Fairtrade pilot scheme launched

03 January 2003

The Soil Association and the Fairtrade Foundation have launched a groundbreaking new pilot project to combine organic and Fairtrade certification which will apply to British and imported foods.

The one-year pilot project has been developed to increase the range of organic products that can carry the FAIRTRADE Mark, which is the only independent consumer label that ensures farmers and workers in the developing world a better deal.

Fairtrade standards can be applied to a continually expanding list of commodities from developing countries. The products that qualify as organic and Fairtrade must fall within Fairtrade requirements and the pilot project will speed up the process of developing new products that meet both standards. Under the pilot project, companies selling products from UK farms as well as from developing countries and elsewhere can apply to carry the FAIRTRADE and Soil Association marks.

"Many farmers around the world are suffering from prices for their products which do not cover the cost of production, and this is certainly true in the UK. People talk about the food chain in the food industry but in reality it's a fear chain," said Patrick Holden, Director of the Soil Association. "Everyone involved is frightened of losing out - the buyer of not meeting his profit margin, the packer of being de-listed by the supermarkets, the grower of rejects or being priced out of business. Existing trading practices contribute to this problem and this new scheme will help promote the changes needed to ensure a fair return to farmers."

Both organisations are seeking feedback from businesses throughout the food industry about the pilot project and will assess the scale of demand from consumers. One of the objectives of the trial is to develop a simplified procedure for obtaining the certification required for organic and Fairtrade labels.

Under Fairtrade standards, the price paid to farmers must cover the sustainable cost of production, which includes a margin for profit and investment. In addition, buyers should commit to long-term relationships that enable growers to plan future production with confidence.

It is expected that grapes from South Africa, which could be on sale through major retailers in the next two months, will be the first product which meets both organisations' standards under the trial scheme. Other products which are expected to be certified as organic and Fairtrade as part of the trial programme include potatoes from the UK, green beans, citrus fruit and grapes from Egypt, and beef, bacon, lamb and pork from the UK. UK organic milk and other dairy products will be included in the trial if possible.

"On the whole, consumers have had no way of knowing when they buy organic food whether the farmer who produced it is getting a fair price, and that the highest standards of social and ethical practices have been followed. Now they will," said Patrick Holden. "This groundbreaking pilot scheme will enable consumers to use their purchasing power to keep farmers on the land and promote ethical trading practices throughout the food chain."