Cadbury's to improve supplier conditions with Fairtrade agreement

6 March 2009

6 March 2009 | Jake Kanter

Cadbury's Dairy Milk chocolate is to get Fairtrade certification by summer, as the company strives to improve living standards for cocoa suppliers in Ghana.

The confectionery giant will pay a minimum price of $1,600 (£1,124) per tonne of cocoa under the new arrangement.

Figures from the International Cocoa Organisation showed the commodity was trading at $1,654 (£1,163) a tonne yesterday.

The Fairtrade conditions meant the company paid the minimum price or higher, in line with the market fluctuations.

In addition to the price per tonne, the company agreed to pay an extra $150 (£105) per tonne in a "Fairtrade premium" to go to improve roads, schools and healthcare in the West African nation.

The deal involved sourcing from Kuapa Kokoo, one of the first groups to get Fairtrade certification and represented more than 40,000 cocoa suppliers in Ghana.

Cadbury said the deal was expected to triple Fairtrade sales of cocoa for Ghanaian farmers but would not push up chocolate prices for consumers.

Only the Dairy Milk brand is covered by the deal at this stage. The move coincided with Fairtrade Fortnight - which runs until Sunday - and marked the first anniversary of the Cadbury's Cocoa Partnership, a £45 million scheme to invest in cocoa farmers in Ghana, India, Indonesia and the Caribbean.

Harriet Lamb, chief executive of the Fairtrade Foundation, said suppliers in Ghana were " very excited" by Cadbury's commitment.

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