2013, beforethis evaluation using the VFI maximum, was €102,623 (17%belowthemaximum).Thelevelandcompositionofthissalaryisexplainedbelow.
remunerationofthedirector:Nicoroozen
2013 2012
Employmentcontract Indefiniteperiod Indefiniteperiod
Hours 36 36
Percentageoffulltime 100 100
Period Allof2013 Allof2012
Remuneration(ineuros)
Grosssalary 87,739 82,469
Endofyearbonus 7,282 6,845
Holidaypay 7,602 7,145
102,623 96,459
Employersocialsecuritycontribution
8,314 8,216
Taxableallowances – –
Employerpensioncontribution 24,881 21,408
Otherbenefits – –
Paymentsattermination – –
Total 135,818 126,083
Solidaridadprovidednoloans,advancesorguaranteestotheDirector.Twothirdsofthisamount(€90,545)isbornebySoli-daridad the Netherlands and one third (€45,273) by the Soli-daridadNetwork.
reMuNeraTioNoFTheSuperviSoryboard
InaccordancewithSolidaridad’sstatutes,themembersoftheSupervisoryBoardofSolidaridadreceivenoremunerationofanykind.
orgaNiSaTioN
eSTabliShMeNTaNdSTaTuTeS
Solidaridad Foundation, which was founded on 15 June 1976,isbasedinUtrechtintheNetherlands.InDecember2013Soli-daridad formalised new statutes, in accordance with currentcircumstancesandthestatutesofSolidaridadNetwork.aNNualaNdloNg-TerMplaNNiNg
Solidaridad produces a four-year multi-annual strategic plan,whichshowshowittranslatesitsmissionandvisionintooper-ational objectives. This plan is drawn up by the managementand approved by the Supervisory Board. The annual plansare a translation of the multi-annual plan into more specificobjectives,desiredresults,activitiesandbudgets.Solidaridadmakes its objectives measurable using indicators which areformulatedusingtheSMARTapproach(Specific,Measurable,Attainable,RelevantandTime-bound). A context analysis and evaluation of the previous annualplanserveasguidelineswhenpreparingthenextannualplan.The heads of departments write annual reports in February,whichshowwhethertheobjectivesandexpectedresultshavebeen achieved. These reports are evaluated by the ManagingDirector.
FuNdraiSiNgplaNNiNgaNdCoSTS
Reports on fundraising and management as well as the plansfortheseactivitiesarealsoevaluatedeachyearandapprovedby the Managing Director. Solidaridad’s goal is that the costsof private fundraising should be stable at 10 to 15% of therevenuesreceivedbasedonsuchfundraising.
qualiTyMaNageMeNTpoliCy
Solidaridadaimstoachievehighqualityonallfronts.Externalauditors provide independent evaluations of the quality ofeach aspect of its operations. Solidaridad is certified underthe ISO 9001:2008 norm. Internal audits and an externalcertificateissuingbodyregularlyexaminewhetherthequalitymanagement system meets recognised requirements andwhetheranyprogresshasbeenmadesincethepreviousaudit. The Central Bureau on Fundraising (CBF) monitors allphilanthropic bodies in the Netherlands and evaluates theirmanagement and policy, in order to increase the transpar-encyofthecharitablesector.SolidaridadisentitledtousetheCBFqualitymarkandcomplieswithitsrequirements. The Dutch Association of Fundraising Organisations (VFI)is the umbrella organisation for philanthropic organisationsthatraisefundsacrosstheNetherlands.Itsgoalistoincreasepublic confidence in fundraising institutions. Solidaridadupholds the principles of the VFI in relation to respect, reli-ability,opennessandquality. Solidaridad is recognised by the Dutch Tax Authorities asa charitable institution (ANBI), which means that donationsandbequeststoSolidaridadarenottaxed.DonorscanobtainincometaxdeductionsfortheircontributionstoSolidaridad.
TheSolidaridad2013AnnualReport 57
aCCouNTabiliTySTaTeMeNT
Solidaridad presents an accountability statement demon-strating how it implements the principles of the CBF qualitymark shown below. This statement, which was approvedby the Managing Director and the chair of the SupervisoryBoard,ispresentedonthenextpage.
audiToFaNNualreporTaNdaCCouNTS
External reporting includes an annual report and accounts,whichareverifiedbyanauditorandaccompaniedbyanaudi-tor’s opinion. The Supervisory Board has appointed Ernst& Young (EY) as its external auditors. This appointment,which is reviewed and renewed annually, covers the audit ofthe annual accounts as well as those for various projects. EYdoes not provide any non-auditing (e.g. advisory) services.The auditor discusses his or her findings with the ManagingDirector and financial controller and may also call the atten-tion of the Supervisory Board to any points that need to beaddressed,orwhereimprovementscouldbemade.
