When four Sainsbury’s executives met farmers from some of Africa’s biggest tea-growing co-operatives in a hotel in Nairobi last month it should have been a mutual celebration of Fairtrade, the gold standard of ethical trading and the world’s most trusted and best-known food certification scheme.
But instead of backslapping at the Pride hotel, the world’s largest retailer of Fairtrade products precipitated the greatest crisis in the scheme’s 25-year history by telling the 13 major tea groups and their 228,000 co-operative members that it intended to drop the globally known Fairtrade mark for their produce, and replace it with the phrase “fairly traded”.
In place of the strict rules devised by farmers’ groups working with independent development experts to guarantee consumers that small-scale farmers are being rewarded with decent pay and bonuses, the £23bn-a-year retailer said it planned to set up its own in-house certification scheme, set new ethical standards and introduce a different way to pay the groups.
From next week the company will no longer label its Gold, Red and other bestselling own-brand teas as “Fairtrade” but will call them “fairly traded”. Officially it is a pilot but the suspicion is that Sainsbury’s will then roll out the new standard across other products including bananas and coffee.