Remarks by the Minister of State for Overseas Development launching Fairtrade Fortnight 2009

24 February 2009

Ladies and gentlemen, I’m pleased to welcome you to Iveagh House to launch Fairtrade Fortnight 2009. I am particularly pleased to welcome to Ireland guests from Fairtrade certified farms in Tanzania, Uganda and Costa Rica.

This is the first time we have brought together such a special group of business leaders - people who lead the way in Corporate Social Responsibility- What started with 2 tons of Fairtrade coffee purchased by Bewleys in1996, has grown to €30 million of Fairtrade products in 2008. Even in these difficult times Fairtrade grew by 30% last year. All of you are to be commended for taking the lead in bringing Fairtrade products to Irish consumers.  

Irish Aid is one of the strongest supporters of Fairtrade internationally.  We have funded the Irish Fair Trade Network since the year 2002 with significant grants to support producers in developing countries, and for development education work in Ireland. Irish Aid has a longstanding record of support for Fairtrade Coffee producers in Central America and more recently in East Africa as well.

A recent World Development Report on Agriculture concludes that investment in agriculture is four times more effective in reducing poverty and hunger than any other investment. I visited Ethiopia last week and saw the impact of this investment first hand.  Real changes are possible through soil and water conservation and other investments.  Lands that were once arid are now producing crops and making a real difference to farmers and their families. The work on Fairtrade brings this development one step further: it provides access to new markets for farmers at a fair price.

Interestingly, the same World Development Report recognises the role of brand identity, such as Fairtrade, in opening new markets for agricultural products. Farmers in developing countries require access to markets to sell their produce and to make a profit. Equally, Irish businesses require a consistent and guaranteed supply of high quality products. This is the foundation for a mutually beneficial, long-term partnership between farmers in developing countries and Irish businesses.

The Fairtrade system gives the Irish business sector the confidence to enter into long-term trading arrangements with producers from developing countries. Independent Fairtrade certification provides assurances to Irish retailers and consumers that the conditions under which the commodities are produced are just and fair. Certification ensures that products comply with local legislation, traceability requirements and good environmental management. Certification provides independent verification of wage, labour and workplace safety standards. 

I want to assure you that Fairtrade really makes a tangible difference to peoples’ lives. Our friends from Tanzania, Uganda and Costa Rica can validate this for you. On a recent inspection visit to Central America, Irish Aid found that coffee farmers gained, on average, an extra fifteen dollars per sack of beans.  This increased income transforms each farmer’s life. In addition, a ten dollar premium per sack was paid to the farmer’s cooperatives.  This is used to strengthen their business and to invest in their communities. The additional income and premium generated from the sale of Fairtrade products contributes to the economic and social development of some of the world’s poorest communities.

Irish businesses are increasingly committed to making Fairtrade an integral part of their business and many Irish companies now sell Fairtrade products.   This trend is part of a broader commitment to Corporate Social Responsibility which is about how companies do their business and how they make their money. It is about more than profits and the bottom line. It is about ensuring the welfare of all people associated with the business.  

It is also about connecting consumers to those who grow their food. You are that connection, you are the bridge that links farmers to those people in Ireland who use their products. Awareness of Fairtrade products grows every day in Ireland. Consumers are choosing certified products over other brands.  This change is largely due to the work of 67 voluntary Fairtrade committees, North and South of the island, which is further supported by Irish Aid and the Government. The Programme for Government directs that all Government Departments will source Fairtrade products, where possible, as an integral part of their purchasing policies.

Fairtrade Volunteers are active throughout Ireland. There are now 38 Fairtrade Towns and Cities throughout the country and 29 more are seeking Fairtrade Town status. My own city Limerick is a Fairtrade City. Cashel, Tralee and Dundonald in the North, are the latest towns to be awarded Fairtrade status.

Today, I take the opportunity to announce some of my key priorities to promote fair trade further:

Firstly, I guarantee that Irish Aid will prioritise the reduction of costs for producers so as to increase their ability to compete in the market. This will be done by encouraging Fairtrade, Utz Certified and where relevant organic certifiers to work together to avoid duplication of certification costs. Where possible, multiple audits should be streamlined into one, producer support mechanisms should be unified, certification requirements should be standardised and technical and business supports for small producers provided jointly – a one-stop-shop to achieve certification for the whole harvest.

Secondly, Irish Aid supports the idea of mainstream business achieving 100 per cent certification of agricultural produce from developing countries. As well as a good Fairtrade price, consumers will want to know that 100 per cent of the products they buy meet standards of quality, provide a fair living for the people who produce them and protect the environment. We will encourage companies to continue to increase their Fairtrade business and to adopt 100 per cent certification targets. Bewley’s is to be congratulated for proposing to have 100 per cent of its coffees independently certified by 2011.

Thirdly, I believe that Fairtrade should attempt to achieve synergies with other labels, particularly Utz Certified and organic certifiers, to provide a comprehensive package to the European market and avoid consumer confusion caused by multiple competing labels.   

These actions are important elements in the next phase of making trade fairer and proactively using the model of certification in a real and practical way that changes the terms of trade between consumers and poor farmers.

Irish Aid will continue to contribute to make this change and through support for fairer trade reduce poverty and hunger in the world.

Here in Ireland, your companies have led the way.  You have shown that Corporate Social Responsibility contributes to the growth of your business and that Fairtrade is good business. I thank you and I encourage you to continue to grow your business in this way.

To the Irish Fair Trade Network I say that your work and that of 67 Fairtrade committees across the country, has informed the Irish consumer and created a viable way out of poverty for millions of people in the developing world. I wish you every success during Fairtrade Fortnight 2009.
 

Thank you.