STaFFaNdwageS
At the end of 2013, Solidaridad employed 35 people and,during the year, there were an average of 30.6 full-time staffunder contract (FTEs). In 2012 this figure was 28.9. Theaverage gross annual salary per FTE in 2013 was €63,300(2012: €61,700). The total personnel costs per FTE in 2013were €80,400 (2012: €77,200). Solidaridad has its own salarystructure, which is based on job descriptions. Solidaridad’swagespolicyfollowsthatoftheDutchgovernment.
perSoNNelpoliCy
Solidaridad is a knowledge-intensive charity that depends onwell-qualified staff. Solidaridad devotes a great deal of atten-tiontorecruitmentandcareerdevelopment.Solidaridadalsohas a training plan that covers the entire organisation. The
goal of the diversity policy is that Solidaridad’s staff shouldreflect the Dutch population wherever possible. Solidaridadhas 21 female and 14 male employees (with an average ageof 40). One employee left in 2013, and two new employeesjoined. The rate of absence due to sickness in 2013 was 2.2%(in2012:0.7%).
eNviroNMeNT
Solidaridad minimises the impact of its work on the envi-ronment as far as possible, by re-using materials whereverpossible, by purchasing sustainable products (office supplieswith an eco-label, energy-efficient equipment, green energy,partly organic lunches and sustainably produced coffeeand tea), by separating its waste paper for recycling, and bymakingdouble-sidedprintingandcopyingthenorm.
evaluaTioNS
eMployeeevaluaTioNS
Employees are invited by their direct manager for an annualappraisal and performance evaluation interview. Theoutcome of this interview includes areas in which improve-ments could be made, for the employee as well as for themanager. It focuses on the employee’s development andpersonal ‘growth’, but it also covers the development of theposition he or she occupies, and motivation at work. Theheads of department discuss the results of these interviewswith the Director during their own appraisal and perfor-mance evaluations. Every year, the Director has an appraisaland performance evaluation interview with the SupervisoryBoard,orwithsomeofitsmembers.
evaluaTioNoFTheoperaTioNalSTruCTure
Each year the management evaluates the working of the
ThedirectorsofthetenSolidaridadorganisations,whoconstitutethedecision-makingexecutiveboardofdirectors.Nicoroozen(chair)gonzalolaCruzShatadruChattopadhayayJeroendouglasMartinMakaruguMachariaMichaelynbachhuberbaurannieSugrueandreannegrimardisaacgyamfi
58 TheSolidaridad2013AnnualReport
entire quality management system, including policies andobjectives.In2013theconclusionwasthatthequalitymanage-mentpolicyandsystemaresuitableandeffective–inlinewithdevelopmentsintheorganisation.Themostimportantpointsthat need to be addressed in the year ahead are the contin-uous improvement of the recently introduced programmemanagement system and harmonisation of processes andsystemsinplanning,monitoringandevaluation,togetherwithpartners.
evaluaTioNoFTheSuperviSoryboard
The Supervisory Board reviewed its own operations duringitsregularmeetingsin2013andinSeptemberitheldanextraevaluation meeting. The conclusion of the evaluation wasthat the Supervisory Board was suitable and effective. Theevaluation, which focuses on four points, includes 46 ques-tions, with the possibility to score "good" (4) "sufficient" (3),"moderate"(2)or"poor"(1).Theaverageofthescoreswas3.4(onascaleof4):
− Teamwork(SupervisoryBoardandDirector)–3.5− Teameffectiveness(SupervisoryBoard)–3.4− AssessmentoftheindividualmembersoftheSupervisory
Board–3.1− AssessmentoftheChairmanoftheSupervisoryBoard–3.4
riSkMaNageMeNT
TruSTFirST…
While Solidaridad’s employees and partners work on thebasis of reciprocal trust, management guards against indi-vidual abuses of this trust. Risks – and their consequencesfor strategy – are continually assessed. The board is awarethat economic conditions can change quickly, politics can beunstable,andmarketsvolatile.
riSkMaNageMeNTaNdCoNTrolSySTeMS
Solidaridad is committed to transparency and the effectivedeployment of resources. It monitors project progress andthe use of funds with PROMIS, an ERP system implementedin 2012. Operations are audited internally and externally, andoutcomesarediscussedwiththemanagementandtheConti-nentalSupervisoryBoard. As a learning organisation, Solidaridad strives for contin-uous improvement and quality management is certified toISO 9001:2008. The internal risk management and controlsystems provide reasonable assurance that financial state-mentsarecorrectandthatthesesystemshaveworkedprop-erlyduringtheyearunderreview.
MaiNriSkS
1. Reputationaldamageresultingfrompartnershipswithcompanies.Solidaridadhasinternalguidelinesforcooperationandcommunicationwithcompanies.
2. Illegitimateuseofgrantfunds,whichrequiresrepaymentobligationstodonors.ThebudgetisapprovedbytheManagingDirectorandtheseparationofpowersisappropriate.Withlargegrants,thesuitabilityofexpenditureisinvestigatedbyanexternalauditor.
