Akua Gwamfua, 42, (President of Women's Collective), harvesting on her farm Amankwaatia village, Ghana

Akua Gwamfua, 42, (President of Women's Collective), harvesting with her team on her farm Amankwaatia village, Ghana

Children at school

Producers with cocoa beans

Cadbury Dairy Milk to go Fairtrade in South Africa: a totally African Affair

FMCG SUPPLIER NEWS

Jun 7th 2011, 09:35

Johannesburg, South Africa, 7 June. Fairtrade Label South Africa (FLSA), the national member of Fairtrade International, and Fairtrade Africa, the network of African producer organisations, are pleased to confirm today that Kraft Foods much-loved chocolate slab, Cadbury Dairy Milk [plain], is to become the first Fairtrade certified confectionery brand in South Africa. Slabs carrying the FAIRTRADE Mark are due to appear on shelf towards the end of the year.  

“Cadbury Dairy Milk [plain] going Fairtrade in South Africa is a major breakthrough for the whole of the Fairtrade movement in Africa with the first ever Fairtrade chocolate slab made and sold in Africa. The Fairtrade cocoa is from West Africa and manufacturing is taking place in Port Elizabeth at Kraft Foods Cadbury factory,” says Michael Nkonu, Executive Director of Fairtrade Africa. “This intra-Africa trade on Fairtrade terms can effectively empower producers as it will enable them to improve their own lives and hence contribute to real, sustainable change in Africa.”

Fairtrade Africa represents over 500,000 African small-scale producers and farm workers supplying the international Fairtrade market in 23 countries. Until 2008, South Africa only exported Fairtrade products to Northern countries, mostly in Europe, but due to a growing demand for locally produced sustainable products Fairtrade decided to offer its products directly to African consumers, starting in South Africa. There are now 15 local wineries and one local coffee roaster selling Fairtrade labelled brands in the country and imported coffee, tea and sugar is available. Fairtrade products are currently available in Pick n Pay’s, Ultra Liquor stores, Spars and coffee shops. Apart from South Africa, Kenya is the second market in Africa where Fairtrade products can be found on the shelves in local shops.

“Fairtrade Africa is delighted that South Africa’s flagship chocolate brand is leading the way in taking Fairtrade mainstream in what is already one of the world’s largest Fairtrade-producing countries and is becoming an increasingly important Fairtrade market,” Michael Nkonu adds. “By establishing this all African cocoa supply chain, South Africans can enjoy their chocolate bar knowing it is a totally African affair. South Africans, who are showing increasing interest in issues of sustainability and the environment, are now, with Fairtrade, able to help support a system which tackles these challenges from the grower’s perspective.”

With Fairtrade, chocolate companies pay the guaranteed Fairtrade minimum price of US$2000 per tonne of cocoa beans or the current world market price, whichever is higher. The minimum price is based on the costs of production and aims to protect smallholders from the volatility of cocoa prices. The farmers’ groups also receive the Fairtrade Premium of US$200 per tonne, which they invest in social, environmental or economic projects that benefit their communities. FLO-Cert, the independent certification body for Fairtrade International, monitors and audits the supply chain against internationally agreed Fairtrade standards.

“We are very proud to be the first major business to achieve Fairtrade certification in this country. It demonstrates our commitment to fair practices and improved living standards for farmers and their communities.” says Mike Middleton, Marketing Director Kraft Foods SA. “By joining forces with Fairtrade, the two organisations can do more together to create a sustainable supply of high quality cocoa for Cadbury Dairy Milk [plain].”

Some 1.4m slabs of Cadbury Dairy Milk [plain] are sold in South Africa every year, making it the nation’s most popular chocolate brand. The chocolate slab’s first breakthrough into Fairtrade came in 2009 in the UK which has the most vibrant Fairtrade consumer market. Cadbury Dairy Milk has since converted to Fairtrade in Ireland, Australia, New Zealand and Canada.

All these switches to Fairtrade combined have already quadrupled the amount of cocoa sold under Fairtrade terms from Ghana, from 5,000 to 20,000 tonnes, earning farmers £2.7m of Fairtrade premiums (R29.70m). This has been used for a wide variety of activity including the purchase of farming equipment and setting up mobile health clinics in the remote rural areas where the cocoa farms are located.

Boudewijn Goossens, FLSA, says: “We congratulate Kraft Foods SA for their leadership in being the first major business in South Africa, and the first in an ‘emerging market’ to recognise there is an appetite for Fairtrade among local consumers. With Cadbury Dairy Milk [plain] chocolates available in all major supermarkets, corner shops, petrol stations and even many spaza shops around the country, Fairtrade products will become available to all South Africans. That is so important because we all need to be able to contribute to a more sustainable world.”

Fairtrade around the world continues to buck the global economic trend with significant year-on-year increases in sales. In 2009, the last year for which full global figures are completed, Fairtrade certified sales amounted to approximately R33 billion worldwide, a 15 percent increase on R29 billion the year before. Although still a new market, estimated sales of Fairtrade products in South Africa are already showing spectacular growth, rising from R5.7 million in 2009 to R 18.4 million in 2010. In the UK, sales grew by over 40 percent to £1.17bn, the equivalent of R13.45bn.
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