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VREDESEILANDEN vzw ANNUAL REPORT 2008 A better deal for farmers

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Page 1: Vredeseilanden/ VECO Annual Report 2008

VREDESEILANDEN vzwANNUAL REPORT 2008

A better deal for farmers

Page 2: Vredeseilanden/ VECO Annual Report 2008
Page 3: Vredeseilanden/ VECO Annual Report 2008

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VREDESEILANDEN VZW

ANNUAL REPORT 2008

A better dealfor farmers

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Introduction ................................................................................................................ 3

1 Strategic choices ...................................................................................................... 7

2 The South programmes .............................................................................................. 11

3 Vredeseilanden in Flanders ........................................................................................ 41

4 The social balance of Vredeseilanden .......................................................................... 47

5 Environmental policy of Vredeseilanden ........................................................................ 51

6 Vredeseilanden vzw – Financial annual report 2008 ........................................................ 55

Cont

ent

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PROGRESS IN THE FIGHT AGAINST HUNGER AND FOR GOOD FOOD FOR EVERYBODY

A crowded road with motorcycles, cars, noise, dust, and a lot of activity. In a sidestreet, you passthrough an antique door of a somewhat dilapidated building, and take three steep stairs to accessthe three small offices of Vinastas. Vinastas is the national consumer organisation of Vietnam andwas founded some twenty years ago by a few civil servants. Meanwhile, the organisation has evolvedinto a federation with branches in almost every city nationwide. We are in Hanoi, the busy capitalof Vietnam.

Toxic vegetablesA few years ago, the population of Hanoi was startled by reports of hundreds of people beingadmitted in hospitals with alarming poisoning symptoms. Only a few weeks later, after many morepeople had become ill and some even died, the source of the poisoning was discovered: freshvegetables sprayed with too much pesticide.For Vinastas, the panic of the authorities and the inhabitants of Hanoi was a golden opportunity tofocus on the protection of consumer interests. They managed to persuade authorities to developstandards for “safe vegetables” and to launch a control system. Nevertheless, they soon ran intodifficulties: how can you transport safe vegetables directly from the farmer to the consumer? Howcan consumers distinguish these “safe vegetables” from other vegetables?

An obvious collaborationWhile Vinastas and the Vietnamese authorities were reflecting on these questions, the Vredeseilandenteam in Vietnam contacted the consumer organisation. Vredeseilanden already supported small-scalefarmers in villages that were de facto producing biological, “safe” vegetables. These contacts lead toa pilot project in which Vredeseilanden and Vinastas informed consumers on where to buy “safevegetables” in town.On the other hand, through Vinastas, we advised the Vietnamese government to develop a legalframework (e.g. by certification) for “safe vegetables” from family agriculture. Because of thecollaboration with the government, the small pilot project will probably enable, in the long run, moreor all Vietnamese to buy “safe vegetables” from family farmers.

Our main strength: collaboration as a basic choiceThis pilot project is a good example of the new strategy that guides our actions since the beginningof last year. We do not only strive for a sustainable and high production, but we also try to guaranteea fair income for farmer families and an increased control on the processing and commercialisationof their products. Our starting point and message is that farmers and their families are not “poorpeople”, but entrepreneurs that could get a better life for themselves and their environment bystrategically using their possibilities.A central factor in our new strategy is the “chain approach”, examining the entire trajectory thatagricultural products travel, from the field to the consumer. With the farmers, we search for problemsand try to find out how they could get a better price for their products. For example, by “shortening”the “chain” – traders, processors and distribution –, or by partially converting farmers into traders,processors or distributors.After only one year, this approach seems to be very productive. In this annual report, you can findseveral illustrations of the positive effects. We are convinced that we are on the right way with ourchoice to consider the other actors in the chain not as competitors or as opponents, but rather aspartners with an interest in the fact that farmers obtain a fair income. This choice for dialogueinstead of confrontation also expresses the values of pluralism, respect, and inclusiveness, whichhave been the foundation of Vredeseilanden for several decades.

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Searching for levers: from small to bigThe results of our efforts in the field to reinforce the position of farmers in the chain are bringingVredeseilanden and its partners to the political level. This is necessary to reproduce our “small-scale”innovations and experiments on “large scale”. How? For example, by stimulating large organisationsto take over our strategy, or by convincing authorities to improve economic and political conditionsto enable all farmers in a region, land or continent to better live of their work.

Food crisis: what happens if family agriculture is neglected?In Belgian, the large interest for the food crisis was an opportunity to draw attention on the centralrole of family agriculture in guaranteeing enough food for everybody. A scientific consensus existson this subject, but the policy does not completely follow. In this report, you can read howwe managed to inform the large public through the media on the enormous potential of familyagriculture, how we have played a part in defining the propositions of the Belgian government tofight the food crisis. Vredeseilanden also took a part in the official Belgian delegation at the “Foodsummit” of the FAO in Rome (June 2008).

Because of that other – financial/economic – crisis, the food prices dropped again, and with theprices, also the attention for global food security. The structural causes for hunger and poverty offarmer families have not been treated. There are also new and worrying developments that underminethe chances of small-scale farmers. Several governments and big investors have bought giganticfarmlands in Africa to secure their own food supply or to produce biofuel. The purchase conditionsoffered by local authorities seem very questionable. This agrarian imperialism eats away the land ofsmall-scale African farmers, who see their chance on a larger piece of fertile land slip away. Withour partners, we will continue to plead for a policy that guarantees sufficient and good food foreverybody in the world by long term investments in family agriculture.Help us to make our voice heard and to give concrete support to farmer families.

Ready for the futureIn order to make our own functioning even more efficient, a fundamental internal reorganisation tookplace in 2008. These were the main elements:

• The organisation structure was fine-tuned, personnel was decentralised. More collaborators nowlive and work in the rural areas of our main partners;

• We have developed a new, worldwide system to better plan our functioning, to better evaluate theresults and to quicker learn from our experiences;

• A global personnel policy and a better system have been developed to evaluate our collaborators;• For our fundraising, a separate department was created, with diversification of our income sources

as a central point of attention.

Finally, the most important thing: the support and appreciation we get from volunteers everywherein Flanders, the collaborators in Leuven and in Africa, Asia and Latin America, the more than onehundred thousand people and many organisations. Only through them, Vredeseilanden can continueto realise its mission to fight against poverty and for a humane life for family farmers in South andNorth. We thank you for your commitment, trust and support.

Fons Vaes Luuk ZonneveldDirector of the Board General Director

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ACCOUNTABILITY AND SUSTAINABILITY

The problems of poverty, hunger and climate are interlinked. Therefore, it is not enough that weare scandalised about poverty in the world. It is not sufficient that we show solidarity by helpingpeople elsewhere in the world to improve their living standards. If they raise their living standardto ours and emit as much CO² and consume as much water and raw materials as us, we threatenthe survival of our own species.

Sincere solidarity requires a worldwide transition towards a sustainable economy. An economy thatrespects to the limited capacity of our planet as the first axiom and that offers opportunities ona decent existence to everybody. The story of Vredeseilanden – of millions of farmer families thatcan escape poverty thanks to sustainable agriculture – is only a chapter in that main story. But acrucial one.

Vredeseilanden wishes to advance this sustainability paradigm as a global framework. This explainsthe choice for reporting according to the Global Reporting Initiative (GRI) format and the Inter -national Accountability Charter (IANGO) by the Board on 05/15/2008.

GRIThis annual report is the first to be drafted according to the GRI criteria.

The Global Reporting Initiative (GRI) has developed into a generally accepted system. A growingnumber of large companies and organisations throughout the world have already agreed to reportaccording to this framework.

What does GRI have to offer?• Sustainability as a specific approach;• Economic, social and ecological indicators;• A concrete framework that enables a comparison with other organisations;• Guidelines on sustainability reporting: principles to determine the content of the report and

explanation on its structure;• In the future, specific guidelines will be elaborated for non profit organisations;• International recognition and use by (large) companies and NGOs;• Different levels of reporting are possible (C, B, B+, A, A+): there is a minimum set of indicators,

but an organisation can gradually report on more criteria.

According to these criteria, Vredeseilanden already complies with level ‘C’ of the GRI standard.

The complete overview of the indicators we report on is integrated at the end of this report,according to the GRI logic, on pages 76 and 77.

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A BETTER DEAL FOR FARMERS

Vredeseilanden is a Belgian independent and pluralistic non-governmental organization for developmentcooperation. Vredeseilanden wants to contribute to viable livelihoods of organized family farmers andto reinforce their organisation, in South and North. Vredeseilanden reinforces the position of farmersin the entire agricultural chain, from the field to the end consumer. This is done with advocacy work,campaigning for better agricultural policies, and by encouraging consumers to choose for sustainablefood.

WHY VREDESEILANDEN?

A planet under pressureIncreasing food prices eat our income away. Bread, rice, potatoes, meat... everything is becoming more expensive. We curse the cash receipt, butwe can’t do much more. The consequences of global warming, expensive energy and ever more scarceraw materials, also influence our daily lives.

963 million persons live in extreme povertyHalf a tomato or a quarter of an onion instead of an entire one... that’s what more expensive foodmeans to them. Men, women and children. Day after day hungry for food, clean water, a roof abovetheir heads, education, and dignity. They face enormous problems.

Furthermore, more than two thirds of them are farmersThe people who are supposed to produce food are hungry. How much sense does that make?

No problem but a solution: farmers save the worldVredeseilanden looks beyond the problems of poverty and hunger, and joins the quest for solutions.These poor farmers in the South are not simply a problem or sad statistics. If we mobilize theirtalents, they will not only help themselves, but also (a little bit) the world.

If these farmers succeed in earning a decent income from sustainable agriculture: • They work themselves up from poverty.• They feed the world.• They ease the pressure on the planet.

OUR MAIN ROLE: A VIABLE INCOME FOR FARMER FAMILIES

This is why Vredeseilanden actively wages on farmer families who earn a living through sustainableagriculture and who are looking for a place on the market.

• That is why Vredeseilanden strengthens their position in the agricultural chain, so that they cantake their future in own hands and get a fair price for their product.

• That is why Vredeseilanden contacts governments and companies, to find out together how theycan create win-win situations for farmer families.

• That is why Vredeseilanden encourages consumers to choose for sustainable products, as everyoneforms part of the solution.

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New alliancesWe cannot reach our goal by ourselves. Nor can governments or companies. Citizens seem equallyhelpless. This is why Vredeseilanden forges new alliances with front runners from various sectors, inNorth and South: to set up experiments and to learn from each other.To find the answers needed for the world of tomorrow, a world that will be sustainable, but just asfull of quality. A world that once and for all must leave behind the destruction caused by hunger andpoverty.

This story starts with an income from sustainable agriculture. With the 152 partner organizations ofVredeseilanden and the many thousands of farmers they represent.

FROM FARMER TO CONSUMER...

Guaranteeing a fair income for farmer families in the South. That is the goal partner organisationsof Vredeseilanden pursue on in different ways. Through 8 regional offices, Vredeseilanden supportsdevelopment programmes in Africa, Asia and Latin America. We closely cooperate with 152 organisa -tions, mainly farmer organisations.

Agriculture is the basisIn the most countries where Vredeseilanden is active in the South, family agriculture represents 40to 70 % of the employment on the countryside. It is the main economic activity of the poorest partof the population and most national governments in the South consider agriculture as an importantfactor in reducing poverty. Agriculture takes up an important place as a motor for economic growthand is crucial for the realisation of the Millennium Development Goals (MDG’s).

Years of experienceFor many years, Vredeseilanden has been supporting farmer families in the South in several ways.In the seventies, the activities of the organisation concentrated on the execution of agriculturaldevelopment projects. Meanwhile, this has evolved into cooperation agreements with partner NGO’s,with Vredeseilanden being a coordinator and moderator. Making sure farmers have sufficient andhealthy food throughout the whole year for their family, was/is our objective. In Belgium we havealso elaborated collaboration agreements with farmer groups.

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HONDURASNICARAGUACOSTA-RICA

ECUADORPERU

BOLIVIA

BELGIË

SENEGALGAMBIA

BURKINA-FASOTOGOBENINNIGER

CONGOUGANDA

TANZANIA

LAOS

VIETNAM

INDONESIË

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ContemporaryThe past decennia, the agricultural sector has radically changed. Throughout the whole world,markets are being liberalised; governments – especially in the countries in the South where we areactive – have less influence and most services that were offered by governments to farmers havebeen abolished. Farmer families are put under pressure to sell their products for new investments.The urgent need for money started nibbling on the food supplies of families. This increased thedemand of farmer families towards Vredeseilanden to do something for their position on the market.

Luuk ZonneveldDirector of Vredeseilanden

Armed for the futureIn 2007, the main principles of the new vision, mission and strategy of Vredeseilanden wereelaborated, as you could find out in last years’ annual report.New strategies also imply the need for new capacities, knowledge and resources. Therefore,the country offices and the head office in Leuven were completely audited in 2008. An intensiveprocess (“Organisational Capacity Assessment” or OCA) took place to evaluate our strong pointsand where we need to improve to effectively realise the ambitions of our organisation.As well for the country offices as for the head office, an adapted structure with specificfunctions has been established. In Leuven, this has lead to a better integration of the contentand programme departments. In the South, the regionalisation process launched in 2007 wasfurther extended. The most remarkable aspect is the creation of so called “field antennas” of 2-3 collaborators of Vredeseilanden in rural areas where our main partner organisations arelocalised. This way, we can offer an even more direct support. At the same time, the countryoffices are gradually being abolished and substituted by regional offices, which manage severalfield antennas in different countries. In East-Africa, for instance, we are evolving from threecountry offices into one regional office that manages 7 field antennas in Congo, Uganda andTanzania.

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IS VREDESEILANDEN REALLY MAKING A DIFFERENCE?

It is impossible to enter in to details on all of our activities. Therefore we choose to put forwardone example of every region where we are active. On the following pages, you can get to know theorganisations we will focus on in the following years. You will also find a website link after eachstory, to follow-up all evolutions in that region. We regularly publish new stories on these webpages. We tell you about families on the countryside, their children, affiliated organisations, but alsoabout Vredeseilanden colleagues, traders and lobbyers, conscious or worried consumers, on makingplans, on processing setbacks or celebrating successes. This way, we hope to explain to you what“development cooperation” means to Vredeseilanden.

The numbersIn 2008, we collaborated, based in eight regional offices (VECOs), with 152 partner organisations.Approximately one third are farmer groups, founded by farmer families. Sometimes, they have unitedbecause they live in the same region; sometimes because they grow the same (export) crop, such ascoffee or rice. We also closely collaborate with other civil society organisations and networks thatare lobbying with authorities. We also collaborate more and more with private companies in theagricultural chain. They don’t receive financial support from Vredeseilanden, but we need them if wewant to improve the position of farmers in the agricultural chain. These organisations collaborate inlarger contexts, sometimes internationally. Thanks to its activities, Vredeseilanden is a viable link inthe chain in each and every one of these countries.

In order to give you an indication on the extent of our programme, you can find on the followingpages a list of our partner organisations in each country and the number of persons directly reachedby each programme (component). For all our programmes, this amounts to nearly 60,000 men and58,000 women. The impact of a development programme cannot only be evaluated by the number ofpeople that is directly reached. In the regions where we implement our programmes, a large groupis also indirectly benefitting from our activities. Participants in training further spread new ideas.Thanks to political action, laws are changing in favour of an entire group of people. Mentalitychanges are also difficult to evaluate in numbers. Vredeseilanden is also choosing to regularly set-up a pilot project with a small group of people and to convince larger NGOs, companies or authoritiesto take over the positive aspects.

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VECO SENEGAMBIA

In 2008, we crossed for the first time the border toGambia to collaborate with a new partner. From now on,we talk about VECO Senegambia.

Our action in Senegal and Gambia is built on threeproducts: sesame, bananas and fonio (a local type ofcereal similar to couscous).

Our partners:

• Association des Producteurs de la Vallée du Fleuve Gambie (APROVAG)• Fédération des Groupements de producteurs et productrices du Sofaniama Jimara de Kolda

(PELLITAL)• Fédération des Unions des Groupements Associés du Niombato (UGAN)• Réseaux de producteurs et productrices de fonio dans la communauté rurale de Djendé• National Farmers’ Platform, The Gambia (NFPG)• Conseil National de Concertation et de Coopération des Ruraux (CNCR)• Groupement de Promotion Féminine de Bignona (GPF Bignona). This is a new partner. After

one year, the collaboration was stopped because of a diverging vision.

