7 October 2005

Fair Trade: Nestlé still have a long way to go

Oxfam welcomes, as a small first step, Nestlé UK's announcement that it will launch its first Fairtrade certified product into the UK market. We are pleased to see Nestlé responding to pressure from campaigners.

However, Nestlé - and the other major roasters - still have a long way to go to address the coffee crisis. Twenty five million coffee growing families face destitution as a result of low or unstable prices. This launch could lead to significant changes in the future but it is disappointing that it is limited to the UK and that initial sales will only represent a tiny percentage of total global volume.

Furthermore, Fairtrade is just one element of a wide-ranging strategy proposed by Oxfam to address the crisis for small-scale coffee producers. We are also calling on Nestlé and others to agree broader changes in their sourcing policy and purchasing practices for the benefit of small-scale producers. Fundamental reform of the coffee market led by decisive action by all the major roasters is urgently needed.

Oxfam will continue to watch Nestlé and judge its commitment to Fairtrade, by its transparency on volume and sourcing, and its movement towards the Fairtrade buying targets set by Oxfam. We will also continue to monitor Nestlé’s wider engagement and response to the other elements of our Coffee Rescue Plan.