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Fairtrade: Building an ethical consumer brand

  • October 2015
  • -
  • MarketLine
  • -
  • 24 pages

Summary

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Introduction

Commodities such as coffee and cocoa are grown by farmers who suffer from low incomes, volatile prices, and lack of capital. The Fairtrade scheme offers them minimum purchase prices and a social premium payment. With high recognition and rapid growth in sales, Fairtrade is one of the world's most successful ethical consumer brands.

Features and benefits

* Find out about the problems facing agricultural commodity producers in low- and middle-income countries.
* Discover how the Fairtrade scheme operates for producers and consumers.
* Get data on the global Fairtrade product market over the 2009-2014 period.
* Learn about how volunteer activists and development NGOs are spreading awareness of Fairtrade and the problems of poverty it is attempting to solve.
* Hear some of the criticisms that have been leveled at the Fairtrade concept.

Highlights

Global sales of Fairtrade-certified products had double-digit annualized growth over the 2009-2014 period. The UK was the world's largest market for Fairtrade products in 2014.
Small-scale coffee farmers around the world were badly affected by the "coffee crisis" around 2002, when increasing supply from countries such as Vietnam led to a slump in global coffee prices. Such volatility is typical of agricultural commodity prices.
The Fairtrade scheme guarantees a minimum price for the growers, and offers a premium that can be used to fund improved agricultural techniques and community projects such as schools. In addition, it provides a certification and labeling system that acts as an ethical guarantee to consumers.

Your key questions answered

* Why is it difficult for producers of agricultural commodities in developing countries to escape poverty?
* How does the Fairtrade scheme aim to alleviate the problems of producers?
* How popular and trusted is the Fairtrade brand around the world?
* How valuable is the global Fairtrade market, and which countries have the largest market?

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Related Market Segments :

Fair Trade
Cocoa

ref:plp2015

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