Fairtrade could help tackle exploitation in UK factories and farms – as well as those in developing countries – the incoming boss of the ethical trade body has said.
Eleanor Harrison, who in March takes the reins of the group behind the Fairtrade mark which appears on products in shops, has said it could “offer solutions” in advising the UK government on protecting workers.
“The UK government needs to grow productivity, we read that maybe too often in the press. Fairtrade can enable them to do that as exploitation in the supply chain has moved from a myriad of developing countries, closer to home making consumers say I don’t feel comfortable with that,” Harrison said.
“The UK is one of the biggest retail markets for Fairtrade and our customers expect fairness at home and in products that cannot be produced at home.”
The Fairtrade Foundation, whose label guarantees that the producers receive a set minimum price and a financial bonus for community projects, has urged shoppers to keep on buying the products it certifies amid fears of a “race to the bottom” as cash-strapped Britons look for ways to save money during the cost of living crisis.
However, the group – which celebrated its 30th anniversary last year – does not certify products produced in the UK or other European countries, except for trials in France and Switzerland.
Since May 2021, the Max Havelaar label, the European arm of Fairtrade, has worked on certifying wheat in the Gers region in south-west France, and milk in Poitou-Charentes. The body has said it is considering testing the idea elsewhere.
Harrison, whose appointment was announced this week, said that the British public was now asking for more reassurance about conditions in UK supply chains – after revelations about exploitation in some Leicester clothing factories supplying the online retailer Boohoo or modern slavery on farms – so that they were “not only reading about it overseas but feeling it within the UK”.
Supply chain assurance schemes, such as Red Tractor, exist on British food but domestic clothing does not have an equivalent industry-wide mark.
Independent verification of operating in a sustainable and ethical way could help companies recruit and retain people in a tough hiring environment, Harrison said. “In the current market being seen to be good and sustainable employer is really important,” she added.
Despite the cost of living crisis and heavy inflation on some key Fairtrade products – including coffee and cocoa as farmers come under pressure from the climate crisis – sales of the ethically branded goods have continued to rise.
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The Fairtrade Foundation earned £13.4m in income from the UK in 2023, according to the latest available figures, up more than 5% year on year. Businesses can apply for a licence to use the logo on approved products for a fee, so as sales increase, the fees to the foundation increase.
Cocoa and tea sales were up by 6% and 5% in 2023, while sales of fresh vegetables rose by 15%, and nut and oil sales increased 12%.
Harrisona former boss of the charitable donations website GlobalGiving and the philanthropic investor Impetus, promised to lead the Fairtrade Foundation with “empathy, ambition and warmth”. She said she also hoped, given her background in the tech industry, to help drive the use of technology within Fairtrade to help connect consumers more closely to producers.
She suggested the group might be able to explore the use of AI to analyse data and monitor supply chains, as well as providing producers with faster information on consumer preferences.
Fairtrade already uses the FairVoice platform to connect farmers, workers and the broader supply chain enabling the gathering of data and stories that provide evidence and insight, as well as potentially spotting emerging risks. Satellite monitoring is also being used to track deforestation.
