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Fair trade is a strategy for poverty alleviation and sustainable development. It aims to create greater equity in the international trading system. It creates social and economic opportunities through trading partnerships with marginalised farmers and craftspeople in developing countries so that more
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does not monitor how much of the premium paid to exporters reaches farmers. As the cooperatives incur heavy fees on inspection, certification and marketing, only a small amount of money is retained for the farmers. In general, Fairtrade producers are only able to sell 18% to 37% of their output as
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is monitored by market-facing organizations present in countries where
Fairtrade certified products are sold; market data is consolidated by Fairtrade International on an annual basis. These data form a basis for understanding the dynamics of how certification is developing, and how the impacts of
204:
Packers in developed countries pay a fee to the
Fairtrade organisation for the right to use the Fairtrade certification logo. Importers of Fairtrade certified products must pay exporters a price higher than the market price for non-Fairtrade certified products to cover additional costs borne by
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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.
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The
Fairtrade system consists of two types of pricing: the Minimum Price and the Premium. These are paid to the exporters according to the proportion of output companies are able to sell with the brand 'Fairtrade Certified', typically ranging from 17% to 60% of their turnover.
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Fairtrade's governance bodies also review key results and evaluate regularly in order to improve strategy and decision-making. These results are publicised within the
Fairtrade system and among relevant stakeholders for further discussion of findings and recommendations.
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cooperative in charge of
Fairtrade certification may try to grow the fair trade industry for profit and not so much for the lives of the small farmers. At this point they are trying to increase the supply of fair trade when the supply is already far beyond the demand.
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set by certifiers which implies that their constituent farmers must be quite skillful and educated. However, these farmers are predominantly from the poorest countries and lack the leverage to bargain with the cooperatives. Corruption even occurs in some cases.
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The
Fairtrade International certification system covers a wide range of products, including banana, coffee, cocoa, cotton, cane sugar, flowers and plants, honey, dried fruit, fruit juices, herbs, spices, tea, nuts and vegetables.
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in addition to the payment for the products. It must be invested in the producers' business, livelihood and the socio-economic development of the workers. The producers have the largest power deciding how these funds are to be
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is the price that must be paid by buyers to
Fairtrade Certified producers. It is a floor price that covers producers' average cost of production, protecting producers from selling their products underpriced.
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cooperative may be inefficient and prone to corruption. Fairtrade farmers should have the right to choose the buyer who offers the best price, or switch when their cooperatives are going bankrupt. A
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Concerns around
Fairtrade certification were raised by the Institute for Multi-Stakeholder Initiative Integrity, with conclusions from their "Not Fit for Purpose" report that private sector led
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The
Fairtrade system committed to a programme of Monitoring, Evaluation and Learning (MEL), which aims at generating recommendations and analysis in support of greater effectiveness and impact.
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Fair Trade is profitable for traders in rich countries rather than those in poor countries. In order to qualify as Fairtrade producers, cooperatives must meet the strict
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The majority of the members of the organization must be small-scale producers who do not highly depend on hired workers, but run their farms mainly by their own effort.
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customers are accessible to their products and they receive a favorable deal. In return, the producers must comply with the standards set by the certifying authority.
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set by Fairtrade International. FLOCERT inspects and certifies producer organizations in more than 70 countries in Europe, Asia, Africa, and Latin America.
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Not Fit-for-Purpose The Grand Experiment of Multi-Stakeholder Initiatives in Corporate Accountability, Human Rights and Global Governance
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Buyers pay a price no lower than the Fairtrade Minimum Price in order to cover the costs of sustainable production.
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785:"Fairtrade Minimum Price And Fairtrade Premium Table." (2014). Bonn, Germany: Fairtrade International, pp. 3.
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749:"Fairtrade Standard for Small Producer Organizations" (2005). Bonn, Germany: Fairtrade International, pp. 7.
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Buyers pay an additional amount of money that allows producers to invest in development (the Fairtrade Premium).
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Working conditions have to be equitable for all workers. Salaries must be at least equal to or higher than the
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Mendoza, R., & J. Bastiaensen, J. (2003). "Fair Trade and the Coffee Crisis in the Nicaraguan Segovias."
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Elliot, K. (2012). "Is my Fair Trade coffee really fair? Trends and Challenges in Fair Trade certification."
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Fairtrade certified firms in marketing and inspection. Any surplus after paying these costs must be used for
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233:. In order to become certified Fairtrade producers, the cooperatives and their farmers have to comply with
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that better serve corporate interests than rights holder interests. Fairtrade responded to explain
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912:. San Francisco: Institute for Multi-Stakeholder Initiative Integrity: MSI Integrity. July 2020.
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Every member in the organisation should have the right to vote in the decision-making process.
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that aid the sustainable development of some smaller producers and agricultural workers in
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Fairtrade are being distributed between producer organizations, geographies and products.
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Buyers sign contracts that assist long-term planning and sustainable production practices.
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Safety and health measures must be implemented properly so as to avoid injuries at work.
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does not certify individual products, but instead evaluates an entire business.