3. Theeconomicclimateandthewillingnessofprivatedonorstodonate.Solidaridadmaintainsqualitymarksandperiodicexternalauditsensurecompliance.
4. Theunpredictabilityofgovernmentpolicies.Politicaldecision-making–andavailablefunding–arehardtopredict,asarethepoliticalforceswhichaffectpartnercompanies.
Thefullstatementcanbeorderedfromthesecretariataccountabilitystatement
60 TheSolidaridad2013AnnualReport
Thecompleteannualaccountsareavailableonrequestfromthesecretariat
aNalySiSoFaCTualreSulTSFor2013iNCoMpariSoNwiThbudgeTaNdwiThFigureSFor2012
Totalincomein2013was€19,090,770,almostthesameasthehighesteveramountof€19,134,325in2012.Incomefromownfundraisingincreasedby€259,000comparedtolastyear’sresult,andwas€1,782,000higherthanbudgeted,chieflybecauseoftheincreaseindonationsfromcompaniesandotherorganisations.Incomefromsubsidiesdeclinedby€494,000,comparedwith2012,butwas€786,000higherthanbudgetedbecauseofnewsubsidiesapprovedin2013.Spendingin2013was€20,550,110,whichis€1,303,000higherthanin2012and€3,278,000higherthanbudgeted,mainlybecauseoftheincreaseinincome.€19,583,000wasspentdirectlyonachievingSolidaridad’sobjectives.Allofthesefluctuationsledtoashortageof€1,459,340inthestatementofincomeandexpenditurein2013(In2012therewasashortfallof€112,618).Solidaridadhassufficientuncommittedreservestocovertheshortagefor2013.
hiSToriCalSuMMary
Thetablebelowshowsthefinancialresultsforthepastfiveyears(ineuros).
iNCoMe 2013 2012 2011 2010 2009
Incomefromownfundraising 4,404,304 4,144,817 4,734,759 4,057,959 3,734,673
Otherincome 14,686,466 14,989,508 10,370,658 14,782,563 11,086,303
Totalincome 19,090,770 19,134,325 15,105,417 18,840,522 14,820,976
eXpeNdiTure
Communicationandinformation 706,693 646,116 341,336 323,009 360,716
Structuralaid 18,876,282 17,885,868 14,018,860 17,278,214 13,305,948
Totalexpenditureonobjectives 19,582,975 18,531,984 14,360,196 17,601,223 13,666,664
Totalcostsofincomegeneration 829,354 584,476 512,143 600,963 515,072
Managementandadministrativecosts 137,781 130,483 124,730 164,465 149,832
Totalexpenditure 20,550,110 19,246,943 14,997,069 18,366,651 14,331,568
Surplus – 1,459,340 – 112,618 108,348 473,871 489,408
poliCyoNaSSeTSaNdiNveSTMeNTS
Solidaridadspendsalmost€20milliononfinancingprojects.Thesefundscomefrommanydifferentsources,includingcontributionsfromgovernmentsaswellasdonationsfromindividuals,companiesandinstitutions.Solidaridadhasanassetbufferof€2,727,720tocoveranyunexpectedlargefallinincome.IffundingisreceivedandcannotimmediatelybeusefullydeployedinsupportofSolidaridad’sobjectives–sinceittakestimetoprepareandimplementprojects–thesefundsaretemporarilyinvested.Solidaridad’spartners,suppliersandstaffneedtobesurethatSolidaridadwillalwaysbeabletomeetitsliabilitiesanddonorsandotherfundingbodiesmustbeconfidentthatthemoneytheydonatetoSolidaridadisinsafehands.ThisiswhySolidaridad’sassetsaremanagedresponsiblyandinvestmentruleshavebeendrawnuptoensurethatthisisthecase.TheserulesalsostipulatethatSolidaridadcomplieswiththeGuidelinesFinancialManagementforCharityOrganisationspreparedbytheDutchAssociationofFundraisingOrganisations(VFI).Inviewofthelimitedvolumeandcomplexityofitsportfolio,Solidaridadhasdecidedtomanageitsassetsitselftoreducecosts.
Byfarmostoftheassetbufferisinvestedinsavingsdepositswithsociallyresponsiblebanks,suchasASNBankandTriodosBank.InlinewithSolidaridad’sobjectives,about€0.6millionoftheassetbufferisinvestedinfundsmanagedbybankscommittedtopromotingamoresustainablesociety.Theseinvestmentfundsaremanagedbythebankstoensureanoptimalspreadofrisk.Thehistoricalsummarybelowshowsthechangesinthecapitalvalueoftheseinvestments.
