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Company type | Nonprofit (German registered association) |
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Industry | Product certification |
Founded | 1997 |
Headquarters | Bonn, Germany |
Key people | Lynette Thorstensen, Chair of the Board, Dr. Nyagoy Nyong, interim Global CEO, Melissa Duncan, interim Executive Director |
Products | Producer Business Development, Standards Development |
Revenue | 27,510,784 Euro (2019) |
Website | www |
Fairtrade International, or Fairtrade Labelling Organizations International E.V. [1] is a product-oriented multistakeholder group aimed at promoting the lives of farmers and workers through trade. Fairtrade's work is guided by a global strategy [2] focused on ensuring that all farmers earn a living income, and agricultural workers earn a living wage. Fairtrade works with farmers and workers of more than 300 commodities. The main products promoted under the Fairtrade label are coffee, cocoa, banana, flowers, tea, and sugar.
Fairtrade is an association of three Producer Networks, nineteen National Fairtrade Organisations (formerly: Fairtrade Labelling Organisations) and eight Fairtrade Marketing Organisations that promote and market the Fairtrade Certification Mark in their countries [3]
Producer Networks exist in Latin America, The Caribbeans, Africa, Middle East, Asia and the Pacific. National Fairtrade Organisations exist in 16 European countries as well as in Canada, the United States, Japan, Australia and New Zealand. [4] Fairtrade International also oversees Fairtrade Marketing Organisations in the Czech Republic, Korea, Hong Kong, Taiwan, India, Philippines, and Poland. [4]
Fairtrade International was established in 1997. It set private standards relating to labour, cooperative organisation, and the governance of the Fairtrade benefits. The organisation was divided in January 2004 into two independent organisations as below: [5]
The following are National Fairtrade Organizations and Fairtrade Marketing Organizations: [6]
These initiatives were joined in 2007 by three Producer Networks:
Fairtrade International is divided into six units:
The coordination of all global activities is led by a Global Leadership Team, made of the CEO, the COO, and the CVO (Chief Value Officer).
Given the development focus of fair trade, related standards contain minimum requirements that all producer organisations must meet to become certified as well as progress requirements in which producers must demonstrate improvements over time.
There are two types of fairtrade standards for disadvantaged[ vague ] producers: standards for small farmers' organizations and for hired labor situations.
For some products, such as coffee, only fair trade standards for small farmers' organizations are applicable. For others, such as tea, both small farmers' organizations and plantations can be certified.
Fair trade standards and procedures are approved by the FLO Standards Committee, an external committee comprising all FLO stakeholders (labeling initiatives, producers, and traders) and external experts. Fair trade standards are set in accordance to the requirements of the ISEAL Code of Good Practice in standards setting and are in addition the result of an extensive consultation process, involving a variety of stakeholders: producers, traders, external experts, inspectors, certification staff etc. [7]
In 2020, Fairtrade issued a position statement [8] defending their use of private standards in response to a report from The Institute for Multi-Stakeholder Initiative Integrity (MSI Integrity). [9]
A list of hazardous materials whose use in production of Fairtrade products is prohibited or restricted is maintained by Fairtrade International, divided into sections known as the "Red List", "Orange List" and "Yellow List" respectively. The Red List covers materials which are prohibited and may not be used in Fairtrade products. The Orange List details materials which may only be used in specified conditions; some of these were to be disallowed from June 2020 or June 2022. The Yellow List covers materials which are flagged as hazardous and only to be used with caution. [10] The organisation relied on international conventions including the Stockholm Convention on Persistent Organic Pollutants (2014) in formulating its list. Earlier versions of the list distinguished between "red" (prohibited) and "amber" (under consideration for prohibition) elements. [11]
Fairtrade prohibits child labour and anyone under 15 years old cannot be employed by Fairtrade organisation. Children under 18 years old can be employed, but their employment cannot interfere with their education or development. Children are only allowed to work on family farms under strict conditions, the work must be age appropriate and outside of school hours or on holidays. [12]
Fairtrade faced backlash as child labour was found on one of its cocoa plantations. [13] [14]
The Fairtrade Mark is an international independent consumer Mark which appears on products as a guarantee that producers and traders have met fair trade standards. The Fairtrade Mark is owned and protected by Fairtrade International, on behalf of its 25-member and associate member labeling initiatives and producer networks.
