FSC’S RESPONSE TO INACCURACIES IN RADIO AUSTRALIA REPORT ON NESTLE UK FAIRTRADE SUGAR DECISION
The Fiji Sugar Corporation’s chief executive officer Graham Clark, has responded to the Radio Australia story, “16,000 Fijian sugar farmers impacted by Nestlé’s decision to stop buying Fairtrade sugar for UK KitKats”:
• The Fiji Sugar Corporation (FSC) does not trade directly with Nestle UK and we do not expect any drop in our projected exports this year as a result of their reported decision.
• Fiji has not sold Fairtrade sugar to the United Kingdom in the last five years. In fact, we have noticed a drop in Fairtrade sugar sales worldwide over the years, with standards such as “natural” or “organic” being more sought after in niche markets.
• We do continue to sell Fairtrade sugar to some European markets.
• FSC is very supportive of Fairtrade and bringing added benefit back home as a certified miller and marketer of Fairtrade sugar for Fiji.
• I think it’s important, however, to highlight some of the inaccuracies in the news report, including reference to 16,000 sugarcane farmers in Fiji being impacted. We in fact have 12,000 sugarcane farmers in Fiji.
• The report also highlights a potential US$12m loss in revenue for Fiji sugar due to the Nestle UK decision, which would equate to some 200,000 tonnes of Fairtrade sugar being exported every year at roughly US$60 per tonne. This is not a Fiji number and is grossly overstated.
• Some of our customers overseas do get involved in certifying Fiji sugar as Fairtrade, as they would see the marketing value in doing so for a premium, however this does not impact the initial procurement of our sugar.
• Fairtrade certification is managed by Fairtrade International, the umbrella NGO that creates the internationally agreed Fairtrade Standards and coordinates Fairtrade worldwide.