What is Fair Trade?

Fair trade is an alternative approach to conventional international trade, which aims to share the benefits of trade more equitably between consumers, producers and the environment. Fair trade is about better prices, decent working conditions, local sustainability and fair terms of trade for farmers and workers in the developing world.

Currently the most widely recognized definition of fair trade was created by FINE:

“Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers - especially in the South. Fair Trade organisations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.

Fair Trade's strategic intent is:

        • deliberately to work with marginalised producers and workers in order to help them move from a position of vulnerability           to security and economic self-sufficiency
        • To empower producers and workers as stakeholders in their own organisations
        • To actively to play a wider role in the global arena to achieve greater equity in international trade.”
 

What is the FAIRTRADE Label?

The Fairtrade Certification Label is an independent consumer certification label which appears on products as an independent guarantee that disadvantaged producers in the developing world are getting a better deal. As a result of Fairtrade, these producers receive a Fairtrade Minimum Price that covers the cost of sustainable production as well as an extra Fairtrade Premium that is invested in social or economic development projects.

For a product to display the Fairtrade Certification Label it must meet international Fairtrade Standards. Producer organizations supplying Fairtrade Products are then certified against these standards by FLO-CERT, an independent certification body, which carries regular inspections.
 

What does the Fairtrade Label and system guarantee?

A better deal for producers in developing countries and also a guarantee to consumers that the full benefits of Fairtrade are being received by producers ie:

        - A fair and stable price for their produce
        - Security of long term contracts
        - Investment in local community development
        - Improved working conditions
        - Environmentally sustainable farming methods
        - Support in gaining the knowledge and skills needed to operate successfully in the global economy
 

Fairtrade and Producers – Impact Stories
 

Fairtrade Coffee
The Asosiasi Petani Kopi Lington Organik Association (APKLO) is a Fairtrade Certified coffee cooperative in Sumatra, Indonesia. Smallholder coffee farmers formed the cooperative to be free from exploitative middlemen who fixed prices that kept them marginalised.

“When I was young, I had to look for work in the cities. Now because of Fairtrade we are living together to make a good living right here in our own community.” Gani Silaban, APKLO

They have set aside a proportion of their Fairtrade Premium for a student scholarship programme dedicated to helping farmers who cannot afford to send their children to college.
 

Fairtrade Cocoa
Kuapa Kokoo is a Fairtrade Certified cooperative of cocoa farmers in Ghana. By selling to the Fairtrade market, the 45,000 members of the cooperative receive higher, stable prices for their cocoa, which ensures that they can afford to support themselves and their families.

The farmers in Kuapa Kokoo are proud of the cocoa and their motto is ‘pa paa paa’ which means the ‘best of the best’ in Twi, the local language.

Through Fairtrade, farmers in the cooperative have been able to invest in much-needed water wells, which have reduced the risk of waterborne diseases. They have also invested Fairtrade revenue into schools to ensure that their children have access to a good education.
 

Fairtrade Tea
The Small Organic Farmers Association (SOFA) are a Fairtrade Certified tea cooperative that represents over 2,000 families in Sri Lanka. Local farmers used to sell their tea leaves by the side of the road. Now thanks to Fairtrade they have a sustainable income that has improved their ability to save and plan for the future. Farmers have reinvested the Fairtrade Premium into environmentally friendly agricultural practices and are focused on improving community infrastructure.

“It is thanks to the consumers’ final choice at the supermarkets that we can now develop a water scheme to reach the most remote farmers in our cooperative and have seats at the schools our children attend.” Karuna Aathi, SOFA