CONTENTS. Introduction. Project # 1 4 Project # 3. Project # 2 6 Project # 4. Summary. Annex 1

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2 CONTENTS Introduction 3 Project # 1 4 Project # 3 8 Viche Area: Construction of water wells in various communities Qunindé Association: Football Classes for the Children from Disadvantaged Families Project # 2 6 Project # 4 10 Mompiche Area: Construction of the Court for Sport Activities Qunindé and Mompiche Associations Summary 12 Annex 1 Viche 12 Mompiche 12 Qunindé 13 Trabajadores 13

3 INTRODUCTION Extranatu is strongly committed to community development and social responsibility. The company is certified with the Fair for Life and Hand in Hand standards, which aim to improve the market access and better the living conditions of smallholder producers and workers on agricultural farms. In order to achieve this goal, both labeling initiatives provide several practical mechanisms. One of them is the Development Premium that is intended to finance sustainable social community projects. The Premium is paid in addition to the sales price by Fair Trade buyers and administrated separately in a special fund. The premium money is only used for the investment in social, environmental or economic development projects. The sale of FFL certified products to Natural Habitats customers began in Development funds started to be used as of In 2014, $ 46, was added to the FFL development account. - In 2015, the accumulated balance was $ 142, In 2016, the accumulated balance was $ 232, In 2017, the accumulated balance was $ 322, Through to September 2018, the total amount accumulated in the FFL account was $ 404, The distribution of FFL funds was made according to the standard, a process that was audited and approved by the certification agency. The following distribution method was decided: - 10% of the total for the association of workers of the company (Extranatu extractor). - The remaining90% is distributed among the associations of producers according to the number of members that each association has. In 2018, $81, were collected, which were distributed among four associations. As in other areas, the distribution was in accordance with the number of members per association. Starting in 2016, several FFL projects have already been implemented. The table below summarizes the remaining funds for each association at the end of 2017 and new available balance with consideration of funds collected in Balance by the End of 2017 New Balance Available in 2018 Quinindé Area USD 130, USD ,50 Viche Area USD 5, USD ,73 Mompiche Area USD 11, USD ,31 Worker s Association USD 2, USD ,46 Remaining Fund: USD ,04 USD The final decisions on the projects were made by the members of the associations. Finally, four projects were planned for this year. The summary of the proposed activities and the progress achieved is presented below. 3 Fair for Life and Hand in Hand Summary Report 2018

4 PROJECT # 1 VICHE AREA CONSTRUCTION OF WATER WELLS IN VARIOUS Funds Available: Viche association is a smallest among other farmer associations and has only three members. The total of funds available for the farmers in 2018 was USD ,73. Project Description: The producers proposed the construction of water wells that would supply communities that do not have potable water. At the moment, the local government is unable to help those areas due to the fact that there are not many inhabitants living in those communities. 4 Fair for Life and Hand in Hand Summary Report 2018

5 In February 2018, another well was planned to build with the help of Viche s farmer association. The representatives of the association and Extranatu met with the members of Tachina community to discuss the place and timeline for the construction activities. The works started in March. The transportation of the construction materials was difficult to access, but by October all the works were completed on 90%. Images below demonstrated the progress on the construction site: Table on the right summarizes the potential impact generated by the Project #1, which was initiated by the producer s association of Viche area. Communities benefited: 1 Total inhabitants benefited: 408 From which women are: 252 From which children are: 110 To date, with the help of this project, two wells were constructed in 2017 and the third well is currently being built. The total potential impact from the project is summarized in the next table. Communities benefited: 3 Total inhabitants benefited: 3,586 From which women are: Fair for Life and Hand in Hand Summary Report 2018

6 PROJECT #2 MOMPICHE AREA CONSTRUCTION OF THE COURT FOR SPORT ACTIVITIES Funds Available: The farmer association of Mompiche has 11 members and the total funds for the community projects amounted to 9% of total budget. In 2018, the association had USD ,31 available for the implementation of the community projects. Project Description: Farmers of Mompiche area decided to support the construction of the new sport court for the community. The new court has dimensions of 36x19 meters. The court has concrete cement structure and will be used as a court for volleyball and football. In 2017, Mompiche association has already supported the construction of the sport complex in the area. This project is intended to continue the promotion of sport activities in the communities and provide children with a suitable area for those activities. 6 Fair for Life and Hand in Hand Summary Report 2018

7 The project was completed in May 2018 and the court was open on 28th of May. After the official oppening ceremony, local children played a football match to test the new sport court, which was built for them. The pictures below are of the opening day. The table on the right summarizes the impacts generated by the Project #2, which was initiated by the producer s association of Mompiche area. Communities benefited: 1 Total number of beneficiaries: 3,137 Total number of women: 2,079 Total number of children: Fair for Life and Hand in Hand Summary Report 2018

