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The Effects of Mainstreaming Fairtrade

coca pods from the village of Domebra in Ghana, Karen Robinson/ Panos 28 July 2009 – Sally Smith

In the coming weeks, all of Cadburys’ Dairy Milk chocolate bars will be Fairtrade certified. This represents a further step in the mainstreaming of Fairtrade into mass market products, following early moves by the UK’s Cooperative supermarket chain to convert all its own brand chocolate and coffee to Fairtrade. Similar steps have been taken more recently by British retail giants like Sainsbury’s and Marks and Spencer in products as diverse as tea, sugar and clothing.

Cadburys’ conversion will triple the volume of Fairtrade cocoa exported by small farmers in Ghana, going some way to address the challenges to social, economic and environmental sustainability as identified in a report produced last year by IDS and the University of Ghana.

Fairtrade bananas

Fairtrade has also taken hold in the UK banana sector, where one in four bananas now carries the distinctive black, blue and green mark. IDS is currently undertaking a major study into the impact of Fairtrade bananas, involving research in Ecuador, Dominican Republic, Ghana and the Windward Islands as well as interviews with all the main importers and supermarkets. The findings are due out later this year.

Tough conditions

Previous research by IDS has indicated that mainstreaming Fairtrade can be a powerful tool for extending social and economic benefits to producers and workers in developing countries. However, it is not without its difficulties, in part because Fairtrade may not significantly alter the structure and dynamics of international trading chains. More than two decades of rationalisation and concentration in retailing and processing contrast with continued fragmentation and overproduction in commodities such as cocoa and bananas. Along with increasingly tough standards for product quality, safety and delivery, this can leave producers struggling to access even Fairtrade markets on terms that ensure sustainable livelihoods. However, when all actors in global value chains work together to build mutually beneficial trading relationships, IDS has found that mainstreaming can both expand and deepen the impact of Fairtrade.

Sally Smith is a Research Officer in the Vulnerability and Poverty Reduction Team

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Harvesting a Future for Ghana's Cocoa Farmers

Published: 29 Aug 2008 Ghanaian Farmer holding a cocoa pod, copyright to Cadbury's

Cocoa farming in Ghana, the world’s second largest source of cocoa, requires ongoing investment and support to secure its long-term sustainability and to improve the livelihoods of its cocoa farmers, according to research findings by carried out by the Institute of Development Studies and the University of Ghana, commissioned by Cadbury.

Fairtrade Director and alumni in the news

Published: 7 Apr 2009 Harriet Lamb visits a coffee smallholding in Rwanda

Last year, sales of Fairtrade goods rose to record levels. As a result, the lives of millions of farmers in developing countries have been improved. And much of the credit is due to Harriet Lamb (MP9), the guiding light behind an extraordinary success story.

Related Publications

Smith, S (2008) 'For love or money? Fairtrade business models in the UK supermarket sector'

Related Projects

Impact Assessment of Fairtrade in the Banana Sector - The UK's Fairtrade Foundation has commissioned IDS to undertake an independent assessment of the impact of Fairtrade in the banana sector. (Ongoing)