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Connecting African suppliers with UK supermarket shelves

4 July 2008


Collecting pineapples in GhanaMore African goods – from chocolate to pineapples to spices in ready meals – could appear on UK supermarket shelves in the future, said DFID Minister Gareth Thomas today as he opened bids for a new £2 million scheme to help producers trade their way out of poverty.

The Food Retail Industry Challenge Fund (FRICH), which will be match-funded by retailers, will team food producers from the developing world with major UK retailers. It aims to increase the flow of African food products to the UK in innovative ways that work for both parties.
 


Reducing poverty in your weekly shop

Next Monday, Gareth Thomas will challenge the view that exporting products from the developing world has a bigger environmental impact. He will launch groundbreaking research into the carbon footprint of South African fruit and wine exports in Pretoria.

The Minister said:

"British tastes have changed and are continuing to change. For example, the demand for pineapple – which can’t be grown in the UK on a commercial scale – has gone up by 24% in the last year. But producers in Africa can’t always get the right supply chain in place or they’re not quite adapted to the UK market.

"Our research has shown nearly three-quarters of the UK public want to use their weekly shop to reduce poverty in the developing world. But they don’t want to spend over the odds, especially with the global economic situation, and they’re - quite rightly - concerned about climate change.

"The ability to trade effectively with the UK is making a big difference to local economies in Africa. We know this works so we want to work with the business community to take this further - building this bridge directly between the retailer and producer through this fund means businesses can work together to see what’s viable and get our support to kick-start a long term solution."

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Help for African farmers

An example of the type of project the Government hopes to see come forward would be an initiative to help African producers meet strict European certifications and supermarket standards. UK retailers will be expected to match-fund projects put forward to help African farmers compete against Asian and Latin American suppliers and meet the exacting standards of UK supermarkets.

Seven out of ten Africans depend on agriculture and the natural environment for their livelihoods, including several million people who rely partly on sales of fruit, vegetables, cocoa, coffee, tea and other agricultural commodities to the UK. While nearly three-quarters of UK consumers say they want to reduce poverty through their shopping choices, they are also concerned about issues such as prices, food safety, environmental impacts and animal welfare.

The carbon footprint research launched on Monday will be co-funded by DFID and the industry itself. It is the first industry-wide measure to be developed in South Africa, which is one of the biggest exporters of wine in the world.

Announcing the new research, Gareth Thomas will say:

"South Africa is already starting to see the effects of climate change on its exports. For example, rainfall patterns are starting to affect the fruit and wine industry in the Western Cape. But we also need to understand the carbon "cost" they pose to the environment. This is crucial to maintaining South Africa’s competitive position in global fruit and wine export markets."

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Notes to editors

1. Over 90% of the fruit and almost 40% of the vegetables we eat in the UK are imported. UK customers spend over one million pounds a day on fruit and vegetables from Africa

2. FRICH will provide a platform for piloting public-private partnerships in the food retail sector that will address these issues by developing new profitable business models that help increase the sale of sustainably produced food from Africa. FRICH will enable projects to get off the ground in Africa that might be too risky for commercial operators to invest in alone, or which help to spread the benefits to smaller and poorer farmers. By working with the food retail industry and others, FRICH will help to increase market access for food exports produced by African farmers, thus reducing poverty by improving the incomes of the rural poor in Africa.

3.The £200,000 carbon footprint research scheme, jointly funded by DFID and the Fruit and Wine Industry in South Africa, will measure the carbon footprint of the industry and establish how the industry's carbon emissions compare to international competitors. It will then be used to address how the industry can become carbon neutral securing current jobs and increasing the demand for South African produce in a sector crucial for the employment of the poor.

4. DFID announced in February that it is doubling its commitment to £1.2 million to expand Fairtrade labelling across Europe and to help producers in the poorest countries around the world.

For further information contact Heledd Owen in the DFID Press Office on 020 7023 1752 or e-mail h-owen@dfid.gov.uk

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