The FAIRTRADE Mark is the original fair trade consumer label

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The number of ethical labels is growing, but Fairtrade remains unique. While other schemes aim to ‘protect the environment’ or ‘enable companies to trace their coffee’, Fairtrade’s focus is on helping farmers and workers improve the quality of their lives and take more control over their futures. Fairtrade is the only certification scheme whose purpose is to tackle poverty and empower producers in developing countries. Fairtrade delivers unique benefits to producers, businesses and consumers.

Our mission: to connect disadvantaged producers and consumers, promote fairer trading conditions and empower producers to combat poverty, strengthen their position in world markets and take more control over their lives.

 

Unique for producers

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Fair and stable prices

For most Fairtrade products, buyers must pay at least the Fairtrade minimum price. This price aims to cover the costs of sustainable production for the producer. It’s a safety net for farmers when market prices fall below a sustainable level. Without it, farmers are at the mercy of sudden drops in value for their crops. When the market price is higher than the Fairtrade minimum price, the buyer must pay the market price. Producers are able to negotiate better prices based on factors such as quality. There are also higher Fairtrade minimum prices for organic crops or higher grades of produce. Through Fairtrade, producers can request pre-financing from buyers and enter into long term, stable contracts.

The Fairtrade premium for development

Whether the minimum price has been activated or not,  producer organisations are always paid a Fairtrade premium – this is a mandatory  amount above the cost of the goods that producers themselves decide how to spend, according to their needs. The premium is most often invested in farm improvements to increase yield and quality, processing facilities to increase income, and education and healthcare projects. These projects can bring change to the whole community. The use of the Fairtrade premium is decided democratically.  Members of producer organisations formed of small-scale farmers decide in their general assembly meeting. On a plantation or farm using hired labour, a democratically-elected Joint Body made up of management and a majority of elected worker representatives decide how to use the premium. The premium can only be used for the social and economic benefit of the workers, their families and communities, not for company owners.

Empowering small-scale farmers and workers

Fairtrade works to empower the most marginalised in the global trade system – small-scale farmers and workers. For certain products, Fairtrade only certifies small farmer organisations. Examples include coffee, cocoa, cotton and rice. By favouring democratic organisations of small farmers, Fairtrade gives the stability rural families need to plan for the future. The alternative for many is to move to already overcrowded urban centres.

Plantations and companies using hired labour can sell certain products through Fairtrade if workers are organised and benefit from Fairtrade. The Fairtrade standards protect workers basic rights according to the International Labour Organisation conventions. This means health and safety standards, freedom of association, collective bargaining , no discrimination and no bonded or illegal child labour. The Joint Body, which includes a majority of worker representatives, decides how to invest the Fairtrade premium, works to create good working relationships between management and workers, and helps workers gain skills in leadership, communication and project management.

Producers are at the heart of Fairtrade

Producers jointly own and manage Fairtrade Labelling Organisations International (FLO), the global body for Fairtrade. They are represented on the Board of Directors. Through the Board and its committees, producers are involved in decisions on overall strategy and setting prices, premiums and standards.

 

 

Unique in the market

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Loyal customers

Fairtrade has a strong global grassroots consumer base. There are now over 750 Fairtrade Towns – including Rome, San Francisco and London – that use Fairtrade in municipal purchasing, schools and retail outlets and promote Fairtrade through local press. Strong networks of family, friends and colleagues actively promote Fairtrade – one third of people first learn about Fairtrade through these networks. A 2008 GlobeScan study of 14,500 consumers in 15 countries showed half of consumers are now familiar with the FAIRTRADE Mark and 91% of these trust the Mark. A further 64% believe Fairtrade has strict standards, a quality that closely correlates to consumer trust. In the UK specifically, three quarters of people are familiar with the FAIRTRADE Mark.

Market leader

Since Fairtrade’s beginnings in the 1980s and the launch of the current FAIRTRADE Mark in 2002, Fairtrade has become the most widely-recognised ethical label in the world. Sales of Fairtrade certified products have been growing at an average of 40% per year over the last five years. Fairtrade has achieved very strong market share in certain markets, including 53% of bananas in Switzerland and 22% of ground coffee in the UK. There are now over 10,000 Fairtrade products sold in over 70 countries. Sales of Fairtrade products are now taking off in new markets including Eastern Europe and South Africa.

Independent certification

FLO-CERT, the independent certification body for Fairtrade is the only ISO 65 accredited ethical certification scheme. Three out of four consumers believe independent certification is the best way to verify a product’s ethical claims.

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