TheSolidaridad2013AnnualReport 61
2013 2012 2011 2010 2009
ValueonJanuary1 501,034 455,433 476,208 436,373 382,120
Purchases – – – – –
Re-investeddividend 4,761 3,473 3,289 5,128 5,164
Pricegain/loss 76,315 42,128 –24,064 34,707 49,089
ValueonDecember31 582,110 501,034 455,433 476,208 436,373
Cashdividendreceived 9,714 6,564 8,759 13,462 14,928
Investmentcosts – – – – –
Themostrecentpurchasesweremadein2001andnosaleshavebeenmadeduringthepastfiveyears.PartlyasaconsequenceofthecreditcrisisintheNetherlands,thefundlostnearlyaquarterofitsvaluebyyear-end2008,butrecoveredtoacertainextentin2009and2010.Thisrecoverydidnotcontinuein2011,butresumedin2012and2013.
Bydesignatingfundsasreserves,theSupervisoryBoardindicateshowtheyintendtoemploytheresourcesavailabletothem.Solidaridadhasdesignatedacontinuityreserve,areserveforfinancingoperationalassets,andareserveforfinancingassetsinordertomeetSolidaridad’sobjectives.
Thecontinuityreserveisintendedtocovershort-termrisksandtoensurethatSolidaridadcancontinuetomeetitsmoralandotherobligations.Solidaridadupholdstheconceptofsustainablerelationshipswithitspartnersandwithitsstaff.Thesizeofthecontinuityreserveisdeterminedasatrade-offbetweenthedesirabilityofdeployingmaximumresourcestomeetSolidaridad’sobjectivesandtheneedtomaintainahealthyfinancialbasisforthefuture.SolidaridadisguidedinthisdecisionbytheGuidelinesforFinancialManagementofCharityOrganisationspreparedbytheDutchAssociationofFundraisingOrganisations(VFI),theassociationofnationalfundraisingcharitiesintheNetherlands.Theseguidelinesstatethat:
− reservationofresourcesisdesirabletoensurethecontinuityofthesupportgiventosupportthecharity’sgoals;− thecontinuityreserveshouldbenomorethan1½timestheannualcostofmaintainingtheoperationalstructure.
ThecostsformaintainingSolidaridad’soperationalstructurein2013were€2,860,747(2012:€2,572,057).Attheendof2013,thecontinuityreserveamountedto€2,727,720,i.e.1.0timestheannualcostsofmaintainingtheoperationalstructure(2012:1.6).
keyFigureS
TheDutchCentralBureauonFundraising(CBF)considersthecostsoftheorganisation’sownfundraisingtobeanimportantindicatorthatcanbeusedtoevaluatewhetherafundraisinginstitutionisworthyofsupport.Thisindicatorshowstheproportionoftheproceedsfromfundraisingthatareusedtogeneratethesefunds.Solidaridadaimsfora(reasonably)stableproportionofbetweentenandfifteenpercent,unlessitcanbedemonstratedthatanextrainvestmentinfundraisingwillbeneededtogeneratesufficientadditionalincomeinthefuture.Thetablebelowshowsincomeandfundraisingcosts(ineuros)aswellastherelevantpercentagesforthepastfiveyears.In2013therewasanincreaseininvestmentsforfundraising.Inallcasesthepercentageiswellbelowthemaximumof25percentsetbytheCBF.
2013 2012 2011 2010 2009
Incomefromownfundraising 4,404,304 4,144,817 4,734,759 4,057,959 3,734,673
Costsofownfundraising 588,006 391,425 347,391 367,001 357,039
Costs as a percentage of income from own fundraising 13.4% 9.4% 7.3% 9.0% 9.6%
TheCBFrecommendscalculatingtworatiosrelatedtospending:theratioofspendingontheorganisation’sobjectivestototalincome,andtheratioofspendingontheorganisation’sobjectivestototalexpenditure.Solidaridadstrivestoachievethehighestpossiblespendingratiowithoutendangeringthequalityofimplementationofprojects.TheCBFhasnotsetaminimumratio,becausethispercentagedependstoalargeextentonthetypeoforganisation.ThetablebelowshowstheamountsSolidaridadspentonitsobjectives(ineuros)–andtheresultingspendingratios–overthepastfiveyears.
62 TheSolidaridad2013AnnualReport
2013 2012 2011 2010 2009
Amountspentdirectlyonobjectives 17,305,381 16,455,773 12,609,873 15,575,753 11,392,908
Totalincome 19,090,770 19,134,325 15,105,417 18,840,522 14,820,976
Spendingratio(income) 90.6% 86.0% 83.5% 82.7% 76.9%
Amountspentdirectlyonobjectives 17,305,381 16,455,773 12,609,873 15,575,753 11,392,908
Totalexpenditure 20,550,110 19,246,943 14,997,069 18,366,651 14,331,568
Spendingratio(expenditure) 84.2% 85.5% 84.1% 84.8% 79.5%
budgeTFor2014aNdFurTherahead
Thebudgetfor2014hasbeendrawnupinthelightoftheobjectivesandprioritiessetoutintheStrategicPlanfor2011-2015(anddetailedintheannualplanfor2014).Thelong-termbudgetfor2014-2018hasbeenmodifiedaccordingly.The2014budgetwasadoptedatthemeetingoftheSupervisoryBoardheldon17December2013.Theincomeandexpenditurestatementforthisbudgetissummarisedbelow(ineuros).
