The Fairtrade Foundation has reiterated its belief that fairtrade products should continue to command premiums, after new research suggested that prices might be an obstacle to growth in the ethical market.
The report by independent think tank, Social Market Foundation, found that while 82 per cent of UK consumers said they prefer to purchase goods and services from companies that are socially and environmentally responsible, only 23 per cent would do so if they have to pay more.
However, deputy director of the Fairtrade Foundation, Ian Bretman, said: "The figure of 23 per cent is actually quite high when seen in the context of a rather negative proposition - i.e 'would you pay more for ethically produced products'. Growing sales of Fairtrade products demonstrate that as consumers become more aware of the issues surrounding international trade and sustainable development they respond positively to credible marketing messages that enable them to make a difference through their purchasing.
"That is why Fairtrade products, backed by the independent guarantee from the Fairtrade Foundation and demonstrating clear benefits to producers in the developing world, are increasingly seen as offering value for money even though they may be slightly more expensive than comparable conventionally produced products."
The SMF report, Race to the Top: how government, business and consumers can drive CSR (corporate social responsibility), also found that "consumers have a serious lack of clear and credible information about the ethical practices of companies that they might use to make purchasing decisions." According to the research, just two per cent of UK shoppers say they mostly have enough information to judge the ethical position of companies, whilst 73 per cent say they lack such information most of the time.
Bretman rejected the introduction of a single 'catch-all' ethical label to cover everything from Fairtrade to organics, such as the five-star system mooted recently in the media. He maintained that individual identities for the many causes on offer provided an essential point of difference.
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