As Fairtrade Fortnight came to an end on March 14, the Fairtrade Foundation announced that sales of products bearing the Fairtrade mark are running at an annual rate of £100 million. “The rapidly rising sales prove that consumers do care and are prepared to pay the true price for products they know they can trust, guaranteed by the Fairtrade mark,” says Harriet Lamb, the foundation’s executive director.
According to a MORI poll, one in four people in the UK now recognises the Fairtrade mark, and UK consumers eat 333,000 Fairtrade bananas every day. The Fairtrade fruitbowl continues to expand as last year the Thandi initiative supported by the Capespan Foundation led to the first apples, oranges, lemons and grapes arriving in the UK.
“At present we have five Thandi projects that are fully Fairtrade accredited,” says Nazeem Sterras, ceo of the Capespan Foundation, “but this is just the first phase of our project. The next phase is now in progress and involves five projects with grape, stone fruit and two citrus farms. For the 2005 season we have just started discussing potential with six farms, focusing on citrus and grapes.”
These projects cover all producing areas in South Africa allowing the initiative to offer a wide range of produce with full flow. “The whole idea of Fairtrade fruit is to offer 12-month supplies,” says Sterras, “that is very important to the retailers.”
But, the willingness of the market to accept Fairtrade produce has been slower than anticipated, Sterras continues. “Some retailers have embraced Fairtrade produce from South Africa, but others have been more cautious. At the Capespan Foundation we believe that we need to offer a label of acceptability - a product that has integrity attached and that is why the relationship we have with Fairtrade is so important. Fairtrade is an integral part of what we want to achieve at the Foundation but equally, it must be done for the right reasons. The process of accreditation for the Thandi initiative is one of absolute integrity, and that is critical to the process - we want people to focus on what is right.”
There are many advantages of South African production says Sterras, especially through the Cape and Outspan brands which are known for high-quality fruit. “South Africa also has strong historical, political and trade links with the UK which span back for generations and those are a particular advantage. South Africa is also a huge emerging market. It is relatively cheap to source from and we have a good base for 12-month supplies. We can grow all kinds of fruit throughout the year to a consistently high standard, and returns are very good.”
Within the vast array of Fairtrade products, fresh produce has become increasingly prominent on the retail shelves, and, says the Co-op’s marketing manager Brad Hill, is a highly important commodity. “The Co-op was the first retailer to introduce Fairtrade bananas into the UK and has since expanded its range to include oranges, pineapples, mangoes, grapes, organic grapes and organic oranges. We will continue to explore all possibilities with our suppliers and have recently launched the first UK Fairtrade plums and pears, and have plans for further launches later this year.”
As with all Fairtrade products, the challenge, says Hill, is to be able to source products at a Fairtrade price and retail these competitively at a price that customers are willing to pay. “We have overcome the initial problem of lack of product availability by working closely with suppliers to deliver a comprehensive range of Fairtrade produce in Co-op stores,” he says.
The Co-op’s Fairtrade produce range benefits from the wider Fairtrade advertising promotional activity that is now an integral part of the Co-op’s wider communication strategy. In-store this consists of a range of point of sale material such as shelf stripping and display cards. Additionally national press and television advertising regularly feature Co-op Fair Trade fresh produce.
“Consumer demand for Fairtrade fruit has been proven by the success of our banana sales,” Hill continues. “Of all pre-packed banana sales through the Co-op, Fairtrade accounts for 40 per cent. Due to the commitment and support the Co-op gives to Fairtrade, sales of all Fairtrade products continue to grow rapidly.”
The first three Fairtrade fruits to be brought into the UK were bananas, mangoes and pineapples, imported by AgroFair, a Fairtrade fruit company owned by the growers themselves. AgroFair is still the principal supplier of organic and Fairtrade mangoes into the UK. With supplies running from January until the end of August, AgroFair has year-round mango supplies in its sight and is working with new producer groups in Peru and Brazil to complement its existing producers in Ecuador, Mexico and Burkina Faso.