In 2009, three new partner organisations will be added to this list.

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SENEGALGAMBIA

Number of persons directly reached 1205 men, 2445 women

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Senegalese banana producers are putting traders on the blacklist

The Senegalese newspaper Le Soleil had the following headlines on the 24th of August 2008:“Banana producers in Tambacounda faced enormous problems to sell their bananas. 30 tons ofbananas were lost. Rotten because of bad storage conditions and the absence of processing facilities.Nevertheless, the production was exceptionally high this year. Another problem is that the producersare still waiting for 60 million CFA (approximately € 91,500!) the traders have not paid.”

“These wholesale buyers are not traders, but cheaters! They are often in debt and have criminalrecords,” says Ousseynou Konaté, Director of Aprovag, an organisation of banana producers inTambacounda.

The organisation cannot afford a second loss of this kind. Therefore, Aprovag gathered all membersto find a solution. In the future, “good” and reliable banana traders get a discount of 10 CFA/kg ifthey buy at least 150 tons of bananas a month. They have also drawn up a blacklist of tradersAprovag refuses to trade with. The names of 4 defaulters have been spread in the entire action zoneof Aprovag. This way, all farmers receive the necessary information.

By the end of 2008, 1000 tons of bananas were lost. The construction of a new banana storagefacility in Nguène was not a day to soon. Last year, a first load of 126 tons of biological bananaswas stored and packed. VECO financed the first delivery of cardboard boxes. Aprovag will reimbursethis loan by reinvestment in its activities. Next year, they want to double their production. Incardboard, bananas are better protected during transport and the price that farmers receive forpacked bananas is also higher: 356 CFA instead of 150 to 160 CFA/kg (250 CFA = € 0.38).

In several villages, quality controllers have been trained. This way, Aprovag wishes to further developinto a professional, reliable and quality partner in the Senegalese banana trade.

www.vredeseilanden.be/senegal/bananen

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Last year, a first load of biologicalbananas was storedand packed in a new warehouse.

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VECO WEST AFRICA

Benin, Togo, Burkina Faso and Niger are sharing animportant border market where a lot of (agri -cultural) products are being traded. Vredeseilandenwishes to reinforce its partners to enable farmersto reap the benefits of this regional West-Africanmarket. For a long time, we have been active inTogo and Benin and since 2008, we are alsocollaborating with a new partner organisation inBurkina Faso. In a later stage, new partners will beadded in Burkina and Niger.

This is also reflected in the structure. The regionaloffice has been established in Cotonou. The projectleaders are working from two antennas in Togo andBenin. Later, another antenna will be added inBurkina Faso.

In Benin, our partners have mainly specialised in rice and manioc.

• Union Communale des Riziculteurs (in Glazoue, Dassa, Save, Savalou, Banet and Ouesse) • Union des Riziculteurs du Centre (UNIRIZ-C)• Conseil de Concertation des Riziculteurs du Bénin (CCR-B)• Fédération des Unions de Producteurs du Bénin (FUPRO-Benin)• Centre d’information, de recherche et d’action pour la promotion des initiatives paysannes

(CIRAPIP) • Centre d’initiation et de recherche-action pour un développement durable (CEIRAD) • Ligue de Défense des Consommateurs du Bénin (LDCB)

In Togo, our partner organisations are mainly active in vegetable cultivation.

• Réseau des Centrales d’Auto promotion paysanne (RECAP)• Fédération des Organisations Paysannes de la Région des Savanes (FOPAS)• PROCOPAS• Coordination Togolaise des Organisations Paysannes et des Producteurs Agricoles (CTOP)• Organisation d’Appui à la Démocratie et au Développement Local (OADEL)

Our first partner in Burkina Faso is Association Sons-Kouadba (ASK), a farmer organisationspecialised in the popular bean variety Niebé.

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BURKINA-FASOTOGOBENINNIGER

Number of persons directly reached 10205 men, 7937 women

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Rice from Benin, weighed up

“I can remember how happy I was as a child at a celebration or ceremony. We always had rice fordinner at these occasions. On weekdays, this was never the case: too expensive. Now, I am in therice trade myself: I peal the rice with a machine and sell it. In our village, we even eat rice onweekdays. It is a very popular and affordable product. In town, people eat a lot of rice, because itis quick and easy to prepare. But most part of the rice is still coming from Asia and not from ourown countryside.”

Elisabeth Monfon, one of the processors in the rice programme of Vredeseilanden in the centralprovince of Benin does the talking. The past year, women like Elisabeth learned a lot on qualitynorms, taste preferences of clients, processing and criteria of the Fair Trade Labelling Organisation.

The visit of farmer organisations from Tchètti and Kpataba to the only FairTrade organisation in Benin(a pineapple cooperative) woke them up. “We had fallen asleep”, says Martine Adjo of Tchètti. “Thisexchange was very interesting and stimulates us to change our modus operandi. A lot of work stillneeds to be done! If we can put into place a good organisation and follow up their good advice, wewill get there. We will not regret it.”

It remains the ambition to sell a small part of the total rice production in Colruyt supermarketsthrough the Fair Trade label in 2010. In this context, it is important that the quality norms of Colruytare respected. The rice farmers from Benin have sent four different kinds of rice to Belgium. A ‘tastepanel’ evaluated these types. Their answer: approved! Two of the four rice varieties stood out: theirmoisture level was lower and fewer grains were broken. One of those varieties will be sown in thesummer of 2009.

It remains the goal to export a small part of their rice under FairTrade conditions, but even if ricefarmers don’t succeed, they will be much stronger on their own market and the Nigerian market withtheir quality product.

Last year’s food crisis forced the Benin government to put more energy and resources into riceproduction. The Ministry of Agriculture has been investing in research for some decades, distributesseeds and provides consultation between the different players in the rice trade. In 2009, the govern -ment will even put machines at the disposal of partner groups. In its rice programme, Vredeseilandenis working with 5000 farmers in total. Through our partner organisations, we are enabling expe -riences to be passed on to the national level, enabling the government to integrate these points inthe programme.

Nevertheless, one large problem remains unsolved. For many years, Japan is donating millions of tonsof rice to Benin, under the banner of development aid. The rice is dumped on the market for giveawayprices. Import rice has always been cheaper and of better quality – whiter – than local rice. Vredes -eilanden and the Conseil de Concertation des riziculteurs de Bénin have been protesting for yearsagainst this import.

The food crisis of 2008 was a blessing in disguise. Suddenly, the import from Japan was greatlyreduced, and local rice was seen as worthy alternative. Nevertheless, the government is still notwilling to structurally reduce or stop the Japanese import. The Conseil de Concertation des riziculteursde Bénin has organised a number of press conferences to put this problem under public attention.The last one was in May 2008. A number of concrete propositions were put on the table, but agovernment reaction remains forthcoming.

You can read more on the Vredeseilanden rice programme in the Benin Reporter, written by VRT-journalist Greet Pluymers. For more information: [email protected] or Tel 016/31 65 80.

www.vredeseilanden.be/benin/rijst

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VECO UGANDA

Our partner organisations in Uganda haveconsiderably changed in the past year.Last year, we collaborated with some20 small NGOs, farmer organisations andnetworks. This year, we have reorientedour action. Our main objective remainsthe income increase of farmer families.In order to put in place strong com -mercial activities on certain agriculturalproducts, it seemed to be more interesting to collaborate with District Farmer Associations. They areour main partners now. Many of our former partner organisations are also member of the DistrictFarmer Associations. This way, we continue to work for the same target group, in the same districts.But we are working in a different way and reaching more families.

• Lira District Farmers Association• Kumi District Farmers Association• Iganga District Farmers Association• Tororo District Farmers Association• Bugiri District Farmers Association,• Pallisa District Farmers Association• Sironko District Farmers Association• Sihubira Farmers Organisation, for the district Busia

In 2008, there was a lot of attention for market studies, analysis and activities in the peanut chain.Next year, together with our partners, we will evaluate a second product with interesting commercialopportunities.

For the political action on national level, we are collaborating with:• Uganda National Farmer’s Federation (UNFFE) www.unffe.org• In 2008, we supported for the final time the Food Rights Alliance: they did not respect the

agreements.

Where is a good market for our products?

“Those buyers are real imposters: they come with wrongly calibrated scales and also give us a lowprice!” Ugandan farmers did not hide their frustration in a discussion with Peter from VECO Uganda.Nicholas Oluka and Richard Ariong of the Farmers association in the Kumi district had similarquestions and problems. “Where can we sell our peanuts for a fair price?”, they asked Peter. “If wehave this information, we can create a company with our farmers and sell our peanuts together. If wemanage to get a stable and good price, we can offer more income security to our members.”

VECO organised and moderated a series of meetings between peanut farmers, processors, buyers,traders, local governments and agricultural spokesmen. Since Kumi is situated on the border withKenya, customs authorities were also present.

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CONGOUGANDA

TANZANIA

Number of persons directly reached 4790 men, 4963 women

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At one of these meetings, Mr. Henry Bwire, a customs official, said that traders export on average100 tons of peanuts to Kenya a week: two loads during the week (on Tuesdays and Thursdays) andone in the weekend (on Sundays). A trader, Joseph, told that sometimes, trucks come from Kenya tobuy peanuts in Uganda, but have to return empty because of the lack or absence of peanuts. Thiswas not known to farmers. Joseph also explained how the market price fluctuates and depends ondifferent factors, such as the exchange rate between the Kenyan and Ugandan Shilling and theavailable offer.

With these new insights, Oluka and Richard returned to the farmers of Mukongoro, Atutur and Ngora.They explained to the farmers that it is rewarding to organise as a group, to be better informed andto negotiate as a group with the buyers. The demand for peanuts is large on the Kenyan market, asbecame clear in the meetings.

This way, the Kumi Farmers’ Agricultural Commodity Marketing Cooperative Society (KUFACCOS) wasborn; the commercial wing of the Farmers Association in Kumi. The farmers are shareholders of thiscompany. In 2008, KUFACCOS collected more than 30 tons of peanuts of the Serenut 2 type fromfarmers in two sub counties. These were sold to wholesale traders. KUFACCOS understood that it isimportant to establish direct contacts with the wholesalers in Busia to get first hand information onprices and quality conditions. This enables traders to give advice at certain moments of the year towait, because a price increase is imminent. This has helped farmers a long way to make choices onthe selling place and time. At the same time, they have found new markets. The Pentecost churchesfor example, a social NGO, have decided to buy peanuts for a fair price.

KUFACCOS is also prospecting other markets. Will they manage to use all business opportunities? Willthey succeed in establishing long term relationships with new traders and based on good conditions?Their activities and the results of next year will show it.

www.vredeseilanden.be/uganda/pindanoten

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For the first time,farmers are makingcontact with whole -salers to negotiateon the price andquality requirementsof their peanuts.

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VECO TANZANIA

Vredeseilanden has partners in threezones in Tanzania:

1. Same and Simanjiro districtWe have been working for more than5 years in the Same district in the north -east of Tanzania. With our experiencethrough economic activities, our teamhas started a new five year programmeon the border region between Same and the neighbouring Simanjiro district.

Our partners in Same and Simanjiro:

• Simanjiro District Council• Same District Council• Mviwata Kilimanjaro Regional Network• Inyuat E Moipo• Evangelical Lutheran Church of Tanzania (ELCT)• The Roman Catholic Diocese of Same• Same KAYA SACCOS• Same Agricultural Improvement Programme (Saipro)• Pamoja• Vet Aid

2. Mkuranga districtIn the Mkuranga district, at some 100 kilometres south of the harbour town Dar es Salaam, we areworking with groups (mainly women groups) specialised in manioc. Our main partners are the TanzaniaAssociation of women leaders in agriculture and environment (TAWLAE) and Mkuranga DistrictCouncil (MDC).

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Number of persons directly reached 568 men, 613 women

Number of persons directly reached 482 men, 347 women

CONGOUGANDA

TANZANIA

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3. Chunya districtWe are concluding a five year programme in Chunya district in the southwest of the country. Pressingoil from sunflowers was a success. If the Belgian Survival Fund approves a new project, we will continuefor another five years. That programme will mainly focus on the marketing of the sunflower oil.

Our partners in Chunya:

• Chunya District Council• Farmers’ and environmentalists’ Association (FEA)• SACCOS• Caritas• Small Industries Development Organization (SIDO)• Mviwata Mbeya Regional Network• Mbozi, Ileje and Isangati Consortium (MIICO)

For our advocacy efforts at the national and international level we work mainly with the followingpartners:

• Participatory ecological land use management network (PELUM), a NGO that is creating natio -nal campaigns on different themes (example: GMOs, increase of national budget for agriculture)and information on these themes was spread through farmer groups

• Eastern and Southern Africa Farmers Forum (ESAFF) and Eastern Africa Farmers Federation(EAFF). They are defending the interests of farmer families in the East-African region.

• The Network of Farmers’ Groups in Tanzania (Mviwata), the national farmer movement inTanzania. They are mainly aiming on networks of farmer groups and give training on differentthemes. Mviwata has 60,000 registered members throughout Tanzania.

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Number of persons directly reached 32.593 persons

Last year, Vredes -eilanden startedcollaborating witha number of newpartners in theSimanjiro district,including Inyuate Moipo.

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The letter of Nairukoko

Our colleague Dré Smessaert visited Tanzania in June of 2008. He left the asphalt road from Dar esSalaam to Arusha and arrived in a barren plain filled with large thorny bushes. There, he visited ournew partner organisation: Inyuat e Moipo.

With confidence, Nairukoko read her letter. Idadi – how much we have: “Four male goats, elevenfemale goats, lams and two cows.” She enumerated the main possessions of a group of women andspoke in their name. In Lerumo, her small village in the Simanjiro district, only 10% of the peoplecan write and read. This is the case in most of the Maasai villages. The average alphabetisation levelin Tanzania is about 70%. The Maasai belong to the poorest population groups of Tanzania.

Nairukoko continued: jambo yetu – our problem. Every year, less water and grasslands are availableto enable cows to survive. Maasai have been shepherds for thousands of years, but now, their worldis changing. In the last 10 years, it has been raining less and less. They had never heard of globalwarming, but suffered the most. They had been thinking about it for years and discussed duringthree days. Under their large tree, they concluded that they should also keep goats next to cows.An agricultural expert of Vredeseilanden had accompanied them in their discussion. The problemwas theirs; the solution should be as well. A responsible of the ‘district council’ explains us theirconclusion. Goats offer advantages compared to cows. For the price of a cow, you can buy more thantwo goats; therefore, there are fewer risks if one dies. Goats can be kept by the women near to theirclay houses, while they are caring for the children and the food. Women are allowed to sell goats,while cows in the Maasai culture can only be sold by men. Goats are full-grown after five months,reproduce faster and can be sold after one year. In a barren environment, they also tend to survivebetter because they need fewer grasslands. Five strong arguments.

They are not becoming rich of their cows and goats. Most of them only eat once a day and they areoften hungry. Cassava or manioc is an African root that is cultivated to be dried and grinded intoflour. They make a thick warm dough that is their main source of food. Sometimes, they eat rice andvegetables, but these have to be bought on the market. Every family sells two to four goats a monthto have enough money for food and clothes. For an entire year, they have to breed at least fortygoats. They also need goats for flesh and milk. Thanks to the goat project, they can buy differentvegetables and vitamins, enabling them to stay healthy and to be less vulnerable to illness.

But even with goats, the water problem remains large. ‘Changamoto’, continues Nairukoko: thechallenge. They want to build a dam to fight against drought and to preserve the pasture lands. Somefarmers and the responsible of the ‘district council’ took us to the site where they want to build thedam. The new dam will be a clay wall of five meters high and hundred fifty meters long. It will collectand keep 9 km2 of water in an arch and form a large pool. This pool means drinking water for theherds, enough to survive one year, but will also irrigate the surrounding grazing lands.

