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What is fair trade and how does it affect your food shop?

from the calls for more support for international farmers, to safeguard their livelihoods and the future of imported favourites such as coffee, cocoa and bananas. With many retailers and producers creating their own certification programmes rather than exclusively relying on established ones such as FAIRTRADE, it can be difficult to keep track of the policies behind the logos. So what does this mean for shoppers?

鈥淗alf of the UK鈥檚 food comes from overseas鈥, says Mike Gidney, CEO of the Fairtrade Foundation, so 鈥渨e all have a stake in ensuring future generations of farmers鈥 can do so in climate-friendly ways, while earning enough to stay in business and live the sort of life their hard work deserves.鈥

Janice Kangai plucking tea at Michimikuru Tea Company in Kenya.
Image caption,
Many teas are certified fair trade. Here Janice Kangai plucks tea at Michimikuru Tea Company in Kenya. Photograph by Chris Terry

What does fair trade mean?

鈥渃are about fair trade鈥, according to a Kantar survey for The Grocer. However, there are crucial differences in the definition, depending on the way it鈥檚 written.

FAIRTRADE (all capitals) is the logo you鈥檙e likely to see most often on food in the UK. The certification system is governed by the global group Fairtrade International and their associates, including the UK鈥檚 Fairtrade Foundation. They develop and ensure compliance with internationally agreed and guarantee a minimum fair price. They have a rigorous certification approach, including on-site audits by independent inspectors, and require a premium to be paid to farmers to invest in social, economic and environmental projects. recognise the logo, which certifies a product, not an organisation. When the logo is accompanied by an arrow, there may be more information about the ingredients and sourcing methods on the back of the packet.

Fair Trade (two words, capital F, capital T) describes companies following the . The World Fair Trade Organisation (WFTO), a network of Fair Trading businesses, monitors these companies, ensuring the principles are 鈥渋mplemented in the supply chain and practices of the organisation鈥. As opposed to Fairtrade International, it verifies companies rather than commodities. For example, WFTO can certify the coffee company rather than the coffee bean farm. 鈥淐ompanies are checked by third-party audits and through peer visits by other members鈥, they say.

Alternative spellings, such as fair-trade, fairtrade and FairTrade, are not legally protected, but if they are accompanied by a logo you may be able to check the conditions of the certification online. Any logo on products in the UK needs to be 鈥渧erifiably certified鈥 on behalf of an issuing body, according to the Department for Environment, Food and Rural Affairs.

A number of third-party accrediting bodies, including Rainforest Alliance, share some of the same goals as Fairtrade International and follow fair trade principals. While primarily certifying for environmental factors, Rainforest Alliance also social and economic improvement 鈥渁s inseparable elements of the broader goal of sustainability鈥, and requires 鈥渇armers to pay the legal minimum wage while making clear progress towards a living wage鈥.

Many supermarkets have made sustainability commitments for their own-brand products, including , , , and . You can research the commitments of supermarkets on their websites.

Which foods do you see certifications on most often?

In the UK, more than , including teas, cocoa, chocolate bars, sugars and wine. But bananas are the most visible product, followed by coffee and chocolate, .

are 100 percent FAIRTRADE, while products containing more than one ingredient, such as a chocolate bar, must show that 20-50 percent of the product鈥檚 dry weight is from a FAIRTRADE farm.

Coffee and cocoa

Fairtrade coffee producers in Kenya
Image caption,
Fairtrade coffee producers in Kenya. Photograph by Chris Terry.

The price of coffee and cocoa for farmers is unstable and can be low. The global market price for arabica coffee beans, which account for an estimated 70 percent of global coffee production, often falls below Fairtrade International鈥檚 minimum price of US$1.40 per pound of beans. Due to poor prospects, fewer young people are farming in these industries, according to David Taylor, Policy Manager for the Fairtrade Foundation. The average age of a cocoa farmer in West Africa is , for example.

When prices are low, the Fairtrade Foundation argues 鈥渢here is neither the incentive nor resources to invest in good maintenance of farms by applying fertilisers and pesticides or replacing old trees鈥 When prices fall below the costs of production, farmers struggle to put adequate food on the table and pay medical bills and school fees.鈥 With limited options, farmers may end up 鈥渁bandoning their land or destroying forests and wildlife habitat by clearing land for monoculture鈥 (only producing one crop), according to the Rainforest Alliance.