iNCoMe budget 2014 Budget 2013
Incomefromownfundraising 3,975,000 2,622,000
Incomefromthird-partyactivities 2,318,000 1,897,000
Governmentsubsidies 12,832,000 11,328,000
Interestandincomefrominvestments 250,000 250,000
Totalincome 19,375,000 16,097,000
eXpeNdiTure
expenditureusedtoachieveSolidaridad’sobjectives
Communicationandinformation 661,250 367,000
Structuralaid 18,342,500 15,938,000
19,003,750 16,305,000
incomegeneration
Costsofownfundraising 473,000 442,000
Costsofthird-partyactivities 18,250 18,000
Costsofobtaininggovernmentsubsidies 245,000 198,000
Investmentcosts – –
736,250 658,000
Managementandadministration
Costsofmanagementandadministration 135,000 134,000
Totalexpenditure 19,875,000 17,097,000
result – 500,000 – 1,000,000
Theamountsshowninthisbudgetforcontributionsfromgovernments,companies,otherorganisationsandcharitablefoundations,aswellastheincomefromthird-partyactivities,arebasedonsigneddonorcontracts.Theriskthatthisbudgetwillnotbeachievedislimitedtotheextenttowhichthesepartiesmaynotbeabletomeettheircontractualobligations.Itisexpectedthatsupplementarycommitmentswillbemadeduring2014andthatthebudgetwillthereforebeexceeded.Therevenuesfromchurchcollections,directmail,deceasedestatesandinterestreceivedarebudgetedonthebasisofhistoricvalues,takingcurrentdevelopmentsandtrendsintoaccount.
Thesesourcesofincomearemonitoredonamonthlybasissothatadjustmentscanbemadewherenecessary.Theexpectedexpenditureincludeallexpenditurerelatingtocommittedprogrammefundingplusanestimateofincidentalcosts.SolidaridadintendstomaintaincurrentstafflevelsintheNetherlandsandoverseas,sothatitisabletoimplementitsinnovativeprogramme
TheSolidaridad2013AnnualReport 63
inthebestwaypossibleandmakethemostofthemanypotentialsourcesinfunding.Solidaridadhassufficientuncommittedreservestocovertheshortagebudgetedfor2014.
Thegrowthinincomeinrecentyearsisexpectedtocontinue.Increasesareexpectedfromvarioussources.TheadditionalincomewillbespentalmostentirelyonmeetingSolidaridad’sobjectives.Thelong-termbudgetbelowshowstheconsequencesoftheseexpectations.
iNCoMe 2014 2015 2016 2017 2018
Incomefromownfundraising 3,975,000 4,000,000 4,100,000 4,200,000 4,300,000
Otherincome 15,400,000 16,000,000 16,900,000 17,800,000 18,700,000
Totalincome 19,375,000 20,000,000 21,000,000 22,000,000 23,000,000
eXpeNdiTure
Communicationandinformation 661,250 864,000 907,000 951,000 993,000
Structuralaid 18,342,500 18,379,000 19,141,000 20,052,000 20,964,000
Totalexpenditureonobjectives 19,003,750 19,243,000 20,048,000 21,003,000 21,957,000
Totalcostsofincomegeneration 736,250 762,000 800,000 838,000 876,000
Managementandadministration 135,000 145,000 152,000 159,000 167,000
Totalexpenditure 19,875,000 20,150,000 21,000,000 22,000,000 23,000,000
result – 500,000 – 150,000 – – –
balaNCeSheeToN31deCeMber2013
(ineuros,afterallocationofsurpluses)
aSSeTS 2013 2012
Tangiblefixedassets 70,881 45,327
Financialfixedassets 562,868 562,868
633,749 608,195
receivables,prepaymentsandaccruedincome 738,835 1,320,485
Stocksandshares 598,720 517,544
Cashandbankbalances 7,384,701 13,616,219
8,722,256 15,454,248
Totalassets 9,356,005 16,062,443
liabiliTieS
reservesandfunds
Reserves
–Continuityreserve 2,727,720 4,178,434
–Reservesforfinancingoperationalassets 70,881 45,327
–ReservesforfinancingassetsusedtomeetSolidaridad’sobjectives 562,868 562,868
3,361,469 4,786,629
Designatedfunds
–DesignatedfundforHaiti 648,646 682,826
4,010,115 5,469,455
long-termdebts – –
Short-termdebts 5,345,890 10,592,988
Totalliabilities 9,356,005 16,062,443
64 TheSolidaridad2013AnnualReport
STaTeMeNToFiNCoMeaNdeXpeNdiTureFor2013
(ineuros)
iNCoMe actual 2013 Budget 2013 Actual 2012
Incomefromownfundraising 4,404,304 2,622,000 4,144,817
