Dairy Milk Fairtrade

Cadbury Dairy Milk in SA joins the Fairtrade family

Kraft Foods South Africa will become the first major South African business to achieve Fairtrade certification for its popular chocolate brand, Cadbury Dairy Milk [plain].

Fairtrade certification is a system designed to ensure better working and living conditions for small scale farmers, farm workers and their communities through fairer prices, better labour conditions, community development and sustainability of the environment.

“The Fairtrade accreditation means that the cocoa used in the making of our leading chocolate brand will be sourced from certified Fairtrade producers” says Mike Middleton, marketing director, Kraft Foods South Africa. “It demonstrates our commitment to fair trade practices and to the sustainability of cocoa farmers and their communities. We are very proud to be the first major business to achieve this certification in South Africa.”

To achieve Fairtrade certification, Kraft Foods South Africa partnered with cocoa farmers in West Africa (60 percent of the world’s cocoa is grown in Ghana and the Ivory Coast). The certification will see thousands of West African farmers receive internationally-agreed Fairtrade prices for their product (the Fairtrade minimum price or world market price, whichever is higher) and the Fairtrade Premium of US$200 per tonne for investment in the development of their businesses and communities.

In 2009, Fairtrade certified sales amounted to approximately R33 billion worldwide, with estimated retail sales of Fairtrade products in South Africa in 2009 at R5.7 million. Estimated retail sales for Fairtrade products in 2010 are worth R18.4 million. Although Fairtrade has been operational in South Africa for the past two years, the agreement with Kraft Foods SA is set to increase retail sales of Fairtrade products by over eight times.

Boudewijn Goossens, executive director of Fairtrade Label SA (FLSA), says “This move to Fairtrade is great news for cocoa growers in West Africa, opening up opportunities for more and more farmers to join the system, and for those already in the system to be able to sell more under Fairtrade terms. As one of the largest and most well-known confectionery companies in the world, we are delighted that Kraft Foods is setting an example by following the lead of its Cadbury operations elsewhere in the world.” 

Since Cadbury Dairy Milk’s first move to Fairtrade in the UK & Ireland in 2009, and subsequently in Australia, Canada and New Zealand, £2.7m of premiums have been transferred to farmers in Ghana to be spent on farming equipment and mobile health clinics. The amount of cocoa sold under Fairtrade terms from Ghana has quadrupled from 5,000 to 20,000 tonnes.

Lawrence MacDougall, president of MEA region, Kraft Foods says that South Africa follows hot on the heels of other Cadbury Dairy Milk markets in achieving Fairtrade certification further demonstrating the company’s commitment to fair and ethical trading: “Kraft Foods South Africa is delighted to be able to spread our unique brand of joy to more farmers in Africa as well”.

Having received the internationally-recognised certification, South African’s can look forward to seeing Cadbury Dairy Milk [plain] slabs featuring the FAIRTRADE mark on-shelves in the last quarter of 2011. It is estimated that over 1.4 million Fairtrade certified Cadbury Dairy Milk [plain] slabs will be consumed in South Africa in 2011, strengthening Cadbury’s ethical stance over supply chain management and sustainable supply.

There will be no difference in the price or the product itself.

About Fairtrade
Fairtrade aims to build relationships between consumers and producers to tackle inequalities in global trade and increase market access for groups of smallholder producer, as well as improving conditions for workers on farms.

The FAIRTRADE Mark was established in the early 1990s in consumer markets so consumers could identify labeled products as giving groups of farmers and producers the means to improve their livelihoods through the guaranteed minimum price and premium for social, environmental and business projects.  Around 7.5 million people (farmers, workers, their families and communities) – across 60 developing countries in the developing world now benefit from the international Fairtrade system.  There are also now Fairtrade markets in 23 countries, mostly in Europe and in the USA, Canada, Australia, New Zealand and Japan.  

For more information visit www.fairtradelabel.co.za