The certification process is administered by the Institute for Marketecology. There are several different organizations that certify Fair Trade products, each with its own label and its own set of standards. Another distinguishing aspect of Fair for Life is that they also certify entire companies. There are many different kinds of products that bear the various Fair Trade labels. Between 2009 and 2013, researchers found that in parts of Africa where Fairtrade International cooperatives dominated the coffee trade, workers actually earned less and had worse working conditions than those who worked on larger plantations – and the community projects funded by Fair Trade premiums, such as schools and health clinics, were often unavailable to them. Including families and dependents, Fairtrade International estimates that six million people directly benefit from Fairtrade.”. Fair trade supporters believe that by incentivizing changes in the supply chain of certain products it is possible to introduce changes in the rural … to create a just and sustainable global economic system in which purchasing and production choices are made with concern for the well-being of people and the environment, creating a world where all people have viable economic options to meet their own needs. The test showed that sales increased by 10% for the fair trade label, but that sales fell when the price was hiked by 30% for a standard blend that was fair trade certified. Most Fair Trade programs apply to specific products and aren’t concerned with anything else the company produces (companies may produce multiple products – some Fair Trade, some not). Fair for Life, by contrast, only works with companies that provide fair wages and working conditions for all their staff, as well as their suppliers  – not just the producers of certain specific products. In addition to other benefits, approximately €86 million was distributed to communities in 2013 for use in community development. Fair trade labeling organization is an international organization that sets the requisite standards for the fair trade certificate to be granted to a product. A Useful Definition of Fair Trade In 1998, four European organizations created a widely accepted definition of Fair Trade. Fair trade or Fairtrade is a social movement which aims at supporting sustainable farming and helping producers in developing countries by introducing better trading conditions for them. Individual companies pay dues to the Federation and get the right to display its label, showing that they’re committed to the principles of Fair Trade. Fair Trade USA is a non-profit organization that has granted fair trade status to over 800 manufacturers and distributers. To bear the Fair Trade label, a product must meet all the standards of the certifying organization, which inspects farms regularly to make sure they’re following the rules. World Fair Trade Organization Fair Trade dealers do their best to give growers the information they need about market conditions, share what they know about the best growing practices, and provide technical assistance when needed. Importers seek to build long-term relationships with growers and work with them to solve any problems that come up. Every step of production can be certified, including producers, manufacturers and traders, whereas other certifiers simply certify the finished product or only a couple steps of the production. Fairtrade helps businesses of all sizes meet their sustainability and supply chain needs. This Standard is the heart of the WFTO Guarantee System, focusing on the management and operation of Fair Trade Enterprises. The bottom line is, while the two groups have different approaches, there isn’t enough evidence to say that Fairtrade International’s standards are inherently better or stronger than Fair Trade USA’s. Run from a central office in the Netherlands, the WFTO represents over 370 member organizations and 40 individual associates, spanning 70 countries and 5 continents. googletag.pubads().setTargeting('subcat', []).setTargeting('category', ['savings']); Fairtrade's approach enables farmers and workers to have more control over their lives and decide how to invest in their future. On the other hand, since Fair Trade importers work directly with farmers and eliminate the middleman, the higher prices the farmers get paid don’t always translate into higher prices for the consumer. The Fair Trade Certified™ seal represents thousands of products, improving millions of lives, protecting land and waterways in 45 countries and counting. Advertiser partners include American Express, Chase, U.S. Bank, and Barclaycard, among others. Do all the logos, labels & certifications mean the same thing? The use of genetically modified organisms (GMOs) is specifically banned for all Fair Trade products. Below is a graphic of the most common fair trade food items. So choosing Fair Trade products can be a way to treat yourself and help others out of poverty at the same time. googletag.pubads().enableSingleRequest(); Instead of working with an existing certification body Fair Trade USA developed their own standards and compliance criteria, which you can access in their Standards Download Center. Fair Trade Fair trade standards are enforced by the Fairtrade Labeling Organizations International (FLO) (in the U.S. by Fair Trade USA ). The Fair Packaging and Labeling Act (FPLA or Act), enacted in 1967, directs the Federal Trade Commission and the Food and Drug Administration to issue regulations requiring that all "consumer commodities" be labeled to disclose net contents, identity of commodity, and name and place of business of the product's manufacturer, packer, or distributor. ... "Food Justice Certified is a label … Fair Trade products are a hot commodity. For coffee, for instance, they get paid an extra $0.20 per pound, plus an extra $0.30 if it’s grown organically. They also certify sports balls. They impact 1m livelihoods, 74% of whom are women. However, they must show that they meet the group’s strict code of practice