7 Million Farming Families Worldwide Benefit as Global Fairtrade Sales Increase By 40% and UK Awareness Of The Fairtrade Mark Rises To 57%

Fairtrade Labelling Organizations International (FLO) has announced that consumers worldwide spent £1.1bn on Fairtrade Certified Products in 2006. This is a 42% increase on the previous year directly benefiting over 7 million people - farmers, workers and their families in developing countries.

Meanwhile, in the UK, new figures from TNS Omnimas* released today 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. UK Sales of Fairtrade certified products reached an estimated retail value of £290m in 2006, an increase of 49% over the past year, and in 2007 sales are already running at an annualized rate of over £400m.

The Fairtrade Foundation is the UK member of FLO, which unites 20 national labelling initiatives across Europe, Japan, North America, Mexico and Australia/New Zealand. Global Fairtrade trade figures are unveiled to coincide with the publication of FLO’s annual report for 2006/07.

Ian Bretman, Director of the Fairtrade Foundation, says: “Britain is the second largest Fairtrade market in the world and these figures reflect the British public’s appetite for Fairtrade and show great promise for the future. And consumers’ increasing demand for Fairtrade products means that more farmers are able to sell more of the their produce under Fairtrade terms, strengthening their organizations, building long-term relationships and increasing benefits to their communities.”

Impressive growth figures for 2006 can be seen across global product categories, but in particular cocoa has increased by 93%, coffee by 53%, tea by 41% and bananas by 31%.Sales of Fairtrade cotton, a recent addition to the Fairtrade range, have doubled in just one year.

The growth in product sales was matched by a 29% increase from 1,514 to 1,954 in the number of licensees (companies that sell the final packaged Fairtrade products), with some companies making major commitments to supporting Fairtrade. Sainsbury’s converted its entire banana range to 100% Fairtrade during 2007 and last week launched its Fair Development Fund to help make the difference in developing countries, donating £1m over four years to support producers in some of the world’s poorest countries in joining Fairtrade. Marks & Spencer responded to its customers' desire for ethical products when it converted its entire tea and coffee range to Fairtrade in 2006.

Elsewhere, global retailer and franchiser Dunkin Donuts adopted a policy of 100% Fairtrade espresso coffee in North America and Europe. Insomnia Coffee Company in Ireland converted all their coffee served from outlets across the country to 100% Fairtrade and Scandic and Hilton, one of Sweden’s major hotel chains, announced that it will also switch to Fairtrade coffee.

But the Fairtrade system delivers more to farmers and workers than sales alone. Fairtrade Standards ensure long-term commercial relationships between the producer and its buyer. This is absolutely fundamental in order for producers to be able to plan for their future.

Valentín Chinchay, a member of the Fairtrade certified FAPECAFES coffee cooperative in Ecuador, says: “In 2001 and 2002, during the world coffee crises, our situation was desperate. We received between US$20-25 per quintal… many of the Ecuadorian coffee producers left. We had no choice but to abandon the coffee agriculture.” Since FAPECAFES became Fairtrade Certified in 2003, the difference that Fairtrade made has been remarkable. “We are currently selling 80% of our total coffee production under Fairtrade terms. For our Fairtrade organic coffee we are receiving US$139 per quintal and US$119 per quintal for our conventional Fairtrade coffee. But more important than the higher prices is the stability that Fairtrade brings. We are not as vulnerable to market volatility as we used to be,” says Valentín. During 2006, FLO estimates that Fairtrade coffee sales provided an estimated €41m more to Fairtrade certified Coffee Cooperatives than selling their products under conventional terms.

But despite growing by on average 40% per year over the last five years, the Fairtrade market still has plenty of room for expansion. In fact, FLO estimates that just 20% of the total production of Fairtrade certified producers is sold under Fairtrade terms. FLO and its member Labelling Initiatives are working to open new markets and identify new business opportunities for producers so that Fairtrade certified producer organizations can increase the percentage of their production sold under Fairtrade terms in the future.

Ian Bretman adds:”While recognizing the contribution Fairtrade has made to farming families over the last 10 years, we cannot be satisfied. Too many producers all over the world continue to suffer from unfair trade, often struggling to cover the cost of production. Similarly, too many workers in developing countries endure low wages, poor working conditions and are often denied the freedom to join a union. Besides continuing to lobby governments to make changes on international trade rules in favour of the poorest countries, incorporating Fairtrade products in our daily shopping routine is a way to send a powerful message to industry and eventually force companies and governments to rethink their business models and policies. We need people to shout even louder, and we need companies to respond with genuine engagement so that millions of farmers will be lifted out of poverty. The millions of people who are choosing Fairtrade when they go shopping are making this happen and we hope the upward trend will continue.”


For further information, phone 020 7440 7686/7695 or mobile 07770 957 451 or email eileen.maybin@fairtrade.org.uk or martine.julseth@fairtrade.org.uk

You can download the FLO Annual Report by clicking here

Notes to Editors

Estimated1 UK retail sales by value 1998-2006 (£m)

1assumes a margin of 40% for retailers (30% on bananas)

In July 2007, more than 3,000 products carrying the FAIRTRADE Mark from over 212 companies were available in the UK, compared to around 150 products in 2003.

Percentage increases 2005-2006

Total sales: 59% increase by volume and 49% by estimated retail value

Total coffee: 36% increase by volume and 39% by estimated retail value

Total tea: 58% increase by volume and 50% by estimated retail value

Wine: 77% increase by volume and 68% by estimated retail value

Flowers: 161% by volume and 136% by estimated retail value

Cotton: 3692% by volume and 3102% by estimated retail value*

*Because cotton was only launched in November 2005, it is more relevant to say that the estimated retail value in 2005 was £162,000 compare to over £5m for 2006.

International Fairtrade

The UK has the second largest Fairtrade market among the 20 countries across Europe, North America, Japan, Australia/New Zealand, and Mexico.

The worldwide Fairtrade network includes 598 Fairtrade certified producer organisations from 59 countries and more than 650 traders, with benefits reaching 7 million people - farmers and workers plus their families and dependents. 376 producer groups supply the UK, including 135 groups from Africa.

*TNS Consumer Omnimas

The survey interviewed a nationally representative quota sample of 1.947 adults throughout Great Britain in 121 sampling points.
**The survey asked people to identify the Fairtrade symbol, excluding the text which is only used in the UK. This symbol (without the text) is used by FLO labelling initiatives.

The survey found that 53% of adults correctly associate the FAIRTRADE symbol excluding the text box with “a better deal for third world producer”.