Fair Trade changes breed uncertainty, but have little effect on sales
Fair Trade changes breed uncertainty, but have little effect on sales
Fair Trade floral sales worldwide were up 11 percent last year, with more than 350,000 flowers and plants sold, according to Fairtrade International. This year marks the fifth anniversary of the introduction of Fair Trade flowers to the United States.
The withdrawal of the U.S. affiliate from the international Fair Trade group continued to stir concern last year, but apparently did not affect flower sales here, according to one of the three licensed Fair Trade flower importers in this country.
October is Fair Trade month, celebrating a system of licensing begun about 40 years ago, more recently expanded to include flowers. The license is designed to hold producers to standards for environmental and social concerns and return a 10 percent premium for community projects selected by farm workers. Fair Trade imports reached an all-time high in 2011, the U.S. affiliate has announced.
Average Fair Trade item sales were up 12 percent. Flowers are a small-volume item among Fair Trade products. Coffee accounts for 70 percent of all sales. The overall program is designed to ensure a fair price for growers and to empower workers around the globe.
For Fair Trade flower importers, the controversy was a hassle. “It was an administrative mess, and time-consuming, but did not hurt sales,” Alaina Paradise, owner of One World Flowers in Denver, told The Produce News in a Sept. 21 interview.
“We had no warning this was in the works,” she said. “We were one of their licensed importers, but they did not reach out to us and let us know this was going to happen. Afterwards, they sent us an email.” Ms. Paradise was caught with a backlog of materials bearing the old “Bucket Boy” logo.
“We are still registered with Fair Trade USA but have also registered with the international group,” she said. “We will begin trading under the international blue and green logo when our supply of packaging materials with the old logo runs out.” The Fair Trade logo is recognized by 34 percent of U.S. consumers. “Luckily, the controversy did not affect growers who supply Fair Trade flowers to this country,” she said.
“Fair Trade has been good for One World Flowers,” Ms. Paradise observed. “We’ve turned a profit since day one.” The firm started about five years ago. For Fair Trade month, One World Flowers is offering a 25 percent discount for new customers on orders placed during October.
For the future, Ms. Paradise would like to see Fairtrade International provide “studies that show measurable, positive on-the-ground effects for growers and workers.” She said lack of statistical data was a hindrance during the affiliate controversy and that work was needed to expand the varieties of Fair Trade flowers.
In September 2011, the nonprofit U.S. affiliate of Fairtrade International, Fair Trade USA (previously known as TransFair USA) said it would sever relations with its parent group effective Dec. 31. It said the move was made to double sales by 2015, in part by bringing large coffee plantations, previously excluded, into the certification ranks. Large estates growing flowers, bananas and tea are currently included, it pointed out.
The U.S. group also changed its logo and announced it would partner with Scientific Certification Systems, a for-profit company in Emeryville, CA, to conduct audits and certify new producer groups. SCS developed and certifies the Veriflora sustainably grown label. The U.S. group plans to lower standards requiring that 20 percent of ingredients meet requirements to 10 percent, according to The New York Times.
The international group decried the withdrawal of its U.S. affiliate and set about establishing a new, competing one, while a Canadian group served as a place-holder.
Fair Trade USA, according to forms filed with the U.S. Internal Revenue Service, had revenues of $8.8 million and 77 employees that drew $5.1 million in salaries and benefits in 2010. Paul Rice, its president and chief executive officer, was paid $225,000 in salary, bonuses, benefits and other compensation. The firm spent $94,000 on advertising and promotion of Fair Trade products that year, and ran an overall deficit of almost $1 million.