8 PROJECT#3 QUININDÉ ASSOCIATION FOOTBALL CLASSES FOR CHILDREN FROM DISADVANTAGED FAMILIES Funds Available & Project Description: The Quinindé association is the largest among the farmer associations and has one hundred members. The total amount of funds available for the farmers in 2018 was USD ,5. Project Description: For a new Fair for Life project, the farmer association of Quinindé has decided to support young adults from poor backgrounds to attend special free training sessions at the local football school. The association will pay for a trainer to give these free sessions. The athletic club Quinindé is a professional soccer team belonging to the soccer association of Esmeraldas, located in the canton of Quinindé. However, it is not only a club that seeks to nurture the professionals of tomorrow, together with its players and community, but it is also a place where the youth of Quinindé can be engaged in positive activities and develop discipline. 8 Fair for Life and Hand in Hand Summary Report 2018

9 The association supports teenagers, who are talented, but unfortunately cannot access the existing football trainings because of economic reasons. The project is aimed at young adults between 12 and 14 years old, as this is the most decisive age when it comes to their future. The association has supplied the school with training uniforms, balls, signals, and other sports equipment, which they budgeted with the help of a Fair for Life fund money. The project mostly benefited boys, but also some girls participated. The summary of beneficiaries is presented in the table on the right: Communities benefited: 1 Total number of children benefited 160 From which girls are: 6 9 Fair for Life and Hand in Hand Summary Report 2018

10 PROJECT # 4 QUININDÉ AND MOMPICHE ASSOCIATIONS: ENVIRONMENTAL LICENSE FOR OIL PALM GROWERS In 2018, the associations of Quinindé and Mompiche decided to support small palm oil producers with obtaining Environmental Licenses, required by the government of Ecuador. Considering the environmental legislation is very strict in the country, some farmers struggle to comply with it due to limited resources. Therefore, farmer associations decided to help producers who cannot afford all the studies required by the Ecuadorian government in in order to obtain environmental license. In 2018, environmental licenses were obtained for 135 plantations. Total number of producers benefited Fair for Life and Hand in Hand Summary Report 2018

11 SUMMARY In 2018, Natural Habitats supported four associations in the organization of the four projects. The main areas of impact for the projects this year were infrastructure, water systems and support of smallholder farmers. The total number of potential beneficiaries of the projects is summarized in the table below: Communities benefited: 3 Total habitants benefited: 3,637 Total number of women: 2,331 Total number of children: 648 The table on the right summarizes the remaining funds available for each association for the next 12 months period: Quinindé Area USD 175, Viche Area USD 11, Mompiche Area USD 23, Worker s Association USD 14, Remaining Fund USD ,56 11 Fair for Life and Hand in Hand Summary Report 2018

12 ANNEXI Saldo Incial: VICHE $ 15, BENEFICIARIO DETALLE FECHA DE PAGO Angulo Borja Angel Compra de materiales de construccion para un pozo de agua en el recinto Tachina a beneficio de la Asoc de palmicultores Viche 3/5/2018 $ 2, Angulo Borja Angel Compra de materiales de construccion para un pozo de agua en el recinto Tachina a beneficio de la Asoc de palmicultores Viche 3/23/2018 $ 1, GASTOS TOTALES: BALANCE a 20 de septiembre de 2017: $ 4, $ 11, BENEFICIARIO DETALLE MOMPICHE Saldo Incial: $ 26, FECHA DE PAGO Osorio Guerrero Marco Compra de materiales de construccion para una cancha multiple recinto Tres Vias a beneficio de la Asoc de palmicultores Mompiche 3/13/2018 $ 2, Osorio Guerrero Marco Compensación: Devolucion valor de retencion 3/27/2018 $ GASTOS TOTALES: BALANCE a 20 de septiembre de 2017: $ 2, $ 23, Fair for Life and Hand in Hand Summary Report 2018

13 Saldo Incial: QUININDÉ $ 210, BENEFICIARIO DETALLE FECHA DE PAGO Carrera Paul Compensación del cálculo: compra de equipos de protección para trabajadores para palmicultores. 5/16/2017 $ 1, Manosalvas Rosas Guido Alquiler de sillas cepelio Zr. Zorrilla Asociacion QUININDE 11/14/2017 $ Extranatu Administrativo Devolucion por pago de 49 fichas ambientales 2/27/2018 $ 8, Extranatu Administrativo Ingreso en la cuenta. Compensación: Pago de 11 fichas ambientales 3/26/2018 $ -1, Maria Angulo Anticipo Tramites- 15 fichas ambientales 4/3/2018 $ 2, Maria Angulo Anticipo Tramites- 15 fichas ambientales 4/3/2018 $ 4, Extranatu Administrativo Pago de 10 fichas 5/11/2018 $ 1, Maria Angulo Anticipo Tramites- 25 fichas ambientales 6/9/2018 $ 4, Lucas Reyes Eulalia Compra de uniformes Asoc Quininde (Productores) 6/22/2018 $ 10, Angulo Maria Anticipo Tramites -12 registros ambientales 7/9/2018 $ 2, GASTOS TOTALES: BALANCE a 20 de septiembre de 2017: $ 35, $ 175, BENEFICIARIO DETALLE TRABAJADORES Saldo Incial: $ 14, FECHA DE PAGO GASTOS TOTALES: BALANCE a 20 de septiembre de 2017: $ - $ 14, Fair for Life and Hand in Hand Summary Report 2018