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AGRICULTURE ABROAD 23RD NOVEMBER 2011

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Barbara Crowther Communications & Policy Director

© Fairtrade 2011

Agriculture Abroad and International Development

Barbara Crowther – Communications and Policy Director

FAIRTRADE AROUND THE WORLD

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The UK imports £16bn worth of goods from countries in the

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(2009 excl. China ) Global South    - Agriculture - £5bn      - Meat / Fish / Dairy - £1.4bn      - Manufacturing - £6bn

- Mining - £3.6bn

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75% of Worlds poor depend on agriculture for the future (DFID)

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UK is importing  £1.3bn of products from Africa - 70% sourced from 4 nations

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African countries have highest levels of agricultural employment in the world (Tanzania = 74%)

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Challenges to African agriculture  

-Poverty & lack of    

infrastructure    

-Access to credit and    

contracts    

-Productivity, yield, quality    

-HIV/AIDS

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Case Study of    

Government support    

FRICH – Supporting    

African Agriculture

Iri-aini Tea

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Packing the Tea at Iri-aini Factory

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© Fairtrade 2011

Conclusions      • Increased focus on agriculture and building public-private partnerships for development      • Opportunities for convergence between private sector, NGOs and third party certifications, and government (both North & South)      • Government agenda must seek coherence between agriculture, trade policy and private sector development strategy

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Mark Line

No time to lose The drive for sustainable sourcing

in the food supply chain

 Mark Line Two Tomorrows

So just how engaged are consumers?

When it comes to living an environmentally conscious lifestyle, the picture is mixed

Source: Global Monitor 2011 (Unstandardiseddata), The FuturesCompany

Ethical issues are of limited importance when consumers choose food/beverage products

Source: Global Monitor 2011, The FuturesCompany

Which factors strongly affect your decision to choose one food/beverage product over another?

     CITIZEN    Willing to give time

or make compromises  to do the right thing

CONSUMER Choice, price, quality and convenience driving purchase choices

Conflict!

Source: The FuturesCompany

There is a discrepancy between intention and action

Source: Defra, 2011

My priorities The environment

The environment is not a core priority for most consumers

Source: The FuturesCompany

 e.g. Growing vegetables with    the kids

The environment can be a supporting factor in actions that relate to the core priorities

Source: The FuturesCompany

e.g. Turning down  the thermostat

51 51

41 42

80        60

companies I feel are damaging the environment in the past 12 months”.

Consumers will stop spending money with those who are seen to be acting unethically      % all agree      100          “I have stopped buying from

Source: Global Monitor 2010 (Standardiseddata), The FuturesCompany

36 39

30 34 33

38 36 39

20          0

40

2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010

16 market average North America Latin America Western Europe Eastern Europe Asia

Country 2004 2009 2014

US 319 911 1,451

UK 162 688 1,177

France 114 360 594

Germany 71 294 520

Spain 1 8 15

China 0.7 1 3

India 0.7 1 1.2

Brazil 0.8 1 1.2

Spending on fair trade food and beverage products, while growing fast, it still relatively small and is negligible in developing countries

Estimated spending on fair trade food and non-alcoholic beverages  in selected global markets ($m)

Source: Datamonitor, 2010

Limits to growth

The population crisis

Source: United Nations, World PopulationProspects, 1998 Revision; and estimates by the Population Reference Bureau

Half the world lives on lessthan  

$2.50aday

Source: UNDP

Source: FAO

Nearly a billion people are

malnourished

 By 2030, 1.2 billion more  will have joined the

global middle class

Source: World Bank

Climate change

The results are devastating

Deforestation Water scarcity

Species loss

“By 2030 the world will need to produce 50 per cent more food and energy, together with 30 per cent more available fresh water, whilst mitigating and adapting to climate change. This threatens to create a ‘perfect storm’ of global events.”  Professor John Beddington Chief Scientific Adviser to the UK Government

Actions of leaders

SustainableLiving Plan

• Help more than one billion people improve their health and wellbeing  • Halve the environmental impact of Unilever products • Source 100 per cent of agricultural raw materials sustainably

Rebuilding the Cadbury reputation

Certification schemes

Progress on palm oil certification

confused Consumers are

Government

Five drivers for sustainable sourcing  in the food supply chain

Consumer  demand

Limits to  growth

Actions of  leaders

Certification  schemes

Government

How to respond?

 www.twotomorrows.com    mark.line@twotomorrows.com

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Richard Reed

We have a Miss World-esq aim to leave things a little bit better than we find them.