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The dam will also solve another problem: the long-lasting conflict between farmers and nomads. Inthe Maasai steppe, a plateau of two hundred by three hundred kilometres south of the Kilimanjaro,Maasai nomads that have been wandering for ages with their herds, are in conflict with otherpopulation groups that are farming on the edges and water areas of this plateau. The herds have tobe regularly brought to drinking sites and cows often damage the crops. Sometimes, the Maasaicompensate farmers, but often this problem is unavoidable or the Maasai have no money. Thanks tothe dam, the herds can graze in a larger area without agriculture and conflicts between two agri -cultural forms are avoided.

Nairukoko ends the lecture of her Swahili letter with a clear ‘Thank you’ and is loudly applauded byall participants. She folds the letter with Idadi, Jambo yetu, Changamoto and the entire explanation,together with their hope and expectations, in a brown envelope and hands it over. ‘Mgeni rasmi’ iswritten on the envelope: ‘official people’.

Now what?

In close deliberation with the district governments, Vredeseilanden will work in 4 of the 15 wards(group of villages) in the Simanjiro district: Loiborsoit, Ngorika, Msitu wa Tembo and Ruvu Remit.We will work with Maasai shepherds, but also with farmers. In the first place, the food productionshould increase thanks to the introduction of new productive and drought resistant varieties andthrough the renovation of irrigation channels that are running through the fields on the Ruvu River.The income of farmers also needs to increase. A market study has showed that onion offer thebest market opportunities. Goats also seemed to be interesting, but mainly for own consumption.Business groups will be formed on these economic activities. The collaborators of our partnerorganisations will receive the necessary training to perform these tasks.

www.vredeseilanden.be/tanzania

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Nairukoko reads:“Every year, water and grasslands arebecoming scarcer, and cows cannotsurvive.”

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VECO CONGO

Despite the war, mostof the planned activitieswere implemented. Theworst conflict areas wereoutside of our workingarea. For more thanfive years, we havebeen working in theregion around Butembo(Northern Kivu) with the following partner organisations. These activities focus on improving theincome of farmers in the region by reinforcing agricultural activities.

• Coopérative Centrale du Kivu (COOCENKI)• Syndicat pour la Défense des Intérêts Paysans (Sydip)• Association des Producteurs de Vuhimba (APAV)• Ligue des Organisations des femmes Paysannes au Congo (LOFEPACO)• Watu Imara kwa Maendeleo na Amani (WIMA)• Fonds à l’Entrepreneuriat Féminin (FAEF) • Association des Paysans pour le Développement Rural (APADER)

We also coordinate a reconstruction program in South and North Kivu and Ituri. New roads are beingbuilt, swamps are laid dry and mills are constructed. There is also money for the purchase of seedsand fertilizers. In these activities, the following organisations are involved:

• Comité Anti-Bwaki• CIMBUSHI (Comité Inter Marais du Bushi)• Umoja wa Wamama Wakulima wa Sud Kivu (UWAKI)• Union Paysanne pour le Développement Intégré• ACIAR• The above-mentioned organisations COOCENKI and LOFEPACO are also involved.

Choosing between a Kalashnikov and a plough?

“You can reassure everybody at Vredeseilanden that we are still alive”, we heard at the end of Octoberfrom our collaborator Théo Mbaghi. “The Congolese population is fed up with this absurd war.Fugitives don’t receive aid and accept their sad fate.”

The war in East Congo reached the news in Belgium. A weak government, corruption, covetedresources, interference of neighbouring countries that defend their interests with bullets... Just someof the causes of the misery in the region. Real peace has been absent in this region for a long time.Even though the media attention has disappeared, the horror stories of murder and rape have notended.

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Number of persons directly reached 2420 men, 7678 women

CONGOUGANDA

TANZANIA

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The Vredeseilanden Office is located in Butembo, some 240 km from Goma. Even if it the situationin the town of Butembo has been tense, the region where our partners are working was been sparedfrom heavy fighting and large refugee streams. This means that our activity can continue more orless as planned.

“Agriculture needs to be revaluated. Agriculture is a buffer for conflict. Whoever sells a bag of ricefor $100, does not feel like grabbing a Kalashnikov rifle”, says Léopold Mumbere, the coordinator ofour program in Congo. “The soil is very fertile, so there are a lot of opportunities for sustainableagriculture. I meet them every day, the farmers who are breathing ambition. Every child who has theopportunity to make money through trade and by working the land, is on less child who affiliates toa group of rebels to survive.”

“One of those rays of hope is the new collaboration of our partners with the World Food Programme(WFP). This agency is, among others, delivering food to refugees in the war zones of CentralAfrica. Most of the times, they distribute American or European food. In 2007, Vredeseilanden, ourCongolese partners and the food aid cell of the Belgian development cooperation needed a lot ofconvincing power to persuade them to buy local food. This stimulates local economy and the farmermovement of Northern Kivu can find a market for their products. It is also good for the WFP to beable to offer local food and to save on transport costs.

Sydip and Coocenki, a farmer syndicate and a cooperative with 24,199 members, are still closingcontracts with the World Food Programme. 790 tons of beans and 351 tons of maize flour havebeen distributed amongst refugees since 2007 (numbers of February 2009). The Belgian DevelopmentCooperation agreed to finance two new mills. This is an answer to the enormous challenge to millthe tons of maize for World Food Programme, a work that until recently was done with small machinesor manually. This also lowers the price to grind maize in the entire province, and of maize flour onthe local market.

There is more to come. USAID – the American agency for development cooperation – showed a lot ofinterest in the Belgian efforts for local purchases through the World Food Programme. Moreinformation was asked of the Belgian Development Cooperation and Vredeseilanden. On request ofthe American Congress, USAID evaluated the consequences of US involvement in this project. At theend of January 2009, this report was presented in Congress. Hopefully, this will rapidly convince theUnited States, as well as Belgium, to engage in this structural form of food aid.

www.vredeseilanden.be/congo/wfp

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“A revaluation of agriculture is required. Agriculture is a buffer

for conflicts. Whoever buys a bag of rice for $100, does

not feel the need to grasp a Kalashnikov rifle.”

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VECO MESOAMÉRICA

In Central America, Vredeseilanden is workingin three countries: Costa Rica, Nicaragua andHonduras. Four products are central: beans,sugar, vegetables, and cashew nuts.

As we mentioned last year, our action in Costa Rica is gradually reduced. This year, the followingorganisation received financing for the last time:

• Costa Rican woman farmers union (CMC)• The Costa Rican network for Rural Organisations, Farmers, Native and Non Governmental

Organisations for Alternative Development (COPROALDE)• The National Union of Agricultural Producers (UNAG Costa Rica)• Oro Verde S.A.• The Educational Corporation for Development of Costa Rica (CEDECO)

Next year, we will only give direct support to the Costa Rican movement for biological agriculture(MAOCO), and the Consorcio Cooperativo de Mercados Locales Campesinos e Indígenas R.L. Weare staying in contact with other organisations and we will continue to use them in exchange andtraining on certain subjects.

Our partners in Nicaragua:

• NICARAOCOOP• UNAG national and regional, the national union of farmers and cattle breeders. More specifically,

VECO will establish a project with the UNAG department of Nueva Segovia on sugar, and with UNAGin Carazo on beans. There is also collaboration with UNAG Ceges, the commercial branch of UNAG.

• FENACOOP• FEMUPROCAN – www.femuprocan.org• The Union of Cooperatives for sustainable agricultural services on the island of Ometepe

(UCOOPSO).• La Alianza• The Group for Promotion of Biological Agriculture (GPAE)

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HONDURASNICARAGUACOSTA-RICA

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Our partners in Honduras:

• La Surenita Limitada, or the Conglomerado de marañon. A cooperative that processes andexports cashew nuts, also to Europe.

• Coordination Council of Farmer Organisations of Honduras (COCOCH)• Regional Association of Agricultural Services in the East (ARSAGRO)• Network for Alternative Common Commercialisation (RED COMAL)• The Committee for the Defence of the Rights of the Honduran Consumer (CODECOH)• La coalición Hondurena de accion ciudadana (CHAAC)• La Fundación Simiente• The National Union for Promotion of Biological Agriculture (ANAFAE)• Unie van Hondurese Boerinnen (UMCAH)

Across the country borders, we are also supporting SIMAS, the information service on sustainableagriculture in Central America, and in the Andes Region also MAELA, the Latin American movementfor biological agriculture.

Vredeseilanden and the Dutch NGO Hivos are also the initiators of two Central American structuresthat stimulate collaboration between different cooperatives, farmer organisations and processingcompanies.• PECOSOL has 36 members in five countries. Nicaraocoop, Red Comal, UNAG and five of our partner

organisations are affiliated.• PROAMO is a cooperation between seven organisations, among others Nicaraocoop and Oro Verde.

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Alejandra, the face of the Vredeseilanden campaign in Belgium: “No beans no food.”

Number of persons directly reached 7175 men, 6112 women

Page 28: Vredeseilanden/ VECO Annual Report 2008

Sweet teeth

Nicaraguans have sweet teeth. One of their favourite snacks are rosquillas, biscuits made of maize,cheese and sugar. Many Nicaraguans living abroad – approximately one million – try to find rosquillason shop shelves.

The Nicaraguan biscuit bakers, rosquilleras, are always searching for good quality sugar. In Ocotal, innorthern Nicaragua, Vredeseilanden has organised a deliberation between these women and the sugarfarmers in the region. “Quality and price. Those are the things we pay attention to when we arebuying sugar,” said the rosquilleras. “Sometimes we find dead bees in the sugar lumps. If you comeand offer us sugar in dirty, sweaty clothes... We are questioning the hygiene in your companies!” Thesugar farmers promised to put on a clean shirt. Local politicians and clients from the neighbouringcountry Honduras were also present at the deliberation. It was a starting meeting to better organisethe sugar market and to give a better negotiating position to farmers.

Therefore, we are collaborating with UNAG, the largest farmer association in Nicaragua. Some 36,000small-and medium-scale farmers are affiliated. Vredeseilanden will collaborate in a pilot project witha cooperative of 127 sugarcane farmers.

Pressing sugar out of sugarcane is heavy labour. In the workshop, men are grinding canes andcollecting the juice. They warm the juice in a large tank and pour it into large sugar blocks. Thesepanelas look like bricks. At this moment, a lot of trees have to be used as firewood, which is notvery ecological. They could without a problem use the remains of the sugarcane plants. Therefore, anew furnace is required. The sugarcane farmers are planning to build three new sugarcane mills andhave saved a considerable amount of money. They are also asking for government investments. Ifthey register themselves as a cooperative, they can apply for subsidies (up to 60%). Vredeseilandenwill help them with the paperwork.

An average sugar farmer can make approximately 5,000 sugar blocks from one harvest. They sell theblocks along the main roads, in shops or in families. Because of the high calorie value of sugar, it isa very important part of the daily menu, certainly with poor farmers on the countryside. For farmers,this is an interesting product. The farmers get an average of 80% of their revenue from the sales ofpanelas.

Despite the popularity of sugar and the profit for the farmers, there are very few new sugar canefarmers. The work is heavy and farmers can only process small volumes using traditional methods.They cannot or barely compete with the large sugarcane plantations.

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Therefore, UNAG developed a plan to aim for specific niche markets. Collaboration with therosquilleras is one possibility. But brown grained sugar is also very demanded, especially on thebiological market. Soda producers always need good sugar and the Nicaraguan coffee roasters addsugar to certain mixtures. The sugar producers, however, are not prepared to deliver to thesedemanding markets. This is why they ask for support of Vredeseilanden.

To enable qualitative progress, a number of technical bottlenecks have to be solved. For example,purifying the sugar juice, improving general hygiene and packing sugar in an attractive way.

Sugarcane is a plant that is not affected by diseases or plagues. The transition to biologicalproduction is not very difficult. Because of the large demand for sugar on the biological market, anumber of sugar farmers will obtain the biological certificate for their panela. An auditor from CostaRica will give the necessary training. Vredeseilanden will bear a part of the costs. The actual costprice for the audit will be carried by the farmers themselves. The intention is to obtain the biologicallabel and they are going for it.

www.vredeseilanden.be/nicaragua/suiker

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The introduction of new ovens will make the use of firewood in the sugar production redundant.

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VECO ANDINO

Since 2008, we are nolonger working exclusivelyin Ecuador, but we haveclosed new collaborationagreements with partnerorganisations in Peru andBolivia. In the Andes region,the focus will be laidon coffee and vegetablecultivation.

These are our partners in Ecuador:

• FAPECAFES (Federación Regional de Asociaciones de Pequeños Cafetaleros del Sur) sellscoffee for the international and national market. They have also started with the export ofbanana crisps for the French market. Fapecafes respects the international FairTrade criteria.www.fapecafes.org.ec

• FECAFEM (Federación de Asociaciones artesanales de Producción Cafetalera Ecológica deManabí). But also an organisation that is concentrating on coffee sales on the internationalmarket. In order to not depend on the coffee sales, the organisation is also looking for otherproducts with a good market potential. Peanuts/earthnuts are a possibility.

• SENDAS (Servicio para un desarrollo alternativo del Sur) and Chuya Mikuna are collaboratingon the production and commercialisation of vegetables in the province of Cañar. Direct sales tothe consumer organisation in Machala and Cuenca. The organisation is also very active in environ -mental management.

• Corporación de desarrollo “GRUPPO SALINAS” - www.salinerito.com• La Movemiento de Economía Solidaria del Ecuador (MESE)• El Colectivo Agroecológico and its members Probio and CEA (Coordinadora Ecuatoriana de

Agro ecología). They have been working on the promotion of agro-ecological products.

The collaboration with CEFODI (Corporación Esmeraldeña para la Formación y Desarrollo Integral),MESA DE CACAO and APROCANE (Asociación de productores de la zona norte de la provincial deEsmeraldas) was terminated at the end of 2008 because of the reduction of our activities in the cacaochain in the past years. This year, we also collaborated for the last time with Petrino.

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ECUADORPERU

BOLIVIA

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In Peru, we are working with one organisation at this moment:

• ANPE (Asociación Nacional de Productores Ecológicos)

In Bolivia, we support two organisations:

• AOPEB (Asociación de Organizaciones de Productores Ecológicos de Bolivia) • Centro de Información e Intercambio para la Agricultura Ecológica (AGRECOL)

Across the country borders, we are supporting, as in Central America, also MAELA, the Latin Americanagro-ecological movement.

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Number of persons directly reached 3013 men, 1867 women

Our partnerorganisation Chuya Mikuna (‘Clean food’) is specialising in the production and sales of vegetables.

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Magnificent allies: the alliance of Chuya Mikuna with other ecological producer organisations

Everybody who visited the farmer organisation Chuya Mikuna in 2006,would have met their dynamic leaders. They rowed against the streamto try and conquer a place on the shelves of the food market giantsin Ecuador: Supermaxi and Mi Comisariato. The leaders of Chuya didnot worry about the heavy conditions imposed by supermarkets. Theydidn’t care that one of the directors simply told them that “15% of thevegetables would not be paid because the quality would surely bebad.” They pretended not to care that the director received the vegetables without even giving thema look... While the farmers cultivated the vegetables with a lot of care and biological love.

All leaders and members of Chuya Mikuna had a rock-solid belief in the quality of their products. “Ifconsumers have a taste, they will not ask for another brand”, was their conviction. How could theyto promote their products? The large supermarkets Supermaxi and Mi Comisariato kept an additional5% of the profits of their vegetables for publicity, but in the leaflets, they barely spoke about theadvantages of ecological products. Their beautiful fresh vegetables were put on display with all thefast food sold in the supermarkets. They decided to launch their own campaign and made banners,leaflets, organised taste sessions. They were convinced to succeed, because the vegetables were freshand beautiful. They wanted to continue, but the conditions of the supermarkets were too hard:conceding 20% of the price was too much.

The problem was discussed during one of the meetings of Chuya. What could be the solution? Howcould they break the dishonest circle that was skimming the forces and means of Chuya farmers?Marcelo, a collaborator of the local NGO SENDAS, which accompanied farmers throughout the entireprocess, was reflecting on a solution. While farmer leaders were discussing the problem of theircommercial relationship with Mi Comisariato, he was thinking about women in the poor suburbs whohave to fight every day to improve the life of their family. He was interested in the theme of Chuya,but thought that there might be a link that had to be laid. In the end, he decided to tell the peopleof Chuya that some time before, he had met a women organisation from Machala at a meeting, in thecoastal region of Ecuador. A very dynamic organisation that sold vegetables on a wholesale marketand in baskets, for a fair price, to women with few means. He did not have to say more. Everybodyat the meeting reacted enthusiastically.

