What is Fairtrade? - and "fair trade"?
This section gives a summary of Fairtrade, the Fairtrade Mark, and the two organisations behind Fairtrade in the UK, FLO and the Fairtrade Foundation. It also explains how fair or ethical sourcing differs from Fairtrade.
Fairtrade
Fairtrade (Capital F, all one word), see above trademark. The Fairtrade trademark denotes that the product has been subject to the CERTIFICATION SCHEME operated by the Fairtrade Foundation. This applies to products from developing countries, which are independently monitored and guaranteed by the Fairtrade Foundation, a member of the International Fairtrade Labelling Association (FLO).
For the farmers and workers, Fairtrade means a stable price which covers production costs and pays a premium to the community that it can decide to use in whatever way it chooses. It might invest in business development, or in social and environmental schemes that will benefit the wider community. Many farmers in the developing world have to contend with fluctuating prices that may not even cover the costs incurred in producing their crop. For farmers fortunate enough to be able to sell some of their produce into the scheme, Fairtrade makes a big impact on their day-to-day life and their families' future.
To find out about some products and how individual producers and their communities have benefited from Fairtrade visit the Fairtrade Foundation's website by clicking here.
Fairtrade is based on a clear set of internationally agreed criteria, which are independently assessed and monitored. The whole system is open and transparent. It operates in 49 developing countries and the Fairtrade certified goods are sold in 19 countries.
Fairtrade standards stipulate that traders must:
- pay a price to producers that covers the costs of sustainable production and living;
- pay a "Fairtrade premium" that communities can invest in ways that they choose themselves; for instance, they may invest in health clinics, schools, better roads to get their produce to market, etc;
- make partial advance payments when requested by producers;
- sign contracts that allow for long-term planning and sustainable production practices.
Fairtrade labelling was created in the Netherlands in the 1980s. Max Havelaar launched the first Fairtrade consumer guarantee label in 1986 on coffee sourced from Mexico.
The Fairtrade Foundation
The Fairtrade Foundation is the UK agency responsible for administering the FAIRTRADE Mark and increasing consumer awareness of Fairtrade in the UK. The Fairtrade Foundation was set up by CAFOD, Christian Aid, New Consumer, Oxfam, Traidcraft Exchange and the World Development Movement to award the Fairtrade mark to products from developing countries that meet certain criteria. The founding organisations were later joined by Britain's largest women's organisation, the Women's Institute.
The Fairtrade Foundation website has more details on national Fairtrade issues along with information on Fairtrade products. There are also fascinating stories from the people who benefit most from Fairtrade.
Fairtrade Labelling Organisations International (FLO)
FLO is the worldwide body, comprising the Fairtrade Foundation and its partner organisations in other countries, that has overall responsibility for developing Fairtrade criteria and managing producer registers. There are now 19 organisations in different countries, including the Fairtrade Foundation, that run this international standard setting and monitoring body.
FLO enables about five million producers, workers and their dependents in 49 countries to benefit from Fairtrade labeling. FLO guarantees that products sold anywhere in the world with the Fairtrade label conform to Fairtrade standards and contribute to the development of their producers.
The FAIRTRADE Mark
The Fairtrade Mark above is the "seal of approval" which appears on products meeting the Fairtrade standards described above.
FLO, with support from the European Commission, harmonised the Fairtrade labels from different countries into this international image.
The FAIRTRADE Mark is the only independent consumer guarantee of fair trade. Half the British adult population now recognize the FAIRTRADE Mark, soaring from one in four in 2003, according to a MORI (Market and Opinion Research International) poll commissioned by the Fairtrade Foundation in May 2005.
Fairtrade Products
There are now over 1,000 products from more than 150 companies that carry the FAIRTRADE Mark. The product range includes tea, coffee, chocolate, sugar, bananas and other fresh fruit, juices, honey, cakes, biscuits, cereal bars, jams, sauces, footballs and roses.
Between 2003 and 2004, Fairtrade labeled sales in the UK grew by 51%%, now being worth over £140 million pa. Nearly 20% of the roast and ground coffee market is certified Fairtrade, and 5% of all bananas sold in the UK are Fairtrade.
Other fair and ethical trading schemes
FLO and its partners have not yet been able to develop standards for many goods other than foods and drinks as this is a time-consuming and expensive process. However there are other schemes claiming to be ethically sourced, fairly traded etc, and many of these are fine. Look for membership of a reputable organisation like BAFTS (British Association of Fair Trade Shops - although being a "shop" isn't essential!) or IFAT (International Federation for Alternative Trade).