Lisa Reinisch

Fairtrade and the secret behind recession-proof ethics

When the credit crunch hit, many experts warned that ethical brands with their premium price tags would suffer as shoppers tightened their belts. But, as the latest sales figures reveal, Fairtrade products continue to boom, despite the financial and food crises. Last year £700m worth of Fairtrade products were sold in the UK, up 43 per cent since 2007, and an extra 1.3 million more households started buying Fairtrade products.

While sales of organic and other premium-priced products have suffered, it seems that shoppers are not turning their backs on Fairtrade products. To the contrary, more people are reaching for Fairtrade bananas than ever before. And it is not only consumers who have started paying more attention to the Fairtrade cause: big corporations like Sainsbury’s and Cadbury have recently taken some of their most popular products fair-trade.

While these corporate and individual decisions are commendable, it is becoming clear that there is more to this sudden wave of goodwill than meets the eye. After all, big companies seldom change their labour and procurement policies unless there is something in it for them. The same is true of consumers and their shopping habits.

The recession seems to have boosted the Fairtrade cause and there is a variety of reasons for this – and compassion is only one of them.

“Research shows that people are sticking with Fairtrade because they realise that times may be tough for them, but they are even worse for farmers and workers in developing countries,” says Veronica Pastur, a Fairtrade campaigner.

But while empathy for the world’s poorest farmers may be part of the reason Fairtrade ethics appear to be recession-proof, the main reason is likely to be the diminutive price difference to regular products.

Unlike organic products, which can be substantially more expensive than their non-organic counterparts, opting for a Fairtrade alternative usually adds only a few pence to the grocery bill.

“I always look out for the little [Fairtrade] sign,” says Kathryn O’Brien from Northern Ireland. “Sometimes it is difficult to find, but if it’s available, I’ll buy it. The price difference isn’t big, I hardly notice.”

That makes Fairtrade products one of the most affordable ways for cash-strapped consumers to feel good about their shopping habits; conscientious shopping on a budget.

Anger at the ruthless practices of large corporations is another facet of the increased appeal of Fairtrade products during the recession.

“People have seen the way that companies have behaved,” says Barbara Crowther, director of communications of the Fairtrade Foundation. “They think it’s time for companies to show a bit of responsibility and Fairtrade is one really easy way consumers can say that to companies. We can’t have big companies behave like that anymore.”

“I’m sorry, but I have a conscience,” says Wendy, an history professor from London. “If somebody like Fred Goodwin (former CEO of RBS) can earn all that money for decimating a banking system, then why can’t people who grow things and produce honest to goodness products be paid fairly?”

The recession seems to have stirred up a potent cocktail of compassion, anger and prude budgeting in consumers, which has helped Fairtrade producers and retailers. Big corporations have caught on to this trend and are changing their strategies accordingly.

Fairtrade’s success may be at the expense of other commendable initiatives and closely tied to the calculated behaviour of large corporations, but there is no doubt that the movement’s growing strength is a rare bit of excellent news during these gloomy times.