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Presentation given by Dr Stephanie Ware Barrientos (University of Manchester) at the 5th Brussels Development Briefing - Brussels, 17 April 2008

Presentation given by Dr Stephanie Ware Barrientos (University of Manchester) at the 5th Brussels Development Briefing - Brussels, 17 April 2008

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Fairtrade in the Mainstream of Food Retailing Presentation Transcript

  • 1. Brussels Development Briefings Does Fair Trade contribute to sustainable development? 16th April 2008 Fairtrade in the Mainstream of Food Retailing Dr Stephanie Ware Barrientos University of Manchester, UK [email_address]
  • 2. Introduction
    • Why – the growth of Fairtrade and ethical Consumerism in mainstream food retail?
    • How – does Fairtrade relate to other ethical sourcing schemes?
    • What – are the challenges and opportunities for Fairtrade as it grows?
  • 3. Why – Growth of Fairtrade
    • Rapid growth in Fairtrade:
      • 40% rise in FT sales value - $2.3 billion 2006
      • Widening product range (food and non-food)
    • Small Producers – falling prices, trade liberalisation, livelihood pressures
    • Consumers – rising incomes, global information, travel, social awareness
    • Civil society – alternative trade, campaigns for trade justice, pressure for corporate social responsibility
  • 4. Mainstreaming Fairtrade in Supermarkets
    • Increasing supermarket dominance in food retailing (80% in UK)
    • Supermarkets - 56,700 of 78,900 (72%) FT points of sale in EU countries (FINE 2005)
    • Rise in supermarket ‘own brand’ FT products (25% all UK FT products 2004)
    • Rationale: consumer focus, high value sales, full product range, quality assurance of FLO label, corporate social responsibility
  • 5. How – Does Fairtrade relate to other ethical sourcing schemes?
    • Niche
    • Mainstream
    • Fairtrade Labelling: price, social premium, fairer commercial relations, certification – producer cooperatives & ‘plantations’
    • Environmental/social schemes: many, often less onerous certification
    • Ethical Trade: company codes of labour practice, workers rights, social auditing
    • Corporate social responsibility: preferred supplier, producer support, social reporting
  • 6. Example: Ghanaian Cocoa
    • Kuapa Kokoo cooperative - only Fairtrade certified LBC in Ghana cocoa (approx 4% FT)
    • Main shareholder behind Devine Chocolate
    • Co-op supermarket – FT ‘own brand’ chocolate supplied by Kuapa Kokoo
    • Chocolate manufacturers – social responsibility schemes (eg. Cadbury Cocoa Partnership)
  • 7. Harvesting and opening cocoa pods Cocoa pods on the tree
  • 8.  
  • 9. What – are the challenges and opportunities for Fairtrade?
    • Challenges:
    • Sourcing from ‘plantations’ with workers
    • Complex supply chains of new products (eg cotton)
    • Negotiating with supermarket buyers
    • Level of supermarket commitment to FT
    • Tensions between commercial and social FT objectives
    • Opportunities:
    • Expansion of FT sales
    • Opportunities for new FT products
    • More producers access to FT and export markets
    • Meeting FT goal of increasing fairness in trade