The responsible persons of Chuya made the first contacts with the responsible persons of the womenmovement. Everybody was motivated. The women organisation had been talking for a while abouta “solidary economy” and the necessity to extend the links of solidarity between the city and thecountryside. They spoke about food baskets and the need for healthy food: lettuce, leaf beets,potatoes, tomatoes, fruit, etc. They had made a few attempts with other farmer organisations, butwithout success because of the lack in continuity in the supply or in volume throughout the year. Atthe end of the first discussion, everybody was convinced. The Chuya producers were capable of suchan initiative: they had a good buying system, organisation and production planning.

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The collaboration between the women organisation and Chuya was a start, but on their own,they could not be successful. The women farmers of Chuya Mikuna were only cultivating 10 of the17 vegetables the women wanted. They also had to take into account the harsh winters. Sometimes,a part of the vegetables was lost because of the cold weather.

So they started looking for partners. During the meetings of the network Tierra y Canastas (‘earthand baskets’), they got to know ACT, a producer organisation of biological potatoes in Chimborazo.Visits were organised and criteria were elaborated for their trade relationship. Franklin, salesresponsible of Chuya Mikuna, said the following to his new friends: “Our organisation is not makingprofits with the sales of your potatoes. Together, we determine the prices we pay to your farmersbased on the production cost and add 30% for logistics. We want a good price for the producer. Weadd a percentage for transport costs to the consumer price.”

At this moment, Chuya Mikuna is selling almost 95% of the products of the member organisationsand pays fair prices to hundreds of producers from different provinces in Ecuador. It has not alwaysbeen easy. At times when the potato prices went up, producers often chose to directly sell theirproducts. New agreements were necessary. At the end of 2008, the leaders of Chuya are proud to havefound these alliances. Magnificent allies that enable the delivery of 100 baskets with vegetables tothe women movement and the improvement of the income of ecological producers in Ecuador.

www.vredeseilanden.be/ecuador/chuyamikuna

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“If consumers taste our vegetables,they will no longerwant anything else.”Now, Chuya Mikunadelivers vegetablebaskets to womengroups in differenttowns.

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VECO LAO

In Laos, the government does not allowlocal farmer organisations to developoutside of the official authorities. It ispossible to register as a company. There -fore, Vredeseilanden supports 18 farmergroup companies in the north of Laos(companies of farmer groups) in thedistricts Meung, Tonpheung, Houaysay andfor the final year also in Paktha. Theyprocess and trade maize, peanuts and tea.We also closely collaborate with the districtgovernments in those four districts.

Addicted in the past, today company leader

Northern Laos is rapidly changing. People are living in isolated villages in the mountains. New roadsand hydro-electric power stations are built and rubber plantations are laid out. Foreign companiescome in from China, Vietnam and Thailand. They want to invest in large scale plantations (rubber,manioc and maize). The Laotian government is giving the land in concession and the taxes crank upthe national GNP.

Against these steamrollers, the illiterate and indigent farmers are defenceless. In the eighties, someof the ethnic minorities were forced to move from mountain villages towards new lands in thelowlands. The Laotian government wanted to improve the access to health care and education forthese population groups. Another advantage was a better control on the population. The forced movealso radically changed the way of life of the people. In the first place, they were hungry. In order toescape misery, a lot of people started using opium and amphetamines smuggled in through Thailand.

In 2004, Vredeseilanden launched its Food for Work program. In a third of the villages whereVredeseilanden was active, inhabitants were addicted to opium. Vredeseilanden proposed a harddetoxification program to the willing farmers. If they passed, they were entitled to training. Villagesthat asked for guidance and support of Vredeseilanden got what they needed if the opium cultivationstopped.

Last year, we wrote in our annual report that this program was a success. All villages now have foodsurpluses. But they also really live from their agriculture and get a fair income? They have fewoptions. They close a contract with a firm that buys non-processed products for a low price. They canalso stop with their own activities on the field and work as a farm worker on a large rubberplantation. The Chinese are giving them ... € 10 as a starting fee.

Is there another way? Two years ago, Vredeseilanden started stimulating farmers to launch smallcompanies in groups. This work starts yielding benefits. By the end of 2008, 18 companies wereactive. They process peanuts, maize or tea.

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LAOS

VIETNAM

INDONESIË

Number of persons directly reached 2844 men, 2844 women

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There is a maize group in Ban Si Done Nyaeng. 11 members have put their savings together asstarting capital. They are the shareholders. Mr. Noi Lat, the president, explains: “We dared to registertogether as a company. The government requires a minimum capital of $100,000. Not a small amount.But we even managed to take off with a starting capital of $120,000, by putting everything together:the value of our land, our houses, a large tractor, two trucks and six motor boats. Now we have theright to directly transport our maize from our villages to Thailand.”

“Their business is going well,” says Stuart Ling, who coordinates the Vredeseilanden program in Laos.“The group started in 4 villages. Now, inhabitants from 12 villages are implicated. In the smallfactory, they extract the grains, negotiate with Thai traders, deliver seeds to farmers and givetraining.

“But these are also very weak companies,” he continues. “You have to know that illiteracy is veryhigh. In one village where we started working, I only found two literate people... For them, startinga company is an enormous challenge. They need to get to know the legislation, find a bookkeeper,and elaborate a business plan. This requires a lot of training: from land workers, they have to evolveinto real entrepreneurs. The challenge is big. It is possible that some companies will cease to existin a few years. But I have the feeling that we can really do something for the people. Other NGOsactive in Laos closely follow our activities. And we really like to share our experiences.”

www.vredeseilanden.be/laos

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Creating a company is an enormous progress for illiterate farmers.

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VECO VIETNAM

In Vietnam, the agricultural services of thedistrict authorities are our main partners.We collaborate in the northern districtsLang Son, Son Duong, Van Quan, Yen Lap,Binh Gia and Viet Tri.

In function of the activities, our team contacts one or several services of the district: AgriculturalExtension Stations, Plant Protection Station, Veterinary Stations, Agricultural and Rural DevelopmentDepartments.

A new partner is the Vietnam Standard and Consumers Association (VINASTAS). This consumerorganisation gives information to consumers, treats complaints and tries to plead for favourablelegislation for consumers.

Know what you eat!

In China, the past months, hundreds of babies died after drinking milk poisoned with melamine. Alsoin Vietnam, food scandals are headlines in newspapers and on television. The past years, thousandsof people got sick after eating poisoned vegetables.

Hien of the Vredeseilanden office has her doubts when she goes to the market to buy vegetables.“How can I be sure that these tomatoes are healthy?”

Consumers in Vietnam had been proud of their healthy kitchen for a long time, mainly consisting ofvegetables and other fresh ingredients. Every morning thousands of farmers drive their van, bicycleor scooter to big cities like Hanoi to supply the street vendors.

Population in Vietnamese cities is rising rapidly. Since the nineties, the country has had an enormouseconomic boom that made more and more people leave the countryside. Everybody in the cities needsto be fed and a high yield is necessary. Therefore, farmers are spraying a lot of chemicals.

A lot of farmers are well aware of the health risks. “My family does not eat the vegetables I bringto the market” admits Ms. Dung. She is one of the farmers who participated in a recent inquiry ofVredeseilanden. “We have a small vegetable garden where we cultivate without pesticides. We usethese vegetables in our own kitchen.”

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Number of persons directly reached 3086 men, 1652 women

LAOS

VIETNAM

INDONESIË

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The consequences of this excessive use of chemicals are dramatic: in the period 2001 to 2005,approximately 23,000 serious cases have been documented. The public concern is enormous andlast year, the government took measures. “Zones for safe vegetables” were marked out. These arezones where farmers are forced to cultivate vegetables with a minimum of pesticides. But who canguarantee that in the trucks, these vegetables are not mixed with vegetables from non-safe zones?Who is controlling the farmers? How can you recognise safe vegetables on the market?

Since last year, Vredeseilanden has been collaborating with the consumer organisation VINASTAS.Together, they performed an inquiry on the consumer confidence in vegetables. Scepticism is gettingthe upper hand. “We don’t trust the government labels,” are saying the consumer organisations withone voice. In the newspapers, articles appeared of farmers that could buy the label of ‘safe vegetable’from officials. “We need to protect our families. Therefore, we only trust the vegetables that can bedirectly bought from farmers and not the vegetables of the many street vendors,” was anotherrecurrent claim.

Our collaborators also visited the four supermarkets of Hanoi. They have a shelve with biologicalvegetables. Nobody could exactly tell where the vegetables were coming from... For many years,Vredeseilanden has had a strong functioning on the Vietnamese countryside, north of Hanoi.VINASTAS also has local departments in these regions. They decided to collaborate on transparentand reliable sales channels for vegetables. Two small farmer groups already made promises to respectthe rules on food security. Vredeseilanden will try to establish contacts between these farmer groupsand consumers in cities and companies in the surroundings.

In Lang Son, a first stone has been laid. VINASTAS organised a meeting for officials, farmer groups,hotel owners, company leaders and women groups. During the tea break, two hotel owners talked toa farmer group. They did not know that safe vegetables were available in their environment and werevery interested. Immediately, they closed a contract for 200 kg of vegetables.

This year, VINASTAS and Vredeseilanden will look for a reliable system for consumers and farmers toclose agreements on safe ways to cultivate vegetables. This guarantees consumers that thevegetables they are eating are safe and healthy.

www.vredeseilanden.be/vietnam/veiligegroenten

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Food scandals areheadlines innewspapers inVietnam: “We wantto be able to buysafe vegetables, butwe don’t trust thegovernment labels.”

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VECO INDONESIA

Our programme in Indonesia has been,for many years, the largest with respectto the number of partners and thegeographical spread. We chose to shrinkour programme in Indonesia, so thatwe can better and more intensivelycollaborate with our partner organisa -tions.

Therefore the collaboration with these 11 partners has been gradually phased-out and stopped at theend of 2008.

• Yayasan Pembina Masyarakat Pedesaan (YPMP)• Yayasan Lembaga Pengembangan Wilayah Tana Ai (YLPM-Bangwita)• Yayasan Sambirio• Yayasan Bina Cempe (YBC)• Lembaga Studi Pengkajian Lingkungan (Lespel)• Yayasan Sosial Nusantara (Yanusra)• Yayasan Bina Sejahtera (YBS)• Yayasan Pengkajian dan Pemberdayaan Rakat (YP2R)• Lembaga Pengamabangan dan Pemberdayaan Masyarakat AL-Azhar Kediri (LPPMA Kediri)• Lembaga Penelitian dan Pengembangan Sumberdaya Lingkungan Hidup (LPPSLH)• Lembaga Pengembangan Potensi dan Keswadayaan (BABAD)

Now and in the future, we would like to concentrate on rice, peanuts, coffee, cacao and cashew nuts.We are mainly working with local NGOs and not with farmer organisations, as we do in othercountries. Farmer organisations in Indonesia are a recent phenomenon. Under the reign of Suharto,farmer organisations were forbidden. Only after his downfall, at the end of the nineties, people wereallowed to freely organise. At the end of 2008, we closed our first partner agreements with twofarmer organisations that will get our support starting from next year.

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The partners we will collaborate with in the following years are:

On the island of Java:

• Lembaga Studi Kemasyarakatan dan Bina Bakat (LSK-BB), in the district Boyolali• Yayasan Pengembang Kreatifitas Generasi Muda (YPKGM), in Lumajang• Lembaga Pengkajian Kemasyarakatan dan Pembangunan (LPKP) • Lembaga Pengembangan Partisipasi Demokrasi dan Ekonomi Rakyat (LP2DER)

On the island of Sulawesi:

• Yayasan Duta Pelayan Masyarakat (YDPM), in the district Mamasa• Yayasan Jaya Lestari Desa (JALESA), in the district Toraja• Yayasan Komunitas Indonesia (YAKOMI), in the district Mamasa

On the island of Flores:

• Yayasan Komodo Indonesia Lestari (Yakines), in Manggarai• Yayasan Tana Nua (YTN), in Ende• Delegasi Sosial (Delsos), in Manggarai• Yayasan Mitra Tani Mandiri Ngada (YMTM-Ngada)• Lembaga Advokasi Masyarakat (LAPMAS), in Ngada• Yayasan Ayo Indonesia (YAI), in Ruteng• Yayasan Ayu Tani (YAT), Flores Timur

On West-Timor:

• Yayasan An Feot Ana (YAFA), in the district TTU• Yayasan Mitra Tani Mandiri (YMTM), in the district TTU

On the island of Bali, we are working with Yayasan Bali Organic Association (BOA), a consumerassociation.

For our political action, we mainly collaborate on national level with:

• People’s Coalition for Food Sovereignty – Koalisi Rakyat untuk Kedaulatan Pangan (KRKP)• Aliansi Petani Indonesia (API), known for their fight on land rights• The Indonesian Organic Farming Network – Jaringan Kerja Pertanian Organik (JAKER-PO), the

movement for biological agriculture

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Number of persons directly reached 7700 men, 5142 women

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Biological rice, simply the best solution

Journalist Jan Bosteels travelled to Indonesia last summer. Not to the surf beaches in Bali, but to talkto farmers, traders and consumers that are active in the Vredeseilanden programme. This is his rice storyfrom Boyolali, on the Island of Java.

For many years, farmers of Dinglo have been poisoning themselves, their environment and consumerswith chlorine bleached pesticide rice. Now that they are cultivating biological rice, they are healthier,more thriving and their clients happier.

Rice is the main food crop in Indonesia. For breakfast, lunch and supper, rice is served. Mostly white,industrial rice, cranked up with chemical fertilizers and in some cases bleached with chlorine to bewhiter than white. This is not the case in the Boyolali district in Java, where farmers passed on tosustainable agriculture with the aid of the farmer movement LSKBB.Of the 860,000 inhabitants of Boyolali, 31% is living under the poverty limit. This means that theyhave an income of less than 1 dollar a day. This was more than enough reason for VECO partner LSKBBto help farmers to cultivate, process and sell their rice. The tanned Cipto Mulyatno is leader of thefarmer movement of Dinglo, an idyllic village not far from Solo. We are in a rice field and he passeswith his right hand through the green rice plants. “We have always been cultivating rice here. Fromthe seventies, with the help of fertilizers and pesticides.”Cipto has no good word to say about pesticides. “They generated higher production costs and theland dried up. I also developed asthma after spraying. I even had a kind of epileptic seizure, probablycaused by the inhalation of this poison. I wasn’t using a mask or other protection.” About biologicalrice, nothing else than good. “We produce our own pesticide according to a traditional recipe, usingtobacco leafs. We make our own fertilizer with cow dung and compost material. The productivity ofthe land increased, we are getting a better price for our rice and the taste is also better. I would liketo recommend this to every farmer.” In his living room, Cipto shows me the analysis report of auniversity laboratory, which shows that the ground contains 0.0% of pesticides.

Direct sellingIn the rice business, a lot of money is lost because of the middlemen and wholesalers. In order toget a better negotiating position, farmers have united in an organisation that sells the rice withoutmiddlemen. The biological rice of Dinglo is sold outside the rice market of Solo to the detail trade,the fast food chain KFC (Kentucky Fried Chicken) and to consumer groups. This has been a smartmove in the marketing of rice. Aris of LSKBB has organised a meeting with the women of block 3,a lower middle class area of Solo. For more than two years, women are regularly meeting to store therice that is directly delivered by the farmers. Under the direction of Yayuk, they discuss the qualityof the offered product. These women have developed into more conscious consumers, who askquestions about the health impact of their non-biological products. Even more important, with theirenthusiasm, they stimulate their neighbours to also learn to appreciate the rice of the Dinglofarmers. “These ladies are our best clients”, says Aris. “The upper middle class women prefer to buytheir biological rice in the supermarket, for twice the price, but in a nicer packing. They know it isexactly the same rice.”

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Meanwhile on the island of Flores Yayasan Komodo Indah Lestari (Yakines) – another Vredeseilanden partner – is also conscious aboutthe added value of biological rice. The production is going well, but there are also many challengeson marketing level. In 2005, Yakines created a shop that sold biological products for a lower pricethan average. But this wasn’t very successful.

