There are two sets of Fairtrade Standards, which acknowledge different types of producer organisations. One set applies to smallholders that are working together in co-operatives; the other applies to plantations (or the so-called 'commercial farms') that employ permanent labourers. Fairtrade Standards cover these areas:
LABOUR RIGHTS
Based on the International Labour Organisation (ILO) conventions, they include: no forced or child labour, health and safety measures, non-discriminatory policies, freedom of association and collective bargaining, nationally agreed minimum wages, and access to basic services.
ENVIRONMENT
Environmental standards focus on farming methods that are sustainable and safe. Amongst them: protection of sensitive natural areas, minimised and safe use of agrochemicals and ban of prohibited pesticides, safe and sustainable handling of waste and water, and no use of Genetically Modified Organisms (GMOs).
FAIRTRADE PREMIUM
Upon purchase of a Fairtrade certified commodity, traders must pay an agreed Fairtrade Premium on top of the crop price. The Fairtrade Premium is one of the major empowerment tools of Fairtrade because it allows small-scale farmers and farm workers to invest in a variety of projects they consider necessary for their communities. Usually, small-scale farmers use the Fairtrade Premium to improve their farming methods, quality and outputs (e.g. buying tools or machines, pay for training on best farming practices, hire an agronomist), as well as to improve the lives of member farmers (e.g. hire teachers for the local school, buy books, set up healthcare or micro-finance systems). In the case of commercial farms, the Fairtrade Premium is paid into an account owned by the farm workers, who generally spend the money to invest in education programmes or in infrastructure improvements, such as funding training and skills development courses, setting up bursaries for the youth, building and funding a créche or putting electricity in their houses.
> > > in 2010, over R10million in Fairtrade Premium was transferred to Fairtrade farming communities in South Africa. A third was spent in education programmes, over half of which was targeting children and young people.
FAIRTRADE MINIMUM PRICE
This is a floor price which is crucial to small-scale farmers when world market prices plummet (buyers pay the Fairtrade Minimum Price or the market price - whichever is higher). The Minimum Price takes into account the costs of sustainable production and living, as well as the costs of complying with Fairtrade Standards.
Fairtrade Standards are set and reviewed by Fairtrade International. Currently the products covered by Fairtrade Standards are: bananas, cocoa, coffee, cotton, flowers, fresh fruit, honey, juices, rice, nuts, herbs and spices, tea, sugar and wine - along with the so-called 'composite products' such as chocolate (use of Fairtrade cocoa + sugar). Recently, Fairtrade has introduced standards for sport balls and gold from small-scale mining operations. Pilot projects are underway for fish and timber.
To learn more about Fairtrade Standards visit www.fairtrade.net/standards.
For more information on Fairtrade Certification visit our Business section.