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656:"List of Companies certified to FLO International's fairtrade certification"
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Fairtrade certified while the rest is sold as uncertified at market prices.
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is a coffee certification program that has sometimes been dubbed "
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Fairtrade Info / Home / What is Fairtrade? / How Fairtrade Works.
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Product certification within the market-based movement fair trade
825:"Fairtrade coffee fails to help the poor, British report finds."
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Profits earned must be equally distributed among the producers.
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761:(2014). Bonn, Germany: Fairtrade International, pp. 8.
740:. Fairtrade International (2014). Accessed 25 October 2014.
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Workers have the right to join an independent union to
838:"Fairtrade is an unjust movement that serves the rich"
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Fair Trade Association of Australia & New Zealand
437:, and identifies registered fair trade organizations.
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Fairtrade International / About / What is Fairtrade?
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Sustainable seafood advisory lists and certification
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1199:
Asociación del Sello de Productos de Comercio Justo
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155:. The most widely used fair trade certification is
56:. Unsourced material may be challenged and removed.
19:"Fairtrade" redirects here. For the movement, see
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450:Counter Culture Direct Trade Certification is a
1974:Environmental, social, and corporate governance
1147:International Resources for Fairer Trade (IRFT)
1117:Fairtrade Labelling Organizations International
926:. Fairtrade International. 2020. Archived from
383:
247:
244:set for different stakeholders are as follows:
464:, a purchasing initiative launched in 2007 by
276:Forced labour and child labour are prohibited.
221:A T-shirt made from Fairtrade certified cotton
209:social, environmental, and economic projects.
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1021:
388:Fairtrade certified products sold through a
806:How Fairtrade monitors and measures impact.
695:Fair Trade Federation: What is Fair Trade?.
681:Center for Global Development, Policy Paper
371:Fairtrade helps the rich to a larger extent
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1178:International Fairtrade Certification Mark
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797:How Fairtrade monitors and measures impact
161:International Fairtrade Certification Mark
1173:FLO-CERT (inspection & certification)
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421:Other certification and product labelings
417:are no substitute for public regulation.
116:Learn how and when to remove this message
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1808:Pollutant release and transfer register
1239:Fair Trade USA (formerly TransFair USA)
866:Cole, Nicki Lisa; Brown, Keith (2014).
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1593:Principles for Responsible Investment
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868:"The Problem with Fair Trade Coffee"
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54:adding citations to reliable sources
25:
13:
1772:Environmental full-cost accounting
1001:Fairtrade America Official Website
433:The FTO Mark, launched in 2004 by
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14:
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1229:Max Havelaar-Stiftung Switzerland
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692:Fairtradefederation.org, (2014).
337:How fairtrade measures its impact
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1553:Extended producer responsibility
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1076:Alternative trading organization
955:"Counter Culture Coffee website"
359:Little money reaches the farmers
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1762:Eco-Management and Audit Scheme
1219:Association Max Havelaar France
1132:European Fair Trade Association
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759:Strong Producers, Strong Future
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2029:Socially responsible investing
1127:Network of European Worldshops
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635:Vegetarian and vegan symbolism
615:Sustainable consumer behaviour
610:Standards of identity for food
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2024:Socially responsible business
1345:List of Fairtrade settlements
1122:World Fair Trade Organization
731:"Aims of Fairtrade standards"
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435:World Fair Trade Organization
407:multi-stakeholder initiatives
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1969:Environmental pricing reform
1500:environmental responsibility
981:"Fair's Fair at Whole Foods"
979:Alyce Lomax (2 April 2007).
854:Small Enterprise Development
707:Info.fairtrade.net, (2014).
384:Inefficient marketing system
248:Small producer organizations
7:
1999:Market governance mechanism
1855:Global Reporting Initiative
1825:standards and certification
1732:Social return on investment
1299:Gepa The Fair Trade Company
987:. Accessed 29 October 2023.
575:Global Ecolabelling Network
472:
10:
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1939:Community interest company
1883:Community-based monitoring
1717:Genuine progress indicator
803:Fairtrade.org.uk, (2014).
794:Fairtrade.org.uk, (2014).
500:Community-based monitoring
480:Blue Angel (certification)
65:"Fair trade certification"
18:
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1964:Environmental degradation
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1183:Fair Trade Certified Mark
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545:Fair Trade Certified Mark
273:their working conditions.
185:Fair Trade Certified Mark
1994:Health impact assessment
1865:Sustainability reporting
1834:Toxics Release Inventory
1628:Transparency (behavioral
1603:Social impact assessment
1492:Corporate accountability
1214:The Fairtrade Foundation
1163:Fair trade certification
940:Conroy, Michael (2007).
885:10.1177/1536504214522009
800:(Accessed 24 Oct. 2014)
721:(Accessed 24 Oct. 2014).
698:(Accessed 19 Oct. 2014).