Nevertheless, the people of Yakines were convinced that healthy food should also be made availablefor people with less money. Therefore, they decided to make a distinction between rice varieties.Wojalaka and Rindeng were classified as “A-quality”. Sipagang and IR64 as “B-quality” and are soldfor a lower price. Thanks to this distinction, they could aim at different markets. To find out whatvarieties their clients preferred, they organised taste tests in March 2008.

This meeting with consumers was a turning point for Yakines. They discovered that the clientsaccepted a higher price if they are convinced that the product is of good quality and really ‘special’.Yakines also learnt that the availability of biological rice in the shops is an important factor in theprice determination. Farmers want to be sure to get a good price for their rice. After the meeting,the Association of rice farmers of Lembor was created. They assumed the task to guarantee a constantsupply of biological rice to shops and to negotiate on the price.

You can order the entire Indonesia Reporter, with all stories of Jan Bosteels, by [email protected] 016/31 65 80.

www.vredeseilanden.be/indonesie/rijst

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Cipto Mulyatno: “I got ill from using pesticides. Now, we produce our own pesticide using a traditional recipe. The sales of our biological rice are going well.”

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EVERYBODY HIS DAILY BREAD?

An Indonesian friend of mine asked his European colleague whether it is not boring to eat breadevery day. His European colleague answered: “Well, it is like you Indonesians, who eat rice everyday: for breakfast, lunch and supper.”De gustibus non est disputandum. Tastes differ. But it can be strongly determined by culture,habits and nature.

In the past, there were different consumption patterns in Indonesia, in function of what grewon the different islands. These patterns were suddenly ruptured in the middle of the eighties.The government launched his green revolution with a strong campaign to cultivate and eat rice.Traditional crops disappeared. Since then, Indonesia is almost synonym for rice. From Sabang inthe extreme West to Merauke in the Far East of our immense country. You can find rice every -where.

In some places, there is not enough rice for everybody. This situation worsened last year.The food crisis did not only strike Indonesia. The entire world felt it and everybody agrees that a solution is necessary. More investments, new agricultural technologies, more training forfarmers. These and other promises were made. There is also another important aspect: promotionof traditional crops such as basic food.

The reintroduction of traditional crops and rice varieties can be one of the methods to take careof our food security. This way, one is no longer dependent on one product or one seed supplier.Indonesians should get rid of their dependence on rice. The Europeans also of their dependenceon bread. The motto of the FAO is “Fiat panis”, let there be bread. But more important is “Fiatnutrimens”, let there be food.

Anna Hasbie, VECO Indonesia.

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Social basisIn Flanders, Vredeseilanden is a strong and known brand. The organisation can count on a loyal socialbasis. Every year, thousands of volunteers enter into action for Vredeseilanden. In January, youngand old sell gadgets, such as our key holders, to thousands of sympathizers. They form the indis -pensable buttresses for the action of Vredeseilanden and our partner organisations and give us theright to speak.

The basis of Vredeseilanden in numbersPeople have been contributing actively to Vredeseilanden in 2008:• Approximately 12,000 people are actively involved in the campaign.• 1,000 runners participated in the Run to Africa.• 460 people watched the movie “No food without beans” on mijnvredeseilanden.be.• 8,890 students in secondary schools watched the movie “No food without beans” in schools.• At least 3,000 youth association members participated in Foodhunt.• 50 volunteers of Vredeseilanden are active in a puller group of Fair Trade Towns.• 35 volunteers of Vredeseilanden are active in the Council for development cooperation in their

hometown.• 390 core volunteers are local ambassadors of Vredeseilanden.• 71 students of five pilot schools work as a puller group in Change the Food. They have activated

more than 2,500 students.

With a content message, Vredeseilanden reached:• 310,000 radio listeners;• 760,000 television spectators;• 600,000 readers through newspapers and magazines;• 40,000 people personally received a leaflet during the campaign;• 20,000 people at festivals;• 8,000 people received the reporter magazine and the activity report;• 5,090 subscribers on the electronic newsletter;• 340 unique external visitors a day on different Vredeseilanden sites (in total: 120,000 visitors).

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In 2008, Vredeseilanden could count on the financial support of• 8,292 donors that transferred one or more donations;• Some 106,000 people that bought a key holder or another gadget during the campaign weekend.

Press and MediaIn 2008, more purposive press actions were executed or press releases were sent. Media andjournalists were also informed on themes on which Vredeseilanden can deliver interesting content.During the year, the first benefits were reaped. This is proven in the above-mentioned contributionsand also in different (smaller) messages spread through several media (Belga, MO*, newspapers andmagazines).The themes and programmes of Vredeseilanden were treated in different content articles and reportsin written and spoken media.

Le nouveau Vredeseilanden est arrivéOn the 4th of October, an event was organised in Leuven to present the renewed position ofVredeseilanden in a clear and appealing way to the different stakeholders. More than 350 enthusiasticparticipants gathered at this event.

WebsiteThe Vredeseilanden website has been further developed into a central hub with links to differentonline activities.Since September 2008 there is a new site mijnvredeseilanden.be for volunteers. Previously this waspart of the general Vredeseilanden website.Since September 2008, 340 unique visitors were counted for both sites. This is a significant increasewith respect to 2007. 269 daily visitors for the integrated site (volunteer pages included). Thesenumbers only apply on external visitors. Vredeseilanden employees are not included in thesestatistics.

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The multilingual, general website of Vredeseilanden has also been adapted on content level:* General information on the organisation (translation of basic texts, see above);* Short country or regional information, reference to VECO office sites;* Focus on a few cases;* Available in English, Spanish, and French.From now on, content on our South programmes is also provided by the communications staff at theVECO Offices.

A sustainable chain, from farmer to supermarketIt is evident that companies, traders, processing industry and wholesalers have a crucial respon -sibility. If they really want to be socially responsible entrepreneurs, of course they have to befinancially viable, but they also have to watch over a socially and ecologically sustainable agri -culture. It is crucial that farmers, the first link in the chain and producers of food, get the place theyare entitled to. They have to make sure farmers receive a fair salary and are able to farm in goodcircumstances.

In Flanders, Vredeseilanden is working on the analysis and development of sustainable agriculturalchains in cooperation with distribution chains.Vredeseilanden also launches projects to stimulate a favourable political and economic environmentbased on their own practice on sustainable agricultural chains. This is organised, among others,through multi-stakeholder platforms (cf. Kauri), exchanges, colloquia, campaigns...On the other hand, a lot of attention goes to projects that stimulate the purchase behaviour ofconsumers for the benefit of products from sustainable agriculture.

Fair Trade TownsFair Trade Towns (FTT) capitalizes on the availability and purchase of sustainable products from fairtrade and sustainable agriculture. In 2008, 37 new towns registered for the campaign. This bringsthe total number of towns to 173 (end 2008). In 2008, 21 towns received the FTT title, bringing thetotal number of towns with the title to 62 by the end of 2008.

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A comparison between towns with and without title, illustrates the impact of the campaign. Titletowns have convinced three times more local actors than towns without the title. With peaks of10 times more catering businesses, 7 times more schools and 6 times more companies. In title towns,inhabitants can shop, on average, in more than 11 shops and 7 catering businesses. The campaignhas reached three kinds of shops: world shops (15%), supermarkets (39%). The remaining 46%consists of local shops, bakers, butchers, liquor stores, biological shops...The numbers on product sales are not yet available.Vredeseilanden is represented in the national steering group and receives the mandate to elaborateinitiatives, tools... that support criterion six.

• 18 new towns have paid attention to criterion 6: Aalst, Alken, Balen, Brecht, Izegem, Middelkerke,Nijlen, Overpelt, Rotselaar, Sint-Truiden, Vorselaar, Edegem, Haacht, Mol, Grobbendonk, Riemst,As, Diksmuide.

• Sint-Truiden has brought 3000 bottles of local fruit juice into 14 shops. With bell ringing to theshop with a stamp on a savings card at the purchase of sustainable products.

• Healthy, local snacks during the municipal sport weeks in Brecht.• Leaflets on local producers in Aalst, Bierbeek, Haacht and Holsbeek.• In Koksijde, all town employees receive a bio package for secretary day.• In Rotselaar, the inhabitants get to know ‘the juice from here and the juice from there’.• In Kasterlee, all newlyweds receive a basket with biological vegetables and fruit.• In Nijlen, all members of youth associations, on the youth association day, receive a fair and local

breakfast.• Food teams in at least 7 towns: As, Eeklo, Ieper, Sint-Truiden, Riemst, Grobbendonk and Maldegem.

In Bornem and Wijnegem, the sales of biological vegetables and fruit started through subscriptionsin local shops.

Knowledge transfer and policy influencingVredeseilanden is an organisation that implements its programs in the South through the activepresence of programme teams. The role of these teams is to enable farmer organisations and theirmembers to take control of their own future. This takes place in close collaboration with other(strategic) actors: local service NGOs, public sector, private sector and other international colla -boration organisations and institutions.

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This enabled Vredeseilanden to gather thorough knowledge on the processes that take place at thebase. This knowledge is constantly being translated into advocacy, to influence policy makers andthe public. This forms the base of the unique Vredeseilanden approach: positive advocacy for policychange for the benefit of an innovative and favourable policy context, instead of negative advocacyto maintain the current (or even lost) policy context. In Flanders, this has lead to a large and verypositive support Vredeseilanden can count on year in year out.

The specialisation of Vredeseilanden in terms of sustainable agriculture and chain development is aguarantee to generate elaborate knowledge. This specialisation is also the reason why the differentprogrammes generate high quality results; because we only focus on our main themes.

A successful campaign at the occasion of the food crisisSince a few years, Vredeseilanden is making an effort to put food security and sustainable agriculturehigher on the Belgian political agenda. In 2007-2008, there was a strong investment in the multi-stakeholder dialogue with different actors in the Belgian development cooperation. When in thespring of 2008 the food crisis broke out, Vredeseilanden decided to launch a mini campaign on theWorld Food Summit of the FAO in Rome, to ask to put into action policy recommendations discussedduring the multi stakeholder dialogue, and to sensitize the public opinion on the food crisis, thecauses and the possible solutions.

Vredeseilanden wrote a MO* paper (‘Who starts a real green revolution’) to deliver the necessaryargumentation that more investments in sustainable agriculture are necessary to solve the foodcrisis. This paper was published in June 2008. Argumentation was also gathered in our differentcountry offices. Vredeseilanden took the initiative to elaborate, with other Belgian NGOs, environ -mental and farmer organisations, a joint position on the solutions for the food crisis.This joint position was largely communicated and discussed with the DGDC administration, theMinistry of Development Cooperation and members of parliament. Through the agriculture platform,a preparative consultation took place on the Belgian position at the FAO World Food Summit.

Vredeseilanden was also member ofthe Belgian delegation which travelledto Rome. This way, we participatedin the Belgian positions. MinisterCharles Michel promised to increasethe budget for agriculture in theBelgian development cooperation to10% by 2010 and 15% by 2015.Vredeseilanden has also stimulatedother countries to do the same and toput emphasis on family agriculture.

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With a letter, the Ministry of Foreign Affairs was asked to give the necessary attention to the foodcrisis (in the framework of the Doha development round and negotiations on bilateral free tradeagreements).Flemish and federal parliament members were also sensitized on the thematic through letters,information transfer, informal contacts... Through the Flemish Parliament members and the fractioncollaborators in the Chamber and Senate, we have pleaded for a resolution on how to tackle the foodcrisis and have delivered successful input.

In order to also reach the larger public opinion, an advertisement at the occasion of the world foodsummit was elaborated and published in three Flemish newspapers (De Standaard, De Morgen and DeTijd). Our opinion articles were published several times in newspapers and on websites. A cheerfulfilm was also made and spread through different digital media and channels.

Through these actions, Vredeseilanden has contributed to put the food crisis on the political agendaand to bring this theme into the media. Our publications and political actions give Vredeseilandenfurther authority on the subject (for example, requests to participate in debate).

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THE PEOPLE BEHIND VREDESEILANDEN

General Assembly: the general assembly is composed of some 70 stakeholders. These are volunteers,experts, members of the Board and former employees. The list of members of the General Assemblycan be requested from Vredeseilanden or can be consulted on our website www.vredeseilanden.be/mensen/algemenevergadering.

The general assembly is the highest organ. It designates the Board and approves the annualaccounts and the report.

Board: Leen Bas, André De Smedt, Patricia Grobben, Marleen Iterbeke, Roosmarijn Smits, Alfons Vaes,Jan Van Eeckoute, André Van Melkebeek, Annelies Van Raemdonck.President of the Board: Alfons VaesMore on the members of the Board: www.vredeseilanden.be/mensen/raadvanbestuur.

The Board is responsible for the general management. The operational responsibilities aredelegated by the Board to the direction of the organisation. The president and all board membersare volunteers. They are not paid for their mandate and don’t have an executive function in theorganisation.

Personnel Head office: the list of Vredeseilanden collaborators is published on the Vredeseilandenwebsite. (www.vredeseilanden.be/mensen)

Personnel Regional offices: regional offices for each region/country: Amidou Diallo – Togo/Benin;Jan Dewaal – Eastern Africa; Rogier Eijkens – Indonesia; Sandra Galbusera – Middle America; StuartLing – Laos; Hanneke Renckens – Andes; Liesbeth Van Brink – Vietnam; Roos Willems – Senegal.

Vredeseilanden is represented in the following organisations:Coprogram: Vredeseilanden is member of the Board11.11.11: Vredeseilanden is member of the BoardKauri: Vredeseilanden is member of the BoardAlterfin: Vredeseilanden is member of the BoardMo* magazine: Vredeseilanden is member of the Board

THE ORGANISATIONALSTRUCTURE OFVREDESEILANDEN vzw

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SOCIAL BALANCE (AS OF 31/12/2008)

In this rubric, we give some numbers and explanation with respect to the Vredeseilanden personnel(situation on 12/31/2008).

Head officeThe number of members of personnel and full-time equivalents went up slightly. The increase wascaused by:• Recruitments in case of periodical projects in different services • Replacements during maternity leave, time credit and sick leave• Recruitments in the framework of some new functions

Cooperatives (in the South)Cooperatives are mainly used for the following functions:• Responsible persons of Vredeseilanden in the country or the region• Specific expertise: marketing, access to markets and development of sustainable chains, content

program coordination, knowledge management, sustainable agriculture, organisational reinforce -ment

• Communication and networking

Local collaborators (in the South)In case of a vacancy, we look in the first place for local collaborators. Only if a certain experienceis not present in the country, we consider hiring (again) a cooperative for these functions. Theexpertise is more and more available in the countries where we are working and the knowledgeof these local people is getting more and more important. Gradually, we will look for foreigncollaborators in the large region in the South and not focus on recruiting European cooperatives.

In 2008, 61% of the Vredeseilanden personnel consisted of local collaborators.

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number of members of personnelHead office South Total

Cooperatives Local collaborators2005 41 16 107 1642006 44 16 1241 1842007 45 17 1302 1922008 51 15 103 169

number of full-time equivalentsHead office South Total

Cooperatives Local collaborators2005 34,24 16 -2006 34,50 16 -2007 36,96 17 1302 183,962008 42,59 15 103 160,59

1 Except for Congo and Tanzania: no data available from external audit report.2 Data from external audit report, Congo is estimated because of the absence of an audit report.

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Gender balanceFor the head office, the decreasing tendency for the number of men is continuing: 33%.17 men and 34 are employed. Of the men, 15 are full-time employees, 2 part-time. For the women,21 part-time and 13 full-time.

In the South, more men than women are employed: 68% (80 men, 38 women)

Head office South offices

The salary equity between men and women is 100%. Men and women receive the same salary if theyhave the same function. This applies on the head office, cooperatives and local collaborators.

Personnel turnover

The number of recruitments and resignations in Belgian in 2008 was mainly caused by to temporarymissions and replacements: 6 replacements for maternity and sick leave, 2 temporary assistants.Some new recruitment took place, in the framework of the new Vredeseilanden objectives:• PLA coordinator• SACD specialist• Collaborator communication service• Collaborator campaign work• General Director

For the cooperatives:• In order to meet the new objectives of Vredeseilanden, 2 SACD collaborators and 1 OSID collabo -

rator were hired• 2 collaborators were at the end of their contract

For local collaborators:• The entrances into office and resignations mainly took place in the current regionalisation

processes, the transfer from country offices to regional offices.

