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New figures issued by the FLO (Fairtrade Labeling Organizations
International) show that global sales of Fairtrade products have risen by a massive
22% during this last economically - turbulent year. Consumers spent an estimated
€2.9bn (or $4bn USD) on goods carrying the Fairtrade mark between mid-2008 and
mid-2009 with global sales doubling for Fairtrade tea (112%) and Fairtrade cotton
(94%). Fairtrade's bestsellers, coffee and bananas, rose by 14% and 28%
respectively.
Fairtrade goods tend to be premium-priced compared to similar,
non-Fairtrade goods and subsequently sales rises were particularly pronounced in
wealthier Western countries. Sales rose by over 50% in Australia, New Zealand,
Canada, Finland and Germany and a massive 75% in Sweden and 73% in Norway.
Fairtrade's strongest markets are within the UK and US which saw rises of Fairtrade
certified products sales of 43% and 10% respectively.
New markets for
Fairtrade products are growing in Eastern Europe, East Asia, and South Africa too
and projected global sales figures for next year are even higher, with the UK's
Fairtrade Foundation suggesting as much as a 40% increase in 2010.
Growth in
consumer awareness and demand has lead to significant changes in the sourcing
policies of huge global businesses such as Starbucks, who now sell only Fairtrade
coffee in its UK and Ireland outlets. Another high profile global brand to recently
adopt Fairtrade principles is Cadbury's, whose new sourcing policies will have a
major impact on the Fairtrade chocolate, and chocolate industry generally, in the
coming year.
There are now over one million Fairtrade producers and workers
in 58 countries; around 3000 traders of Fairtrade certified products in over 73
countries and 60 countries where such goods are available.
There are two main
Fairtrade standards in use in North America and the rest of the world, but rather
than competing, they are recognized by consumers in their respective regions. In
order to display either of these marks on products, retailers and producers must
ensure the source of production has undergone a FLO-authorized certification process
involving a third party audit of the production facilities and subsequent
distribution and supply chains. It is likely that the International Fairtrade
Certification Mark will become more widespread in North America in the future with
the existing Fair Trade Certified mark being phased out. This mark is administered
by TransFair USA and TransFair Canada.
As Fairtrade is adopted by leading
multinationals, they are demanding more consistency and harmonization of Fairtrade
issues to reduce administration costs of gaining certification. In particular, there
is a trend towards use of a single label globally – the International Fairtrade
Certification Mark. The standards in each country necessary to achieve this label
will also become more closely harmonized.
Elizabeth Evers is the news editor
for ekobai.com, the world's leading online directory for certified suppliers
meeting Fairtrade and other key standards across all responsible business areas.
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