Miss World

the future of food

Our principle narrative is that there is an opportunity for the world to think more intelligently about how it feeds itself.

Nutritional benefit Socio-environmental cost

nutritional benefit The FSA Wellness score now provides an objective way of determining whether a food is net positive or negative in terms of health impact.

 Fruit & Veg

Fibre

Sat Fat

Energy

Sugars

Sodium

Protein

Innocent  Indian

Daal Veg    Pot

 wellness score Everything innocent makes is, and will only ever be, net positive on the FSA Wellness score.

6

Innocent    Kiwis,

Apples &  Limes

smoothie

Innocent  orange    juice

health impact

negative

Strawberry Yoghurt Brand

   Chocolate      Brand Y    Crisp Brand X

-21 -16 -11 -5 neutral  0 2 3 4

positive  14 5 6 8

kg C

O2

/ kg

prod

uct

 sustainable nutrition And we map carbon footprint against Wellness Score, to ensure that we give positive nutrition in an environmentally efficient way.

0

1 Cashew nuts Banana

Cherries SB smoothie

Apple

2

3

4

-25 -20 -15 -10 -5 0 5 10

Wellness Score

Cake biscuit

Crisp Brand Y

Chocolate Brand X

Yoghurt  Pineapple Mango

Blueberries

 Our approach        We have a five-legged strategy to improve the socio-economic footprint of our business

Natural, healthy products

Ethical ingredients Sustainable packaging Resource-efficient production

Share the profits

Our products We make food and drink only using the ingredients we all need to eat more of, as identified by the Scientific Advisory Committee

Fruit Vegetables

Dairy Wholegrains

5 a day We are the only company in the world that offers a simple solution to the biggest dietary need in Western economies

10

Get closer

We have our own comprehensive minimum standards to help tackle social and environmental challenges

innocent X Y Z

Innocent minimum standards No existing certification scheme meets all our requirements

Purchasing Safety / Quality Social Environment

All types & sizes of farms No additives Non GMO Food safety Worker rights/wages Worker safety Product pricing Local community Biodiversity protection Soil conservation Efficient water use Agrochemical bans / restrictions

Agricultural projects

And we invest in projects to improve the socio-economic issues we come across.

Working with WWF, Cordoba University, our supplier and Uniliver to map and reduce water usage in Spanish strawberry farm

Pilot with Indian mango suppliers to trial farming practices to help local farmers adapt to changing climatic conditions            .

 Launched project to trade with Kenya and West Africa smallholders to supply us with mango          .

our packaging We continuously improve the sustainability of our packaging via our four-fold approach

That is from recycled or renewable sources

 Use as little material as possible

And is widely recyclable

And has a low carbon footprint

80%

And we aim to lead the industry      100%

 Sustainable packaging                100%

Introduce 50%    PCR  April 2006

60%          40%          20%            0%

2001 2003 2005 2007

       Introduce 25%            PCR          June 2003          Lightweight bottle 21g to      18g    April 2003

bottles Cartons kids TW vegpots

Reduced energy use

Reduced water use

Reduced landfill

 Resource efficient  

We have integrated sustainability targets with all principle manufacturers

2006

Resource efficient

It has helped us move the shift the dial in the right direction                  Disposal            Distribution                Manufacture      200          CO2

per bottle (grams)      

 100                          0

   Packaging              Material shipping          Growing & Packing              2006 2010

innocent foundation

A minimum of ten percent of profits are distributed to charity

18

Do gooding

Plus we engage in ‘social marketing’ that delivers altruistic and commercial benefits

 what we’ve achieved    We’ve delivered a distinctive set of results in our first ten years

1.7 billion fruit portions 358,513 people helped 1.25 million hats

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