Fairtrade Foundation statement on latest supermarket banana price cuts
The Fairtrade Foundation is extremely concerned by recent supermarket reductions in banana prices, and believes that such moves would not be welcomed by consumers when they understand the extent to which unrealistically low prices may damage the livelihoods of farmers and workers in developing countries. This risk will particularly be the case for those farmers and workers in conventional supply chains who are unprotected by Fairtrade standards.
All multiple retailers should be expected to demonstrate a fair and sustainable pricing strategy throughout their range. It is therefore always disappointing to see pressure being put on Fairtrade supporting retailers to move their price in order to protect market share, in what is a fiercely competitive retail environment.
We believe recent price reductions to be an unnecessary move by retailers. Previous similar price cutting exercises have not resulted in increased banana sales. The fact that Fairtrade banana sales continue to grow despite changes in the current economic climate would suggest that shoppers are placing increasingly high value on ethical and responsible sourcing. We commend those retailers who have responded to the rise in consumer demand for Fairtrade and remain committed to a 100 percent Fairtrade banana offer.
Now, more than ever, we are calling on consumers to deliberately choose products carrying the FAIRTRADE Mark and on multiple retailers to deepen their engagement with Fairtrade, particularly in key volume commodities such as bananas, where products can potentially have a huge impact for the better on the lives of millions of farmers and workers in the developing world. It should be remembered that they are also at the sharp end of rising production, transportation and living costs, and need more than ever before to earn a sustainable income in order to continue to provide UK shoppers with the nation’s favourite fruit.
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