Behind the label

In order to acquire the Fairtrade tag, companies must pay farmers higher than market price for products, which leaves extra money to be invested for the common good; like children's education and social needs.

In the UK last year, a staggering AED2.1 billion (US $561,000) was spent on Fairtrade products across 2500 product lines, an increase of 46% from 2005. Fairtrade coffee sales for catering establishments shot up by 39%, and tea by 50%.

Now the demand and social responsibility of Fairtrade is beginning to be recognised by hotels and suppliers in the Middle East, with 2007 likely to be the year for fair. But the region is still in its infancy, and is looking to more established markets like the UK and South Africa for guidance.

"Fairtrade coffee has been present in Dubai for some time now, primarily in niche markets. What we bring to the market is a wider availability for these products across the foodservice sector, which is important as the market matures and operators look to create a point of difference," says Justin Clarke, founder of Orbis Coffee Roastery Dubai.

Francis Falconer, general manager of the roastery, adds that while demand may increase and the market matures, the chief audience for Fairtrade beverages are tourists staying at the city's four- and five-star hotels.

In the UK, for instance, substantial demand has been witnessed in recent years for drinks with a conscience, as more cafe chains move into Fairtrade, in turn seeing profits soar. Mike Steel, managing director of hot drinks company Fairtrade Vending, has reported a doubling of turnover in the past year, while coffee buyers are also benefiting.

UK-based Cafédirect, for example, is reaping the dividends of its Fairtrade coffee sales, as it buys coffee from 37 organisations in 12 countries, and now has two products positioned in the country's top 20 of best selling lines; its medium roast standard and its decaffeinated organic.

"Businesses often tell us that their sales increase when they make the switch, which is excellent news for the farms in developing countries," says Martin Hill, head of commercial relations for the Fairtrade Foundation.

The Fairtrade label has, however, been subject to dispute over its effectiveness in helping farmers in the developing world. Critics of the movement argue its efforts to achieve fair prices distracts from addressing issues such as industrialisation.

One opponent of Fairtrade certification is Nils El Accad, CEO of Organic Foods & Café in Dubai.

"I get a lot of products from South Africa, working directly with the farmers and paying far more than market prices, but I'm not forcing them to go Fairtrade. I choose to work with farms based on the condition they are family-run and genuinely organic. I don't buy from multinationals, and I pay a premium without demanding certification," El Accad comments.

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