What Fairtrade and B Corp Companies Are Doing to Improve Supply Chains

Fairtrade and B Corp certified companies are leading the way in pushing towards the UN’s Sustainable Development Goals. Recently, B Lab interviewed two companies who provide great examples of B Corp and Fairtrade certified companies who are creating a more just and sustainable economy. Here’s what you need to know about their progress:

  1. B Corp certified cotton product company, Gallant International, is helping Fair Trade certified cotton farmers and manufacturers to shift to more sustainable agricultural methods. (more…)
  1. Fairtrade and B Corp certified chocolate company, Divine Chocolates, has given cocoa farmers a bigger presence and influence through company co-ownership opportunities. (more…)

Background Information: What is Fairtrade?

Full Report: How Fairtrade and B Corp Companies are strengthening supply chains and shaping a stakeholder economy

Sustainably & ethically grown cotton on the rise through regenerative agriculture

Gallant International Inc., a B Corp certified company in California, is promoting different sustainable methods to their Fairtrade certified cotton farmers and manufacturers. Here’s how they’re doing it: 

  • Gallant International Inc. pays a premium price for the cotton grown by Fairtrade certified farmers in India. The company is also pre-funding their next harvest to help farmers acquire organic cotton seeds, which could help them boost their organic cotton production.
  • Over 400 farmers are supported by Gallant in shifting to regenerative agricultural methods. This could provide additional opportunities for farmers through intercropping and crop rotation farm use.

A bigger presence and influence for cocoa farmers

Divine Chocolate’s innovative business concept demonstrates a one-of-a-kind way of doing business that benefits cocoa farmers. Here’s how they do it: 

  • Divine Chocolate is the only Fairtrade and B Corp certified chocolate company that promotes co-ownership to its cocoa farmers. Around 40% of the board representation of Divine Chocolate company comes from the Kuapa Kokoo, a Fairtrade-certified cocoa farmer’s organization in Ghana. This provides a bigger presence and influence of cocoa farmers in the business’ decision-making process.
  • Through this unique business model, farmers’ concerns can easily be brought up to the company. It can also help the company in achieving sustainable livelihood programs that benefit smallholder cocoa farmers. This makes them better prepared for stressors such as climate change, market price swings, and even the current pandemic.
  • As Divine Chocolate strives to maintain a stronger and sustainable relationship with cocoa farmers, the company also guarantees a Fairtrade Minimum Price for farmers to protect them from market price swings. Farmers also earn a Fairtrade Premium for their cocoa, which helps them construct community initiatives that promote their welfare, as well as infrastructure, business improvements, and even direct financial assistance.

Sources: 

“How Fairtrade and B Corp Companies are strengthening supply chains and shaping a stakeholder economy.” Fairtrade International, February 2, 2022. https://www.fairtrade.net/news/how-fairtrade-and-b-corp-companies-are-strengthening-supply-chains-and-shaping-a-stakeholder-economy

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