Inhaltsbereich: Fairtrade in English
About Fairtrade
Not all trade is fair!
Farmers and workers at the beginning of the chain don’t always get a fair share of the benefits of trade. Fairtrade enables consumers to put this right.
Introducing Fairtrade
For producers Fairtrade means prices that cover the costs of sustainable production, an additional Fairtrade premium, advance credit, longer term trade relationships, and decent working conditions for hired labour.
Fairtrade is an alternative approach to conventional trade and is based on a partnership between producers and consumers. Fairtrade offers producers a better deal and improved terms of trade. This allows them the opportunity to improve their lives and plan for their future. Fairtrade offers consumers a powerful way to reduce poverty through their every day shopping.
When a product carries the Fairtrade Mark it means the producers and traders have met Fairtrade standards. The standards are designed to address the imbalance of power in trading relationships, unstable markets and the injustices of conventional trade.
The standards
There are two distinct sets of Fairtrade standards, which acknowledge different types of disadvantaged producers. One set of standards applies to smallholders that are working together in co-operatives or other organizations with a democratic structure. The other set applies to workers, whose employers pay decent wages, guarantee the right to join trade unions, ensure health and safety standards and provide adequate housing where relevant.
Fairtrade standards also cover terms of trade. Most products have a Fairtrade price, which is the minimum that must be paid to the producers. In addition producers get an additional sum, the Fairtrade premium, to invest in their communities.
Fairtrade prices
The minimum price paid to Fairtrade producers is determined by the Fairtrade standards. It applies to most Fairtrade certified products. This price ensures that producers can cover their average costs of sustainable production. It acts as a safety net for farmers at times when world markets fall below a sustainable level. Without this, farmers are completely at the mercy of the market.
When the market price is higher than the Fairtrade minimum, the buyer must pay the higher price. Producers and traders can also negotiate higher prices on the basis of quality and other attributes.
The Fairtrade Premium
In addition to the Fairtrade price, there is an additional sum of money, called the Fairtrade Premium. This money goes into a communal fund for workers and farmers to use to improve their social, economic and environmental conditions.
The use of this additional income is decided upon democratically by producers within the farmers’ organization, or by workers on a plantation. The premium is invested in education and healthcare, farm improvements to increase yield and quality, or processing facilities to increase income.
As many projects funded by the premium are communal, the broader community, outside the producer organization often benefits from Fairtrade.
Fairtrade products
There are now thousands of products that carry the Fairtrade Mark. Fairtrade standards exist for food products ranging from tea and coffee to fresh fruits and nuts. There are also standards for non-food products such as flowers and plants, sports balls and seed cotton.
Who is behind Fairtrade?
The following organizations are behind Fairtrade:
Fairtrade Labelling Organizations International (FLO)
FLO is a non-profit, multi stakeholder body that sets Fairtrade standards and supports producers. FLO is owned by the Labelling Initiatives and the Producer Networks. See how it is governed.
FLO-CERT
FLO-CERT is an independent certification company, owned by FLO. FLO-CERT inspects producers and traders to ensure they comply with Fairtrade standards.
More information about Fairtrade in English:
www.fairtrade.net
www.flo-cert.net
www.fairtrade.org.uk (Fairtrade in UK)
www.transfairusa.org (Fairtrade in USA)