Fairtrade to extend product line in South Africa

Fairtrade is focusing on extending its product range in South Africa, according to Fairtrade South Africa (FTSA) and Fairtrade Label South Africa executive director Boudewijn Goossens.

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Currently available products include coffee and wine, “but Fairtrade Label SA will facilitate the introduction of new labelled products, and initiatives have begun for black tea, rooibos tea, cotton products, fruit products, sugar, chocolate and cosmetics,” noted Goossens in the organisation’s annual report. The target, he added, is to have seven mainstream product categories on the local market by 2013.

“There are still many growing pains for FTSA and one of our main challenges is that many local consumers still don’t know about, or recognise, the Fairtrade label,” he said. But since establishing Fairtrade and the Fairtrade label in South Africa, the production and the market share of Fairtrade products have grown tremendously.

Total sales of Fairtrade products in South Africa rose from R250 000 in 2008 to R5,7 million in 2009. This sales growth was mainly due to the dramatic increase in the range of available Fairtrade label products, said Fairtrade Label SA marketing coordinator Arianna Baldo.Globally, the Fairtrade label saw a 15% sales growth to a total of about R42,5 billion between the 2008/09 and 2009/10 seasons.

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“South Africa is the only country that produces and consumes Fairtrade products,” said Goossens. “Because of this, the Fairtrade movement in South Africa is unique. We decided to sell and promote Fairtrade-labelled products in South Africa because we believe that selling the products locally will benefit the workers by further extending the label. It also empowers consumers by giving them a choice to buy ethically-produced food and other goods.”

Elsewhere, Fairtrade focuses on assisting smallscale producers to earn fair prices for their produce, but in South Africa, it’s mostly commercial farmers who have bought into the initiative. According to Goossens, there are currently three smallscale farmers and 65 commercial farms producing Fairtrade-labelled products. Commercial farms must adhere to a set of minimum standards to qualify as Fairtrade producers.

These standards include complying with all labour laws and having at least a level 4 BEE status.“One of our key challenges is to improve the availability of products in retail outlets,” added Goossens. Fairtrade products are currently available at two major retail outlets, Ultra Liquors and Pick ‘n Pay, and this year Pick ‘n Pay said it would explore the possibility of sourcing its house-branded products from Fairtrade producers.