Check out Fairtrade

As Fairtrade Fortnight gets underway (March 1-13) the Fairtrade Foundation has announced Britain has overtaken Switzerland to become the biggest

Fairtrade market in the world. Fairtrade sales have grown by around 40 per cent year-on-year, with sales for 2004 exceeding £140 million. The number of products available in the category has soared from around 150 in 2003 to more than 700 today, 200 of which are solely for catering. The Foundation suggests this is testament to consumers becoming increasingly aware of the impact of their purchasing decisions and the growing trendiness surrounding the notion of ‘ethical shopping’.

Martin Dunnett, commercial director of Capespan, agrees that ethical issues are becoming far bigger for retailers. “Consumers are placing heavier emphasis upon food safety, as well as value and ethical sourcing and Fairtrade fits into that criteria,” he says.

While bananas are still out-ranked by coffee in the sales figures, the range of Fairtrade produce available is continually expanding. According to the Foundation’s latest figures, sales of Fairtrade bananas increased by 43 per cent between 2003 and 2004, from 18,181 tonnes to 25,915t. In value terms, Fairtrade bananas were worth £30.5m last year, a 26 per cent increase on the previous year. Meanwhile, other fresh fruit varieties are making continuing in-roads into the market. Volumes rose from 676t in 2003 to 3,021t last year and sales have increased by more than 500 per cent, from £1m to nearly £6m last year.

With the theme of this year’s Fairtrade Fortnight, ‘CHECK OUT FAIRTRADE’, the foundation is hoping to capitalise even further on its ongoing promotional efforts to raise consumer awareness of Fairtrade. The slogan is designed to encourage people to check out the growing range of products, the guarantees behind the mark and what makes it unique, and ultimately take more Fairtrade products to the checkout.

A MORI poll for 2004 revealed the number of people who recognised the Fairtrade mark had doubled to 39 per cent since 2002. “It’s so quick and easy for shoppers to choose products with the Fairtrade mark, and yet the difference this makes to producers can be dramatic,” says Harriet Lamb, director of the Foundation. “The Fairtrade system demands huge efforts by farmers in Africa, Asia and Latin America as they organise into democratically run groups. This ensures that the gradual improvements which Fairtrade makes possible are sustainable, giving communities a real chance to build a brighter future and ‘Make Poverty History’.” With the upcoming election, and other high profile political events, as well as the recent launch of the ‘Make Poverty History’ campaign, ethical trade should be high on the nation’s agenda, according to the Foundation.

As the principal window of access to Fairtrade produce for consumers, the major retailers have a huge part to play in its promotion. As in previous years, they have all been gearing up for the two-week event with various activities in store. The Co-operative Group was the first retailer to introduce Fairtrade bananas into the UK and has continued to expand its range every year, with its total sales of products reaching £25m last year.

“It has been an excellent 12 months for the Co-op which has made huge in-roads into making Fairtrade mainstream by more than doubling the number of Fairtrade products we list to 100, reinforcing our position as the UK’s leading Fairtrade retailer,” says Brad Hill, marketing manager. Along with all the other main multiples, the Co-operative Group will be offering in-store tastings of bananas and other products. In addition, it will be launching a website, www.coopfairtrade.co.uk, to explain how the social premium is spent and the benefits it brings to the growers and their families, and feature some of their stories.

The chain has also lowered all of its Fairtrade products by 20 per cent from mid-February to the end of the fortnight.

Somerfield will be following suit during the event, according to fresh produce buyer, Peter Neuman. The price reduction will be supported in store through on-pack promotional flashes and promotional point-of-sale material, as well as coverage in the March edition of the Somerfield magazine. Somerfield’s commitment to ethical trading is a year-round exercise, says Neuman. Last month the chain launched a range of five dried fruits in conjunction with one of its suppliers, Forest Feast, which are produced through the PREDA Fair Trade foundation in the Philippines. And it is planning to unveil a supply of Fairtrade African roses within the next two months.

“Somerfield is a founding member of the Ethical Trading Initiative, an industry-funded body that has the specific aim of improving the welfare standards of workers and ethical food production standards in developing countries,” he says. “Customers are increasingly aware of the foods they buy and year-on-year we are seeing growth in fairly traded goods.” The yearly 50 per cent volume uplift in Somerfield’s organic Fairtrade bananas is a particularly strong indication of this, he adds.

Sainsbury’s banana and citrus buyer Matthew North says with consumer recognition and awareness of Fairtrade growing all the time, it is vital the company represents the changing needs of its customers. The chain already sells approximately 10m bunches of Fairtrade bananas a year and, by including a coupon booklet offering reductions on Fairtrade mangoes and pineapples with packs of Fairtrade bananas, North is hoping to create greater awareness of the product range and encourage new customers to approach the category.

