Global pressure drives ethical trade compliance

Driven by growing global pressure, local producers are taking ethical trade compliance issues seriously. The Wine & Agricultural Trade Association (Wieta), which promotes ethical trade in the wine industry value chain with its code of good practice, has more than doubled its membership over the past year. This as local producers continue to seek accreditation for fair labour practices on their farms and in their cellars. Wieta CEO Linda Lipparoni said the organisation’s membership had risen to 911 producers for the year to March 31, 2014, up from 450 just 12 months previously. “Globally, more shoppers want to support producers who treat their workers fairly. This in turn has impacted on retailers who are increasingly calling for their suppliers to demonstrate their credentials in this regard,” she said. Sweden, for example, has made Wieta accreditation a condition for some tenders submitted by South African producers to its state-run retailer, Systembolaget. According to Wines of South Africa (Wosa) CEO Siobhan Thompson, South Africa is Sweden’s biggest source of New World wines and its second biggest supplier overall. The country is one of the industry’s top five export destinations. Lipparoni said the country’s major producers such as Distell, DGB and KWV, who account for most of South Africa’s wine export volumes, were all Wieta members. They were also working with their own suppliers to achieve compliance and attain membership. With the growing number of leading international retailers subscribing to the Global Social Compliance Programme (GSCP), Wieta is also taking steps to benchmark its code and audit methodology against this organisation, she added. The GSCP, which has members across the UK, Europe, the US and even Japan, is a business-driven programme established in 2006 for the ongoing improvement of working and environmental conditions in global supply chains. “We are enhancing Wieta’s credibility by linking with a global programme supported by the likes of Walmart, Tesco, M&S and Coop. It demonstrates that our criteria stand up to global best practice. We believe it will also help South African producers wanting to trade with these retailers.”