Our Farmers Affected In UK Sugar Decision
Nestlé’s United Kingdom KitKat brand has decided to take more than a break with Fairtrade in a move that will impact 16,000 Fijian sugar farmers who stand to lose nearly $US12 million (FJ$25.98 million) in annual sugar sales and Fairtrade premiums.
The United Kingdom’s Nestlé KitKat brand started its association with the independent non-profit organisation, which ensures farmers and workers get a fair deal, in 2009
The move, which has been described as ‘profoundly disappointing’ by critics, has come at a time of great uncertainty for global sugar markets.
Mohammaed Rafiq, a Fijian sugar farmer and President of the Labasa Cane Producers Association, is understandably concerned by Nestlé’s decision.
“Most of the farmers are small producers who are dependent on their sugarcane farms to earn a living - it will be very difficult for us to survive,” said Mr Rafiq.
38 villages
Sugar farmers across 38 Fijian villages will be impacted as they lose both the US$9.9 million (FJ$21.43 million) in sugar sales the deal provided but, also the additional US$1.39 million (FJD$3 million) a year in Fairtrade premiums.
The chief executive officer of Fairtrade Australia and New Zealand, Molly Harriss Olson, says the combined loss of sugar sales and Fairtrade premiums is a huge blow to the Fijian farming community.
“In this global pandemic time when general economic situations in the world are very insecure it puts these farmers in a vulnerable position,” said Ms Harriss Olson.
Premiums
Since 2011, Fairtrade premiums have been invested in more than 750 community projects in Fiji, ranging from:
■ the building of community infrastructure like water wells, bridges and roads; building and repairing schools;
■ and setting up community training, including a programme to raise awareness about child labour.
“The money has gone towards electricity and a good water supply as well as transport to help children get to school so, with no premiums these projects will stop,” said Mr Rafiq.
In a statement provided to Pacific Beat from Nestlé, they said they “are now sourcing almost all our Nestlé UK and Ireland sugar from UK sugar producers, with the remainder coming from Europe.”
Cornerstone
However, Ms Harriss Olson from Fairtrade Australia and New Zealand, says this is an extra blow to the Fijian farmers who now no longer have access to that market.
The sugar industry has been a cornerstone of the Fijian economy since 1882 and approximately 15 per cent of the country’s population relies on sugarcane farming for their income.
“Farmers everywhere in the world are suffering in different ways but, I can tell you that the European farmers are struggling a lot less than the Fijian farmers.
“The Pacific is particularly vulnerable right now partly in the access to trade but, also due to climate change - trying to access commodity markets in a climate change world is yet another challenge these farmers have to face,” said Ms Harriss Olson.
Find an alternative
Fairtrade Australia and New Zealand said they will work to support the Fijian farmers to find an alternative buyer but, says at a time where a global recession is hitting it will make the task more difficult.
“This is a very difficult time to ask even multinationals, that are more stable and making more profits, to actually participate in,” said Ms Harriss Olson.
As a second generation Fijian sugar farmer, Mohammed Rafiq said the uncertainty in the sugar market makes him concerned not, only for himself but, his two sons who are also in the industry.
“I am trying to encourage my sons to learn other skills because if there is no market for our sugar than we have to find other ways to make our money,” said Mr Rafiq.
Nestlé says they have provided a transitional support fund of nearly $US125 thousand to Fairtrade sugar producers in Fiji and Malawi who have been impacted by the change.