“The category is still fairly new but there will be opportunities to expand into other areas such as citrus when product can be sourced for longer periods of the year,” says North. Availability will be high on the agenda as the product range expands, he suggests. “The challenge will be for retailers to increase the products they stock and address the consistency of product - it needs to be available year-round. When there is consistency of supply on Fairtrade lines sales are very strong. For example, Fairtrade bananas is one of our most popular pre-pack banana lines, with similar sales as organic bananas.”

Agrofair, a Fairtrade fruit company owned by the growers themselves, is also looking forward to launching Fairtrade citrus in time for summer, according to a spokeswoman. Since rolling out the first Fairtrade bananas to Co-op stores in 2000, the company has expanded its Fairtrade fruit bowl and customer base considerably. The company has developed a year-round supply of mangoes sourced from co-operatives and producers in Burkina Faso, Peru, Mexico, Brazil and Ecuador and will be launching its Fairtrade pineapples and mangoes into Booths supermarkets during Fairtrade Fortnight.

According to Chris Treble, fresh produce buyer at Booths, being a small retailer can mean having to make bold decisions about the product lines on offer at any one time. “We are celebrating Fairtrade Fortnight by stocking Fairtrade pineapples and mangoes,” says Treble. “We are switching completely to Fairtrade pineapples.” Treble says this is quite common practise for the supermarket. Last year all of its South African soft citrus came from Fairtrade sources and sales were pleasing, he says. “It can be difficult to stock additional lines so occasionally we swap over for a duration.”

An independent consumer poll revealed that members of the public would be increasingly supportive of such exclusivity. Consumer Patrick Staton, from Guildford, said: “Any retail name that was truly committed to the fair trade principle wouldn’t offer the consumer a choice in the first place. There seems little point in picking up the more expensive pack of coffee when the same product next to it is 50 pence cheaper. Short of placing charity boxes at checkouts, if this is to really work long-term then supermarkets will have to take the bold step of removing cheaper options from their shelves altogether.”

While such radical action may be a long way off, Alan Forrester, business unit director at international importer Malet Azoulay, agrees that volume assurance is vital to the sustainability of the concept, adding that growth of Fairtrade product sales frequently exceeds the reported 40 per cent where consistent availability is achieved. “Maintaining the presence and availability on the shelf is key to keeping the concept of Fairtrade at the forefront of the customer’s mind,” says Forrester. “To meet this growing demand Malet Azoulay has developed a number of sourcing initiatives around the world to expand both the product portfolio as well as improving the on-shelf seasonality for products already recognised as Fairtrade champions.”

To this end, during the last 12 months Malet Azoulay has been working with the Fairtrade community in a number of different countries, across Africa and America, to establish small grower groups, and has hired labour schemes with like-minded growers, Forrester explains. “By the middle of 2005 this will allow us to extend our availability well beyond the more traditional South African seasonality,” he says.

Capespan will also be seeking to sustain production of its increasingly diverse varietal range, according to Dunnett. “Having launched grapes, plums, pears, apples and citrus during the past two years we have expanded the Fairtrade fruit bowl. The next step is to establish real volumes,” he says. “A critical element is continuity for retailers who have problems when we have short seasons.”

With citrus, grapes and top fruit all experiencing significant growth Capespan has expanded its Fairtrade calendar, from January to October, Dunnett says. And with an overlap between the last Valencias and the first seedless grapes, a December to October calendar is possible, which means 12-month availability is in sight. Dunnett hopes levels of Fairtrade banana sales will ultimately be matched by other varieties of fruit. He suggests Morocco and Egypt may move towards producing Fairtrade citrus, with China following suit in the long term.

Fairtrade produce is still a very small percentage of Capespan’s total fruit turnover, accounting for only two or three per cent. “However, production is increasing as more farms understand the principles and criteria involved in achieving Fairtrade accreditation,” says Dunnett.

With volumes of Fairtrade fruit increasing from approximately 40,000 to 120,000 cartons within the last year - an increase of 300 per cent, Rod Hill, a spokesperson for the Capespan Foundation, is delighted with the evident growth. “And the indications from the start of 2005 suggest volumes look similar or slightly increased for this year,” he says.

Hill is quick to highlight the positive promotional work done by the Foundation. “Fairtrade has come from a low basis and consistently every year they increase volumes,” he says. He similarly underlines the willingness of certain retailers to embrace the concept: “The reality of South Africa is that certified farms are producing substantial amounts of fruit which wouldn’t be possible without the opportunities and support of retailers. Tesco and the Co-op have been great supporters of Capespan and Fairtrade from South Africa and they have sold the full product range available.”

