What’s in a Fairtrade name?
Cadbury’s chocolate owners are pulling out of Fairtrade certification. But how does their own ethical mark measure up?
It’s not only Dunedin that Cadbury owner Mondelez is pulling out of. It’s also pulling out of the Fairtrade system.
For the rest of the year Cadbury Dairy Milk bars will continue to sport the famous green, black and blue Fairtrade logo proclaiming the cocoa was sourced without slave and child labour, and meeting other tough, Fairtrade standards.
But in 2018, the label will be replaced by the Mondelezinvented, green, Cocoa Life logo.
It’s not a straight swap as there are big differences between the independent Fairtrade and the Mondelez-owned Cocoa Life programmes.
Mondelez however has hired Fairtrade to monitor the ten ‘‘key performance indicators’’ (KPIs) of Cocoa Life.
In addition, the Fairtrade ‘‘corporate’’ logo, which is similar to the Fairtrade mark, may appear on the reverse of Cadbury’s CocoaLife-marked bars.
Neither Fairtrade nor Mondelez has published a comparison of Fairtrade and Cocoa Life.
Asked whether there could be chocolate sold under the Cocoa Life label, that would not meet the tough standards of the Fairtrade logo, neither Fairtrade nor Mondelez answered with a ‘‘yes’’ or a ‘‘no’’.
Fairtrade said: ‘‘Chocolate bearing the Cocoa Life label would not meet the same standards for bearing the Fairtrade label, as it has not been independently certified.’’
Mondelez said: ‘‘Cocoa Life is a different programme, which is why it carries the Cocoa Life logo instead. However, as previously mentioned, Fairtrade has stated... they would not have partnered in the program if farmers or communities would be in any way worse off.’’
Some in the ethical trade world believe Fairtrade had little choice but to back the Mondelez move after the US fair trade movement
split to go it alone, leaving Cadbury as its largest Fairtrade revenue source.
Fairtrade said: ‘‘The reality is that the world has changed from 25 years ago when the Fairtrade mark was first proposed. Back then, most large chocolate companies did not know where their cocoa was coming from. Fairtrade certification of Cadbury Dairy Milk in 2009 signified a real breakthrough in the mainstream chocolate world.’’
Increasingly, companies like Mondelez wanted to ‘‘take more control’’ by developing their own programmes, Fairtrade said.
Not everyone is enthusiastic about more control returning to the multi-nationals whose
industries Fairtrade was created to clean up.
Bob Doherty, a professor from the University of York in the UK, said the Cadbury move would ‘‘undermine the good progress that has been made’’.
‘‘The real danger lies in the fact that other major players are also building their own private schemes,’’ he wrote. ‘‘This clearly opens up the possibility they too will opt out of the independent certification scheme.’’
‘‘If this does come to pass, consumers will be left unable to properly assess and compare the benefits to farmers being offered by the different chocolate brands. And that favours the big companies far more than it does those growing the cocoa.’’
CHILD, SLAVE, AND FORCED LABOUR
The US Department of Labor produces an annual report on products sold in to US consumers produced in part by slave and child labour. Cocoa is among them. One of the pillars of the Fairtrade programme was that chocolatemakers had to prove their cocoa was not produced with any child, or slave labour.
Another of the prescriptive duties which make the Fairtrade scheme so tough, is the requirement to ‘‘Ensure that there is no forced labour of any form, including bonded and involuntary prison labour’’.
Fairtrade said: ‘‘Failure to have adequate systems in place, including continuous monitoring, leads to suspension and finally decertification if the producer organisation does not address the problem.’’
Compare that to one of the 10 KPIs of Cocoa Life, which says the ‘‘reduction in child labour and forced child labour’’.
Mondelez said it was committed to ‘‘playing our part in eradicating child labour in supply chains. We believe that Cocoa Life provides us with the best opportunity to address the root causes of child labour through specific actions we take to combat the issue and the holistic, community-focused approach of the programme.’’
‘‘Specific actions we take are to identify and address any instances of child labour that we do discover, and shine a spotlight on the issue by working with industry partners, NGOs, campaigners, consumers and government,’’ it said. ‘‘Our natural goal is to eventually eradicate child labour completely, and by addressing the root causes,’’ Mondelez said.
GROWERS’ VOICES
Cocoa growers are part-owners of Fairtrade. ‘‘Our global system is 50 per cent owned by producers representing farmer and worker organisations,’’ it says. That gives them an equal voice. ‘‘Producers have a say in decision-making within our General Assembly and on Fairtrade International’s Board of Directors.’’ Cocoa Life is 100 per cent owned by Mondelez, though it uses the language of partnership with farmers in its publicity materials like its 2015 progress report.
It ‘‘listens’’ to farmers. ‘‘When entering into new communities,’’ the 2015 report reads. ‘‘Cocoa Life conducts a thorough participatory needs assessment, that allows the team to identify priorities in the region and map the various communities. As part of the needs assessment process, the team visits some 25 per cent of all registered farmers in the community.’’
Mondelez says two of its KPIs are: ‘‘Increase of capacity in the community to plan and advocate for their own social development’’ and ‘‘An increase in women’s participation in the decisionmaking process’’.
SCALE
Cocoa Life is more ‘‘scalable’’ than Fairtrade.
Mondelez wants the Cocoa Life label on five times more of its chocolate than currently bears the Fairtrade label.
There is a pending cocoa supply crisis.
With a growing taste for chocolate in countries like China and India, demand has to grow to ensure there is enough cocoa to go round, which means that decades of misery and poverty for cocoa farmers and workers has to end.
Companies like Mondelez are saying it is in their own interests to see cocoa farmers get a better deal by lifting productivity of cocoa farmers.
‘‘The reality is that without successful farmers and thriving cocoa-growing communities to produce our cocoa, we cannot bring consumers the chocolate they love,’’ Mondelez said.
‘‘But today, farmers and cocoagrowing communities face serious challenges, with most cocoa farms operating at a cash subsistence level. Many organisations are working hard to improve the lives and livelihood of farmers and their communities but more needs to be done.’’
It said: ‘‘The average age of a cocoa farmer is 55, and without meaningful action, too many of the next generation will turn away from cocoa farming.’’
While the language of Fairtrade is human dignity and human rights, the language of Cocoa Life is more the language of investment.
‘‘Cocoa Life works to help farmers improve productivity. Cocoa Life works closely with farmers to help tackle poor harvests, low farmer incomes, and poor community development – to directly address the productivity challenges facing many cocoa farmers today.’’
PRICE
The Fairtrade scheme guarantees a minimum price for growers. This floor hasn’t been needed in years.
Fairtrade said: ‘‘The partnership with Cocoa Life will ensure that farmers receive a competitive price for their cocoa, on clear terms of trade, and loyalty payments, which together with programme investments, will deliver value per farmer at least equivalent to that previously delivered by Fairtrade premiums.’’