🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

INTERVIEW-Ethical food label expands despite economic woes

Published 03/04/2009, 08:37 AM
Updated 03/04/2009, 08:40 AM
TATE
-

* Major brands embrace Fairtrade label

* New olive oil initiative in Palestine

* Consumers stay loyal as economic downturn bites

By Nigel Hunt

LONDON, March 4 (Reuters) - Consumption of products such as cocoa, coffee and bananas under the ethical Fairtrade label is continuing to rise strongly despite the economic downturn, the head of the Fairtrade Foundation told Reuters.

"We feel very keenly that the farmers need Fairtrade now more than ever. If times are tough for people here in Britain, they are pretty desperate for farmers and workers in developing countries," said Fairtrade chief executive Harriet Lamb.

The consumer label, which covers a wide range of products which also includes sugar and flowers, aims to give a better deal to workers in developing countries.

"I think research shows that where Fairtrade is coming out strongly at these times is that it is about people. They (consumers) have the chance to connect with the farmer who grew the cocoa or the bananas and make a difference in the lives of individuals," Lamb said.

"Perhaps they (consumers) connect even more at these difficult times with other people. We certainly have the sense that the public are staying very loyal," she added.

UK sales of Fairtrade goods reached 700 million pounds ($987.7 million) in 2008, a rise of 43 percent on 2007. Seven in 10 households in Britain purchase Fairtrade goods.

Lamb said developing country farmers were still coping with dramatic increases in prices for fuel and food last year and were now caught in the credit crunch.

"It has become almost impossible for smallholders to get loans from banks. even at ridiculous rates like 30 percent and in some cases sales are falling," she said.

The Fairtrade Foundation certifies Fairtrade products in Britain and is a member of Fairtrade Labelling Organisations International (FLO) which works in about 80 countries.

"The potential is enormous in some, such as the United States, where they is really everything still to play for to begin to reach the levels we have in Britain," Lamb said.

PALESTINIAN OLIVE OIL

Sales in Britain are dominated by bananas, cocoa, coffee, cotton, sugar, tea and flowers but the foundation is expanding into new areas.

"We have just launched Fairtrade certified olive oil from Palestine. That is an exciting new initiative which we hope will provide the economic underpinning for peace," Lamb said.

The ethical label is also entering new consumer markets with products with the Fairtrade mark available for the first time this year in South Africa.

The Fairtrade Foundation also announced this week that confectionery maker Cadbury Plc plans to sell Britain's biggest selling chocolate brand Dairy Milk under the Fairtrade logo in Britain and Ireland.

"Our analysis was until quite recently that what we were missing was some of the power brands. Now we have two iconic British brands saying they are going to put Fairtrade right at the heart of their businesses," Lamb said.

Last year sugar refiner and sweetener maker Tate & Lyle announcing it had begun to switch its retail sugar range to the Fairtrade label.

"There are plenty of very worrying trends for everybody but what I think the research shows is that people are looking for value but not compromising their values," Lamb said. (Reporting by Nigel Hunt; Editing by William Hardy)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.