Global Fairtrade sales increase by 40% benefiting 1.4 million farmers worldwide

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Strictly embargoed until 9:30, Wednesday 25 July 2007 Global Fairtrade sales increase by 40% benefiting 1.4 million farmers worldwide Bonn, Germany, 25 July, 2007 Consumers worldwide spent 1,6 billion Euros on Fairtrade Certified Products in 2006, according to Fairtrade Labelling Organizations International (FLO). This is a 41% increase on the previous year, directly benefiting over 1,4 million producers and workers worldwide. Impressive growth figures can be seen across product categories, but in particular cocoa has increased by 93%, coffee by 53%, tea by 41% and bananas by 31%. Fairtrade Cotton Farmers too have seen how the demand for their produce has more than doubled in just one year. The growth in product sales was matched by an increase in the number of licensees (companies that sell the final packaged Fairtrade Products) in 2006 from 1514 to 1954, with some companies making major commitments to supporting Fairtrade. UK supermarket Sainsbury s announced the conversion of its entire banana range to 100 per cent Fairtrade Certified last December. Marks & Spencer, another UK retailer, responded to its customers' desire for ethical products when it converted its entire tea and coffee range to Fairtrade in April 2006. Global retailer and franchiser Dunkin Donuts adopted a policy of 100% Fairtrade espresso coffee in Northern America and Europe. In September 2006, Insomnia Coffee Company in Ireland announced that all coffee served from outlets across the country would be 100 per cent Fairtrade Certified and Scandic and Hilton, one of Sweden s major hotel chains, announced in October that it would switch all its coffee to Fairtrade. We would like to thank all the consumers and businesses which have supported Fairtrade in 2006. Through your daily purchases of Fairtrade Certified Products, producers and workers all across the developing world have received better prices for their crop as well as Premiums that allowed them to improve the livelihoods of their families and communities. We, Fairtrade Producers, will continue to work hard to provide the best quality produce to consumers with the hope that next year demand will continue to grow and that an even greater number of producers will benefit from this revolutionary approach to trade says Binod Mohan, Chairman of the Network of Asian Producers (NAP), the association which represents Asian Fairtrade Certified Producers Organizations within FLO. But the Fairtrade system delivers more to farmers and workers than sales alone. Fairtrade Standards ensure long term contract relationships between the producer and its buyer. This is absolutely fundamental in order for producers to be able to plan for their future. Valentín Chinchay, member of a Fairtrade Certified Coffee Cooperative FAPECAFES, Ecuador says: In 2001 and 2002, during the world coffee crises, our situation was desperate. We received between 20-25 dollars per quintal many of the Ecuadorian coffee producers left. We did not have any other choice but to abandon the coffee culture. When FAPECAFES became Fairtrade Certified four years ago, in 2003, the difference that Fairtrade made was remarkable. We are currently selling 80% of our total coffee production under Fairtrade terms. For our Fairtrade organic coffee we are receiving 139 US$ the quintal and 119US$ the quintal for our conventional Fairtrade coffee. But more important than the higher prices is the stability that Fairtrade brings. We are not as vulnerable to market volatility as we 1

used to be he adds. During 2006, FLO estimates that Fairtrade Coffee sales provided an estimated of 41 million Euros more to Fairtrade Certified Coffee Cooperatives than selling their products under conventional terms. But despite growing by on average 40% per year over the last five years, the Fairtrade market still has plenty of room for expansion. In fact, FLO estimates that approximately 20% of the total production of Fairtrade Certified Producers is sold under Fairtrade terms. FLO and its member Labelling Initiatives are working to open new markets and identify new business opportunities for producers so that Fairtrade Certified Producer Organizations can get to sell higher percentages of their production under Fairtrade terms in the future. As Barbara Fiorito, FLO Chair of the Board of Directors, says: Above all, consumers increasing demand for Fairtrade Products means one most important thing that more farmers are able to sell more of the their produce under Fairtrade terms, strengthening their organizations, building long-term relationships and increasing benefits to their communities. But we should not feel satisfied. Too many producers all over the world continue to be victims of the unfair rules of international trade, often forced to sell their produce for less than the cost of production. Similarly, too many workers in developing countries endure low wages, insecure working conditions and are often denied the freedom to join a union. Besides continuing to lobby governments to make changes on international trade rules in favor of the poorest countries, incorporating Fairtrade Products to our daily shopping routine is a way to send a powerful message to the industry and eventually force the conventional players and governments to rethink the impact of their business models and their policies. We need people to shout even louder, and we need companies to respond with genuine engagement. Otherwise millions of farmers will remain consigned to poverty. Fairtrade must become an everyday part of the way millions of people think and shop. Highlights in different Fairtrade markets in 2006: Canada During 2006, new Fairtrade Certified Coffee, Tea, Sugar, and Cocoa Products were introduced into the major Canadian grocery chains, including Costco, Loblaws, and Sobey s. Via Rail, Canada s national rail service, brought Fairtrade Certified coast to coast with its commitment to serve exclusively Fair Trade Certified coffee. Ireland The new Irish Government, elected in June 2007, has made a commitment in the programme for government that will ensure that the sourcing of Fairtrade goods (where possible) is part of all Government departments purchasing policy. Besides this, Sales for Fairtrade Certified goods grew by 75% in Ireland in 2006. Italy: During 2006, new Fairtrade Certified Products, roses and jeans made out of Fairtrade Cotton, were launched in Italy. Norway In 2006, the Norwegian Fairtrade Labeling Initiative promoted Fairtrade through an ambitious art campaign. The project consisted of 33 sculptures of Fairtrade consumers which were 2

