Fairtrade has slipped up. Brits have spent £37.7m less on certified goods in the supers in the past year, a fall of 4.7% [Kantar Worldpanel 52 w/e 9 November 2014]. Crucially for Fairtrade suppliers, who are guaranteed a set price for their goods, volumes are down 7.6%.
This is key, says Fairtrade CEO Michael Gidney. “Volumes matter to farmers, not the price paid by consumers. Value is down as a consequence of the retail price situation. There are deep discounts going on and price wars across key lines.”
Although volumes across the entire Fairtrade market (including foodservice and on the go) are broadly flat, according to Gidney, the fall in the mults is still alarming. So is the price war really to blame for the fall? And how can Fairtrade recover its growth?
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