Hill also emphasises the effort undertaken by Waitrose, with regards to Fairtrade. According to a spokeswoman, the company has been re-arranging its supply base in its efforts to provide consistent variety in all lines. “Waitrose is committed to offering its customers a selection of Fairtrade products and is actively supporting Fairtrade fortnight,” she says.

Meanwhile, following the path taken by Tesco and other retailers in previous years, Asda has been working closely with the Fairtrade Foundation this year, preparing to unveil its own range of Fairtrade products in time for Fairtrade Fortnight. The initial stage of the launch will consist of nine items, including bananas, pineapples, grapes and mangoes, with supplies of the latter three from Malet Azoulay. However, the range will be extended gradually throughout 2005 to include more produce and beverages.

“As one of Britain’s largest supermarkets, Asda has the ability to help enlarge the Fairtrade market,” says Asda’s Fairtrade brand manager Stephanie Bateson. “By launching our own brand of Fairtrade mark products, we hope to make Fairtrade accessible to all. By working closely with the Foundation we have made sure Asda’s Fairtrade products are traded to according to the same rules as well established Fairtrade brands.”

Doris Wyllie, 66, has been producing bananas in St Vincent, one of the Windward Islands, for 50 years. She has been supported by the La Croix Fairtrade Group since 2000 and supplies bananas exclusively to Asda. “As a Fairtrade farmer I get a better price for my produce,” says Wyllie. “I have also received help to improve my farm such as new materials to repair and improve the shed, where I pack the bananas.”

In addition, the quality of the bananas she produces, as well as her health and the environment, has improved. “Before I joined Fairtrade we used to spray when we felt like it,” Wyllie explains. “Now, I can only use chemicals with the permission of the extension officer. The use of herbicides has been reduced to two times per year, which is better for my health and the environment.”

In conjunction with Malet Azoulay’s developments in Fairtrade, its parent company Katopé has also embraced the concept, achieving certification for avocadoes and, more recently, lychees, according to Forrester. “Farms growing mangoes and papaya should soon be able to attain certification in readiness for the start of the coming season.” In addition, having established close links with HPW in Switzerland, Katopé will be able to deliver a 12-month supply of pineapples, with fruit grown on Fairtrade farms in South Africa reaching the European market later this year.

Alongside Fairtrade, there are various practises in place to maintain an adequate standard of trading for fruit producers. The Banana Group established a code of practise to promote high trading standards across the industry, which has been signed by some of the larger importers, including Fyffes and Del Monte. In a recent statement the group said: “Bananas provide a vital and major contribution to the infrastructure of many small island economies. A small percentage carry a ‘Fairtrade’ label. It is important that consumers are clear that all the major UK importers produce all their fruit to the highest standards.

The statement continues: “Representatives of the UK importers and all the leading supermarkets regularly visit banana plantations across the world to ensure that the bananas are produced ‘fairly’ and safely to international standards, such as ISO and EurepGAP, both for the benefit of the workers within the industry and the assurance of UK consumers.”

For the Capespan Foundation, the Fairtrade accreditation scheme is an extension of the ethical trade principles it established years earlier in South Africa with its Thandi initiative. Since September 2002, six Thandi farms have achieved Fairtrade accreditation and the farms have been shipping fruit to the UK since June 2003.

“The important thing to remember is empowerment is one of the key issues for the South African government,” Capespan’s Hill says. “There are numerous projects which will want to be certified for Fairtrade as we see workers having increasing involvement and increasing ownership of farms. It is ongoing and will increase. Our role is to ensure the farmers are given a platform to get the training and knowledge to be world-class farmers.

“The question is how do you commercialise that? It is a big challenge to anyone whether they can produce quality product for the right target market. All we can do is help them along the way. The emphasis is to get as much money back to the producers as possible. And Thandi runs in parallel with Fairtrade to achieve that.” Similarly, Forrester highlights that Katope’s commitment to Fairtrade is paralleled by the achievement of a major ethical step forward through the establishment of black empowered avocado farms in Mpumalanga.

With regards to the future, Hill believes the Fairtrade concept will continue to grow at an impressive rate. “Fairtrade will continue to develop but it is difficult to predict the future because it is in the hands of the industry in general,” he says. “We have managed to launch a total fruit bowl and keep trying to produce the right quality and volumes for the market but, because, being a premium product, the prices are slightly more, it keeps the market smaller than it could be. Yet if you make the price right and put more of the fruit on the shelves people will buy it.”

Meanwhile, Forrester underlines the importance of maintaining open and honest trading relationships. “The Fairtrade concept is built around supply chain integrity and transparency,” he concludes. “Dealing with consumer scepticism through communication, with regular updates, is the key to further encouraging consumer support as well as demonstrating that there are real tangible benefits being delivered to the growers when Fairtrade lines become a regular part of the shopping basket.”