Food economy

Fairtrade, from an EU directive opportunity for development

EU standard for corporate social responsibility in force, now obliged to assess impact on workers' rights and the environment

by Micaela Cappellini

3' min read

3' min read

There are cloves and cinnamon, black pepper and ginger. They are produced in Sri Lanka, organically grown but above all respecting workers' rights and environmental protection. In all, the Fairtrade Bio bottle line comprises seven spices, and it is produced by Cannamela, the historic Emilia-based industrial grocery brand. In 2019, the company participated in a project funded by the Italian Agency for Development Cooperation, in which the ong Icei and Fairtrade Italia were also partners. With the help of cooperation funds, in Sri Lanka Cannamela thus acquired a new supply chain, made up of a local Fairtrade-certified producer - the cooperative Mopa - and a distributor (Biofoods).

The Veronese Nicofrutta, which imports and distributes pineapples, has instead gone through Giz, the German Development Cooperation Agency. With its financial backing it set up the Italian-Costa Rican-owned Nicoverde company in Costa Rica, which now processes the fruit directly on site and in a sustainable manner: it pays the right price to the farmers and employs advanced plant cultivation practices, from the use of drones for precision irrigation to the recovery of leaf waste, with which it produces fertilisers and textile fibres. Again, the pineapples are Fairtrade certified, which ensures that the right social, economic and environmental standards are met.

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Nicofrutta and Cannamela are just two examples of how companies, with the economic support of international cooperation and together with a partner such as Fairtrade, can contribute to a fairer development of communities, without forgetting the objective of their own profit.

'Doing international cooperation does not mean doing welfarism,' explains Paolo Pastore, general director of Fairtrade Italia, 'it means transferring know-how and skills from another part of the world with a common goal. We want to make companies understand that doing things sustainably is not doing charity, but showing responsibility towards those who work the land and presenting themselves to consumers as bearers of these values'.

The philosophy that Faitrade proposes to companies is therefore a Copernican revolution: 'In the past,' says Pastore, 'companies that did well would donate a portion of their earnings to philanthropic works. It was an act of goodness. Today instead it must become an act of responsibility, towards people and the environment'.

After all, where it is not consumers who demand more attention to economic, social and environmental sustainability, it is the European Union that is asking companies to do so. This month, after a very long and painful gestation, the Directive on due diligence for corporate social sustainability was published in the European Official Journal, making it mandatory for large companies to address the human rights and environmental impacts of their supply chains. Large companies will now have two years to comply and ensure decent incomes and responsible purchasing practices throughout their supply chains. This is exactly what the Fairtrade label, which is celebrating 30 years in Italy this year, guarantees: 'By the end of 2024, the Fairtrade standard will be fully compliant with what is required by the new European regulations,' recalls Managing Director Pastore.

Today, there are more than 2,500 Fairtrade certified products in shops and supermarkets in our country. In 2023, thanks to sales of EUR 500 million, premiums of over 3.6 million were redistributed to the farmers' organisations that are part of the network, which is present in 85 countries.

Thanks to the sprint imposed by Europe, the number of companies that are starting to get informed is increasing: 'The sector that is moving the most is the confectionery sector,' says Pastore, 'in particular as regards the use of cocoa and sugar'. One of the most interesting projects supported by Fairtrade, for example, deals with sugar: 'In the Medellin area of Colombia, a group of farmers deported by drug traffickers have chosen to return to their land and converted it from coca cultivation to sugar cane cultivation. We help them to sell their product at the right price'.
In Italy, it is distributed by Coop and Conad. Among the brands furthest ahead of all is Alce Nero: 'Today, all the non-EU products it uses are already Fairtrade certified.

The most interested in adapting quickly to the new European directive, however, are Italian manufacturers working with the German market: 'In Germany,' explains Pastore, 'they are a year ahead, because they already have a national law that obliges them to do due diligence on the social sustainability of companies. Those who now want to distribute their products through German supermarket chains already have to prove that they have certain social responsibility requirements'.

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