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Recent figures from the FLO (Fairtrade Labeling Organizations
International) reveal that worldwide sales of Fairtrade products have
shot up by a massive 22% during the last economically-challenging year.
Consumers spent around €2.9bn (or $4bn USD) on products carrying the Fairtrade label between June 2008 and June 2009, with global sales doubling for Fairtrade cotton (94%) and Fairtrade tea (112%), while bestsellers, Fairtrade coffee and Fairtrade bananas, rose by 14% and 28% respectively.Fairtrade goods tend to be sold at a higher price than similar, non-Fairtrade products, so unsurprisingly the biggest sales rises were in wealthy Western countries. Sales increased by over 50% in Australia, New Zealand, Finland, Canada and Germany and by a huge 75% in Sweden and 73% in Norway. The biggest markets for Fairtrade certified products are the UK and US, which saw sales rises of 43% and 10% respectively. New markets for Fairtrade certified products are also growing fast in Eastern Europe, East Asia and South Africa.This surge in consumer demand for Fairtrade produce has lead to changes in the sourcing policies of world-renowned businesses including the coffee shop chain and retailer, Starbucks, who now sell only fairly traded coffee in its UK and Ireland outlets. Meanwhile the high profile brand Cadbury’s has also makes a pledge to use only Fairtrade cocoa in its top range products. Such sourcing policies will have a major impact on the global coffee and chocolate industry in the coming year.
There are currently two Fairtrade standards in use – one for North America/Canada and another for the rest of the world. However, rather than competing, the two standards are recognized by consumers in their own regions. To qualify to display either of these marks on their products, retailers and producers have to ensure the source of production has gone through an FLO-authorized certification process, conducted by a third party audit of its facilities, distribution and supply chains.
As Fairtrade is increasingly adopted by leading multinationals like Starbucks, demand for more consistency of Fairtrade issues to reduce the costs of administration is increasing too. In the future it is likely that the International Fairtrade Certification Mark will become more common in North America and that the current Fair Trade Certified mark, which is administered by TransFair USA and TransFair Canada will be phased out.
Elizabeth Evers is the ekobai.com news editor. Ekobai is the world’s only directory for certified suppliers of Fairtrade products and those meeting other key standards across all responsible business markets.
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