Growth rates are based on each market’s local currency.
The global growth rate reflects adjusted 2014 figures for the USA, and an estimate for Fairtrade sales in Brazil, the Czech Republic, Hong Kong, India, Kenya, Slovakia, South Korea and ‘Rest of World’.
These figures comprise sales of consumer products in stores and supermarkets (‘retail sales’) and sales of products consumed in cafés, restaurants, etc. (‘out of home sales’). There are two different methods to calculate ‘out of home’ retail values:
Given that ‘out of home’ prices are often higher than retail prices, countries that use the first method may have relatively higher sales values.
In previous annual reports, we reported on volumes of Fairtrade products sold in consumer countries. This year, in order to present a clearer picture of benefits to producers, we have reported on volumes of Fairtrade products sold by producers for the six products that account for 90 percent of producers in the Fairtrade system – these do not correspond directly with the volumes sold in consumer countries. This is because the volumes reported include all sales made on Fairtrade terms and according to the international Fairtrade Standards, regardless of ultimate market destination. For the other products we work in, we continue to publish the volumes sold in consumer countries.
Not all product volumes bought on Fairtrade terms are sold with the FAIRTRADE Marks on the final package or through the Fairtrade Sourcing Programs. When producers sell their products to traders on Fairtrade terms, they often do not know the ultimate market destination of their product. In particular, they are not able to distinguish how much of their product will eventually be sold by other fair or ethical trade schemes, as opposed to the international FAIRTRADE Marks and Fairtrade Sourcing Programs. Fairtrade’s market sales volumes do not include sales of products licensed by other fair or ethical trade schemes. This affects coffee in particular.
Product wastage and storage, which means that goods sold as Fairtrade either do not reach markets or enter market a long time after the sale is made, also contributes to the difference in volumes.
For the market volumes, figures are based on conversions of finished product volumes—such as the vanilla or cocoa or sugar in a chocolate bar—into production volumes, which are often in an unprocessed form. This process can be unreliable, and can also lead to apparent discrepancies between market and producer figures.