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Head office SouthCooperatives Local collaborators

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Learning organisationVredeseilanden strives to give its employees at all levels in North and South, individually andcollectively, permanent opportunities to develop themselves. Vredeseilanden wants to be a flexibleorganisation, where people adapt to new ideas and objectives of the organisation and where mutuallearning is stimulated. ‘Learning’ is therefore explicitly taken up as an objective in the strategic plan.

In 2008, Vredeseilanden has spent 92,910 Euro in training for collaborators of the head office andcooperatives.26,745 Euro was allocated for managing employees, 66,165 for the training of non-managingemployees.

On average, 1,400 Euro is spent for each employee (head office and cooperatives) on training.

The majority of the training can be classified in the following themes:• Workshops organised by Vredeseilanden: PLA, SACD• Chain development• Sustainable alimentation• Language training• Training on fundraising• Organisational reinforcement• Other

Every year, an evaluation meeting is organised with every employee. During this conversation, thegeneral and function-related competences and annual objectives for the following year are exten -sively treated. It is also evaluated whether training is necessary to acquire/reinforce the necessarycompetences to realise the annual objectives.

Social consultationVredeseilanden employs less than 50 employees in the head office and is therefore not obliged toinstall a works council or a union representation.2 official personnel representatives are appointed in the personnel meeting, of which 1 unionrepresentative.

The personnel representatives organise personnel meetings. Personnel meetings are summoned 3 to4 times a year. In 2008, 4 personnel meetings were organised.In 2008, one specific consultation was organised during the preparation of a new system forevaluation meetings.On the initiative of the personnel representatives, regular briefings were organised on the differentsteps of the Organizational Capacity Assessment (see also page 9).

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The environmental policy of Vredeseilanden fits in the framework of a global sustainability andaccountability policy. This implies that, next to the financial – economic aspects of the organisation,we also render accounts on the social dimension and the environmental impact of our organisation.

Vredeseilanden is engaging to minimise the direct and indirect consequences of its activities on theenvironment.

In order to realise this policy, Vredeseilanden will develop an action plan in a number of domains:• The direct environmental effects of the head office in Leuven• The direct environmental effects of the country and regional offices• The indirect environmental effects of the North and South programmes

This action plan contains an analysis of the beginning situation, the objectives, the annual actionsto reach these goals and an annual internal audit to check the realisation. The action plan andrealisations will be published every year.

The direct environmental effects relate to the transport, waste production and use of water, energy,paper by the organisation.In order to limit the direct environmental effects:• The Vredeseilanden personnel will be stimulated to maximally use public transportation or an

environment friendly means of transport;• The waste production will be maximally limited by prevention and recycling;• A minimum consumption of water, energy, paper and office materials is pursued;• Ecological consumption is stimulated by using a maximum amount of biological, fairtrade and

ecological products.

The indirect environmental effects of Vredeseilanden mainly relate to the effects caused by theactivities of the South programme. The direct environmental effects generated by the execution ofour development programmes are therefore limited to a maximum. This includes minimising the waterconsumption for irrigation, limited use of harmful fertilizers and pesticides, the fight against soilpollution or impoverishment, the reduction of energy consumption for production and transport ofagricultural products, etc.

The implementation of the action plan is planned as follows:• In 2007, the measurement was launched of the direct environmental effects of the head office. At

the same time, an action plan on the direct environmental effects of the head office was drawnup for 2008.

• In this annual report, the results of 2007 and 2008 are mentioned next to each other. Somepositive evolutions are already noticeable. An action plan has been elaborated for 2009.

• To measure the indirect environmental effects, a screening tool was developed in collaborationwith external experts and other development organisations.

• The country and regional offices are stimulated to develop an action plan in 2009 for the directand indirect environmental aspects and to start as from July 2009 with measurements to obtain abeginning situation.

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Environmental realisations head office

Vredeseilanden is member of the climate coalition. The climate coalition is an association of differentorganisations that trying to limit their CO2 emission.Vredeseilanden engages to measure the CO2 emission and to take measures to limit the emissions inthe future.

The under-mentioned data relate to activities of the Vredeseilanden head office. In the course of2009, a registration system will be but at the disposal of the regional offices.

realisation 2007 realisation 2008PAPER

Total purchase of A4 paper / year (pages) 262,500 175,000Total purchase of A4 paper for each person / year (pages) 6,500 3,431Part of recycled A4 compared to white paper 100% 100%Total purchase A4 paper / year for mailings (pages) 1,588,000 1,448,300

The main part of the paper purchase is used for mailings tosympathisers. We try to limit this. The paper use in number ofpages decreased, among others, because all old printers weresubstituted by new two sided printers.

OFFICE SUPPLIES

Amount of ecological office material compared to the total 43% 41%

Planned actions in 2009:– Collaborate with suppliers with a large offer of ecological

and sustainable office material.– At the purchase of office material for workshops, a maxi -

mum of ecological material will be bought.

FOOD PRODUCTS

Amount of food products with label Bio guarantee compared to the total purchases 38% 40%

Amount of Fair Trade purchases compared to the total purchases 23% 21%

Amount of purchases with the label Bio guarantee + Fair Trade label 17% 26%

If a food product is offered in a variant with the label bio orFair Trade, we choose to buy the labelled variant.87% of the food products that are purchased have a bio orFair Trade label.

Planned actions in 2009:– Transition to food products with a label, if this did not yet

take place.– At the purchase of food products for events, we will buy a

maximal quantity of labelled products.

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realisation 2007 realisation 2008MAINTENANCE PRODUCTS

Amount of purchases ecological maintenance products compared to the total purchases 80% 83%

All bought maintenance products are Ecover, except for airfresheners, toilet products... for which it is very difficult tofind an ecological alternative.We continuously evaluate whether we can switch certainproducts for an ecological variant.

WATER

Annual consumption in m3 274 252m3/person/year 6.09 4.94

ENERGY

ElectricityKwh/person/year 608 528Heatinggj gas/person/year 1,621 1,564

Since 2005, Vredeseilanden is using green electricity.In 2007, double glazing was installed everywhere where thiswas not yet the case, reducing consumption.

Planned actions in 2009:– Participation in the “thick sweater” campaign– During the year, some sensitisation messages will be spread

on careful use of heating.

WASTE

Quantity of waste per person each year (in kg) 18 4Quantity of PMD waste per person each year (in kg) 0.8 0.7Quantity of paper waste per person each year (in m3) 0.9 0.8Quantity of vegetable, fruit and garden waste

per person each year (in kg) 9.9Quantity of drink packaging with deposits with respect

to the total purchases of bottles 95% 95%

A feasibility study was done to evaluate whether compostingwas possible and how. The conclusion was that compostingwas not realistic. Our alternative was to choose for separaterecycling of vegetable, fruit and garden waste.Because of this separate recycling since 2008, the quantity ofrest waste for each person decreased drastically.

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realisation 2007 realisation 2008MOBILITY

Professional work transfers: part of public transportation 9% 18%Work transfers: part in km with trains, busses, bicycles

of by foot 70.22% 89.55%Plane travels: km/year 669,905 413,530Recalculation plane travels in CO2 emission:

kg CO2 emission/year 227,600 140,850

A service bike is put to the disposal of collaborators.

Planned actions for 2009:– From the 1st of January 2009, Vredeseilanden pays the

home-work transport with public transportation for 100%.This way, we hope to encourage more people to use publictransportation.

– Every year, we participate in the campaign “I Kyoto”.

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55

1. INTRODUCTION

When we speak about Vredeseilanden’s financial report, we refer to the head office and to thedifferent overseas offices in the countries where we are active. In order to present a correct imageof Vredeseilanden we have endeavoured to provide overall figures for the entire group over the pastfew years. This is the integrated profit & loss account and balance sheet.

The integration of the figures is complicated, since it requires a uniform reporting method from allcountries. These reports are sent to head office and verified by the financial department. All officesare then visited by local auditors from the international audit firm Ernst & Young, who write reportson their findings. Finally, Vredeseilanden vzw’s statutory auditor, Mrs. Vandeurzen, draws up her finalreport after having read the different local reports and after having checked head office’s accounts.

Last year, we managed to present a reliable integrated report on all countries, except DR Congo. Thisyear, we have managed to organise an Ernst & Young audit in DR Congo as well.

For the first time we are now able to present a full overview of the entire Vredeseilanden group, theresult of many years of hard work.

The financial reports consists of 3 parts: the profit & loss account, the balance sheet and thestatutory auditor’s report. The balance sheet is an overview of Vredeseilanden’s possessions and debtson the final day of the year under report. The profit & loss account lists all of the organisation’sexpenses and revenue over 1 year. The statutory auditor’s report contains an independent opinion onthe reliability of the figures in the previous two parts.

Apart from the integrated balance sheet and profit & loss account for the entire organisation ofVredeseilanden we also include a detailed profit & loss account for the head office.

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2. PROFIT & LOSS ACCOUNT

2.1. Integrated Profit & Loss Account

2.1.1. Expenses

SERVICES AND MISCELLANEOUS GOODS (61 ACCOUNTS)These are operating expenses for both the head office and the country offices.

REMUNERATIONS, SOCIAL CHARGES AND PENSIONS (62 ACCOUNTS)This is the overall wage expenditure for all staff members, for the staff at the head office in Leuven,for the expatriates and for local staff.

DEPRECIATIONS AND PROVISIONS (63 ACCOUNTS)Depreciations are the impairment charges on investments in the current fiscal year. All theinvestments in the country offices are completely depreciated in the year in which they arepurchased. In the head office investments are depreciated over several years, following thedepreciation terms as determined by the Board of Directors.

During the year 2008, we managed to take back several important provisions for risks and expenses,and very few new provisions were made.

OTHER EXPENSES (64 ACCOUNTS)The main element of this account are the money transfers to the different partners in the South (forthe country offices), and a number of direct payments to international cooperation structures (forthe head office).

2.1.2. Revenue

MEMBERSHIP FEES, DONATIONS, LEGACIES AND SUBSIDIES (73 ACCOUNTS)In the integrated profit & loss account all of the organisation’s regular revenue is mentioned underthis heading. Most revenue for the countries is collected through head office. However, a number ofsmaller deposits by foundations or subsidisers enter the countries directly without passing throughhead office. More explanation on the revenue is to be found under 2.4.2. Overview of the head office’srevenue.

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2.2. Analytic profit & loss account Head Office

As opposed to the figures of the integrated profit & loss account we have divided head office’sexpenses per department. The advantage is that we can thus clearly demonstrate how much isactually spent on operating each department and – more specifically – on general management,fundraising and the realisation of our objectives.

The result for head office is –184,618 EUR. According to budget we should have reached a result of–790,000 EUR. That loss was supposed to be settled by the investment fund, after which thebudgeted result should have been break-even. Following the approval of the General Assembly thefinal result will be settled with the investment fund.

The reasons for this substantial difference are the following:

• We notice that several departments have not fully spent the budgeted amount. The mostremarkable are:•• Fundraising•• North programme•• Coordination of the programme expertiseThe main reason is undoubtedly the restructuring (OCA) that was completed throughout 2008 andthat caused a significant delay in the execution of several actions.The expenses for the investment fund were also only realised for little over fifty percent.

• Globally speaking, the revenue falls below budget, more specifically private contributions and thecontributions from NGOs, foundations and companies. The subsidies also fell below expectations,which can be explained by the fact that, due to the lower expenses for the north programme, partof the DGDC subsidies that were attributed to this had to be transferred to the following year.

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RESULT 2008 compared to Budget 2008 and Result 2007

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EXPENSES RESULT 2007 BUDGET 2008 RESULT 2008 RES/BUDGET 08GENERAL MANAGEMENT

Direction and executive bodies 314,197 320,493 335,082 4.55%HR 147,751 118,480 177,194 49.56%Finances 403,066 427,633 343,315 -19.72%Internal communication 280,256 200,342 249,050 24.31%Secretariat 139,505 153,737 144,580 -5.96%

TOTAL OVERALL MANAGEMENT 1,284,775 1,220,686 1,249,221 2.34%

FUNDRAISINGFundraising 330,864 251,833 210,592 -16.38%January Campaign 194,813 338,268 354,043 4.66%

TOTAL FUNDRAISING 525,676 590,101 564,635 -4.32%

PROGRAMMES

NORTH PROGRAMMEProgramme North 400,923 336,767 -16.00%Social basis

638,837187,678 169,341 -9.77%

TOTAL NORTH PROGRAMME 638,837 588,601 506,107 -14.02%

COORDINATION OF THE PROGRAMME EXPERTISEAdvocacy 581,847 479,897 408,458 -14.89%SACDCredit – Learning – PLA

317,219 372,895 245,933 -34.05%

Strategic Alliances 75,748 82,910 76,497 -7.73%External Communication for programmes 164,145 49,104 -70.08%

TOTAL COORDINATION OF THE PROGRAMME EXPERTISE 974,814 1,099,847 779,993 -29.08%

SOUTH PROGRAMMEPM AfricaPM Amerasia

325,000 373,364 362,811 -2.83%

Expatriates 799,068 1,210,783 844,441 -30.26%Countries/regions

West-Africa 1 (Benin, Togo) 857,154 845,509 828,679 -1.99%West-Africa 2 (Senegal, Gambia) 493,181 285,626 333,870 16.89%East-Africa (Uganda, Tanzania, DR Congo) 2,267,558 2,869,446 2,586,743 -9.85%Vietnam 268,198 274,114 309,077 12.75%Laos 268,027 229,726 230,835 0.48%Indonesia 1,061,532 1,041,198 1,210,430 16.25%Central America (Nicaragua, Costa Rica, Honduras) 1,026,661 994,949 932,823 -1.28%Andes (Ecuador, Peru, Bolivia) 651,683 655,450 730,134 11.39%Other 10,593 18,901

6,904,587 7,146,018 7,181,491 0.50%

TOTAL SOUTH PROGRAMME 8,028,655 8,730,165 8,388,742 -3.91%

TOTAL EXPENSES 11,452,757 12,229,400 11,488,698 -6.06%

Overflowing accounts 487,881 1,000,000 287,365 -71.26%

TOTAL CURRENT EXPENSES 11,940,638 13,229,400 11,776,063 -10.99%

EXPENSES FOR THE INVESTMENT FUND RESULT 2007 BUDGET 2008 RESULT 2008 RES/BUDGET 08OCA Direction/BoD/GA/Executive bodies 14,392 66,420 46,081 -30.62%Competence development HR Department 2,047 75,000 -100.00%Brand building Communication 66,774 52,500 34,584 -34.13%Extra fundraising actions Fundraising 67,174 265,700 147,430 -44.51%Supermarket action Campaign 18,856 27,000 12,339 -54.30%Culture Youkali Strategic Alliances 50,000 25,000 -50.00%Innovation project Programme North 19,287 35,088 1,798 -94.88%Structural adjustments South Country programmes South 111,305 221,000 134,881 -38.97%TOTAL EXPENSES FOR THE INVESTMENT FUND 299,835 792,708 402,112 -49.27%

OVERALL TOTAL EXPENSES 12,240,473 14,022,108 12,178,176 -13.00%

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REVENUE RESULT 2007 BUDGET 2008 RESULT 2008 RES/BUDGET 08GOVERNEMENT SUBSIDIESEU

Project financing 220,384 67,583 105,872 56.65%

DGOSNorth Programme 617,832 921,768 800,057 -13.20%South Programme 4,629,719 4,563,480 4,563,480 0.00%Structural expenses 635,680 301,140 301,140 0.00%

Belgian Survival Funds – North 173,914 100,000 120,764 20.76%Belgian Survival Funds – South 1,299,522 1,551,234 1,281,186 -17.41%

Food aid 600,000 500,000 -16.67%

Other federal authorities 30,000Flemish Community 6,380 0 7,460ALDO/ALT (Administration Agriculture and Horticulture) 57,682 32,800 65,880 100.85%National Lottery 4,435PROVINCES

West Flanders 5,315 42,100 35,701 -15.20%Limburg 7,350 0 7,350Antwerp 10,000 13,000 13,457 3.51%East Flanders 176,062 140,000 206,543 47.53%Flemish Brabant 57,859 76,000 88,566 16.53%

COMMUNES AND CITIES 70,324 50,000 83,312 66.62%

REMUNERATION SUBSIDIES (Maribel, Gesco, DAC) 125,454 114,440 140,514 22.78%

TOTAL GOVERNMENT SUBSIDIES 8,123,477 8,573,546 8,325,715 -2.89%

REVENUE FROM NGOs, FOUNDATIONS AND COMPANIES11.11.11 304,308 280,213 282,892 0.96%FOUNDATIONS, NON PROFIT AND NGOs 761,791 1,350,226 1,124,509 -16.72%COMPANIES 25,000 11,100 30,000 170.27%

TOTAL REVENUE FROM NGOs, FOUNDATIONS AND COMPANIES 1,091,099 1,641,539 1,437,401 -12.44%

PRIVATE REVENUERUN TO AFRICA 100,507 100,000 111,063 11.06%DONATIONS 853,315 957,000 853,765 -10.79%LEGACIES 53,099 127,500 232,161 82.09%CAMPAIGN 795,466 756,000 636,808 -15.77%

TOTAL PRIVATE REVENUE 1,802,387 1,940,500 1,833,797 -5.50%

FINANCIAL + DIVERSE REVENUEINTERESTS 180,300 75,000 198,592 164.79%DIVERSE REVENUE 74,077 601

TOTAL FINANCIAL + DIVERSE REVENUE 254,377 75,000 199,193 165.59%

Overflowing accounts 1,010,299 1,000,000 144,996 -85.50%

OVERALL TOTAL CURRENT REVENUE 12,281,639 13,230,585 11,941,103 -9.75%

RESULT OF THE FISCAL YEAR 41,166 -791,523 -237,073

Result after withdrawal from investment fund 341,001 1,185 165,040 *

ANNUAL FINANCIAL REPORT 2008

* The result of 165,040 EUROS will be integrated into the balance sheet.