placed in several supermarkets across the country. The campaign was very successful in raising awareness about Fairtrade among Norwegian consumers. Switzerland: Fairtrade Certified Bananas continue to lead the market in Switzerland in 2006, representing 55% of the market share for bananas. Both, Fairtrade Bananas and Roses were very successful with online shopping. Sales of products made out of Fairtrade Cotton, whose range was expanded, grew by 73%. Sweden Fairtrade sale volumes increased by 63% in Sweden, reaching a total value of 16 million Euros. Fairtrade juice, sugar and wine were launched at Systembolaget, the Swedish statowned monopoly shop for alcoholic beverages. During 2006 Scandic and Hilton hotels, one of Sweden s major hotel chains, switched to 100% Fairtrade coffee. A new coffee chain concept was launched Barista Fair Trade coffee" that only serves Fairtrade Products whenever possible. UK Sales of Fairtrade Products in the UK rose to 293m in 2006, a 46 per cent increase over 2005. The Fairtrade Foundation hosted the first ever European Fairtrade Towns conference, opened by Richard Howitt MEP, European Parliament Spokesperson on Corporate Social Responsibility. Over 270 UK towns have received Fairtrade Town status. You can download the FLO Annual Report from the website: www.fairtrade.net For further information, please, contact Verónica Pérez, FLO s Communications Officer : Email: v.perez@fairtrade.net Tel: 0049 228 949 2314 Notes to Editors FLO unites national Fairtrade Labeling Initiatives across Europe, Japan, USA, Canada, Mexico, Australia and New Zealand and producer networks representing Fairtrade Certified Producer Organizations in Central and Latin America, Africa and Asia. This independent consumer certification mark appears on products as a guarantee that disadvantaged producers are getting a better deal. Today, more than seven million people - farmers, workers and their families - across 59 developing countries benefit from the international Fairtrade system. 3

La vendita globale dei prodotti Fairtrade è aumentata del 40%, beneficiando 1.4 milioni di produttori del sud del mondo. Bonn, Germania, 25 Luglio 2007 Nel 2006 i consumatori di tutto il mondo hanno speso 1.6 bilioni di euro per l acquisto di prodotti a marchio Fairtrade come sostiene FLO, il coordinamento internazionale dei marchi di garanzia del commercio equo e solidale. Questo aumento del 41% rispetto all anno precedente ha portato dei vantaggi ad oltre un milione e quattrocentomila produttori e lavoratori del sud del mondo. Questa straordinaria crescita riguarda varie categorie di prodotti, ma in particolare il cacao, che è aumentato del 93%, il caffè del 53%, il te del 41% e le banane del 31%. Inoltre i produttori di cotone Fairtrade hanno visto duplicarsi la domanda del loro prodotto in un solo anno. A questo aumento delle vendite corrisponde anche un aumento del numero dei licenziatari (aziende che vendono il prodotto confezionato con marchio Fairtrade). Infatti nel 2006 i licenziatari sono passati da 1514 a 1954, con una particolare dedizione da parte di alcune aziende nel supporto del commercio equo e solidale. Ad esempio Il supermercato inglese Sainsbury ha annunciato lo scorso dicembre la conversione dell intera gamma di banane con banane Fairtrade. Un altra catena inglese, Mark & Spencer, risponde al desiderio dei suoi clienti di poter fare acquisti etici convertendo l intera gamma di te e caffè in prodotti a marchio Fairtrade (aprile 2006). La catena Dunkin Donuts ha adottato una politica Fairtrade per il 100% del caffè venduto in America del Nord e in Europa. Nel settembre 2006 Insomnia Coffee Company in Irlanda ha annunciato che il caffè servito nei punti vendita di tutto il paese sarà cento per cento Fairtrade. Scandic and Hilton, una delle più importanti catene di hotel della Svezia, ha annunciato in ottobre che convertirà tutto il suo caffè in caffè Fairtrade. 4

