Fairtrade in the Mainstream of Food Retailing

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]

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?

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

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

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

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)

Harvesting and opening cocoa pods Cocoa pods on the tree

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

Fairtrade in the Mainstream of Food Retailing

by Euforic Services on Apr 17, 2008

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Fairtrade in the Mainstream of Food Retailing — Presentation Transcript