for all their products – a strict standard that only 50% to 60% of all the companies that apply are able to meet. Should you need such advice, consult a licensed financial or tax advisor. In return for membership dues, each organization gains credibility, showing that they follow the fair trade principles in all they do. Fair Trade Enterprises are born for impact. Companies don’t need to have Fair Trade certification to join the FTF, which means they don’t need to pay the fees both FLOCERT and Fair Trade USA charge for their programs. The FTF is a force in the global fair trade movement’s efforts to alleviate poverty and promote sustainable and equitable trading partnerships. Learn more about Fairtrade for … The Mark is used only on products certified in accordance with Fairtrade Standards and on promotional materials to encourage people to buy Fairtrade products. Fair Trade rules ban all forms of worker abuse, harassment, and discrimination, including discrimination based on political affiliation or union membership. The term “Fairtrade” is based on the concept of ensuring that the people involved in the production and manufacture of a product receive a fair deal for their trade. As a leader in the global movement to make trade fair, Fairtrade supports and challenges businesses and governments and connects farmers and workers with the people who buy their products. However, research done by The Guardian tells a different story. For instance, a one-pound bag of organic, Fair Trade coffee from the Congo region costs $12 in the Equal Exchange online store, while a one-pound bag of Ethiopian coffee from Starbucks – which is neither Fair Trade nor organic – costs $14. Fairtrade This seal indicates that the coffee beans were sourced directly from small-scale farmers who were paid a fair price. Committing to such stringent independent standards is no mean feat. Environmental Sustainability This organization, formerly known as Transfair USA, was once a part of Fairtrade International, but it split off in 2011, adopting a new name and its own set of standards. Fairtrade International requires all its coffee to be grown on democratically run, farmer-controlled collectives. Fairtrade is about making sure people get their fair share of the pie. WFTO is the global network and advocate for Fair Trade, ensuring producer voices are heard. By choosing Fairtrade, people can create change through their everyday actions. Take a stroll down the coffee aisle of any large supermarket, and there’s a good chance you’ll see at least one or two bags of beans sporting a little label that says “Fair Trade.” These bags don’t look obviously different from the others on the shelf, but their price is definitely on the high end – at least $7 per pound, and as high as $15 per pound. Companies that use some or all Fair Trade cocoa in their products include: Clothing is one of the newest Fair Trade products, but it’s growing quickly. … In fact, in some cases, Fair Trade products actually cost slightly less than conventional equivalents. Fair for Life was developed as a complementary approach to the existing fair trade certification system: at the time it was limited to certain products and models of fair trade. The point of all the fair trade labels and logos is to help the consumer decide which products to buy, yet there is a fair amount of confusion, sometimes brought on by the very language the certifiers use. to ensure fair and positive relations between producers and their cooperatives or contracting companies, between workers and their employer, between sellers and buyers on the world market while at the same time ensuring performance of standards. Instead of forcing them to adopt the latest, most efficient methods for growing or producing goods, they allow them to follow their traditional practices, while also teaching them about new techniques. It's when the price we pay for products gives enough to producers for them to afford life's essentials - like food, education and healthcare. Fair-trade definition is - to market (a commodity) in compliance with the provisions of a fair-trade agreement. “According to a GlobeScan Study, 73% of consumers that are aware and familiar with the Fair Trade Certified label also trust it.”, Fair Trade USA products include Apparel and Home Goods, Grains like Quinoa, Body Care, Cocoa, Coffee, Flowers, Fruits & Vegetables, Herbs & Spices, Honey, Nuts, Seafood, Spirits, Sports Balls, Sugar, Tea, and Wine. Fair Trade dealers promise to respect the cultural heritage of the growers they work with. In 2012-2013 sales of Fairtrade certified products grew 15%, although they fell a bit in 2014 (according to this article in The Guardian), which was the first time they fell in 20 years. Nobody wants to buy something that was made by exploiting somebody else. The content on MoneyCrashers.com is for informational and educational purposes only and should not be construed as professional financial advice. All Rights Reserved. Groups selling Fairtrade products are regularly audited by Fairtrade International’s third-party inspector, FLOCERT. UTZ monitors the farms it works with to make sure they follow its codes of conduct, which cover farming methods, working conditions, and the environment. UTZ is the largest program for sustainably grown coffee and cocoa in the world, accounting for nearly 50% of all sustainably labeled coffee – its clients include such major companies as Mars, Nestlé, and IKEA. The label also ensures that soil quality is protected. References to products, offers, and rates from third party sites often change. Fair trade, global movement to improve the lives of farmers and workers in developing countries by ensuring that they have access to export markets and are paid a fair price for their products. One of the largest certifiers in the world, Fair Trade USA, is an independent, non-profit organization that sets standards, certifies, and labels products that promote sustainable livelihoods for farmers and workers.
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