A cohort of British supermarkets are reportedly planning to join forces to buy ethically sourced food such as bananas, coffee and cocoa from farmers in developing countries, entering talks with Fairtrade to carry out the move.
The retailers, which include a number of popular grocery stores, according to a report in the FT, are in discussions after the Competition Market Authority (CMA) said it would not fine them for violating anti-competition laws.
People familiar with the matter told the outlet Sainsbury’s and Tesco are in talks about taking part in the scheme, with the Co-op taking part in a cocoa pilot with plans to add coffee and bananas next.
Alexander Carnwath, head of public affairs at the Fairtrade Foundation told City A.M. “Farming remains one of the main drivers of deforestation globally, as well as a significant contributor to an increase in global greenhouse gas emissions and biodiversity loss. Farmers and workers cannot drive forward sustainability initiatives without supply chain collaboration.”
“That’s why Shared Impact is a joint pledge between farmers, retailers and Fairtrade. Expanding on the existing way we work with our retail partners, the new model allows them to target salient risks in their supply chain, drive forward a more resilient food sector, work together to advance shared goals, and fund real, lasting change in partnership with farmers and workers.”
At the time, the CMA said it “does not expect to take enforcement action in relation to the agreement, and that no fines would be issued”.
The authority said prices are not understood to be impacted by the move.
For supermarkets, joining forces would help them meet difficult targets such as paying a living wage to banana producers by 2027.
City A.M. has contacted Tesco, Co-op and Sainsbury’s for comment.