Despite difficult economic conditions, FAIRTRADE products in Austria were able to achieve an estimated sales increase of almost 12 percent in 2023.
95% of Austrians know the FAIRTRADE seal and 88% trust it. The reliable use of FAIRTRADE-certified products when shopping every day, even in a difficult economic environment with high inflation, shows the special importance that fairness and sustainability already have in the public consciousness in Austria.
Hartwig Kirner, Managing Director of FAIRTRADE Austria
Vienna (OTS) – FAIRTRADE-certified cocoa recorded a sales increase of 13.4% to 9,690 tons in Austria in 2023 thanks to numerous new listings from trading partners and chocolate producers. Coffee also showed stable development in its 30th year on the market with a slight increase of 0.2%. FAIRTRADE bananas were able to increase their market share to 32%, and the quantity sold remained at a high level of 34,023 tons. Sales of FAIRTRADE-certified roses developed very positively (plus 7.9%). After the demand-side roller coaster ride surrounding the pandemic, they are now moving closer to pre-crisis levels.
World market prices will show somewhat chaotic behavior in 2023/2024, with the cocoa price currently at an all-time high. However, there have been hardly any financial improvements among farming families so far; reliable FAIRTRADE partnerships are particularly important in this economic environment. The Austrian retail chains and producers are setting a good example here. Hartwig Kirner, Managing Director of FAIRTRADE Austriabut also emphasizes the role of consumers: “95% of Austrians know the FAIRTRADE seal and 88% trust it. The reliable use of FAIRTRADE-certified products when shopping every day, even in a difficult economic environment with high inflation, shows the special importance that fairness and sustainability already have in the public consciousness in Austria.
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FAIRTRADE contribution in the global south
The negative effects of the climate crisis on crop yields as well as rising costs due to inflation and supply bottlenecks are putting pressure on the incomes of small farming families and workers on plantations in Africa, Asia and Latin America. It is all the more important that the increased demand for FAIRTRADE products in Austria meant that the producer organizations’ direct income could be increased to almost USD 80 million (plus 9%). This means more income for the farming families and more FAIRTRADE bonus money that can be invested in community projects and thus in the future of the regional community.
“In order to get closer to our goal of a living income for everyone, we are also investing in additional programs such as the West Africa Cocoa Program or the Fairtrade Living Income Learning Project. Last year alone, almost 40,000 farming families were trained and income diversification was promoted.”, Kirner continued. Current study results show that these measures also have a positive effect on the income of farming families and can thus break the vicious circle of poverty.
Challenges and implementation of political milestones at EU level
The EU Supply Chain Act and the EU Deforestation Regulation will significantly influence all actors in global supply chains in the future. FAIRTRADE is therefore required in many ways: In 2023, the coffee and cocoa standards were revised with regard to the new legal due diligence obligations of companies. “We are already supporting companies in Austria with expertise and online tools such as the Risk Map in implementing the new legal requirements, which will also take effect at the national level in the coming years. Partner organizations in the Global South will be provided with satellite data through strategic technology partnerships in the FAIRTRADE system to meet the requirements of the new EU regulation to prevent deforestation.”Kirner concluded.
The ongoing trend towards sustainable consumption as well as important strategic decisions at corporate and political levels show how important a functioning global FAIRTRADE system is. More than 1.8 million farming families and 200,000 employees on plantations will continue to benefit from fair consumption in the future and will thus be able to actively counter the climate crisis and the associated declines in harvests and income.
Background:
FAIRTRADE is the world’s leading certification system in which producers benefit from a minimum price and a precisely defined premium.
FAIRTRADE-Standards: enable producer organizations to design the necessary processes, and there is additional support from the FAIRTRADE producer networks, for example through training, awareness-raising and advice directly on site.
FAIRTRADE audits and controls: The certification is a contribution to risk management along the entire supply chain, through auditing and independent and professional controls by third parties.
FAIRTRADE minimum price & premium: Higher prices and the additional premium lead to an improvement in the living situation of people in the Global South. This positive impact serves the risk-reducing procurement and sustainable purchasing practices necessary for companies.
FAIRTRADE participation: The small farming families and employees in the FAIRTRADE system have 50% of the voting rights – decisions are always made on an equal footing. This applies to current minimum prices and premiums as well as new environmental protection regulations, the protection of children’s rights and much more.
Questions & Contact:
FAIRTRADE Austria
presse@fairtrade.at