ABSTRACT

Since 2000 Fair Trade has grown rapidly in Europe. Much of this growth is a result of supermarket retailing, which has expanded Fair Trade to consumer groups traditionally thought to have less affinity with its underlying principles. Of particular note is the introduction of supermarket “own brand” Fair Trade goods which carry the name of the supermarket alongside the “Fairtrade” certification logo of Fairtrade Labelling Organizations International (FLO). Supermarket own brand Fair Trade has potential for further expanding the consumer base and bringing Fair Trade fully into the mainstream. But it may also have a marked effect on the dynamics of Fair Trade production networks, given the recent changes in global agrofood systems described by Raynolds and Wilkinson in Chapter 3. These include growth and concentration in the supermarket sector and the concurrent emergence of “buyer-led” production networks in which supermarkets play a dominant role and require suppliers to meet an expanding range of standards for food “qualities,” including social and environmental attributes (Dolan and Humphrey 2004; Gereffi 1994; Ponte and Gibbon 2005). This allows supermarkets to capture market share and maximize returns without getting involved in low-value activities directly or developing close relationships with suppliers, but can put tremendous commercial pressure on suppliers within their networks (Barrientos and Kritzinger 2004; Gereffi et al. 2005; Vorley 2004).