For a product to carry the Fairtrade Mark, it must come from FLOCERT inspected and certified producer organizations. The crops must be grown and harvested in accordance with the International Fairtrade Standards set by Fairtrade International. The supply chain is also monitored by FLOCERT to ensure the integrity of labelled products. Only authorized licensees can use the Fairtrade Mark on their products.
Fair trade is a term for an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. The fair trade movement combines the payment of higher prices to exporters with improved social and environmental standards. The movement focuses in particular on commodities, or products that are typically exported from developing countries to developed countries but is also used in domestic markets, most notably for handicrafts, coffee, cocoa, wine, sugar, fruit, flowers and gold.
The Fairtrade Foundation is a charity based in the United Kingdom that aims to help disadvantaged producers in developing countries by tackling injustice in conventional trade, in particular by promoting and licensing the Fairtrade Mark, a guarantee that products retailed in the UK have been produced in accordance with internationally agreed Fairtrade standards. The foundation is the British member of FLO International, which unites FLO-CERT, 25 National Fairtrade Organisations and 3 Producer Networks across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.
The World Fair Trade Organization (WFTO) is the global community and verifier of enterprises that fully practice Fair Trade. It is an association of SMEs, farmers or retailers that fully practice the 10 Principles of Fair Trade. They also advocate for fundamental change in our current economic system.
FLOCERT is one of the world’s leading social auditing and verification bodies and the global certifier for Fairtrade. With a vision of combating poverty and securing sustainable livelihoods for farmers in developing countries, FLOCERT's focus lies on auditing global supply chains and guaranteeing compliance with Fairtrade Standards.
The 'International Fairtrede Certification Mark is an independent certification mark used in over 69 countries. It appears on products as an independent guarantee that a product has been produced according to Fairtrade political standards.
Frans van der Hoff, or Francisco VanderHoff Boersma as he is called in Latin America, was a Dutch missionary who, in collaboration with Nico Roozen and ecumenical development agency Solidaridad, launched Max Havelaar, the first Fairtrade label in 1988. Van der Hoff's contacts with Mexican coffee producers were important in securing the supply and ensuring the success of the very first Fairtrade certification initiative.
Fairtrade Canada, formerly TransFair Canada, is a national non-profit certification and public education organization promoting Fairtrade certified products in Canada to improve the livelihood of developing world farmers and workers. It is the Canadian member of FLO International, which unites 24 fair trade producer and certification initiatives across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.
Fairtrade Nederland formerly known as Max Havelaar StichtingArchived 2022-08-16 at the Wayback Machine is the Dutch member of Fairtrade International, which unites 23 Fairtrade certification producer and labelling initiatives across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.
Association Max Havelaar France is the French member of FLO International, which unites 23 Fairtrade producer and labelling initiatives across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.
The fair trade movement has undergone several important changes like the operation for ten thousand villages to open their businesses since early days following World War II. Fair trade, first seen as a form of charity advocated by religious organizations, has radically changed in structure, philosophy and approach. The past fifty years have witnessed massive changes in the diversity of fair trade proponents, the products traded and their distribution networks.
The fair trade debate concerns the ethics and economic implications of fair trade, a term for an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. The benefits of fair trade for farmers and workers can vary considerably and the social transformation impacts also vary around the world. However the main concerns from critics is that fair trade may give an unfair advantage to some producers over others.
