What is Fairtrade?
Fairtrade is about better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world. By requiring companies to pay sustainable prices (which must never fall lower than the market price), Fairtrade addresses the injustices of conventional trade, which traditionally discriminates against the poorest, weakest producers. It enables them to improve their position and have more control over their lives.
What is the Fairtrade Foundation?
The Fairtrade Foundation is a development organisation committed to tackling poverty and injustice through trade, and the UK member of Fairtrade Labelling Organisations International (FLO). The Foundation works with businesses, civil society organisations and individuals to improve the position of producer organisations in the South and to help them achieve sustainable improvements for their members and their communities. Certification and product labelling (through the FAIRTRADE Mark) are the primary tools for our development goals. The backing of organisations of producers and consumers in a citizen’s movement for change is fundamental and integral to our work.
What is the FAIRTRADE Mark?
The FAIRTRADE Mark is an independent consumer label which appears on UK products as a guarantee that they have been certified against internationally agreed Fairtrade standards. It shares internationally recognised Fairtrade standards with initiatives in 20 other countries, working together globally with producer networks as Fairtrade Labelling Organisations International (FLO). The Mark indicates that the product has been certified to give a better deal to the producers involved – it does not act as an endorsement of an entire company’s business practices.
What are Fairtrade standards?
Fairtrade standards comprise both minimum social, economic and environmental requirements, which producers must meet to be certified, plus progress requirements that encourage continuous improvement to develop farmers’ organisations or the situation of estate workers.
What is a Fairtrade certified producer group?
This term is used for either an association of farmers or a company dependent on hired labour that produces one or more commodities for which there are Fairtrade standards and that has been certified to meet those standards. Once certified, they are added to the Fairtrade product register and registered companies can buy from them under Fairtrade terms.
Some Fairtrade certified producer groups are able to sell their entire production under Fairtrade terms, while others sell only a very small percentage and badly need more buyers to offer a Fairtrade deal. It is only by increasing the amount sold as Fairtrade that producer groups are able to receive a steady stream of additional income to improve their lives.
What is the Fairtrade minimum price?
The Fairtrade minimum price defines the lowest possible price that a buyer of Fairtrade products must pay the producer. The minimum price is set based on a consultative process with Fairtrade producers and traders and guarantees that producers receive a price which covers the cost of sustainable production. When the market price is higher than the Fairtrade minimum price, the market price is payable.
What is the Fairtrade premium?
Money paid on top of the Fairtrade minimum price that is invested in social, environmental and economic developmental projects, decided upon democratically by a committee of producers within the organisation or of workers on a plantation.