The price effect of Fair Trade certified cotton

The price effect of Fair Trade certified cotton

25 (29) million clothing articles were sold 2010 to end consumers with the FT seal and the major markets were Great Britain, France, Germany, Switzerland, the Netherlands and Finland

Fair Trade (FT) certified cotton production has been introduced in West- & Central Africa (Kamerun and Burkina Faso) in the season of 2004-05 and reached the European fashion shelves in March of 2005. Today there is also FT production in India, Mali, Senegal, Brazil, Kyrgystan and Egypt and in the season of 2011-12 new FT cotton production was certified in Uganda. The global total FT production 2011-12 increased 11 % to 24500 5t (63000 t seed cotton).

Since March 2011 Fair Trade is undertaking a complete evaluation and revision of the FT model. What FT brought in its past five years to the farmers can be had from the following table:

Overview of Fairtrade Minimum Prices (FTMP)  and Premium for Seedcotton  

Region Quality 2008 – 11  FTMP (EUR/kg) 2011 – 2012 Change in % FT Premium EUR/kg (unchanged)
South & Central America G.barbadense 0.45 0.49 9 0.05
G. barbadense organic 0.54 0.59 9 0.05
G. hirsutum 0.41 0.41 0.05
G.hirsutum organic  0.49 0.49 0.05
East Africa G. hirsutum 0.36 0.40 11 0.05
G. hirsutum organic 0.43 0.48 12 0.05
Kyrgystan G. hirsutum 0.46 0.46 0.05
G. hirsutum organic 0.55 0.55 0.05
West & Central Africa G.hirsutum  0.42 0.42 0.05
G. hirsurtum organic  0.50 0.50 0.05
North Africa G.barbadense 0.43 0.48 12 0.05
G. barbadense organic 0.52 0.58 12 0.05
G.hirsutum 0.39 0.40 3 0.05
G. hirsutum organic 0.47 0.48 2 0.05
South Asia G.barbadense 0.45 0.53 18 0.05
G. barbadense organic 0.54 0.64 19 0.05
G. hirsutum > 25 mm 0.38 0.44 16 0.05
G. hirsutum  < 24.5 mm 0.38 0.39 3 0.05
G. hirsutum organic  > 25 mm 0.46 0.53 15 0.05
G. hirsutum organic < 24.5 mm 0.46 0.47 2 0.05
Source: ICAC / Bremen Cotton Report Aug. 2, 2012    

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