The Max Havelaar Foundation is a non-profit certification and public education organization promoting Fairtrade products in Switzerland to improve the livelihood of developing world farmers and workers. The Max Havelaar Foundation is the Swiss member of FLO International, which unites 23 Fairtrade producer and labelling initiatives across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand. Several of these corresponding organizations in other European countries also use the Max Havelaar name. The Swiss Max Havelaar organization was founded in 1992 by the Third World aid organisations Brot für alle, Caritas, Fastenopfer, HEKS, Helvetas and Swissaid.
A technical standard is an established norm or requirement for a repeatable technical task which is applied to a common and repeated use of rules, conditions, guidelines or characteristics for products or related processes and production methods, and related management systems practices. A technical standard includes definition of terms; classification of components; delineation of procedures; specification of dimensions, materials, performance, designs, or operations; measurement of quality and quantity in describing materials, processes, products, systems, services, or practices; test methods and sampling procedures; or descriptions of fit and measurements of size or strength.
Fair trade coffee is coffee that is certified as having been produced to fair trade standards by fair trade organizations, which create trading partnerships that are based on dialogue, transparency and respect, with the goal of achieving greater equity in international trade. These partnerships contribute to sustainable development by offering better trading conditions to coffee bean farmers. Fair trade organizations support producers and sustainable environmental farming practices and prohibit child labor or forced labor.
A fair trade certification is a product certification within the market-based movement of fair trade. The most widely used fair trade certification is FLO International's, the International Fairtrade Certification Mark, used in Europe, Africa, Asia, Australia and New Zealand. Fair Trade Certified Mark is the North American equivalent of the International Fairtrade Certification Mark. As of January 2011, there were more than 1,000 companies certified by FLO International's certification and a further 1,000 or so certified by other ethical and fairtrade certification schemes around the world.
The Union of Indigenous Communities of the Isthmus Region is a farmer's cooperative in the state of Oaxaca, Mexico. It was established in 1982 to assist in production, marketing and distribution of locally produced coffee and other products. UCIRI was a pioneer of organic coffee production and one of the first fair trade suppliers.
Sustainability standards and certifications are voluntary guidelines used by producers, manufacturers, traders, retailers, and service providers to demonstrate their commitment to good environmental, social, ethical, and food safety practices. There are over 400 such standards across the world.
Fairtrade bananas was a marketing initiative which focused on increasing the price paid to small banana growers and the wages of agricultural workers. This is not a commercial brand, but a marketing strategy. Fair trade is based on higher prices paid by consumers that allow an equitable distribution of gains from trade over the chain partners.
Fair trade is where a farmer or craftsperson is paid a fair price for their product, one that represents its true worth, not just the lowest price that it is possible to pay. This is a price that covers the cost of production and enables the producer to live with dignity. Fair Trade New Zealand is an organisation that was launched in 2005 which supports fair trade by ensuring that farmers and workers' rights are not exploited. According to Oxfam New Zealand, there are several companies to support fairly traded goods from, which are exported to New Zealand. From 2013-2014 there were 42 Fair Trade Licensees and Traders in New Zealand. From 2015-2016 this number rose to 54 Fair Trade Licensees and Traders in New Zealand. Gwen Green, Oxfam's Engagement Director, says: "when farmers are paid fairly for their products, we see people able to make real improvements to their lives and their communities. Producers who used to struggle to feed their families are able to give their children an education, and communities can build schools and develop businesses. It is one of the smart solutions to poverty". In 2009, Wellington became the first fair trade capital city in the Southern Hemisphere. In 2017, Whangarei was recognised by the Fair Trade Association of Australia New Zealand as being one of four fair trade councils in New Zealand, and the first fair trade district in New Zealand.
Globalization of supply chains and pressure to lower production costs have negatively impacted environments and communities around the world, especially in developing nations where production of high demand goods is increasingly taking place. Since the 1990s, awareness of these negative impacts has grown, leading stakeholders to push companies to take responsibility and actively work to improve the sustainability of their supply chains. It has come to be understood that a company is only as sustainable as the start of its supply chain, bringing about the need for sustainable sourcing. Sustainable sourcing refers to the inclusion of social, environmental, and economic criteria in the sourcing process.