Incomefromthird-partyactivities 2,187,545 1,897,000 1,894,905
Governmentsubsidies 12,113,704 11,328,000 12,607,803
Interestandincomefrominvestments 385,217 250,000 486,800
Otherincome – –
Totalincome 19,090,770 16,097,000 19,134,325
eXpeNdiTure
expenditureusedtoachieveSolidaridad’sobjectives
Communicationandinformation 706,693 367,000 646,116
Structuralaid 18,876,282 15,938,000 17,885,868
19,582,975 16,305,000 18,531,984
incomegeneration
Costsofownfundraising 588,006 442,000 391,425
Costsofthird-partyactivities 17,920 18,000 16,835
Costsofobtaininggovernmentsubsidies 223,428 198,000 176,216
Investmentcosts – – –
829,354 658,000 584,476
Managementandadministration
Costsofmanagementandadministration 137,781 134,000 130,483
Totalexpenditure 20,550,110 17,097,000 19,246,943
reSulT – 1,459,340 – 1,000,000 – 112,618
allocationofsurpluses
Continuityreserve – 1,450,714 – – 56,418
Reservesforfinancingoperationalassets 25,554 – – 13,868
ReservesforfinancingassetsusedtomeetSolidaridad’sobjectives – – –4,657
DesignatedfundforHaiti – 34,180 – – 37,675
result – 1,459,340 – – 112,618
TheSolidaridad2013AnnualReport 65
CaShFlowSTaTeMeNTFor2013
(ineuros)
2013 2012
Cashflowfromoperationalactivities
Surplusfromthestatementofincomeandexpenditure – 1,459,340 – 112,618
Depreciation 22,682 31,184
Changesinworkingcapital:
Short-termreceivables 581,650 – 453,560
Short-termdebts – 5,247,098 5,025,250
– 6,102,106 4,490,256
Cashflowfrominvestmentactivities
Investmentsintangiblefixedassets – 48,236 – 17,316
Changesinfinancialfixedassets – 4,657
Changesinstocksandshares – 81,176 – 45,701
– 129,412 – 58,360
Cashflowfromfinancingactivities
Changesinlong-termdebts – –
Changesincashandbankbalances – 6,231,518 4,431,896
Cashandbankbalances
Balanceon1January 13,616,219 9,184,323
Balanceon31December 7,384,701 13,616,219
Changesincashandbankbalances – 6,231,518 4,431,896
Thiscashflowstatementhasbeendrawnupusingtheindirectmethod.Thecashandbankbalancesattheendof2013were€6.2millionlowerthanattheendof2012.Themostimportantchangesin2013were€5.2millioninshort-termdebts;fewerfinalpaymentsatyear-end;andlessfundingreceivedinadvance.
geNeralNoTeSToTheaCCouNTS
guidelinesforannualreportingTheannualaccountshavebeendrawnupinaccordancewiththeGuidelineforFundraisingInstitutions(RichtlijnFondsenwervendeinstellingen;Richtlijn650),whichispartoftheaccountingstandardsproducedbytheDutchAccountingStandardsBoard(RaadvoordeJaarverslaggeving).
ForeigncurrenciesAssetsandliabilitiesinforeigncurrencyhavebeenconvertedattheexchangeratesonthebalancesheetdate.Itemsinthestatementofincomeandexpenditurehavebeenconvertedtoeurosusingtheexchangerateatthetimeofthetransaction.
aCCouNTiNgpriNCipleSoFvaluaTioNaNddeTerMiNaTioNoFThereSulT
TangiblefixedassetsTheoperatingassetsarevaluedatpurchasepriceminusannualstraight-linedepreciation,basedontheexpectedusefuleconomiclife.Purchasesmadeinthereportingyeararedepreciatedfromthedateofpurchase.
FinancialfixedassetsAdvancepaymentsandloansarevaluedattheirnominalvalue,takingintoaccountanyriskthattheymaynotbecollectible.ParticipationsthatdonotenableSolidaridadtoexerciseasignificantinfluenceoncommercialandfinancialpoliciesarevalued
66 TheSolidaridad2013AnnualReport
atpurchasepriceafterdeductingexceptionaldepreciationswhereapplicable.Non-consolidatedparticipationsoverwhichsignificantinfluencecanbeexercisedarevaluedattheirshareinthenetequityvalueaccordingtotheaccountingpoliciesfortheseannualaccounts.
receivablesAfterinitialrecognition,receivablesaremeasuredatamortisedcostsonthebasisoftheeffectiveinterestmethod.Gainsandlossesarerecognisedintheincomestatementthroughtheamortisationprocess.Receivablesarevalued,takingintoaccountanyriskthattheymaynotbecollectable.
