Supplementary memorandum submitted by
Divine Chocolate Ltd, Kuapa Kokoo, Trading Visions and Comic Relief
Having previously submitted written and oral
evidence, we would like to offer some follow-up comments and recommendations,
in response to issues raised at the evidence sessions and highlighting
our key recommendations.
In the light of the considerable and suitable
benefits that Fairtrade has delivered for millions of the poorest
producers in the world it is entirely appropriate that DFID continues
to support the growth of Fairtrade in the UK. The evidence to
date has shown that that support has been very effective in the
following areas:
— Supporting a start up company, Divine
Chocolate, with a loan guarantee thus enabling cocoa farmers in
Ghana to own a significant proportion of a very successful company.
— Raising awareness among the British
population, including children, students, teachers and consumers
of all ages, creating a popular movement for development issues
and a growing consumer market for the Fairtrade.
— Supporting the development of standards
for Fairtrade supply chains.
— Supporting the establishment of new
suppliers and commodities.
We would particularly like to offer a response
to the important question posed by the committee of whether industry
should invest in the Fairtrade supply chains. Clearly they should,
as Fairtrade has the double benefit of offering a successful marketing
strategy and reassurance that supply chains are sustainable and
decent. We would also strongly suggest however that any standards
developed belong to the whole Fairtrade movement, including producer
groups, and not just to the specific outlets who engage in developing
them. Matching industry investment in developing standards would
be an effective mechanism for DFID to make sure that the outputs
are accessible to others, so other suppliers can use these supply
chains. Supply chains developed through such partnerships would
be more open, transparent and accountable. To ensure this they
should be developed in full consultation with the relevant producers.
Ownership of the certification system and supply chains must also
extend to producers, ensuring that meaningful, long term participation
by producers is secured.
Considering our own experience of where DFID's
support has been most beneficial, we would like to suggest that
in future, DFID has a particular role to play in:
— Keeping producer impact and participation
at centre of Fairtrade.
BUILDING NEW
MARKETS
Our previous evidence outlines in detail how
a loan guarantee from DFID enabled Divine to embark on a unique
farmer owned Fairtrade proposition and build the market for a
successful mainstream chocolate brand in the UK, with ongoing
education and public awareness raising also support by DFID Development
Awareness funding. Both these types of investments have undoubtedly
represented incredibly good value for money for DFID. Their outputs
have contributed not only to a new market for Fairtrade chocolate
but built the market for Fairtrade generally among the UK population.
We would suggest the UK government and DFID should work with private
sector partners to encourage and enable them to build new markets,
engaging them to making a long term commitment to work in partnership
with producers and educate their customers about the impact of
Fairtrade.
Securing this long term commitment to sustained
involvement in Fairtrade by businesses will require embedding
it more deeply into operational practice. At present there is
a disconnect. Supermarket buyers, for example, are only assessed
on their financial performance. In out experience this makes achieving
initial listings particularly difficult. It also arguably makes
it difficult for them to pursue Fairtrade strategies which don't
achieve immediate commercial success, within their standard operational
terms. DFID could play a role, in their engagement with big business,
retail and manufacturing, in suggesting that corporate responsibility
extends to the operational practises of the institution and doesn't
just remain as a public stated corporate objective, squeezed out
by other internal pressures focussed on short term success.
KEEPING PRODUCER
IMPACT AT
THE HEART
OF FAIRTRADE
DFID has a particular role to play in this and
should support business models, certification systems and awareness
raising activities which prioritise this concern:
— Pioneering business models:
The Divine-Kuapa partnership shows what extraordinary impact is
possible. Such genuine partnerships make Fairtrade more sustainable,
adding huge value to the brand and ensuring Fairtrade becomes
part of the culture and operational practices of an organisation.
— Certification systems and supply
chain development: As we have outlined above, it is crucial
that producer participation and ownership is a key priority here.
This is important, not only from the point of view of developing
relevant systems which deliver real impact on the ground but also
from the point of view of creating platforms and forums for third
world stakeholders, to participate in broader discussions about
international trade and development.
— Public awareness raising:
As outlined in our previous evidence, our education work has brought
cocoa farmer perspectives to the UK public in a highly accessible
and engaging way. We would urge continued significant investment
in this kind of work, which not only informs the public about
Fairtrade and the part they can play, but brings about the kind
of climate which makes initiatives like Make Poverty History possible.
We would encourage DFID to continue funding a diverse range of
organisations in order to reach a broad range of audiences and
ensure resources and efforts are maximised through the networks.
Finally, we would like to reiterate the following
points to the committee:
— The importance of continuing to
invest in in-country infrastructure and capacity building. in
order that producer organisations can achieve maximum benefit
from the growing opportunity offered by Fairtrade and have meaningful
participation and ownership in it's development.
— The importance of continuing to
maximise the opportunity of consumer awareness of the Fairtrade
Mark. Through a diverse range of stakeholders DFID has a key
role to play in supporting public awareness and understanding
of Fairtrade, which is a critical gateway to greater understanding
of the developing world and a powerful catalyst for changing attitudes
and actions.
— The importance of engaging with
industry initiatives, such as the ICI (International Cocoa
Initiative), which seek to tackle the challenges faced by third
world producers. DFID have a key role to play here, in calling
industry to account and opening such initiatives to external and
expert scrutiny.
Finally we would welcome continued consultation.
We have greatly valued the opportunity to participate in this
inquiry and offer our own experience of DFID's invaluable support.
It has been particularly pleasing to participate alongside our
partners, Kuapa Kokoo. Their participation in the inquiry and
in other national and intenrational arenas has been possible because
of a unique, ground-breaking, private sector initiative, with
the interests and future of cocoa farmers at its heart. We hope
the UK government and DFID will continue to support such pioneering
models, prioritising producer participation and ownership.
April 2007
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