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2.2.1. Analysis of the expenses and revenue

2.2.1.1. Oversight of the expenses

General managementGeneral management expenses are the operational and staff expenses for supporting departments inthe head office (secretariat, staff, finances, internal communication), for direction and for executivebodies. Our aim is to maintain this percentage at or below 10 %.

FundraisingFundraising expenses are staff and operational expenses for the January campaign on the one hand,and fundraising expenses throughout the year on the other hand. An important part of the fundraisingexpenses (especially for innovative initiatives) is financed from the investment fund. These expensesare taken into account for the calculation of the percentage of the expenses for fundraising.

Costs for the realization of the objectivesThese are the total expenses after deduction of the expenses for general management andfundraising. These expenses apply to both the North and the South part. The North part consists ofthe expenses for the actual North programme and the expenses for the coordination of the programmeexpertise (see chapter 3: Vredeseilanden in Flanders). The South part comprises the expenditure inthe different countries, as well as the expenses related to the support for the South programme inBelgium and expenses for the expatriates in the South. For a detailed overview of the activities inthe different countries, see chapter 2: The South Programmes.

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2008 2007General management 1,295,303 11% 1,150,640 10%

from the regular budget 1,249,221 1,134,201from the investment fund 46,081 16,439

Fundraising 724,403 6% 611,706 5%from the regular budget 564,635 525,676from the investment fund 159,768 86,030

Realisation of the objectives 10,158,470 83% 9,839,669 85%from the regular budget 9,962,207 9,642,303from the investment fund 196,263 197,096

Total 12,178,176 11,602,015

11%6%

83%General management

Fundraising

Realisation of theobjectives

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As of this year, this overview for the calculation of expenses for general management, fundraisingand realisation of the objectives also includes the figures of the investment fund. This means thatthe 2007 figures concerning expenses for general management and fundraising in this report do notentirely correspond to the 2007 figures as mentioned in the previous annual report.

2.2.1.2. Overview of the revenue

Vredeseilanden’s revenue can be divided into 4 major headings, which we will now briefly discuss.

Government subsidiesThis remains by far the most important source of revenue for Vredeseilanden. In absolute figures thisrevenue has steeply increased, although it has decreased in relative figures, which is a positiveevolution. Nevertheless, we failed to meet the budgeted amount. In last year’s report we alreadymentioned our aim to reduce the share of this revenue to below 70 % by 2010. In 2008, we madesome important steps towards this objective. Within this heading the federal Directorate General forDevelopment Cooperation (DGDC) remains by far the main source of revenue. Additionally, we receive(rather modest) subsidies from a number of lower authorities in Belgium and a very modest amountfrom the European Union.

NGOs, foundations and companiesThis source of revenue shows the most notable increase, both in absolute and in relative figures. Thisheading contains the allowances from a number of Belgian NGOs and foundations, of which 11.11.11is undoubtedly the most important, allowances from a number of NGOs and foundations from otherEuropean countries and a contribution from 1 Belgian company.

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Financing sources 2008 2007Government subsidies 8,325,715 70% 8,123,477 73%NGOs, foundations and companies 1,437,401 12% 1,091,099 10%Private revenue 1,833,797 16% 1,802,387 16%Financial revenue 199,193 2% 180,300 2%Total 11,796,107 11,197,263

16%

2%

12%

70%

Governmentsubsidies

NGOs, foundationsand companies

Private revenue

Financial revenue

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Private revenue

Next to government subsidies this heading is the 2nd most important source of revenue for Vredes -eilanden. It contains the donations that we receive throughout the year (standing orders, donationsafter mailings, ...), as well as the proceeds from the annual campaign and the Run to Africa. If welook at the evolution of that private revenue we notice an alternation between “better” and “worse”years.

The legacies are mentioned separately, due to their exceptional and unpredictable nature.

Financial revenueOf course not every euro that we receive is spent the next day, which is why we regularly invest cashsurplus in totally risk-free short-term schemes with a guaranteed interest rate. We ensure that allthese investments are as ethical as possible. Thanks to the extremely high short-term interest ratesin 2008 we amply exceeded the budgeted amount.

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0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

2.000.000

2004 2005 2006 2007 2008

Campaign

Donations

Run to Africa

2004 2005 2006 2007 2008Run to Africa 57,969 53,723 108,650 100,507 111,063Donations 809,282 1,078,667 795,529 853,315 853,765Campaign 534,862 694,854 636,336 795,466 636,907Total 1,402,113 1,827,241 1,540,515 1,749,288 1,601,735

Legacies 0 2,657,355 402,178 53,099 232,161

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3. BALANCE SHEET

Vredeseilanden’s balance sheet consists of 4 major headings, which we will now briefly discuss.

3.1. Fixed assets

Material fixed assetsFor the head office the main element in this heading is the building in the Blijde Inkomststraat thathouses Vredeseilanden’s offices. The fixed assets also comprise some smaller elements, such as ITequipment and furniture.For the regional offices this heading is empty. They rent their office space, and because of thesubsidy regulations the local investments are fully depreciated in the year in which the purchase ismade. That explains why they are not included in the balance sheet.

Financial fixed assetsThe most important element in this heading are our shares in Alterfin cvba, a cooperativeorganisation for credit loans to microfinancing institutions and fair trade organisations. It alsoincludes several deposits for lease contracts, mainly in the country offices.

3.2. Current assets

StocksThis heading contains the campaign materials that are stored in the head office. The value of thesestocks has increased sharply in comparison to last year.

Investments and liquid assetsOn the 31st of December, head office’s current and long-term accounts displayed a total amount of5,217,000 EUR, which was a lot less than on 31/12/2007. The main reason for that difference is thefact that DGDC still owed us an important part of the financing for the programme 2008 on 31/12,whereas in the past the DGDC subsidy had always been deposited in the course of the programmeyear. The balance for the programme 2008 was deposited in February 2009.

The bulk of our investments and liquid assets has been deposited into accounts at Triodos Bank,following the Board of Directors’ decision to invest as much money as possible in an ethical manner.However, we still depend on the traditional Belgian banks for our daily transactions, given the lackof a sound ethical alternative in that area.

You may notice plenty of liquid assets in some country offices. Most of them are resources that hadalready been transferred by the head office to be spent in the first months of 2009.

Overflowing accountsThis heading consists primarily of subsidies for the fiscal year 2008 that had not yet been transferredon 31 December 2008. The most important are: the balance of the DGDC 2008 programme financing,a pre-financed amount to Indonesia for the 2009 DGDC programme financing and several amountsfrom approved projects from the Belgian Survival Fund (BSF) that had not yet been transferred.

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3.3. Equity

Vredeseilanden vzw’s equity contains several elements:

* Situation before the ventilation of the result 2008

Association’s fundsThese are the association’s original funds, which remained unchanged.

Social fundThis fund was established by head office for payments to staff members in the event of a (partial)cease of activities. The amount was calculated a few years ago, based on actual termination fees.

Investment fundThe investment fund was created by the General Assembly several years ago. It wished to assign apart of the equity to specific projects, actions and activities that are not directly financed but thatallow us to improve our quality, both in the North and in the South. Every year a budget is presentedto the General Assembly, together with a report on the expenses of the previous year.

STATE OF AFFAIRS INVESTMENT FUND

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Budget Expenses Expenses Budget Expenses Available Requested Availabletotal 2006 2007 2008 2008 balance and balance

after transferred after2008 amounts 2009

for 2009

OCA 65,000 14,392 66,420 46,081 4,527 0 4,527

Competence development 180,000 2,047 75,000 177,953 145,000 32,953

Brand building747,500

66,774 52,500 34,584421,538

50,50097,384

Extra actions for fundraising 10,000 67,174 265,700 147,430 236,500

Major donor fundraiser 37,155

Supermarket action 100,146 31,146 18,856 27,000 12,339 37,805 0 37,805

Culture Youkali 100,000 25,000 0 50,000 25,000 50,000 25,000 25,000

Innovation project 100,000 19,287 35,088 1,798 78,915 28,260 50,655

South Studies 127,500 94,785 — 0 32,715 0 32,715

Structural adaptations 217,500 16,520 221,000 134,881 66,099 108,000 -41,901

Environmental actions — 10,000 -10,000

Development and supervisionHR manuals RO — 38,257 -38,257

Not yet allocated 262,354 262,354 0 262,354

TOTALS 1,900,000 66,146 299,835 792,708 402,112 1,131,907 678,672 453,235

Equity Head Office Amounts in euroAssociation’s Funds 1,472,888Investment Fund 1,539,078Opportunity Fund 200,000Social Fund 1,174,999Transferred Result 933,350TOTAL 5,320,314*

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The amount that was spent in 2008, which totalled 402,112 EUR, will be deducted from the equityfollowing approval by the General Assembly.

Some overseas offices own some equity, which is the result of accumulated local revenue (notsubsidies) from the past.

3.4. Provisions

This heading contains a number of provisions for social and fiscal disputes in a few countries, as wellas an important provision for subsidies to be returned to the European Union and the Belgian federalgovernment (DGDC). Finally, there is a small provision for major repair works to the building inLeuven. The provisions are substantially lower than previous years, mainly because in the past somerisks were overestimated or did not occur at all.

3.5. Debts

If we compare the debts to the balance sheet total we notice that they are limited. The head officehas some debts to suppliers and a number of social debts. Most country offices also have debts tosuppliers or social debts. Vredeseilanden does not have any current loans.

3.6. Overflowing accounts

These are the subsidies that had not been spent by the 31st of December and were thus transferredto 2009. It involves both DGOS programme financing and BSF financing.

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Annex a: CONSOLIDATED PROFIT & LOSS ACCOUNT

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INTEGRATED HEADTOTAL OFFICE

2008 2008

Codes Euro Euro

I Operating income 70/74 11,620,762 11,742,510

D. Membership fees, donations, legacies and subsidies 73 11,527,472 11,661,068

E. Other operating income 74 93,290 81,442

II Operating charges 60/64 11,924,490 12,169,076

B. Services and other goods 61 3,546,875 1,661,423

C. Remuneration, social security costs and pensions 62 4,202,241 3,004,645

D. Depreciation of and other amounts written off on formation expenses,

intangible and tangible fixed assets 630 230,267 42,758

F. Increase (+); Decrease (–) in provisions for risks and charges 635/8 -178,329 -174,784

G. Other operating charges 640/8 4,123,436 7,635,035

III Operating profit (+) 70/64 0

Operating loss (–) 64/70 -303,728 -426,566

IV Financial income 75 282,438 198,592

B. Income from current assets 751 226,712 198,573

C. Other financial income 752/9 55,726 19

V Financial charges 65 9,188 9,099

C. Other financial charges 652/9 9,188 9,099

VI Profit on ordinary activities 70/65 -30,477 -237,073

Loss on ordinary activities 65/70

VII Extraordinary income 76 14,151

D. Gain on disposal of fixed assets 763 14,151

VIII Extraordinary charges 66 0

IX Profit of the fiscal year (+) 70/66 -16,327 -237,073

Loss of the fiscal year (–) 66/70

CTA to be incl. in fin. result (diff. average-closing rate on current year result) -148,219

CTA to be incl. in fin. result (diff. average-closing rate on current year result) -2,789

CTA to be incl. in fin. result (diff. average-closing rate on current year result) -116

Profit (+) / Loss (–) of the fiscal year* -167,451 -237,073

* The results of the regional offices are mainly caused by exchange rate fluctuations of the local currency unit.

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BENIN/TOGO SENEGAL TANZANIA UGANDA DR CONGO ANDES MESO- LAOS VIETNAM INDONESIAAMERICA

2008 2008 2008 2008 2008 2008 2008 2008 2008 2008

Euro Euro Euro Euro Euro Euro Euro Euro Euro Euro

696,872 321,002 755,654 761,884 754,663 626,337 965,883 232,903 316,185 1,050,389

696,872 321,002 753,165 761,884 754,663 626,235 957,777 231,752 316,185 1,050,389

0 0 2,489 0 0 102 8,106 1,151 0 0

696,872 321,000 701,384 755,184 764,967 628,900 923,461 241,548 322,903 1,003,272

176,300 109,425 484,532 245,039 71,032 90,274 143,217 188,074 126,614 250,945

161,173 103,786 121,831 232,330 33,672 120,846 103,438 50,914 121,154 148,454

30,608 5,045 95,021 35,575 2,960 1,196 2,377 1,215 1,987 11,525

0 0 0 0 0 0 0 0 9,718 -13,263

328,791 102,745 0 242,240 657,304 416,584 674,429 1,345 63,431 605,611

0 2 54,270 6,699 0 0 42,422 0 0 47,117

0 0 0 0 -10,304 -2,564 0 -8,644 -6,718 0

0 0 38,178 14,693 0 0 3,182 0 3,926 23,867

0 0 0 0 0 0 3,182 0 1,090 23,867

0 0 38,178 14,693 0 0 0 0 2,836 0

0 2 0 0 0 0 0 87 0 0

0 2 0 0 0 0 0 87 0 0

0 0 92,448 21,393 0 0 45,604 0 0 70,984

0 0 0 0 -10,304 -2,564 0 -8,731 -2,792 0

0 229 9,554 4,274 0 0 0 0 94 0

0 229 9,554 4,274 0 0 0 0 94 0

0 0 0 0 0 0 0 0 0 0

0 229 102,001 25,667 0 0 45,604 0 0 70,984

0 0 0 0 -10,304 -2,564 0 -8,731 -2,698 0

0 0 -52,727 -25,667 10,304 2,564 -43,697 8,731 0 -47,728

0 0 -1,893 0 107 369 1,925 0 0 -3,298

0 0

0 229 47,381 0 108 369 3,833 0 -2,698 19,958

ANNUAL FINANCIAL REPORT 2008

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Annex b: CONSOLIDATED BALANCE SHEET

