Dublin City Council is to receive Fairtrade Capital City status this evening, only the third city in Europe to receive such an award.

A presentation will be made at City Hall of a certificate by Fairtrade Mark Ireland, following a two-year campaign by the council, which has seen the profile of the Fairtrade organisation become much higher throughout the city.

Fairtrade Mark Ireland executive director Peter Gaynor, who will be making the presentation tonight, said Dublin City Council had "far surpassed" its initial target of 120 retailers and 60 catering companies signing up to sell Fairtrade products.

The number of outlets selling Fairtrade goods was boosted by the decision of Insomnia, which now has 43 outlets nationwide, to serve only Fairtrade coffee. Insomnia now attributes a 20 per cent immediate rise in sales to its decision to sell only Fairtrade coffee when it made the switch in September 2006.

The Thomas Reid Group reported a 12 per cent increase in sales when it switched to selling only Bewley's Fairtrade coffee.

Mr Gaynor said there was a realisation that Fairtrade made not only ethical but business sense. "The model for Fairtrade is consumer-driven and consumers are now more aware and they are buying more Fairtrade products. This is presenting an opportunity for businesses to convert product themselves and to get some positive feedback."

Fairtrade began in The Netherlands 20 years ago. Designed to give producers in the Third World a fair price for their produce, the movement has doubled in size globally in the last two years and is expected to be worth about €15 billion globally by 2025.

Growth in Ireland has been even more rapid. Sales have risen from €6.5 million in 2005 to close to €20 million last year. Since the capital initiated its campaign for Fairtrade status in 2006, dozens more retailers, restaurants, coffee shops, schools and businesses have begun selling Fairtrade products in Dublin. Only Rome and Edinburgh have received Capital City Fairtrade status to date.