Vorremmo ringraziare tutti i consumatori e tutte le attività commerciali che nel 2006 hanno supportato il commercio equo e solidale. Grazie ai vostri acquisti giornalieri dei prodotti a marchio Fairtrade i produttori e i lavoratori di tutto il mondo in via di sviluppo hanno ricevuto un prezzo migliore per i loro raccolti e un Premium, che gli permette di migliorare le condizioni di vita delle loro famiglie delle loro comunità. Noi, produttori del sistema Fairtrade, continueremo a lavorare duro per garantire la miglior qualità ai consumatori, con la speranza che il prossimo anno la domanda continuerà a crescere e che un gran numero di produttori potranno beneficiare di questo rivoluzionario approccio al commercio dice Binod Mohan, presidente di NAP (Network of Asian Producers), un associazione che rappresenta i produttori asiatici all interno di FLO. Gli standard Fairtrade assicurano contratti a lungo termine e rapporti duraturi tra produttori e importatori. Ciò permette ai produttori di organizzarsi per il loro progetti futuri. Valentìn Chinchay, membro della cooperativa di caffè FAPECAFES (Ecuador) dice: Nel 2001-2002, durante la crisi mondiale del caffè la nostra situazione era disperata. Ricevevamo all incirca 20-25 dollari al quintale molti produttori ecuadoriani se ne andarono, non c era altra soluzione se non abbandonare le coltivazioni. Quando FAPECAFES entrò a far parte del circuito Fairtrade quattro anni fa, nel 2003, la differenza fu notevole. Attualmente vendiamo l 80% della produzione totale di caffè al commercio equo e solidale. Per il nostro caffè biologico riceviamo 139 US$ al quintale e 119 US$ per quello normale. Ma la cosa più importante è la stabilità dei prezzi, non siamo più vulnerabili alle fluttuazioni di mercato aggiunge. Durante il 2006 FLO ha estimato che le vendite del caffè a marchio Fairtrade hanno portato alle cooperative all incirca 41 milioni di euro in più rispetto a ciò che avrebbero ricavato da una vendita al mercato tradizionale. 5

Nel commercio equo e solidale vi è ancora una grande possibilità di espansione, infatti FLO ha estimato che le cooperative vendono in media a condizioni Fairtrade il 20% della loro produzione totale. FLO e i suoi membri stanno lavorando per aprire nuovi mercati ed identificare nuove opportunità affinché i produttori in futuro riescano a vendere una percentuale più alta della loro produzione al circuito Fairtrade. Come dice Barbara Fiorito, presidente del consiglio di amministrazione di FLO: L aumento della domanda da parte dei consumatori di prodotti Fairtrade significa soprattutto che sempre più coltivatori saranno in grado di vendere i loro prodotti al circuito del commercio equo e solidale, costruendo così rapporti a lungo termine che gli permettano di rafforzare le loro organizzazioni e di aumentare i benefici delle loro comunità Ma non possiamo essere del tutto soddisfatti perché ancora troppi lavoratori di tutto il mondo continuano ad essere vittime di un commercio iniquo, che spesso li forza a vendere i loro prodotti ad un prezzo quasi più basso rispetto del costo di produzione. Ancora troppi lavoratori nei paesi in via di sviluppo accettano salari molto bassi e con insicure condizioni lavorative e spesso non gli viene nemmeno data la possibilità di unirsi in sindacati. A parte far pressione sui governi per apportare cambiamenti alle regole internazionali di mercato a favore dei paesi più poveri, incorporare ai nostri acquisti quotidiani prodotti Fairtrade è un modo per mandare un messaggio molto forte all industria ed eventualmente costringere le grandi aziende e i governi a ripensare sull impatto delle loro politiche commerciali. Abbiamo bisogno di persone per gridare questo messaggio e abbiamo bisogno di aziende per rispondere a questa battaglia. Altrimenti milioni di produttori rimarranno nelle mani della povertà. Fairtrade dovrebbe entrare a far parte della spesa quotidiana di milioni di persone. 6

Canada Nel 2006 sono stati introdotti nuovi prodotti certificati fairtrade come caffè, te, zucchero e cacao, nella più grande catena canadese di supermercati, tra cui Costo, Loblaws e Sobey. Via Rail la rete ferroviaria nazionale a bordo dei suoi treni serve solo caffè fairtrade. Irlanda Le vendite del Fairtrade sono aumentate del 75%. Italia Nel 2006 sono stati lanciati nuovi prodotti tra cui le rose e i jean fatti con cotone equo e solidale. Norvegia Hanno organizzato una campagna d arte per promuovere il Fairtrade, il progetto ha portato alla realizzazione di 33 sculture di consumatori che sono state esposte in molti supermercati del paese. Ed hanno riscontrato un ottimo successo. Svizzera le banane certificate fairtrade rappresentano il 55% della vendita totale di banane. Le banane e l erose fairtrade hanno riscontrato successo anche negli acquisti on-line. Svezia In Svezia la vendita del Fairtrade è aumentata del 63% per un totale di 16 milioni di euro. Alcune catene svedesi servono solo caffè fairtrade, come Scandic and Hilton e Barista Fair Trade Coffee. 7

UK La vendita delle rose fairtrade è aumentata del 46% rispetto al 2006. 8