StocksandsharesInvestmentslistedonthestockexchangeandotherinvestmentsarevaluedattheirmarketvalue.Realisedandunrealisedpricegainsandlossesareenteredinthestatementofincomeandexpenditure.
otherassetsandliabilitiesAllotheritemsinthebalancesheetare,afterinitialrecognition,measuredatamortisedcostsonthebasisoftheeffectiveinterestmethod.Gainsandlossesarerecognisedintheincomestatementthroughtheamortisationprocess.
incomeandexpenditureIncomeisaccountedforintheyeartowhichitrelates.Expenditureisdeterminedwithdueregardtotheaccountingpoliciesforvaluationasdescribedaboveandisallocatedtotheaccountingyeartowhichitrelates.Lossesareaccountedforintheyearinwhichtheycanbeanticipated.Incomefrominheritancesisaccountedforinthefirstyearinwhichthesizeoftheinheritancecanbereliablyestablished.
TaxationTheannualaccountshavebeenpreparedundertheassumptionthattheactivitiesofSolidaridadareexemptfromcorporateincometax.
SpeCiFiCaTioNaNdbreakdowNoFCoSTSbyCaTegorieS
Thetablebelowshowsthelevel–andcomposition–ofcostsin2013againstbudgetandcomparedtoactualcostsin2012
Objectives Incomegeneration Managementandadminis-
tration
Total2013
Budget2013
Total2012
expenditure Structuralaid Communi-cationand
information
Fundraising Third-partyactivities
Subsidies Investments
Contributiontoprojects
16,822,545 – – – – – – 16,822,545 13,932,000 16,012,650
Communication – 482,836 383,982 866,818 370,000 662,236
Personnel 1,671,556 182,200 166,057 14,586 181,851 – 112,141 2,328,391 2,275,000 2,118,271
Travelandaccommodation
149,324 16,276 14,834 1,303 16,245 – 10,018 208,000 130,000 144,399
Premises 86,769 9,457 8,620 756 9,440 – 5,821 120,863 144,500 130,814
Office/general 129,805 14,149 12,895 1,133 14,121 – 8,708 180,811 210,500 147,389
Depreciation 16,283 1,775 1,618 142 1,771 – 1,093 22,682 35,000 31,184
18,876,282 706,693 588,006 17,920 223,428 – 137,781 20,550,110 17,097,000 19,246,943
explanationofcostallocationOperatingcostsareallocatedtoarangeofcostcategories.Thecalculationmethodfor2013isthesameastheoneusedin2012.Thejobdescriptionsforeachmemberofstaffareusedtodeterminewhichpartsoftheirworkrelatetothevariouscategories.Thegeneraloverheadisthenallocatedusingthesamepercentagedistributionasforthestaffcosts.
ManagementandadministrationAsin2012,managementandadministrationcostsincludedthefollowingpersonnelcosts:director,0.2FTE;secretariat,0.25FTE;controller,0.33FTE(includingthepersonneldepartmentandinternalaffairs);administrator0.4FTE;andtheplanning,monitoring,evaluationofficer,0.1FTE.Solidaridadstrivestoachievethelowestpossiblepercentageofmanagementand
TheSolidaridad2013AnnualReport 67
administrativecostswithoutendangeringthequalityofitsoperations.Apercentageofbetweenoneandtwopercentoftotalcostsisconsideredtobeahealthyproportion.
NumberofstaffmembersDuring2013,theaveragenumberofstaffmembersemployedbySolidaridadtheNetherlands,expressedasfull-timeequivalents(FTEs),was30.6(2012:28.9).
audiTor’SreporT
68 TheSolidaridad2013AnnualReport
-
SolidaridadNeTwork
weoperaTeaSaglobalNeTworkoFregioNaleXperTiSeCeNTreS
SolidaridadNeTwork
SolidaridadNetworkinternationalsecretariatDirector:NicoRoozen’tGoylaan15, 3525AAUtrecht,theNetherlandsTel:+31 30 275 94 [email protected]
SolidaridadCoNTiNeNTalFouNdaTioNS
SolidaridadNetworkasiaHongKongContactviaSolidaridadSouthandSoutheastAsia
SolidaridadNetworklatinamerica(FundaciónSolidaridadLatinoAmerica)PanamaCity,PanamaContactviaSolidaridadSouthAmerica
SolidaridadNetworkafricaNairobi,KenyaContactviaSolidaridadEasternandCentralAfrica
SolidaridadregioNaleXperTiSeCeNTreS
SolidaridadSouthamericaDirector:JeroenDouglasFedericoLacroze1724,CiudadAutónomadeBuenosAires,CP:1426Argentina.Tel:+54 11 47 75 92 91 / 47 76 48 53Countryoffice:BrazilcontactviaSolidaridadSouthAmerica
SolidaridadandesDirector:GonzalolaCruzAddress:Av.Rooseveltno5866,MirafloresLima18,PerúTel:+51 1 44 54 242
SolidaridadCentralamericaDirector:MichaelynBachhuberBaur15Avenida13-45,Zona10,OaklandGuatemalaCiudad,GuatemalaTel:+502 23 66 58 56ext115
SolidaridadwestafricaDirector:IsaacGyamfiHseNo18,OkineStreet,EastLegon,AccraGhana
