Oxfam is discontinuing its own ethical product line, Fair Trade, that pays farmers from developing countries a fair price.

The charity said it was diverting its resources into promoting and lobbying for fair trade causes.

The range that includes tea, coffee, chocolate, fruit snacks and clothing was introduced in the 1960s and been an example to the likes of the Co-op which switched all its own label chocolate to Fairtrade last year.

Meanwhile, Traidcraft, which sources and sells fair trade goods, is set for a flotation to raise £3.25m. The shares will not pay a dividend, only the ‘social dividend’ of supporting a good cause.

This will triple Traidcraft’s capital base and allow it to expand its sustainable development work and extend its warehouse space to handle sales growth.