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Over the last few years, we have seen and heard more and more about Fairtrade Products, particularly as it is a favourite ‘buzz’ word in the media at present. In the UK in 2007, Fairtrade retail sales were valued at £493m - up 127% by volume from 2006. Fairtrade products are now readily available in most supermarket and corner store shelves and increasingly the big Corporates want to join in too.
There are more than 3,000 Fairtrade certified products sold in the UK covering areas from the more well known, such as coffee, tea, bananas, cocoa and chocolate to the not so well known such as sports balls, sugar body scrubs and myriad of cotton products. Sainsbury’s has switched its entire range of tea, roast and ground coffee and hot chocolate to Fairtrade. The Co-operative is due to follow soon. Roast & Ground has been selling Fairtrade products since its inception five years ago and has a full range of coffee (beans, filter and instant), tea (leaf and bags), sugar (brown or white) and chocolate (tins or sachets). Go to our On Line Ordering page for more information.
Debenhams, Marks & Spencer, House of Fraser and Monsoon all have Fairtrade cotton lines and being as this sector of the market grew by a massive 660% in 2006, expect to see others following.
It is, therefore not surprising according to a 2008 TNS CAPI OmniBus survey, that 70% of British adults recognise the independent Fairtrade consumer label. The survey also revealed that 64% of respondents correctly associated the Fairtrade symbol with ensuring that producers from the developing world got a better deal for their produce.
So, what is Fairtrade? Fairtrade is all about ensuring a better price for farmers in developing countries such as Africa and Latin America and therefore, better working conditions for all involved. It also ensures that production is sustainable in the long term and guarantees that farmers receive equality of trade. Buyers pay a Fairtrade minimum price for the producer and on top of that a Fairtrade premium.
The Fairtrade minimum price is agreed via negotiations and consultations between all stakeholders. A price is agreed that fairly covers the total cost of sustainable production from seed through to harvest. When the market price is higher than the agreed minimum price, the market price prevails, but when the market price drops the farmer is still guaranteed that minimum price. This ensures that a farmer can plan for the long term and not be so hugely affected by market volatility.
The Fairtrade premium is a price paid on top of the minimum price. This premium is invested in social, environmental and economic projects in the local area. A committee of local producers or workers decide democratically what developmental projects the premium should be invested in. Projects undertaken, for example, are the building of schools, providing clean drinking water or paying for sickness benefits. So far more than 7 million people in Africa, Asia and Latin America have directly benefited from the Fairtrade mark and the minimum and premium prices paid for their goods.
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