When you find a product that carries the Fairtrade Mark, it means that it was produced and traded according to Fairtrade Standards and that every company involved in the making of this product (from the farm, up until the product is packed) is certified and audited every year to ensure compliance with the appropriate Fairtrade Standards.
There are two sets of Fairtrade Standards which acknowledge different types of producer organisations: one set applies to smallholders that are working together in co-operatives; the other applies to plantations (or 'commercial farms') that employ permanent workforce.
Fairtrade Standards are developed by Fairtrade International and you can download them from their Standards Page.
The products covered by Fairtrade Standards are: bananas, cocoa, coffee, cotton, flowers, fresh fruit, honey, juices, rice, nuts, herbs and spices, tea, sugar and wine - along with the so-called 'composite food products' such as chocolate (use of Fairtrade cocoa + sugar).
WHAT IS COVERED BY FAIRTRADE STANDARDS
LABOUR RIGHTS
Based on the International Labour Organisation (ILO) conventions, they include: no forced or child labour, health and safety measures, non-discriminatory policies, freedom of association and collective bargaining, nationally agreed minimum wages, and access to basic services.
ENVIRONMENT
Environmental standards focus on farming methods that are sustainable and safe. Amongst them: protection of sensitive natural areas, minimised and safe use of agrochemicals and ban of prohibited pesticides, safe and sustainable handling of waste and water, and no use of Genetically Modified Organisms (GMOs).
FAIRTRADE DEVELOPMENT PREMIUM
Upon purchase of a Fairtrade certified commodity, traders must pay an agreed Fairtrade Development Premium (FDP) on top of the crop price. The FDP is one of the major empowerment tools of Fairtrade as it allows small-scale farmers and farmworkers to invest in a variety of projects they consider necessary for their communities.
Usually, small-scale farmers use the FDP to improve their farming methods, quality and outputs (e.g. buying tools or machines, pay for training on best farming practices, hire an agronomist), as well as to improve the lives of member farmers (e.g. hire teachers for the local school, buy books, set up healthcare or micro-finance systems). In the case of commercial farms, the FDP is paid into an account owned by the farm workers, who generally spend the money by investing in education programmes such as bursaries or skills development courses, or in infrastructure improvements such as building a créche in the community or putting electricity in their houses.
> > > Visit our Facts & Figures page to find the reports on how the Fairtrade Development Premium was spent in South Africa.
FAIRTRADE MINIMUM PRICE
Fairtrade International sets a Fairtrade Minimum Price for each certifiable product. This is a floor price which is crucial to small-scale farmers when world market prices plummet (buyers pay the Fairtrade Minimum Price or the market price - whichever is higher). The Minimum Price takes into account the costs of sustainable production and living, as well as the costs of complying with Fairtrade Standards.
For more information on Fairtrade Certification visit our Business section.
