£12m Fairtrade funding to lift twice as many farmers out of poverty

10 October 2009

Douglas Alexander today announced £12m of new funding for Fairtrade, to help twice as many farmers in the developing world work their way out of poverty. 

The funding will bring another 1 million producers into the scheme and so enable 7 million more people in poor countries to benefit from a better deal offered by Fairtrade. 
 
The value of Fairtrade goods sold globally should triple to £9 billion a year by 2013, thanks in part to the Department for International Development’s (DFID) increased commitment.

Shoppers in the UK will see the Fairtrade range, which already includes products as diverse as cosmetics, cotton, coffee and olive oil, expand to potentially cover new lines which could include wood, fish and a wide range of fruit and vegetables.
 
Despite the global economic downturn, research shows that UK shoppers still see the label as a good deal - nine out of ten of consumers said they were willing to pay extra for a product perceived to be ethical and fair.
 
The Fairtrade mark, which celebrates its 15th birthday on Monday, has already enjoyed huge success in the UK - with sales increasing by 43% in 2008.

Addressing the Fairtrade Supporters' Conference, International Development Secretary, Douglas Alexander, today said:

“Fairtrade products are already a big part of life in the UK, with new products appearing on our shelves every day. Our £12m funding will help improve this even further.

"These are exciting times for the Fairtrade Mark, which is 15-years-old this week. Sales in 2008 rose by 43% in the UK and 22% globally, helping more farmers and workers in the world's poorest countries to make a decent living.”

Harriet Lamb, Executive Director of the Fairtrade Foundation, said:
 
“The Fairtrade Foundation congratulates DFID on the visionary leadership being demonstrated in the international donor community in scaling up strategic investment in Fairtrade globally.  In the current economic climate, it’s the poorest communities who are hit the hardest, and so positive business models like Fairtrade, which deliver increased development benefits from trade, are more important than ever.

"It is very reassuring to campaigners in the UK and producers in the developing world that DFID is sending a strong signal, through this grant, that it recognises what Fairtrade has achieved in the first 15 years, and value of helping kickstart its ambition for the next 15 years."

Farmers in developing countries will also see twice as much money invested directly back into their local organisations for community projects such as irrigation and clinics through "Fairtrade Premiums". 
DFID has supported Fairtrade since 1997.  It has provided £3m to finance work to develop more products and to bring many more producers into the system, leading to an increase in the range and volume of certified goods on sale today.