"For producers, Fairtrade means prices that aim to cover the costs of sustainable production, an additional Fairtrade Premium, advance credit, longer term trade relationships, and decent working conditions for hired labour." (www.fairtrade.net)
Fairtrade rewards and encourages farming and production practices that are environmentally sustainable. It also encourages producers to strive toward organic certification. Producers are required to:
- Protect the environment in which they work and live, including areas of natural water, virgin forest, and other important land areas as well as dealing with problems of erosion and waste management.
- Develop, implement, and monitor an operations plan on farming and techniques that reflects a balance between protecting the environment and good business results.
- Follow national and international standards for the handling of chemicals (there is a list of chemicals which are prohibited).
- Avoid (intentionally) using products which include genetically modified organisms (GMO)
- Monitor what affect their activities are having on the environment then make and implement a plan for how to lessen the impacts.
FAIRTRADE STANDARDS
There are two distinct sets of Fairtrade standards--one set applies to "smallholder" producers that are working together in cooperatives or other organizations with a democratic structure. The second set applies to hired labors/workers whose employers pay decent wages, guarantee the right to join trade unions, ensure health and safety standards, and provide adequate housing where relevant. The standards also cover terms of trade, which most products having a set Fairtrade Price, which is the minimum price that must be paid to producers. This price aims to ensure that producers can cover their average costs of sustainable production. It provides a safety net for farmers when the world markets fall below the sustainable level and protects against vulnerability. When the market price is higher than the Fairtrade minimum, the buyer must pay the higher price.
Producers also receive a Fairtrade Premium, which is an additional sum that producers use to invest in their communities. The money goes into a communal fund for workers and farmers, which is used to improve social, economic, and environmental conditions. The use of this money is decided upon democratically by productions within their farmers' organization or by workers on a plantation. It may be invested in education, healthcare, farm improvements to increase yield or quality, or processing facilities to increase income. The broader community outside the producer organization often benefits from these improvements as well.
Fairtrade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers and workers who have been economically disadvantaged or marginalized by the conventional trading system. If fair access to markets under better trade conditions would help them overcome barriers to development, they can join Fairtrade.
Trade operators can join Fairtrade if they are committed to supporting these Fairtrade objectives. This standard should be viewed as the minimum requirement on traders for demonstration of their commitment to Fairtrade.
Companies trading Fairtrade products must:
- Pay a price to producers that aims to cover the costs of sustainable production (i.e. the Fairtrade Minimum Price)
- Pay an additional sum that producers can invest in development (i.e. the Fairtrade Premium)
- Partially pay in advance when producers ask for, thereby providing advanced credit.
- Sign contracts that allow for long-term planning and sustainable production practices.
For more information on where to find Fairtrade products, visit Fairtrade Products.
Check out this great animation clip explaining the basics of why the current trade system is UNFAIR:
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Check out this great animation clip explaining the basics of why the current trade system is UNFAIR:
