The Business Case for Fairtrade

Since its launch in 1994, the FAIRTRADE Mark has become established as a credible, independent consumer guarantee for products that help producers in developing countries get a better deal from international trade.

Introduction
Fairtrade Labelling is an international system of standards for producers, and terms of trade for their goods that ensure farmers and workers in 58 developing countries are adequately protected and can build a more sustainable future. Over 5 million people in these countries are benefiting from increasing sales of Fairtrade certified products in over 20 national markets across Europe, North America, Japan, Australia, New Zealand and Mexico.

Range of Products
The FAIRTRADE Mark currently appears on a range of products including coffee, tea, cocoa, fresh fruit, juice, honey, wine, dried fruit, nuts and sugar, and non-food products such as flowers, sports balls and cotton. The Mark can also be found on composite products that use these ingredients in conjunction with others that are not covered by Fairtrade standards, such as hot chocolate drinks, snack bars, cakes and biscuits. The range of Fairtrade certified products (products carrying the FAIRTRADE Mark) is growing all the time and standards for new categories will be introduced on a regular basis over the next few years.

Market Overview
Since 1997, retail sales of Fairtrade certified products in the U.K. have been growing by an average of 50% p.a. and were running at an estimated retail value of £290m in 2006. Fairtrade coffee now accounts for over 18% of the total market for roast and ground coffee, while Fairtrade bananas are on course to approximately 30% of the market share in 2007.

Consumer data
Results of the many market research surveys conducted over the last few years indicate that there is growing awareness of, and potential demand for, Fairtrade certified products.

• Figures from TNS Omnimas show that the FAIRTRADE Mark is now recognized by almost three in five British adults. The findings show that 57% of adults can identify the independent Fairtrade consumer label, up five points in just one year, and 53% of respondents correctly associated the symbol with a better deal for producers in the developing world.
• 63% of adults agreed that buying Fairtrade products most manageable and effective way of helping tackle poverty (ranked higher than giving money to charity at 58%), OC+C online, May 2007.

Benefits to producers
Many farmers and workers in developing countries struggle to provide for their families. Poor market access and unfair trade rules often mean that the price they get for their crop does not cover the cost of production. Fairtrade is a rapidly growing international movement which seeks to guarantee a better deal for farmers and workers in the developing world. A product that is Fairtrade certified carries a label, the FAIRTRADE Mark.