68

ASSETS INTEGRATED HEADTOTAL OFFICE

2008 2008

Codes Euro Euro

FIXED ASSETS 20/28 484,210.55 469,059.01

I Formation expenses 20 0.00

II Intangible assets 21 0.00

III Tangible fixed assets 22/27 419,554.27 419,554.27

A. Land and buildings 22 384,799.10 384,799.10

1. In full property 22/91 384,799.10 384,799.10

B. Plant, machinery and equipment 23 33,735.60 33,735.60

1. In full property 231 33,735.60 33,735.60

C. Furniture and vehicles 24 1,019.58 1,019.57

1. In full property 241 1,019.57 1,019.57

IV Financial fixed assets 28 64,656.28 49,504.74

C. Other financial assets 284/8 64,656.28 49,504.74

1. Shares 284 44,027.08 44,027.08

2. Amounts receivable and cash guarantees 285/8 20,629.20 5,477.66

CURRENT ASSETS 29/58 8,756,514.05 6,684,632.72

V Amounts receivable after more than one year 29 81.71

B. Other amounts receivable 291 81.71

VI Stocks and contracts in progress 30 173,162.00 173,162.00

A. Stocks 30/36 173,162.00 173,162.00

4. Goods purchased for resale 34 173,162.00 173,162.00

VII Amounts receivable within one year 40/41 225,254.21

B. Other amounts receivable 41 225,254.21

VIII Investments 50/53 161,310.36 87,305.03

IX Cash at bank and in hand 54/58 6,801,945.39 5,130,178.96

X Deferred charges and accrued income 490/1 1,394,760.37 1,293,986.73

TOTAL ASSETS 20/58 9,240,724.60 7,153,691.73

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BENIN/TOGO SENEGAL TANZANIA UGANDA DR CONGO ANDES MESO- LAOS VIETNAM INDONESIAAMERICA

2008 2008 2008 2008 2008 2008 2008 2008 2008 2008

Euro Euro Euro Euro Euro Euro Euro Euro Euro Euro

13,607.23 1,544.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

13,607.23 1,544.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

13,607.23 1,544.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

13,607.23 1,544.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

402,074.61 45,059.25 507,052.04 299,966.91 156,839.13 113,687.65 164,541.86 39,224.80 51,979.41 338,169.92

0.00 0.00 81.71 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 81.71 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8,463.27 25,914.37 65,223.84 19,947.29 50,837.10 32,004.71 46,256.33 1,146.87 10,342.55 11,832.13

8,463.27 25,914.37 65,223.84 19,947.29 50,837.10 32,004.71 46,256.33 1,146.87 10,342.55 11,832.13

0.00 0.00 0.00 0.00 0.00 72,425.28 1,580.05 0.00 0.00 0.00

393,611.34 19,144.88 435,569.85 268,506.88 106,002.03 9,257.66 68,653.32 37,613.73 38,000.67 295,406.08

0.00 0.00 6,176.63 11,512.74 0.00 0.00 48,052.16 464.21 3,636.19 30,931.70

415,681.83 46,603.56 507,052.05 299,966.91 156,839.13 113,687.65 164,541.86 39,224.80 51,979.41 338,169.91

ANNUAL FINANCIAL REPORT 2008

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70

LIABILITIES INTEGRATED HEADTOTAL OFFICE

2008 2008

Codes Euro Euro

EQUITY 10/15 5,219,788.74 5,083,241.02

I Funds 10 1,472,888.17 1,472,888.17

A. Starting funds 100 1,472,888.17 1,472,888.17

IV Reserves 13 2,972,765.09 2,914,076.62

V Profit carried forward (+) 140 1,200,678.03 933,349.50

Loss carried forward (–) 141 -426,542.55 -237,073.27

PROVISIONS 16 739,515.47 666,986.10

VII A. Provisions for liabilities and charges 160/5 443,117.23 370,587.86

1. Pensions and similar obligations 160 70,935.07

3. Major repairs and maintenance 162 29,622.85 29,622.85

4. Other risks and charges 163/5 342,559.31 340,965.01

B. Provisions for revocable donations and legacies 168 296,398.24 296,398.24

CREDITORS 17/49 3,281,420.39 1,403,464.61

VIII Amounts payable after more than one year 17 4,698.70

B. Trade debtors 175 4,698.70

IX Amounts payable within one year 42/48 698,840.45 246,870.81

C. Trade debtors 44 349,421.46 246,870.81

E. Taxes, remuneration and social security 45 343,194.65

1. Taxes 450/3 63,175.63

2. Remuneration and social security 454/9 280,019.02 250,020.06

F. Other amounts payable 48 6,224.34

X Accrued charges and deferred income 492/3 2,577,881.24 906,573.74

TOTAL OF LIABILITIES 10/49 9,240,724.60 7,153,691.73

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BENIN/TOGO SENEGAL TANZANIA UGANDA DR CONGO ANDES MESO- LAOS VIETNAM INDONESIAAMERICA

2008 2008 2008 2008 2008 2008 2008 2008 2008 2008

Euro Euro Euro Euro Euro Euro Euro Euro Euro Euro

1,406.54 –43,463.83 72,001.03 0.00 1,974.04 8,744.19 47,535.36 0.00 944.14 47,521.83

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8,328.91 0.00 24,619.78 0.00 2.34 12,069.78 13,667.66 0.00 0.00 0.00

0.00 17,462.88 47,381.25 0.00 8,077.88 7,061.45 33,867.70 0.00 4,318.79 149,274.17

-6,922.37 -60,926.70 0.00 0.00 -6,106.18 -10,387.04 0.00 0.00 -3,374.65 -101,752.34

0.00 0.00 0.00 0.00 0.00 8,028.45 0.00 0.00 31,208.14 33,292.78

0.00 0.00 0.00 0.00 0.00 8,028.45 0.00 0.00 31,208.14 33,292.78

0.00 0.00 0.00 0.00 0.00 8,028.45 0.00 0.00 31,208.14 31,698.48

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,594.30

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

414,275.30 90,067.38 435,051.00 299,966.91 154,865.09 96,915.01 117,006.36 39,224.82 19,827.13 257,355.31

0.00 0.00 0.00 4,698.70 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 4,698.70 0.00 0.00 0.00 0.00 0.00 0.00

18,354.34 56,802.12 8,720.17 97,121.64 1,882.12 14,088.90 28,988.52 20,962.60 1,627.69 0.00

6,611.62 0.00 1,504.62 90,897.29 1,882.12 11,924.93 20,526.94 15,499.89 301.75 0.00

11,742.73 56,802.12 7,215.55 0.00 0.00 2,163.97 8,461.57 5,462.71 1,325.94 0.00

3,184.62 56,802.12 295.47 0.00 0.00 1,567.48 0.00 0.00 1,325.94 0.00

8,558.11 0.00 6,920.08 0.00 0.00 596.49 8,461.57 5,462.71 0.00 0.00

0.00 0.00 0.00 6,224.34 0.00 0.00 0.00 0.00 0.00 0.00

395,920.95 33,265.26 426,330.84 198,146.58 152,982.96 82,826.10 88,017.84 18,262.22 18,199.44 257,355.31

415,681.84 46,603.55 507,052.04 299,966.90 156,839.13 113,687.65 164,541.72 39,224.82 51,979.41 338,169.91

ANNUAL FINANCIAL REPORT 2008

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Annex c: STATUTORY AUDITOR’S REPORT

72

M. VandeurzenCompany reviser

REPORT OF THE COMMISSIONER TO THE MEMBER MEETING OF THEVZW VREDESEILANDEN

ON THE ANNUAL ACCOUNTS ON THE FISCAL YEAR CLOSEDON THE 31ST OF DECEMBER 2008

In conformity with the legal dispositions, we report to you in the framework of the mandate of thecommissioner. This report contains our judgement on the faithful image of the annual accounts andthe additional mentions and information.

Declaration on the annual accounts without reservations

We have executed the control of the annual account, of the fiscal year closed on the 31st of December2008, drawn up based on the accounting reference regime applicable in Belgium, with a balance totalof 9,240.725 EUR of which the results account is closed with a loss for the fiscal year of 167,451EUR.

The redaction of the annual account is the responsibility of the management organ. This responsibilityincludes the following aspects: putting in place, implementing and keeping an internal control withrespect to the redaction and faithful representation of the annual account that does not contain anyabnormalities of material importance, caused by fraud or errors; choosing and applying the properappreciation rules; making accounting estimations that are reasonable under the given circumstances.

It is our responsibility to give a judgement on these annual accounts based on our control. We haveexecuted our control in conformity with the legal dispositions and according to the control standardsapplicable in Belgium and issued by the Institute of Company Revisers. These control standardsrequire that our control is organised and executed in a way that guarantees a fair amount of certaintythat the annual account does not contain any abnormalities of material importance, caused by fraud orerrors.

In accordance with the above-mentioned control standards, we have taken into account theadministrative and accounting organisation of the association, as well as the procedures of internalcontrol. The responsible and the direction organs of the association have given us the necessaryclarifications and information. Based on random checks, we have examined the accountability of theamounts in the annual accounts. We have judged as a whole the justification of the appreciation rules,the fairness of the meaningful accounting estimations made by the association, as well as therepresentation of the annual accounts. In our opinion, these proceedings form a fair base for ourjudgment.

With respect to the expenses abroad, since the fiscal year 2006, the gradual integration of the countryoffices was launched (VECO Country Offices or VECOs) in the annual accounts of VredeseilandenVZW. The VECOs report according to a standard financial scheme. The audit of the VECOs and theconformity of their accounting with the standard financial scheme is performed by local audit officesof Ernst&Young under coordination of Ernst&Young Brussels.In 2008, 10 VECOs were integrated. For VECO Indonesia, VECO Laos, VECO Vietnam, VECOUganda and VECO Tanzania, a statement without reservation was delivered by the local Ernst&Youngoffice.

Maurits Noëstraat 59 [email protected] Vaalbeek VAT 639.276.322Tel/Fax 016 400812 Bank: 001-3276133-34

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ANNUAL FINANCIAL REPORT 2008

M. VandeurzenCompany reviser

VZW VREDESEILANDEN

For VECO Senegal, VECO Andes, VECO Togo – Benin, VECO Meso-America and VECO DRCongo, a statement with reservation was delivered. With respect to the formulated remarks, provisionswere foreseen and/or accounting corrections performed by the head office in order to offer a solutionfor the formulated reservations.

In our judgement, the annual accounts closed on the 31st of December 2008 give a faithful image ofthe capital, the financial situation and the results of Vredeseilanden VZW, in conformity with the inBelgium applicable accounting reference regime.

Additional statements and information

The respect by the association of the Law of the 27 of June 1921 on associations without profit aimand foundations, as well as the statutes, are the responsibility of the direction organ.

It is our responsibility to integrate in our report the following additional statements and informationthat do not change the reach of our statement on the annual account:

Without prejudice to the formal aspects of lesser importance, the accounting was performed inconformity with the in Belgium applicable legal and administrative legal prescriptions.

As well as in the preceding years, the actions of the local Vredeseilanden committees (inFlanders) are not integrated into the accounting of the association.

The comparative figures on 2007 were adapted with the figures of VECO DR Congo. Thesefigures were not integrated in 2007 because no audit took place. Meanwhile, this has happenedand the figures of 2007 have been adapted.

Otherwise, we don’t have to communicate any transactions or decisions that are in violationwith the status or the Law of the 27th of June 1921 on associations without profit aim andfoundations.

Vaalbeek, 3rd of June 2009

M. VANDEURZENCommissioner

Maurits Noëstraat 59 [email protected] Vaalbeek VAT 639.276.322Tel/Fax 016 400812 Bank: 001-3276133-34

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Annex d: LIST OF DONORS

74

Donor Amount

11.11.11 282,892.03

ALT/ADLO 65,880.00

Argus 10,000.00

Colruyt 30,000.00

Cordaid 380,325.00

DGDC BSF 1,402,194.91

DGDC Programme North 800,056.86

DGDC Programme South 5,013,906.26

DGDC Food aid 509,169.56

DKA 25,000.00

EU Project Financing 105,880.97

Towns and Communes 83,311.78

Gilles foundation 53,148.00

ICCO 166,000.00

Ileia 50,000.00

Salary subsidies 140,513.97

Misereor 237,314.00

National Lottery 4,434.92

Novib 100,000.00

Brot fuer die Welt 12,722.34

Province of Antwerp 13,456.50

Province of Limburg 7,350.00

Province of East Flanders 206,543.00

Province of Flemish Brabant 88,565.50

Province of West Flanders 35,700.59

Talita Koum 90,000.00

Flemish Community 7,459.93

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Annex e: LIST OF TOWNS

75

Town Amount

Aalst 6,046.15

Aartselaar 6,000.00

Antwerp 8,045.60

Bierbeek 1,300.00

Diest 3,000.00

Genk 1,096.85

Genk 819.57

Grimbergen 5,098.00

Halle 2,500.00

Hasselt 2,500.00

Hasselt 2,700.00

Hasselt 3,000.00

Herent 2,675.31

Herenthout 800.00

Heusden-Zolder 3,000.00

Holsbeek 1,200.00

Ieper 250.00

Lanaken 585.00

Lommel 1,144.12

Londerzeel 2,800.00

Maaseik 1,500.00

Maasmechelen 1,639.00

Malle 2,125.19

Malle 2,000.00

Mechelen 2,558.00

Mol 1,607.14

Oostende 3,540.60

Oud-Heverlee 1,700.00

Riemst 1,500.00

Schilde 2,500.00

Tessenderlo 2,000.00

Tienen 450.00

Waasmunster 125.00

Wichelen 431.25

Wommelgem 900.00

Zuienkerke 50.00

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Oversight of GRI reported on in this annual report

GRI-indicator Description Page

PROFILE OF THE ORGANISATION

1. Strategy and analysis

1.1 Vision and strategy on ST, MT and LT 3-4, 7-8

2. Organisation profile

2.1 Name of the organisation Colophon

2.2 Main products, brands and/or services 7

2.3 Operational structure of the organisation, incl. branches, departments... 47

2.4 Location of the head office Colophon

2.5 Number and name of the countries where the organisation is active 11-46

2.6 Property structure and legal form Colophon, 47

2.7 Markets (geografic, sectors,…) 11

2.8 Extent of the organisation (employees, turnover, own property, quantity of products and services) 47-50

2.9 Significant changes to the structure during the reporting period 9

2.10 Distinctions received during the period

3. Report parameters

3.1 Report period Colophon

3.2 Date of the preceding report Colophon

3.3 Reporting cycle Colophon

3.4 Contact for questions with respect to the report Colophon

3.5 Process followed to determine the report content Colophon

3.6 Delimitation of the report Colophon

3.7 Specific limitations for the reach of the report 52-53

3.8 Reporting on collaboration links and branches 47

3.10 Explanation on consequences of changes to information in preceding reports 55, 60

3.12 GRI content table

4. Good governance

4.1 Management structure of an organisation 47

4.2 Does the president also have an executive function within the organisation? 47

4.3 Number of independent directors 47

4.4 Possibilities for participation of employees, volunteers and stakeholders 50

4.14 Oversight of relevant stakeholders 41

4.15 Inventory and selection of relevant stakeholders 41

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GRI-indicator Description Page

PERFORMANCE INDICATORS

Environmental indicators

EN1 Materials used by weight or volume 52-53

EN3 Direct energy consumption by energy source 53

EN8 Total water consumption/source 53

EN22 Total weight of waste by type and disposal method 53

EN29 Significant environmental impacts of products and transportingof employees 54

Economic indicators

EC1 Direct economic value generated by the organisation 55-73

EC4 Significant financial assistance received from government 61

; Social indicators

LA1 Total workforce by employment type, employment contract and region 48

LA2 Total number and rate of employee turnover by age group, gender andregion 49

LA10 Hours of training per year per employee by employee category 50

LA14 Ratio of basic salary of men to women by employee category 49

Public policy

SO5 Public policy positions and participation in public policy developmentand lobbying 41-44

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COLOPHON

For general questions on this year report, please contact:Jo VermeerschHead of the Communication Department016/31 65 [email protected]

For questions on the financial report, please contact:Kris GoossenaertsHead of the Finances Department016/31 65 [email protected]

Vredeseilanden vzwBlijde Inkomststraat 503000 [email protected]

Vredeseilanden is member of 11.11.11, the umbrella organisation of the Flemish North-South movement.

This report treats the calendar year 2008. The previous report was on calendar year 2007. The reportsare drawn up every year and discuss the global activities of Vredeseilanden in Belgium and overseascountries as mentioned on pages 11-40, unless otherwise stated.

This report has been elaborated by a work group with representatives from the concerned depart -ments by authority of the direction.

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Vredeseilanden vzw | Blijde Inkomststraat 50 | 3000 LeuvenTel. 016-31 65 80 | info@vredeseilanden | www.vredeseilanden.be