The supermarket price war and a looming change to EU sugar tariffs has made life more difficult for the Fairtrade Foundation, which is increasing its reserves to £2.4m to shore it up against further volatility.
The charity, which works to get fair deals for farmers, has felt the effects of a 3.7pc fall in Fairtrade-labelled goods to £1.67bn during 2014, the first decline in its 20-year history.
When the fall was announced in February, the group pointed to the fierce competition among supermarkets that was driving down prices, making some Fairtrade products seem relatively expensive.
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