Certifications such as FAIRTRADE and Rainforest Alliance also support farmers in protecting the environment, ban forced/child labour and promote community development. Approximately 2.1 million children in West Africa 鈥渟till do the dangerous and physically taxing work of harvesting cocoa鈥, according to a . There are similar issues with .

Paying farmers a fair wage doesn鈥檛 have to mean a price hike for the consumer, according to the Fairtrade Foundation. They give the example of a non-fairtrade 拢1 chocolate bar, which they say might see about 6p ending up in the cocoa , around 40p going to the chocolate company, 35p to the retailer and the remaining 19p being divided between other businesses in the supply chain. Buying fairly traded chocolate 鈥渋s not about asking you to pay a higher price, but giving cocoa producers a bigger proportion of the price you already pay鈥, they say. Of course, a more expensive chocolate bar doesn鈥檛 always mean the cocoa farmer is paid more.

Some coffee and chocolate businesses use third-party certification, such as Costa Coffee sourcing its beans and hot chocolate from Rainforest Alliance-certified farms and Maltesers aiming to use only FAIRTRADE cocoa. Others, particularly chocolate companies, have developed their own verification programs, such as (the scheme by Mondel膿z, owner of Cadbury), and , founded by Nestl茅 and the . All say they aim to improve the environmental, social and economic prospects for the people who make cocoa their livelihood.

You might see the certification logo on products containing cocoa and coffee (as well as tea). UTZ has now merged with Rainforest Alliance.

Bananas

Banana workers at Quinta Pasadena in the Dominican Republic
Image caption,
FAIRTRADE bananas picked at Quinta Pasadena in the Dominican Republic. Photograph by Fran Afonso.

鈥淎dverse climate conditions will trigger a drastic decline in banana yields in 10 countries鈥, according to the Fairtrade Foundation report, and 鈥渨e can鈥檛 expect [farmers] to tackle the climate emergency if we won鈥檛 ensure they earn a decent income鈥, says Gidney.

But 鈥渞eports about problems in the banana industry often highlight the woefully poor situation of workers: low wages, precarious employment, restrictions on the right to organise themselves and the handling of unhealthy and environmentally hazardous chemicals without adequate protection, to name a few鈥, says the Fairtrade Foundation. Both FAIRTRADE and the Rainforest Alliance strictly limit the use of pesticides, and some are banned.

A third of bananas sold in the UK are certified FAIRTRADE. This means farmers are guaranteed the minimum fair price in their region for produce, and support is available for farmer/worker organisations and representation, enabling them to negotiate with management and progress towards living wage benchmarks.

A number of retailers, including Sainsburys, Waitrose, Co-op and Ocado, say all the bananas they sell are FAIRTRADE. Others, such as Aldi, Lidl, Morrisons and Tesco, also source bananas from or farms.

Why isn鈥檛 all food 鈥榝air trade鈥?

The Fairtrade Foundation certifies products that adhere to international standards. But standards aren鈥檛 set for all foods, although producers can become certified after lengthy consultation periods and an established market need, according to Fairtrade Foundation鈥檚 Policy Manager David Taylor鈥

The majority of farmers certified FAIRTRADE are the 鈥渕ost disadvantaged 鈥. Producers in many locations can become certified, explains Taylor. However, many countries, including the UK, already have laws to protect producers and workers from issues faced by farmers in countries where FAIRTRADE usually operates.

But just because a product is uncertified doesn鈥檛 necessarily mean it鈥檚 unfairly traded. Some companies choose to buy directly from a producer, managing the relationship, price, quality, sustainability requirements and transparency themselves. Direct trade can allow for a positive partnership, but without certification and auditing, you have to take them at their word and do your research, according to Taylor.

The quickest way to identify fairly traded imported products, without investigating brands and the commodity market price, is with accreditation logos. 鈥淚deally we would live in a world where FAIRTRADE doesn鈥檛 need to exist, but we don鈥檛鈥, says Taylor.