Fair Trade increasing through Europe and US, long way to go

Fair Trade benefits farmers

On the official Fair Trade website, Akua Gyamfua, a Kuapa Kokoo farmer sits proudly in front of her village, and expresses on video that Fair Trade "has changed [her] life completely." Another Kuapa Kokoo farmer, Adowa Addea, explains how Fair Trade has enabled her to send her children to school and buy food.

It's a positive story, and shouldn't be taken lightly. Yet whilst retailers across the globe continue to stock a section of shelves with Fair Trade products, it still only accounts for a fraction of the global grocery market. The recession has had an impact, although Fair Trade claims its customers have been "staunchly loyal."

Harriet Lamb, chief executive of the Fair Trade Foundation, said, "2009 was a tough year for everyone but a desperate year for many poor communities and small farmers in developing countries.

"For millions of growers and their families and communities, Fair Trade was able to make the difference that has helped them survive a difficult year and plan for the future. Despite the recession, they are still voting with their wallets for fairness and want to change the indignities of an unjust trading system."

The history of Fair Trade

Fair Trade was set up in the 1980s and has evolved from a niche phenomenon to a mainstream trading movement, and has seen good growth since its inception. According to the official Fair Trade website, consumers spent an estimated €3.4 billion on Fair Trade products in 2009 - a 15 percent increase over the previous year. In the UK, £800 million Fair Trade products were sold in 2009, (compared to £92 million in 2003), yet that only accounts for a small fraction of the £150 billion spent on groceries across the board.

As of 2008, there were 3,191 Fair Trade outlets. North America and Canada has the largest number of Fair Trade establishments globally, with 206 outlets. Within the European umbrella, the UK has 100, with the Netherlands, France, Spain, Germany, Finland and Italy all far behind with five. However, despite the numbers, Agrofair Europe in the Netherlands has the highest turnover amongst countries selling Fair Trade products with €62.1 million. Despite having 100 retailers selling Fair Trade products, in 2008 the UK only accounted for €32.8 million.

Per capita, Switzerland tops the charts, selling just under €25 worth of goods per person. In 2008, €1.5 billion was sold in Europe, with €810 million being spent in north America and Canada.

"These figures hold great promise for the future of Fairtrade...they show we are widening the appeal of Fairtrade and enabling more and more new consumers to join this growing trend. Consumers clearly place great value on the Mark's independent guarantee that producers receive a better deal. Our Mark gives people the confidence to put these products in their shopping baskets knowing they are playing their part in creating a fairer world and helping to 'Make Poverty History'. Companies should take note that the public are more canny and caring than they are often given credit for. Price is emphatically not their only concern when they go shopping - they do want the reassurance that farmers in developing countries receive a better deal," says Lamb.

Like most retailers, demand equals supply, and the cyclical nature of Fair Trade means that those farmers producing coffee or sugar or chocolate rely on consumers across the world to invest in their products. The good news is, that more consumers are doing so, which means demand from retailers will increase. This, of course, means farmers like Akua Gyamfua and Adowa Addea are treated with respect and are paid accordingly, and are afforded all the best opportunities.

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