The amount of fair trade products for sale across the UK has increased greatly over the last few years and it has become one of the fastest growing sectors in the retail market. Research published by the Fairtrade Foundation in February this year has estimated that the amount of Fairtrade branded goods sold in the UK in 2007 has increased by 72 per cent from 2006, and that sales have been increasing to over 40 per cent year-on-year since 2002.

Although fair trade has only become mainstream in recent years, the movement began in the 1960s and is based upon the principle of ensuring that Third World farmers are guaranteed a fair price for the product they produce. Fair trade also creates a minimum amount for which a farmer will receive for goods, even if the market price has fallen below it.

The term 'fair trade' covers a fragmented sector with many different forms, however all have the core principle of getting a better deal for Third World farmers at their centre. International beauty and cosmetics retail franchise The Body Shop, for example, supports fair trade under the banner of Community Trade. The Body Shop states: "Community Trade is about working together to change the injustice of small producers disadvantaged by fluctuations in world market prices. To us fair means a living wage, sustainable community development, and a predictable, long-term relationship. In combination, these three factors give communities a future."

Unlike The Body Shop most UK businesses opt to sell fair trade products that have been certified by the Fairtrade Foundation and carry the Fairtrade logo. With the growth in the ethical consumer market in the UK, there has been a clear financial benefit for many companies to start selling fair trade products. Peter Kirton from Esquires Coffee Houses - a coffee shop franchise that sells Fairtrade certified coffee, hot chocolate, tea, sugar and snacks - explains: "There is now a greater consumer awareness within our communities and we receive very positive feed back from many of our customers. I am sure our decision has only helped reinforce our reputation as a responsible retailer."

Even though Peter acknowledges that selling Fairtrade products has had a positive impact on Esquire Coffee Houses, this was not the reason the company chose to join the movement. He reveals: "In the case of sourcing coffee and cocoa in particular I wanted to be part of the initiative to help stop the exploitation of the farmers - the people actually doing the work on the ground growing our raw ingredients, from which so many around the world profit."

Esquires Coffee Houses introduced Fairtrade products in 2007 when the company already had a franchise network in place. The move towards fair trade was supported by its franchisees. Peter comments: "Our franchisees are fully behind providing Fairtrade certified products because they understand the benefits. Many of our new franchisees are very pleased to see our commitment of fair trade and also the contribution we are making to One Water and Coffee Kids."

Having seen the benefits that selling Fairtrade goods has had for Esquire Coffee Houses the company is taking steps to expand its range further. Peter says: "We have come a long way in the past 18 months with Fairtrade certified coffee, hot chocolate, tea and sugar, plus a section of snacks. We are continually looking for other quality products to extend the range, for example we are just introducing a premium Fairtrade cola."

Fairtrade goods can include a large range of products, for example drinks specialist franchise Threshers stocks Fairtrade certified wine, which is produced by farmers in South Africa and South America. Also retail franchises One World is Enough and Shared Earth only stock fair trade goods and their product ranges include clothes, homeware and gifts.

There have been numerous criticisms of the fair trade movement, one of the most recent was a report written by Marc Sidwell for the Adam Smith Institute, an innovator of free-market economic and social policies. The report was published on the 25th February 2008 and coincided with the Fairtrade Foundation's annual Fairtrade Fortnight, an event that promotes the fair trade concept throughout Britain. In the report Marc Sidwell argues that: "Fair trade is unfair. It offers only a very small number of farmers a higher, fixed price for their goods. These higher prices come at the expense of the great majority of farmers, who - unable to qualify for Fairtrade certification - are left even worse off."

Other criticisms the report levels at fair trade is that the majority of farmers it helps are in Mexico, which is a relatively developed country; that fair trade helps landowners rather than agricultural labourers; that four-fifths of the produce Fairtrade Certified farmers sell end up in non-Fairtrade goods; and that retailers pocket the majority of the money made on Fairtrade goods.

In his report Marc Sidwell also states: "Fair trade does not aid economic development. It operates to keep the poor in their place, sustaining uncompetitive farmers on their land and holding back diversification, mechanisation and moves up the value chain. This denies future generations the chance of a better life."

After the report was published the Fairtrade Foundation published a response in which they counteracted Marc Sidwell's arguments. Part of the response states: "The Fairtrade Foundation refutes the unsubstantiated claims that Fairtrade does "more harm than good" in the Adam Smith Institute report, published to coincide with Fairtrade Fortnight. This misinformed paper completely contradicts our experience of working with farmers and workers in developing countries as part of a coalition that includes all the major development agencies in the UK."

The response also argues that: "Few people can doubt that the present outcome of world trade is unfair. Two billion people work extremely hard to earn a living but still earn less than $2 per day and the Fairtrade Mark enables British consumers to choose products that help address this injustice."

Despite the argument for and against fair trade the fact that there is an increase in consumer spending on the product show that there is a growing market for it. Some have predicted that the downturn in the UK economy will mean that customers will be less willing to spend more for fair trade goods, however Peter does not feel that this will affect Esquire Coffee Houses sales. He explains: "Because we have always sourced high quality products, the incremental costs for the Fairtrade certified equivalents has not been that great and this cost has been absorbed by our suppliers and ourselves. Therefore from our customers' view point I do not think they should feel that Fairtrade is more expensive. However, if a larger incremental is seen in other businesses, I am sure that will be taken into consideration."

Reported by Derin Ibrahim