They also welcomed International Development Secretary Douglas Alexander to Lancaster Town Hall for the birthday bash.
The Government has just announced £12m of new funding for Fairtrade and Mr Alexander praised the work of local Fairtraders for their contribution in promoting Fairtrade products, when he met them.
Thanks to local supporters in Lancaster, Fairtrade products are now used by the local council, shops, cafes, businesses, churches, schools and community organisations.
Mr Alexander met Bruce Crowther, leader of the Garstang group, who initiated the Fairtrade Towns movement when Garstang became the world's first to declare Fairtarde status.
The Garstang Fairtrade Group have just completed the first ever "Fairtrade Way" Walk from Garstang to Keswick – a five day walk staying exclusively at Fairtrade towns en-route.
Mr Alexander said: ''These are exciting times for the Fairtrade mark.
"Last month I announced £12m new funding for Fairtrade which will help to bring an even bigger range of new products to our shelves and greater benefits to more producers in the world's poorest countries.''