By Kerrina Thorogood, director of partnerships, Fairtrade Foundation
These days it is nearly impossible to pick up a paper or scroll through a news site without reading about the cost-of-living crisis, interest rates and inflation. Although new data shows that the UK narrowly avoided going into recession in 2022, the country’s economic outlook remains troubling for consumers and businesses alike.
What has remained under-reported, however, is impact of the cost-of-living crisis on the smallholder farmers and agricultural workers overseas who produce the food we love to eat here in the UK. This includes nearly 2m producers that Fairtrade works with in more than 70 low-income countries worldwide.
Farming, transport, logistics, labour and household costs are rising for producers, aggravated by the war in Ukraine. For instance, data collected by Fairtrade from many of our certified banana farms – and verified by technical experts – has revealed that prices have increased since 2021, with fertilisers up by 70%, fuel up by 39%, and pallets and plastic packaging up by more than 20%.
These communities are already struggling with fewer resources, volatility in commodity markets and downward pressure on prices. Crucially, they are also having to contend with the potentially catastrophic effects of climate change, which shows no signs of slowing.
We work directly with farmers and workers at the end of the UK’s retail supply chains, who are witnesses to the climate crisis. Our producer networks across Asia, Africa, Latin America and the Caribbean tell us that the consequences of climate breakdown – including more frequent droughts and storms, erratic weather patterns, and a rise in crop pests and diseases – is not only endangering farmers’ livelihoods, but also the future of the food they grow.
For those farmers, climate targets set for a seemingly distant 2050 don’t reflect the urgency of the situation: they are feeling the effects of rising temperatures today, and every tenth of a degree has a very real outcome. If the current trajectory continues, the level of damage they experience can only intensify. They need action now, not later.
Whether we’re contending with a climate crisis or an economic crisis, there has never been a greater need for retailers to prioritise sustainability, ethics and fair pay for those in their supply chains. One way they can do this is by choosing Fairtrade. For instance, research published in October 2022 has shown that farmers who benefit from Fairtrade Standards, pricing, Premium payments and programmes are more resilient in times of global crisis.
That is why for 2022’s Fairtrade Fortnight campaign (27 February – 12 March), we are launching the ‘Endangered Aisle’, an immersive pop-up store in London that will shine a light on the supermarket staples under threat from the climate crisis. It will also highlight the critical need to ensure farmers are equipped to protect the future of the food they grow, and our planet. We are also reaffirming our commitment to work with companies to improve sustainability in the retail space, recognising the financial challenges we all face.
Our message is clear: businesses must continue to invest in equitable and ethical supply chains, or there’s no guarantee producers overseas will be able to continue farming. A fair income for farmers and workers is now more vital than ever, not only so they can preserve their livelihoods, but also to enable them to afford to invest in adapting to the climate and economic reality.
It seems this is a message that UK shoppers understand. Our latest consumer research (Kantar, 2022) reveals that according to consumers’ perceptions of different ethical labels, Fairtrade performs very strongly on the environment. The figures show that when it comes to ‘supporting farmers to diversify their income to be more resilient to climate change and other risks,’ twice as many UK shoppers now associate this statement with the Fairtrade label as they do another prominent food certification scheme. Elsewhere, Fairtrade consistently outperforms in other sustainability categories, including ‘paying a fair price to producers’ and being ‘ethically and responsibly sourced’, according to Kantar.
The same data also shows that in 2022, some 77% of UK consumers have chosen Fairtrade products over an alternative, while 76% care about Fairtrade. This demonstrates shoppers’ ongoing commitment to, and demand for, sustainably sourced goods.
UK consumers still largely expect businesses to do the right thing in terms of sourcing ethics, even when inflation means they have to change the way they shop. It’s good, then, that sustainability doesn’t have to be unaffordable. I’m pleased that many major brands and retailers are continuing to back Fairtrade, making impressive commitments to producers in their supply chains to enable them to face the climate and cost-of-living crises.
We’ve been working with our retail partners to ensure that everybody can afford Fairtrade, wherever they shop. Lately we have seen more supermarket retailers offering Fairtrade products as part of their value ranges, sold at low, accessible price points (while ensuring farmers don’t lose out financially). This includes Co-op’s Honest Value Range, M&S Remarksable Value and Waitrose Essentials. Meanwhile, Lidl and Aldi are the UK’s two biggest Fairtrade cocoa retailers.
Encouragingly, retailers are keen to make it even easier for their customers to choose sustainable products. For instance the last 12 months have seen the launch of Asda’s Fairtrade aisle in its online store, as well as the launch of Amazon Aware, the retailer’s own-brand range of affordable, ‘consciously created’ products certified by labels such as Fairtrade.
All this means Fairtrade continues to perform well in the retail space. And in recognition of our value, retailers are marking their long-term commitment to sustainability through Fairtrade, showing their customers that they’re in it for the long run. For instance, look out for new takeaway cups in M&S Cafés, featuring design celebrating their commitment to 100% Fairtrade tea and coffee since 2006, and contributing more Fairtrade Premium for Fairtrade tea and coffee growers than any other UK retailer.
Of course, certification can only ever form part of a company’s sustainability journey: together we work with our partners to co-create and deliver programmes on the ground to further tackle key challenges and drive solutions to support farmers and workers. For example, Co-op is now entering its second year of our Fairtrade Alliance for Climate-Smart Supply Chains programme, working in partnership with Fairtrade Africa to support flower, tea and coffee farmers in east Africa to build their resilience to the climate crisis.
Industry-wide collaboration is also crucial. It’s good to see a growing list of UK companies signing up to Fairtrade’s Climate Network – including Co-op, John Lewis Partnership, Greggs and Clipper – with the shared goal of building sustainable supply chains in which farmers are supported to adapt to and mitigate climate change. It was also great at COP27 in Egypt, in November, to see this increasingly become a platform for smallholder farmer voices to influence within key policy spheres.
I firmly believe that Fairtrade’s work – connecting farmers, businesses and consumers on the path towards sustainability – is more important than ever in 2023. Together, we can pursue sustainable and fair supply chains. Together, we can protect the future of our food and our shared planet.
