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Ethical Fairtrade label sees slower growth in 2009

Published 04/16/2009, 08:01 PM
Updated 04/16/2009, 08:08 PM
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* Sees 10-15 pct growth in 2009 versus 25 pct in 2008

* Consumer support for values to drive growth in 2009

* Fairtrade well known in Britain, less so in Italy

LONDON, April 17 (Reuters) - Sales of ethical Fairtrade products should grow in 2009 due to strong consumer support although their rapid expansion is likely to slow because of the economic downturn, the head of the labelling organisation said.

"We expect to see continued growth (in 2009)," Rob Cameron, chief executive officer of Fairtrade Labelling Organizations International (FLO) said in a conference call ahead of Friday's release of a market research study covering 15 countries.

"The exact level of growth is hard to predict but our best guess is worse case 10 percent growth and we are expecting really about 15 percent growth in 2009," he added, noting sales grew by around 25 percent in 2008.

The consumer label, which covers a wide range of products including cocoa, coffee, sugar and bananas, aims to give a better deal to workers in developing countries. It works in about 80 countries.

"Fairtrade will continue to grow notwithstanding the challenging economic times. It is at times like this that producers need the benefits of Fairtrade all the more," Cameron said.

The survey, conducted by GlobeScan, showed 80 percent of respondents thought it was important for companies dealing with poor countries to pay farmers and workers fairly and 74 percent believed that they should contribute to community development.

"Consumers get the idea that Fairtrade offers a balanced trade with the south and for many people this gives them a chance to express their values through their shopping basket rather than having to give something in terms of charity."

The survey showed that familiarity with Fairtrade ranged widely from a high of 82 percent in Britain to a low of 20 percent in Italy. The United States was towards the lower end of the range at 30 percent and the average was 50 percent.

Chris Coulter of market research firm GlobeScan said rapid expansion was likely in newer Fairtrade markets that have low familiarity such as Australia, Canada, Italy and the United States. (Reporting by Nigel Hunt; Editing by Anthony Barker)

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