Fair Trade Market Achieves Record Growth in 2003

TransFair USA Drives Increase in Product Demand; Supplemental Income to Coffee Farmers Reaches 34 Million Dollars

OAKLAND, Calif., March 29 -- TransFair USA, the nation's only independent, third party certifier of Fair Trade products, announces unprecedented demand for Fair Trade Certified(TM) coffee during the year 2003. For the period of January 1 through December 31, 2003, TransFair USA certified 18.7 million pounds of coffee, up from 9.8 million pounds in the previous 12 months -- a year-over-year growth rate of 91 percent. Supplemental income generated for coffee farmers during that same period totaled $15.9 million, bringing the total additional income farmers have received from U.S. sales of Fair Trade Certified coffee in five years to $34 million. In 2003, 100 new companies signed up to sell Fair Trade Certified products and approximately 8,000 new retail outlets began selling Fair Trade Certified products for the first time, bringing the total to almost 20,000 cafes, restaurants and supermarkets nationwide.

Fair Trade Certified coffee imports have grown at a dramatic 75% average annual growth rate since TransFair USA launched the label in late 1998. In 2003, market growth accelerated to 91%, demonstrating increased consumer demand for Fair Trade coffee as well as the concept's entry into mainstream distribution channels like Dunkin' Donuts. Faced with declining quality, the destabilization of historically high-quality suppliers, and growing concern over the suffering of coffee farmers in today's prolonged price crisis, the specialty coffee industry is embracing Fair Trade certification as the most effective strategy for delivering a fair price back to farmers. As a result, Fair Trade has emerged as the fastest growing segment of the specialty coffee industry.

"The accelerating growth of this market in 2003 reaffirms that Fair Trade certification is a win-win for farmers, businesses and consumers alike. This growth confirms what market research has been indicating for some time now: consumers are increasingly concerned about where their products come from, as well as the social and environmental impact of those products," said Paul Rice, CEO and President of TransFair USA. "The success of the Fair Trade Certified label is a tribute to the vision of the specialty coffee industry, which has demonstrated that Fair Trade is not only good for farmers, but also good for business. This is an industry and a model that enable us all to make a powerful difference with every cup."

Since it opened its doors five years ago, TransFair USA's certification of 41 million pounds of coffee, tea and cocoa has translated into millions of dollars in additional income for farmers in Latin America, Africa and Asia -- $34 million for coffee farmers alone. Farmers use the additional income to improve nutrition, healthcare, housing, education and quality of life for their families. The higher incomes also allow farmers to devote more meticulous attention to their crops to ensure a high quality harvest. For many, Fair Trade represents a chance for a brighter future.

"Thanks to Fair Trade, our income has grown tremendously over the past few years. In real terms, this means healthy children who can stay in school, instead of having to go to work in the fields. It means money to maintain the award-winning quality of our coffee which is demanded by discriminating U.S. consumers. And it means training programs to develop the management skills of our cooperative members and help them transition to organic coffee cultivation. Through Fair Trade we have achieved all these things," said Sabino Brenes, a farmer with COOCAFE, a Fair Trade coffee cooperative based in Costa Rica. Founded in 1988, COOCAFE's 3,500 family farmers export gourmet coffee to Europe, the U.S. and Canada.

Why Fair Trade Certification is Needed

Throughout Latin America, Asia, and Africa, family farmers follow generations of tradition to cultivate the world's finest coffee, tea, bananas and other food products. Historically, however, lack of market access and price volatility in global commodities markets have prevented family farmers from receiving a fair price for their harvests. When local market prices fall below the cost of production, farming families struggle just to survive. Coffee is the second most heavily traded commodity in the world, after oil, and farmer prices have plummeted to their lowest level in recorded history, forcing millions of coffee farmers off the land and into poverty.

Fair Trade is an innovative, market-based approach to sustainable development. Fair Trade helps family farmers in developing countries gain direct access to international markets, as well as develop the business capacity necessary to compete in the global marketplace. By learning how to market their own harvests, Fair Trade farmers are able to bootstrap their own businesses and receive a fair price for their top-quality products. This leads to higher family living standards, thriving communities and more sustainable farming practices. Fair Trade empowers farming families to take care of themselves -- without developing dependency on foreign aid.

2003 Highlights

-- Dunkin' Donuts introduced a new line of espresso beverages made
exclusively with Fair Trade Certified coffee beans. The national chain
targeted more than 1,500 stores across New England for its initial
rollout, and plans to offer the line nationwide in over 4,500 stores
later this year.
-- Procter & Gamble launched a Fair Trade Certified coffee -- Mountain
Moonlight Fair Trade Certified. USA Today characterized the move as
"a powerful -- if not precedent setting -- nod to the fair trade coffee
movement," and predicted it would nudge rivals such as Kraft Foods Inc.
and Nestle USA to consider doing the same.
-- Coffee roasters already participating in Fair Trade certification
increased their certified coffee purchases by 125 percent.
-- Numerous highly esteemed media outlets ran stories profiling Fair Trade
Certified products and the Fair Trade certification model. The list
includes USA Today, Time Magazine, The New York Times, Newsweek
Magazine, Wall Street Journal, Associated Press News Service, Reuters
News Service, Forbes.com, the Washington Post, National Public Radio,
and Frontline/World, among others.

Additional Information

-- Over one million family farmers in 45 countries in Latin America,
Africa and Asia are now enjoying a better life thanks to Fair Trade.
-- TransFair USA has partnered with almost 300 specialty coffee companies,
certifying a cumulative total of 41.2 million pounds over the last five
-- Building on the success of coffee, TransFair USA recently launched Fair
Trade Certified tea, chocolate, bananas, mangoes, pineapples and
-- Fair Trade Certified products are now sold in over 20,000 retail
outlets nationwide.
-- Almost 85% of the Fair Trade coffee and 100% of the Fair Trade tea,
chocolate and fresh fruit currently sold in the US are also certified

About TransFair USA

TransFair USA, a 501 (c) 3 nonprofit, is the sole Fair Trade certification organization in the U.S. Its rigorous audit system, which tracks products from farm to market, verifies industry and farmer compliance with Fair Trade criteria. TransFair authorizes companies to display the Fair Trade Certified label on products that meet this high standard. TransFair USA is part of a global certification network with a 15-year history of success in over 60 countries. In addition to coffee, TransFair also certifies Fair Trade tea, chocolate, bananas and other fresh fruit. To learn more, visit http://www.transfairusa.org/ .

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