PMBKD11KandaAccraTel:+233 302 52 28 69Countryoffice:IvoryCoast(Abidjan),Cameroun(Yaounde),Nigeria(Akure).ContactviaSolidaridadWestAfrica
SolidaridadSouthernafricaDirector:AnnieSugrue105OxfordRoad,Saxonwold,2196,Johannesburg,SouthAfricaPOBox87286,Houghton,2041,Johannesburg,SouthAfricaTel:+27 11 788 79 52
SolidaridadeasternandCentralafricaDirector:KaruguMachariaKirichwaRoad,KilimaniBusinessCentreP.O.Box42234-00100GPO,Nairobi,KenyaTel:+254 716 66 68 62 / 722 72 39 16
SolidaridadSouthandSouth-eastasiaDirector:ShatadruChattopadhayay1stFloor,A-5,ShankarGarden,MainNajafgarhRoad,VikasPuri,New
Delhi–110018,IndiaTel:+91 11 25 51 51 22Countryoffice:Bangladesh(Dhaka),Indonesia.ContactviaSolidaridadSouthandSouth-EastAsia
SolidaridadChinaDirector:MartinMaRoom1407,BuildingA,NewWorldPlaza,ChongwenDistricht,Beijing100062,ChinaTel:+86 10 67 08 91 10
SolidaridadNorthamericaDirector:AndreanneGrimard25TaylorStreet,SanFrancisco,CA,94102,USATel:+1 415 580 20 79Otheroffices:NewYorkCityandWashingtonD.C.ContactviaSanFranciscooffice
SolidaridadtheNetherlandsDirector:NicoRoozen’tGoylaan15, 3525AAUtrecht,theNetherlandsTel:+31 30 272 03 13
SolidaridadNorthamericaSanFrancisco,US
SolidaridadCentralamericaGuatemalaCiudad,Guatemala
SolidaridadtheNetherlandsUtrecht,theNetherlands
SolidaridadeasternandCentralafricaNairobi,Kenya
SolidaridadChinaBeijing,China
SolidaridadSouthandSouth-eastasiaNewDelhi,India
SolidaridadSouthernafricaJohannesburg,SouthAfrica
SolidaridadwestafricaAccra,Ghana
SolidaridadandesLima,Peru
SolidaridadSouthamericaCiudadAutónomadeBuenosAires,Argentina
Coordination Bram Verkerke – Editing: Michael Gould – Design: Daan van Beek – Graphics on pages 6-12: Axioma – Print: Pascal, Utrecht – Photographs: Solidaridad, unless otherwise indicated – Cover photos: Kadir van Lohuizen
This annual report is available online in PDF format from www.solidaridad.nl Solidaridad the Netherlands is registered as a foundation at the Chamber of Commerce in The Hague, number 41150939.This annual report can be ordered (free of charge) at the secretariat in Utrecht, the Netherlands.
Solidaridad’t Goylaan 15, 3525 AA Utrecht, the Netherlandstel: + 31(0)30 272 03 13fax: + 31(0)30 272 01 94e-mail: [email protected]
Mr. Enan Abblé grew up in south-east Côte d’Ivoire, where he attended school and learned to read and write. In 1981 Enan moved to the south-west of the country and planted 3.5 hectares with cocoa trees. As a farmer he attended many training courses in good agricultural practices. The knowledge and skills he thus gained raised his productivity to 700 kg/ha – three times higher than his neighbour.
Enan takes fighting pests seriously. He prunes to avoid black pod disease and uses leaves as markers on trees that need to be treated against pests. In this way he saves money on spraying and does less harm to the environment. Enan feeds the soil to keep it fertile, he plants high yielding cocoa trees and is an active member of the board of the local cooperative.
Enan is a successful cocoa farmer. However, his income is still below the poverty line. And the prospects for the future are worrying. Climate change not only affects cocoa production – it also threatens his food production. Drought destroyed the crops in the vegetable garden on which his small family depends for daily food. So, there’s still a long way to go to get to a sustainable future. That’s why Enan’s children don’t want to become cocoa farmers.
Solidaridad’s global cocoa programme supports farmers like Enan and creates sustainable economic change in the cocoa and chocolate supply chains. We do this with farmers and their organisations, traders, chocolate companies, retailers, governments and donors. Together, we can secure the future of cocoa farming. We do similar work in 11 other global commodity sectors. You too can join our cause. Please go to www.solidaridadnetwork.org.
Solidaridad Network’t Goylaan 153525 AA UtrechtThe NetherlandsIBAN: NL45 RABO 0129 9111 51BIC/SWIFT: RABONL2U
Photo: Kadir van Lohuizen
Change that matterswww.solidaridadnetwork.orgwww.solidaridad.nl
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