Fairtrade Body Plans to Tackle Exploitation in UK Supply Chains

Fairtrade could play a crucial role in addressing exploitation in UK factories and farms, as well as in developing countries, according to Eleanor Harrison, the incoming leader of the ethical trade organisation.

Harrison, who will assume her position in March, expressed that Fairtrade could offer solutions to the UK government regarding worker protection.

"The UK government needs to grow productivity, which we often hear in the press. Fairtrade can enable this, as exploitation in the supply chain has moved closer to home, making consumers uncomfortable," Harrison stated.

The UK is a significant retail market for Fairtrade, and customers are increasingly demanding fairness in products produced within the country.

The Fairtrade Foundation guarantees that producers receive a set minimum price along with a financial bonus for community projects. It has encouraged shoppers to continue purchasing certified products amid concerns of a "race to the bottom" as consumers seek savings during the ongoing cost of living crisis.

Although the group celebrated its 30th anniversary last year, it does not certify products produced in the UK or other European nations, except for trials in France and Switzerland, which began in May 2021.

Harrison highlighted that the British public is now seeking more assurance regarding conditions in UK supply chains, especially following reports of exploitation in Leicester clothing factories linked to Boohoo and modern slavery on farms. She noted that consumers are "not only reading about it overseas but feeling it within the UK".

As there are existing supply chain assurance schemes like Red Tractor for British food, the clothing industry lacks an equivalent mark.

Harrison suggested that independent verification of sustainable and ethical operations could assist companies in attracting and retaining employees in a competitive hiring environment. "In the current market, being recognised as a good and sustainable employer is crucial," she added.

Despite the cost of living crisis resulting in high inflation on key Fairtrade products, including coffee and cocoa, sales of ethically branded goods have continued to rise.

The Fairtrade Foundation reported an income of £13.4 million from the UK in 2023, marking over a 5% increase compared to the previous year. As businesses apply for a licence to use the Fairtrade logo on approved products, an increase in sales translates to higher fees for the foundation.

Sales of cocoa and tea rose by 6% and 5%, respectively, while fresh vegetable sales increased by 15%, and nut and oil sales went up by 12% in 2023.

Harrison, previously associated with the charitable donations platform GlobalGiving and the philanthropic investor Impetus, has vowed to lead the Fairtrade Foundation with "empathy, ambition, and warmth". She hopes to leverage her technology background to enhance connections between consumers and producers.

Possible explorations into AI for data analysis and supply chain monitoring were mentioned, alongside the promise of quicker information provision to producers regarding consumer preferences.

Fairtrade already employs the FairVoice platform to connect farmers and workers within the supply chain, facilitating data collection and storytelling that provide valuable insights and identify emerging risks, including the use of satellite monitoring to track deforestation.