Foundation has more than 2,000 branded products on the market but it needs financial assistance to grow. The Fairtrade Foundation is seeking up to £ 50 million from governments in the UK and abroad to help to finance development projects overseas over the next five years.
Fairtrade wants a long-term investment plan to help it to expand into new markets, such as cosmetics. The foundation hopes to repeat the success of its Fairtrade cotton, which was launched in November 2005 and will underpin major clothing ranges at Marks & Spencer, Top Shop, Monsoon and Sainsbury’s this year.
Harriet Lamb, director of the foundation, which acts to protect the interests of suppliers in developing countries, said: “Britain leads the way in fair trade. We have the biggest market and we hope we can be a global centre of excellence. The Department for International Development (Dfid) and Fairtrade have similar objectives and we can take those forward if they give us financial support.”
On Tuesday Ms Lamb will join Roosevelt Skerrit, Prime Minister of the Commonwealth of Dominica, Mike Barry, head of corporate social responsibility at Marks & Spencer and representatives from Starbucks, the coffee shop chain, in giving evidence at the first meeting of an international development select committee inquiry into fair trade.
The all-party committee, chaired by Malcolm Bruce, the Liberal Democrat MP, will examine how effective fair trade is in reducing poverty and how donors, particularly Dfid, can support fair trade in their development assistance.
Evidence from the committee will help to inform recommendations to Hilary Benn, the International Development Secretary, who will decide whether to provide Fairtrade with its biggest slug of government funding to date. A decision is expected this year.
Fairtrade has shown strong growth since its inception more than nine years ago.
More than 265 companies are now involved in selling more than 2,000 Fairtrade branded products, which guarantee that goods have been bought at a fair price with an additional “social premium” towards local community projects. Sales of goods bearing the foundation’s distinctive green and blue logo have been increasing by more than 40 per cent a year. The rate of growth stepped up last year when sales exceeded £ 275 million as major retailers embraced the Fairtrade project.
Retailers have used the association with Fairtrade to respond to consumer demand for more ethically sourced goods, with Sainsbury’s promising to sell only Fairtrade bananas by this summer and Marks & Spencer converting all its tea and coffee.
Speaking ahead of Fairtrade Fortnight, when companies vie to show off their ethical credentials, Ms Lamb said: “We are undertaking a strategic review of the foundation and this is a prime time for the Government to help us take it forward.”
The most costly part of the foundation’s work involves the accreditation of new types of product, which involves comprehensive consultation on setting a fair price and the standards that should be set.
Fairtrade is aiming to move from the certification of commodity products such as cocoa, coffee and cotton, towards more processed goods. At present it is consulting on the development of Fairtrade-certified cosmetics, which would help to provide a market for cocoa farmers though the use of cocoa butter. The process is expected to be finalised by the end of the year.
Ms Lamb said: “I believe there is no going back. The question is how far can we take this concept.”