Kit Kat gives cocoa farmers in Côte d’Ivoire a break

Fairtrade Mark Ireland welcomes the announcement Monday, 7 December that Kit Kat is going Fairtrade as a breakthrough for cocoa farmers in Côte d’Ivoire (Ivory Coast).

 

The move by Nestlé, which will kick off in mid-January 2010 when the first certified Kit Kat four-finger bars arrive on shop shelves, is benefiting thousands of farmers in Côte d’Ivoire.  As well as the Fairtrade price (or market price if higher) for the cocoa, farmers’ organisations receive additional Fairtrade premium payments to invest in long-term community and business development projects of their own choice, such as education and healthcare, the environment or their businesses. 

 

Amongst the first farmers to benefit will be members of cocoa co-operative, Kavokiva, which was established in 1999 and Fairtrade certified in 2004, and now numbers 6,000 farmer members. Until now, Kavokiva farmers have sold very little on Fairtrade terms. The move will not only enable this group to increase Fairtrade cocoa sales but will also impact other Fairtrade certified co-operatives and farmers’ groups looking to enter the Fairtrade market. 

 

Peter Gaynor, Executive Director, of Fairtrade Mark Ireland said “This is very good news for the cocoa farmers involved in Cote d’Ivoire, and good news for supporters of Fairtrade in Ireland. Cote d’Ivoire is one of the poorest countries in the world with nearly 50% of people living below the poverty line according to the World Bank. This move by Kit Kat will provide cocoa farmers with more opportunity to invest in social projects in their own communities.”

Fulgence Nguessan, President of Kavokiva Coop in Cote d’Ivoire says the partnership will give income security to the farmers. “The long term commitment of Nestlé to purchase Fairtrade certified cocoa from Kavokiva is a unique opportunity for the cooperative and its members. Having its cocoa sold at a fair price directly to Nestlé is a source of motivation to all members and reinforces the cooperative's cohesion. It will allow the cooperative to continue to help its members to produce good quality cocoa and increase the yields they produce. The Fairtrade premium will be used to improve the life conditions of our members. We are committed to use a significant part of this premium to ensure that all children from our members can attend school and also to improve the services of the health centre of the cooperative.”

 

Recent research in Ireland by Nielsen indicates that while consumers are currently prioritising value - nevertheless 57% of respondents say they also want to purchase Fairtrade products. With Kit Kat being Ireland’s best-selling chocolate biscuit bar this purchasing will be increasingly easy for Irish consumers.

 

Peter Gaynor continued, “Obviously this is a very big deal and we commend Nestlé for it. And also, credit where credit is due – there are thousands of ordinary Irish people who have been promoting Fairtrade for decades - and, in fairness to the Irish Government they are one of the largest donors to Fairtrade in the world. In the period between 2006 and 2013 the Irish Government, through Irish Aid, is providing approximately EUR20 million in funding for Fairtrade and ethical trade and supporting small farmers in developing countries to access better terms of trade in global markets. Today’s announcement is another important piece in the jigsaw.’

 

Under Fairtrade terms, farmers receive the guaranteed minimum price or world market price (whichever is higher) plus the Fairtrade premium of US$150 per tonne which is used for business or social development projects.  Although the world commodity market price for cocoa is currently high, small-holder farmers are often forced because of poverty to make a quick sale to brokers at a lower price, therefore not directly benefiting from the higher commodity prices.  With Fairtrade, the direct relationships mean that farmers’ co-operatives secure a better deal with a fair price as well as the Fairtrade premium.

 

There are currently seven Fairtrade certified cocoa co-operatives in Côte d’Ivoire and many eager to gain certification.  In 2010, at least 4,300 tonnes of cocoa for Kit Kat will come from Côte d’Ivoire Fairtrade certified cooperatives, including Kavokiva.

 

The sugar in the product will also be Fairtrade certified, sourced from Belize, providing additional premiums of $60 per tonne for the farmers to invest in improving their communities and farming practices.

 

The FAIRTRADE Mark is a certification mark and a registered trademark of Fairtrade Labelling Organisations International (FLO) of which Fairtrade Mark Ireland is the Irish member. Fairtrade Mark Ireland is an independent certification body which licenses the use of the FAIRTRADE Mark on products which meet international Fairtrade standards. This independent consumer label appears on products as a guarantee that disadvantaged producers are getting a better deal.

Today hundreds of retail and catering products have been licensed to carry the FAIRTRADE Mark including coffee, tea, herbal teas, chocolate, cocoa, sugar, bananas, grapes, pineapples, mangoes, avocados, dried fruit, juices, smoothies, biscuits, cakes & snacks, honey, jams & preserves, chutney & sauces, rice, quinoa, herbs &  spices, seeds, nuts & nut oil, wines, beers, rum, confectionary, muesli, cereal bars, yoghurt, ice-cream, flowers, sports balls, sugar body scrub and cotton products including clothing, homeware, cloth toys, cotton wool and olive oil.