Fairtrade Sales Soar By 47%

Impressive growth can be seen across all product categories. In particular, sales of juices have almost quadrupled, sugar haS doubled and bananas have increased by 72%. Coffee, the first and one of the most established Fair trade products, continued to grow steadily with an increase of 19%. Fair trade cotton farmers have also seen demand for their produce more than double in just one year. During 2007, the sales of items made out of Fairtrade certified cotton, ranging from cotton wool to jeans and towels, surpassed 14 million individual items.

The growth is the result of the expansion in existing markets and the opening of new ones. The value of sales in fair trade’s biggest markets, the UK and US, grew by 72% and 46% respectively. Sweden and Norway were home to the fastest growing markets for Fairtrade with increases of 166% and 110% respectively. The highest per capita consumption in the world was in Switzerland where consumers spent an average of €20.8 on Fairtrade products in 2007.

The growth of fair trade is good news for farmers. The system delivers more to farmers and workers than financial benefits alone. Fair trade standards encourage long-term relationships between the producer and the buyer. This is important for producers to be able to plan for their future.

“I represent over one million people in Latin America who need the security of fair trade in order to continue living and working on their land with dignity,” said Raúl del Águila, a Peruvian coffee farmer, president of the Latin American Fairtrade Producers Network (CLAC) and a FLO board member. “No other certification system but fairtrade guarantees that small producers get a decent return for their hard work.”

Another market development for 2007 was that companies in countries where there is no fair trade labelling initiative were able to sell products bearing the FAIRTRADE Certification Mark for the first time. The development of new local markets is great news both for Fairtrade certified producers and for consumers in countries where fair trade still does not have a strong presence.

But despite growing by an average of 40% per year over the last six years, there is still plenty of room and a clear need for further growth. An estimated 20% of the total production of Fairtrade certified producers is sold under Fairtrade terms. “I represent producers in Africa. The increased sales is great news for our members. The Premium has enabled members to build new schools, provide clean water and improve health for their communities. However more is needed. Poverty remains the major challenge for producers in Africa. Some groups are still selling just a small percentage of their produce to Fairtrade. It is crucial to grow the Fairtrade market so that these producers can benefit more from Fairtrade sales.” says Raymond Kimaro, chairman of the African Fairtrade Network (AFN), the association which represents African Fairtrade certified producers’ organizations within FLO.

Comments Rob Cameron, chief executive officer (CEO) of FLO, says, ““The phenomenal growth of fair trade demonstrates the groundswell of consumer support. With global sales worth over 2.3 billion euros fair trade has come of age. For producers, it represents the difference between just surviving, and their ability to invest in their present and plan for their future. But we are not complacent. There are many producers who are yet to benefit from the Fairtrade market. We must grow the market further if we are to expand and deepen the impact for producers.”