Fairtrade sales growth decline in recession

fairtradeMega sales boom of the Fairtrade products in the UK finally came to a halt in 2009, the Fairtrade Foundation said on Monday. Consolidated sales of all products grew just 12 per cent during the year as compared 71 per cent in
2007 and 45 per cent in 2008.

Customers' hesitation to go for the 'ethical and hence costlier' products during the recession was blamed for the decline in sales growth of such products. Overall sales for such products totaled to £799 million.

However, speaking for the Fairtrade Foundation, Communications Director Barbara Crowther said that given the economic conditions, a double-digit sales growth for such products was certainly a remarkable performance.

As per the foundation, while sales of tea and coffee witnessed a strong growth, sales of cotton declined.

Meanwhile, companies like Starbucks, Cadbury and Ben & Jerry's continued to move their product lines to the Fairtrade category. While Strabucks moved all its espresso products to Fairtrade, Cadbury switched the Dairy Milk range to the category.

Fairtrade products are part of the trade-not-aid movement that intends to help producers in developing countries and advocates for higher price.