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Government challenges big business to buy African

11th March 2008

New £2 million supermarket fund opens for business

Packing bananas on smallholding in Castle Bruce destined for British supermarketsImage 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, external linkCo-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 external linkDepartment 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 external link 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 external linkFairtrade 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. external linkEmerging 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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