Fair Trade Certification is Good For Business

The term "Fairtrade" indicates a movement thatbuyers.
promotes a just price to developing-worldRecognizing market and reputation value, more
producers of agricultural products, such asand more global companies are introducing Fair
bananas, cocoa, coffee, cotton, flowers, freshTrade into their procurement policies. Brands such
fruit, rice, herbs and spices, sugar, tea and wine.as Starbucks, Ben and Jerry's, Candico Sugar and
From its foundation in the 1980s, Fairtrade hasCadbury's chocolate have started including Fair
become an organized and trusted labeling systemTrade certified ingredients into their mainstream
recognized by ethical, and increasingly mainstream,products, and increasing their use. Leading retailers
consumers.such as Tesco (UK) now have their own range of
Despite the global recession, FLO reported a 23%Fair Trade products which are highly successful.
rise in worldwide sales of Fairtrade labeledThere are currently 19 Fairtrade Labeling Initiatives
products, with annual sales of over $4 billion (USD)in 23 countries around the world and a variety of
for 2008.product-specific standards are set by FLO. There
Fair Trade consumers are concentrated in the USare however, only two Fairtrade labels, one for
and Canada, Europe, Australia and New Zealand,North America and another for the rest of the
and East Asia - most prominently Japan, whereworld. Both involve third party certification by a
sales rose by a staggering 44% in 2008.registered member of FLO. The Fairtrade certified
Other growing markets are located in SouthMark is in use in the US and Canada but will
Africa and Mexico. The FAIRTRADE Mark is thegradually be replaced by the International
property of the Fair Trade Labeling OrganizationsFAIRTRADE Certification Mark over the next few
International (FLO), based in Germany. FLOyears.
members sub-license the use of the FAIRTRADERather than competing, these labels are
Mark in their territories, while FLO Internationalrecognized by consumers in their respective
licenses the FAIRTRADE Mark to companiesmarkets.
where there are no national labeling initiatives.In order to display either branded mark on
Prior to the early 2000s, Fair Trade productsproducts, retailers and producers must ensure the
were a small niche in the market, often sold bysource of production has undergone a certification
single unit, ethical and new age stores. This hasprocess involving a third party audit of the
now dramatically changed and the FAIRTRADEproduction facilities and distribution and supply
Mark has become essential for selling in manychains.
markets - bananas and coffee retailing andAll observers agree that Fair Trade produce will
serving in North America and Europe in particular.continue to grow at substantial rates compared to
It may soon become a necessity for selling allthe market overall and that the price differential
food, flowers and cotton goods from thebetween Fair Trade and non-Fair Trade produce
developing nations into the higher end of theirwill continue to narrow. This will further enhance
own markets also.the market potential of the brand in both
There are currently over 6000 Fair Tradedeveloping and developed world markets.
certified products from 60 countries available to