FAIR TRADE IN FOOD Church of Scotland Church and Society Council Issues and ideas for action Church and Society Council Church of Scotland 121 George Street, Edinburgh, EH2 4YN Phone: 0131 225 5722 www.churchofscotland.org.uk Charity Number: SC011353 May 2007 Fair Trade in Food How can we help maintain a strong Scottish agriculture that does not disadvantage producers in the developing countries and which is also fair to consumers? When you have plenty to eat and live in fine houses of your own building, when your herds and flocks, your silver and gold and all your possessions increase do not become proud and forget the Lord your God. Deuteronomy 8.12-14 When you reap the harvest in your land, do not reap right up to the edges of your field or gather the gleanings of your crop. Leave them for the poor and for the alien. Leviticus 23.22 The field of the poor may yield much food, but it is swept away through injustice. Proverbs 13.23 The frequency of references to food and to meals in the Bible indicate the central importance of food related issues, the centrality of food to the structure of societies and the contribution of food production to environmental and heritage issues. However, an estimated 824 million people in the developing world were affected by chronic hunger in 2003 (1). Over recent years agriculture has changed greatly both in Scotland and throughout the world. The current shape of Scottish agriculture is largely a product of the EU Common Agriculture Policy (CAP) and since 2005, the Single farm Payment. Trade is increasingly vital to secure food supplies and so global issues have an increased importance to those who live in Scotland. If we wish to influence trade in food at home or in the developing countries then we must affect the deliberations of organisations such as the European Union, World Trade Organisation, the World Bank and multinational companies such as Wal-Mart. In Scotland, as in other developed countries, in the past 50 years many changes relating to our food have taken place: * the quantity and choice of foods available has improved greatly * the variety and amounts of food we consume has increased * we “eat out” more often * traditional school meals have decreased * consumption of “fast foods” has increased * there are social structural issues around changes in who we eat with * there are changes in where we buy food The increasing dominance of supermarkets and large commercial food processing companies in the mass market has dramatically changed the way people shop, eat, and think about food. The strength of the supermarket sector and the small number of players has meant that many of the crucial decisions about food have moved beyond the control of governments and into the hands of companies which may not be UK based. Domestic Issues In Scottish political terms, issues of food and agriculture are complicated by being the responsibilities of different levels of Government. Problems experienced by Scottish farmers include: * the costs of producing the standard and safety of food and raw materials that society demands, while the same produce can be imported from the other side of the world at a much lower price. * coping with disappearing subsidies, now replaced by the Single Farm Payment, which is already being eroded at an alarming rate and will almost certainly disappear completely by 2010/12. * reduced prices for produce while fuel and fertiliser costs rise. * increasing legislation and paperwork. One question is how can Scottish concerns be adequately reflected at international levels? A related one is how individual Christians or Churches can influence international organisations and multi-national businesses? Scottish and UK agriculture should compete effectively and efficiently in global agricultural markets freed from barriers that inhibit trade and production. However it would seem to us that the key issue within the food sector is that currently there are no free and fair markets in the trading of food. Solutions for Scottish agriculture must take account of the social impact of global trading systems on people, especially on those in the developing countries. Developing Country Issues Problems experienced by producers in developing countries include: * cheaper, subsidised foods from developed countries flooding the market and forcing local farmers out of business. * protection and subsidies given to processed farm products in developed markets resulting in developing countries being restricted to producing raw materials which are not so profitable. * the absence of effective trade negotiations on agriculture, leading to developed markets being able to protect their farmers from external competition through high tariffs and various non-tariff measures. Millions of small farmers throughout the developing world have thus been unable to gain a viable living from agriculture and are unable to meet their own or their community’s food needs. Commercialised agriculture exploits economies of scale through intensive farming and monoculture. There is no place for the small farmer who makes up the majority of the world’s population surviving on the equivalent of less than a $1 a day. These pressures can result in environmental degradation. “The populations of the world’s poorest countries have been growing rapidly, increasing the demand for food. At the same time environmental degradation, both natural and man-made, has reduced the ability of farmers to grow food in many areas. An increasingly commercialised agriculture has helped total yields keep pace with needs but has often cut small farmers out of the equation.” (2) Societal Issues Within our society, the importance of family and even of communal eating, such as school meals, has diminished. Links between consumers and local producers have weakened. Changes in diet, particularly among poorer people, have paralleled increases in obesity and linked ailments such as diabetes and cardio-vascular disease. Consumers in the developed nations place an apparently low value on food. For all producers this is accentuated by the unequal distribution of power and resources within the food trading chain. In Scotland this is seen in the power of the supermarkets and, in the developing countries in the power of the developed world. This situation makes some kind of support, via the CAP, essential to sustaining agriculture in Scotland but also identifies the need for WTO rules that are sensitive to the needs of small producers in the developing countries. Food and agriculture are most commonly discussed by governments in economic or in cost benefit terms. There is a real need to introduce social and Christian values into the equation, as elements balancing economic factors. This is just the sort of area where churches have clear and unique potential to act as advocates and to orchestrate discussions. Such discussions should be around the issues below. The issues facing Scottish farming are not unique. The EU, as a whole, has similar problems within all areas dominated by small farming. Structural issues of this type need action at EU levels. Both the future development of CAP and society’s view of domestic agriculture will be critical. If food security is no longer the primary justification for farming then the future