Government challenges big business to buy African
11th March 2008
New £2 million supermarket fund opens for business
 Image courtesy of Philip Wolmuth /Panos Pictures
International Development Minister Gareth Thomas today called on
major retailers to use their purchasing power to help developing countries.
Introducing a new £2 million fund to enable retailers to join forces with African
farmers and encourage investment, Gareth Thomas urged retailers to look at
their buying habits and the range of quality goods available from developing
countries.
Speaking to figures from the food industry at the first ever ‘Procurement for
Development Forum’, set up by DFID to work with industry to help create better
life chances for people in developing countries, Gareth Thomas said:
"Buying from developing countries makes clear business sense – not only are
you sourcing quality products that compete on price but you are also meeting the
increasing consumer thirst to buy ethically.
"Industry buyers have a powerful choice – to make what they buy work for or
against the developing world. Retailers are increasingly playing their part in
making their product choices count – a million fruit and vegetable growers in
Africa are already providing UK shoppers with quality competitive goods – but we
can go further."
The Minister praised the growing movement within the retail sector to think
about the environmental impact of their buying, but made the case for buyers to
expand this to helping countries trade their way out of poverty. He also briefed
retailers on the ongoing work being done by Government to increase trading
opportunities for the world’s poorest people through pushing for a breakthrough
in the Doha round of trade talks.
Debbie Robinson, Director of Retail Marketing,
 Co-operative Food, said:
"It is absolutely the right time for Government to convene this forum. We
need a dedicated space where retailers, food producers and Government can meet
to discuss how we can collectively harness the increasing number of consumers
who wish to support international development through trade not aid."
The Food and Retail Challenge Fund will encourage new ways of buying produce
from developing countries by the corporate sector through projects to help poor
farmers and encourage investment in this area. It will pilot novel
buying-schemes with poor producers and communicate information to consumers, via
partners, about how their purchases can help poor farmers.
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Notes for editors
- Gareth Thomas is the Parliamentary Under Secretary of State for the
Department for International Development (DFID) and the
Department for
Business, Enterprise and Regulatory Reform (BERR).
- He will speak on Tuesday 11 March at the first Procurement for
Development Forum. This forum will meet twice a year at Chatham House,
London. Last July, the Prime Minister and the UN Secretary General
encouraged the international community to accelerate progress to reach the
2015 Millennium Development Goals (MDGs) - including action from the private
sector. The private sector has the technology, skills and expertise for
wealth and job creation that if fully mobilised will help meet the goals.
- The Food Retail Industry Challenge Fund (FRICH) will make £2 million
available for grants for partnerships that bring retailers and African
farmers together. The partners will also be expected to match fund these
projects. In 2006, British supermarkets spent £2.7 billion pounds (£7
million per day) on importing food, clothes and toys from developing
countries [Source: Action Aid]. Only a small fraction of these are
Fairtrade
or ethically labelled which is why new ways are needed to improve all of
these supply chains. The FRICH will be part of this process.
Emerging Market
Economics Ltd will manage the fund and it is expected the fund will be
taking applications from June.
- On Monday 10 March, Gareth Thomas represented the UK in discussions on
the Doha Development Round trade talks at the General Affairs External
Relations Council in Brussels.
- The Department of International Development (DFID) is committed to
achieving a fairer trade system and has provided £12 million of support
since 1997. In addition, last week it
announced a £1.2 million grant over 2
years to support the development of Fairtrade labelling as well as
increasing support to the Multi-Fibre Arrangement Forum to £350,000 over
three years. This brings together actors in the ready made garment sector in
countries affected by the reform of trade quotas, and promotes dialogue and
initiative to both increase competitiveness and productivity in the sector
and improve standards in supply chains.
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