Fairtrade International Launches Commodity Sourcing Program

Fairtrade International recently announced the first commitments to its new commodity sourcing model. Rather than focusing on all the ingredients for a multi-ingredient final product, Fairtrade Sourcing Programs means companies can now make big commitments to use Fairtrade cocoa, sugar or cotton across product ranges or even their whole business. Already at launch nine companies have signed on to increase their Fairtrade purchases starting with initial 2014 volumes set to deliver $1.2m in additional Fairtrade Premium to cocoa farmers by the end of this year.

The associated label, shown at left for cocoa ingredients, looks somewhat different than the FAIRTRADE product label,  under which all commercially available ingredients in a multi-ingredient final product that could be FAIRTRADE must be FAIRTRADE. The U.S. market, administered by Fairtrade America, is not presently allowing use of the label for Fairtrade Sourcing Programs.

Mars and major German, Swiss and Japanese retailers and brands were the first to make serious commitments to cocoa farmers under Fairtrade’s new commodity sourcing model. Swiss company Switcher was also announced recently as the first to pioneer the new approach in cotton.

The early commitments alone will increase Fairtrade cocoa sales sixfold in Germany in 2014 and deliver 14% growth to Fairtrade cocoa farmers worldwide, by close to 6000 metric tonnes (MT). Many of these companies have set multi-year growth targets so Fairtrade cocoa farmers will benefit from year-on-year increases to overall volumes of cocoa sales.

More at Fairtrade International post