role of all farming needs to be clarified. Supermarkets The major buyers of domestic production are the supermarkets and their suppliers. They control most of the food bought for home consumption. Directly or through the food supply chain farmers must sell to large multinational businesses. There is need to increase the bargaining power of primary producers if they are to survive. The power of the multiples and the detached attitude of Government seem likely to result in an increasing proportion of UK consumption being sourced from outwith the UK. In the short term this may result in lower prices at the till, but in the long term this may be less good for consumers. Change in practice would require a revision of the current concept of corporate responsibility. This and the attitude of Government can only be changed by public opinion, especially the buying decisions of church members. Common Agricultural Policy Support through the single farm payment is independent of particular commodities. The current rationale is to maintain a wider rural sector, a quality environment and the ability of farm businesses to restructure. A revised CAP, or a new mechanism for rural support, is needed if agriculture is to remain a substantial industry. The current CAP results in the low cost export of foods surpluses to developing country markets. In Scotland probably only skimmed milk powder is within this category. Fairness dictates that EU policies should not damage the prospects of third world farmers and their markets. This is a significant issue for WTO. Food Pricing There is need to increase the status of food. Scottish consumers need to understand cause and effect better in relation to food production. The relative cheapness of food and increasing urbanisation, have reduced food’s importance. Despite current Government attitudes, home produced food seems likely to remain important both for its contribution to heritage and because of its links to natural environment. Developing Countries We fail to recognise the core issues at the heart of the current world trade structure if we discuss subsidies to agriculture within the EU and USA without acknowledging that: (a) there is little or no free trade in agriculture, (b) bargaining and buying power is seriously imbalanced, (c) it is in the hands of large and rich countries and companies, who (d) determine access to developed country markets and administer the current subsidies. On a world wide basis trade rules need to be re-orientated in favour of the less powerful. The World Trade Organisation has the potential to protect the interests of the developing countries. Ineffective as it may have been in the past it is the one world body which has the potential to encourage trade to work under agreed rules and to restrain the financial power of the major world powers. The alternative is bilateral or regional agreements. Here the power of the individual developing country is liable to be less than in a WTO where working alliances among countries with common interests can be concluded. The WTO needs to be developed, not abandoned. The Role of Church Members Consumers can influence those who make decisions on world trade. Our response to this report can have two emphases – buy local produce to support Scottish farming and buy Fair Trade products to support communities in the developing world. Churches should provide advocacy for the Fair Trade and Trade Justice positions. They can support existing Fair Trade programmes and argue for the extension of this approach. Trade benefits need to be seen in relation to associated environmental and sociological costs. It will be important to find means of helping developing countries to benefit from the income that trade can bring but without the disadvantages to the environment and to the stability of communities. This is becoming of greater importance as we become aware of the impact of global climate change. A much fuller report on these issues is available. If you would like this, please contact the Church and Society Council, Church of Scotland, 121 George Street, Edinburgh, EH2 4YN. Action Pages The 2007 General Assembly approved these deliverances: • Affirm the importance of shared food as a central focus of family life. • Encourage church members to raise awareness of Fair Trade produce and to purchase locally sourced food and Fair Trade produce wherever possible. • Encourage congregations to become Fair Trade churches. • Encourage church members to campaign for fairer rules on international trade at WTO and EU level, in particular through the Trade Justice movement. • Urge HM Government and the Scottish Executive to streamline the documentation required of farmers. • Urge the Scottish Executive to assist young people where possible in their entry or return to agriculture. • Urge the Scottish Executive and local authorities to use procurement rules constructively to promote the use of local produce and Fair Trade goods. • Urge supermarkets to sell more locally produced and Fair Trade goods. Here are some ways that you can put these recommendations into practice: Think creatively! Organise a fun event for your Church family based around locally bought food and Fair Trade food. Invite your neighbours. Only serve Fair Trade tea and coffee at your church events – use Fair Trade sugar and biscuits too. Have a ‘tasting’ session where you decide which brands you prefer. Plan ‘all together’ family meals. Get the kids involved in recipes and organising games. Start a Fair Trade stall and/or get a stock of Fair Trade catalogues to order from. Find out what Fair Trade products are not available in your local supermarket. Plan a day or a week in which your Church members ask the manager to stock a particular product. Use letters, phone calls and visit the store. Have Your Say Write to your local councillors, MPs and MSPs about these issues. • encourage councils and other government organisations to buy local produce • ask for clearer labelling to identify the country of origin of food • give help to primary producers so they become more effective sellers • develop alternative outlets (e.g. electronic bazaars) • facilitate value adding activities (e.g. turning milk into cheese) These ideas could help Scottish farming and would make the distribution of resources within our food chain fairer. Useful websites: These sites will help you to source Fair Trade products: • www.fairtrade.org.uk • www.traidcraft.co.uk • www.co-opfairtrade.co.uk Find out about the Trade Justice Movement: • www.christian-aid.org.uk/campaign Write to your MSP - Scottish Executive: • www.scotland.gov.uk Discussion questions Leviticus 23.22; Deuteronomy 8.12-14; Proverbs 13.23; Isaiah 42.5-7; Matthew 25.31-44 1. As Christians, how can we interpret biblical teaching on issues related to food and farming at the current time? 2. How can the principles of ‘fair trade’ usefully be applied to Scottish food production? 3. How do we balance the power of the supermarkets with the needs of individual farmers in Scotland and the developing world? 4. What, as individual church members, can we do a) at a local level b) at a global level to bring about a fairer deal for those working in agriculture. Buy ‘local’ Buy ‘Fair Trade’ 600,000 Church members can make a difference