Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Wednesday, February 24, 2010

Fairtrade sales rise by 12% - Wales Online

Fairtrade sales rise by 12% - Wales Online


ETHICAL consumers are becoming increasingly loyal to Fairtrade products, according to new figures released today which show a 12% rise in sales and an estimated retail value of £800m.

Although households struggling through the recession have tended to seek out value brands in cheaper stores such as Aldi and Lidl in recent months, the Fairtrade Foundation said it had bucked the trend and consumers had remained “staunchly loyal” to its popular products throughout 2009.

Meanwhile, organic food sales fell by up to 31% last year as consumers switched to value brands.

Demand for organic bread dropped by 31% compared with 2008, while sales of organic fruit sank by 16.5%, according to figures from market research firm TNS Worldpanel.

The Fairtrade Foundation said the global economic downturn had meant a “desperate” year for producers in the developing countries producing its most popular products, including chocolate, cocoa, coffee, tea, bananas, dried fruit and nuts, honey, beer, wine and spirits.

Chief executive Harriet Lamb 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, Fairtrade was able to make the difference that has helped them survive a difficult year and plan for the future.

“It is to the credit of the public that they do care and, despite the recession, they are still voting with their wallets for fairness, and want to change the indignities of an unjust trading system.

“These challenging times have been a wake-up call and forward-thinking companies have also been re-evaluating their priorities, seeing sustainability as the way forward for business, building relations with producers and introducing many Fairtrade products in the past year.”

Rhys Evans, deputy senior director of Consumer Focus Wales, said Welsh consumers understood and looked out for the Fairtrade logo as a conscious buying decision and appreciated its competitive pricing.

Companies now on board with the principle include Cadbury’s Dairy Milk and Nestlé’s Kit Kat. Nerys Howell of Howel Food Consultancy of Cardiff said the recession had prompted consumers to become more cautious in their spending habits across the board.

“In terms of purchasing food, this has meant consumers are looking for added value but not necessarily the cheapest,” she said. “Recent research shows that consumers are looking at issues such as trust, reliability, reassurance and guarantees.

“It is therefore not surprising that sales of Fairtrade products have increased over the last year, whereas the organic market has changed over the past 18 months and faces challenges other than food quality, such as raising the awareness of the benefits of organic production and how they fit with interests in animal welfare and local food.

“The organic sector has a core market of consumers which, although remaining loyal, are spending less on their weekly shop.

“However, the main issue remains that consumers do not fully understand the key messages surrounding organic production and its effect on the environment, whereas the Fairtrade message is simpler to understand with consumers supporting a fair and just trading system.”

The Fairtrade Foundation is asking consumers to switch everyday shopping basket items for Fairtrade items during Fairtrade Fortnight, which began yesterday.

A YouGov poll of UK consumers found 71% were willing to swap one or more products to mark the event.

Sue Fowler, director of Organic Centre Wales, said: “It shows that when people are given a clear message about ethical trading and they see that there is something they can do to help, they will make that commitment for a fairer world.

“We’re working hard to see that organic food is recognised in a similar way for its benefits to the environment and animal welfare in particular, though unfortunately it is a more complicated message to convey. And, of course, if you can buy produce that is organic and fairtrade at the same time, there is an even greater benefit.”

More than 4,500 products are now licensed to carry the Fairtrade mark.

1 Comments:

At February 24, 2010 at 6:23:00 AM CST , Blogger Mike Brady said...

You write: "Companies now on board with the principle include Cadbury’s Dairy Milk and Nestlé’s Kit Kat."

Sorry, but Nestlé Fairtrade KitKat involves just 1% of its cocoa purchase and it is criticised for failing to deliver on a promise to end child slavery in its cocoa supply chain by 2006.

The Fairtrade premium paid by Nestlé undoubtedly benefits the 6,000 farmers involved, but represents less than 1% of Nestlé current UK Nescafé advertising campaign expenditure. It is a part of Nestlé's strategy to improve its abysmal public image - it is one of the four most boycotted companies on the planet because of the way it pushes its baby milk.

Baby Milk Action has added Fairtrade KitKat to the boycott list and recommends that people who want to support Fairtrade look to companies that really are on board and are 100% Fairtrade.

We have produced a leaflet for people who wish to support the Fair Trade campaign and the Nestlé boycott. See:
http://boycottnestle.blogspot.com/2010/02/boycott-fairtrade-kitkat.html

 

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