From April to June, AgroFair’s Fairtrade mangoes come from the Union Frutière et Maraîchère du Burkina (UFMB) in Burkina Faso. UFMB was formed in 1996 and works with 26 cooperatives including seven associations of mango farmers representing 2,000 families. “It is not always easy to implement supplies from new countries,” says AgroFair UK’s director Duncan White, “it depends how developed the groups are. Some are quite organised but others such as Burkina Faso have taken a number of years of development work. Last year was the first time we achieved consistent supply which is vital in supplying supermarkets.”
The benefits of Fairtrade very much depend on the supply chain which does vary between fruits, says Hill. “Generally Fairtrade is designed to reduce the supply chain enabling us to deal more directly with producers and there are many benefits.
“Co-op Fair Trade Organic Oranges are grown by Shams Farms, which are part of the Sekem Project in Egypt. The project was started in 1977 by Dr Ibrahim Abouleish with just one farm and now the initiative has more than 1,000 units, producing organic food and cotton. As well as guaranteeing a fair price, Sekem aims to use the added social premium Fairtrade pays to invest back into the community for education, training, and affordable housing.
“Both the plums and the pears come from the Thandi Initiative, which supports the establishment of empowerment projects in South Africa, where workers become co-owners of fruit farms. The Fairtrade premium has been and will continue to be invested in health care, schooling and crèche facilities. There is also an adult education programme that includes a range of modules from basic literacy and numeracy to business, management and agri-management.”
An increasing number of shoppers are making positive purchase decisions to support the range of Fairtrade products available. As they continue to demonstrate a desire for a wider range, as well as better continuity of Fairtrade products, Katopé Malet Azoulay is contributing with further developments in the fresh fruit product range through the introduction of new lines and the extension of the season of existing fruit lines.
To this end, Katopé Malet Azoulay is working closely to support the Fairtrade Foundation in exploring new opportunities from several countries and some of these initiatives will start to be seen on shelf within the next few months.
The opportunity provided by the growing acceptance of a Fairtrade concept has allowed the company to support grower and worker groups in a way not readily found in the supply of fruit into the mainstream UK multiple distribution chain. The company says it is constantly encouraged by the reaction and motivation of these individuals in achieving a route to market, which will guarantee a sustainable return alongside tangible improvements for their communities.
Malet Azoulay’s research shows that the ultimate aim of the consumer is to have the choice to support disadvantaged producer communities in developing countries throughout the year. It has a goal to push the bounds of seasonality to achieve a 52-week Fairtrade supply option wherever practical.
Although Fairtrade is primarily concerned with the ethics of trade, it does have a crossover appeal and Organic Farm Foods has pioneered the development of fresh fruits and vegetables that are both organic and Fairtrade certified. The company has welcomed comments from Fairtrade Labelling Organisations International that organic Fairtrade oranges show the highest potential demand of all new fresh fruit lines under development for the European and North American markets. This confirms the company’s experience in the UK where fruit has been sold successfully through Co-op and Safeway stores.
“We welcome the expansion of the Fairtrade product range represented by these new organic products,” says Ian Bretman, deputy director of the Fairtrade Foundation. “They offer more choice to consumers and extend the benefits of the Fairtrade system to more workers in Egypt and South Africa.”
So far in 2004 Organic Farm Foods has launched Fairtrade lines from both South Africa and Egypt, with five products certified Fairtrade. The company’s Richard Arnold says: “We’ve launched organic Fairtrade grapes, oranges and green beans so far this year and have peppers and potatoes due very soon. We also have citrus and top fruit from South Africa following later in the season, as well as developments from Chile later in the year.”
Whatever the appeal of the partnership between organic and Fairtrade produce, public perception of Fairtrade initiatives is, says White, naturally snowballing. “It is mentioned in the school curriculum and the sheer availability in supermarkets has increased. Tesco has adopted it as one of its pillars and the Co-op has really pushed the boundaries so big moves are being made.
“One of the problems in the past was that people did not have the time to hunt around for Fairtrade produce but the choice is there now so they don’t have to. In addition to this, the quality of produce is very good now whereas the old feeling was that the quality was fairly poor. The constantly increasing demand for Fairtrade produce shows that it is a system that really does work. Producers are getting a fairer deal and supply systems are proving to be sustainable.”
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