364:The Fairtrade Foundation
327:is a sum of money which
147:within the market-based
141:fair trade certification
2049:Supply chain management
1989:Global justice movement
1788:profit-and-loss account
1168:Fairtrade International
1061:Fair trade and politics
1056:Fairtrade certification
843:(Accessed 26 Oct. 2014)
827:(Accessed 27 Oct. 2014)
809:(Accessed 25 Oct. 2014)
776:(Accessed 26 Oct. 2014)
770:Fairtrade.net, (2014).
620:Sustainable consumption
456:Fairtrade certification
343:Ongoing market progress
318:Fairtrade Minimum Price
134:Fairtrade International
2014:SDG Publishers Compact
1776:Environmental conflict
1583:Organizational justice
1289:Equal Exchange Trading
1224:Stichting Max Havelaar
1209:Fairtrade Mark Ireland
1086:Trade Justice Movement
959:Counter Culture Coffee
222:
136:
132:Certification logo of
2120:Product certification
2004:Product certification
1803:Life-cycle assessment
1722:Performance indicator
1613:Social responsibility
1578:Organizational ethics
1508:social responsibility
1324:Ten Thousand Villages
1142:Fair Trade Federation
1051:History of fair trade
625:Sustainable packaging
605:Organic certification
515:Energy input labeling
485:Carbon emission label
462:Whole Trade Guarantee
428:Fair Trade Federation
409:adopt weak or narrow
231:third world countries
220:
145:product certification
131:
2009:Public participation
1944:Conflict of interest
1534:inequality in the UK
1526:in the United States
1518:Environmental racism
1365:World Fair Trade Day
1304:Handcrafting Justice
1192:Labeling initiatives
856:, 14(2), pp. 42
271:collectively bargain
50:improve this article
1979:Ethical consumerism
1929:Benefit corporation
1821:metrics and indices
1623:Sullivan principles
1538:injustice in Europe
1414:Category:Fair trade
1350:Fairtrade fortnight
1309:SERRV International
1294:Rainforest Alliance
1249:Alternative trading
595:Mandatory labelling
525:Ethical consumerism
520:Energy rating label
454:alternative to the
401:Not fit for purpose
225:Fairtrade develops
213:Fairtrade standards
2067:Environment portal
1839:Triple bottom line
1767:Emission inventory
1672:Double bottom line
1618:Stakeholder theory
924:"Fit for purpose?"
836:Sylla, N. (2014).
821:The Globe and Mail
736:2014-10-31 at the
717:2014-10-31 at the
466:Whole Foods Market
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2019:Social enterprise
1924:Bangladesh Accord
1784:management system
1780:impact assessment
1757:Carbon accounting
1687:Impact assessment
1638:UN Global Compact
1530:in Western Europe
1482:Aarhus Convention
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1264:Artisans du Monde
1071:Fair trade debate
600:NSF International
585:Green consumption
570:Friend of the Sea
550:Fair trade coffee
415:private standards
325:Fairtrade Premium
307:Fairtrade pricing
235:private standards
227:private standards
157:FLO International
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535:Ethical trade
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441:UTZ Certified
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67: –
66:
62:
61:Find sources:
55:
51:
45:
44:
39:This article
37:
33:
28:
27:
22:
2086:
1959:Eco-labeling
1934:Child labour
1901:
1829:supply chain
1827: /
1823: /
1819: /
1815: /
1786: /
1782: /
1778: /
1774: /
1548:Ethical code
1536: /
1532: /
1528: /
1524: /
1520: /
1506: /
1502: /
1498: /
1494: /
1391:
1381:
1319:Twin Trading
1162:
984:
975:
963:. Retrieved
958:
949:
941:
936:
928:the original
918:
908:
902:
875:
871:
861:
853:
848:
841:The Guardian
840:
832:
820:
816:
805:
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790:
781:
772:
766:
758:
754:
745:
726:
709:
703:
694:
688:
680:
675:
664:. Retrieved
660:the original
650:
580:Green brands
490:Carbon Trust
452:direct trade
404:
387:
374:
362:
348:
340:
324:
317:
310:
281:minimum wage
264:Hired labour
239:
224:
203:
199:
196:How it works
190:
140:
138:
112:
103:
93:
86:
79:
72:
60:
48:Please help
43:verification
40:
2039:Stakeholder
1817:measurement
1558:Externality
1513:Dirty hands
1385:(2006 film)
1110:Federations
1044:Core topics
944:p. 252
540:EU Ecolabel
394:monopsonist
390:monopsonist
181:New Zealand
2115:Fair trade
2109:Categories
2043:engagement
1898:Fair trade
1749:accounting
1682:Higg Index
1659:accounting
1475:principles
1382:Black Gold
1314:Traidcraft
1269:Cafédirect
1091:Sweatshops
1037:Fair trade
965:30 October
823:, (2014).
666:2011-01-07
642:References
565:Free range
354:Criticisms
283:in effect.
163:, used in
153:fair trade
76:newspapers
21:Fair trade
1984:Euthenics
1949:Disasters
1908:ISO 19011
1848:Reporting
1798:ISO 14031
1793:ISO 14000
1712:ISO 45001
1707:ISO 26000
1588:Pollution
1522:in Russia
1496:behaviour
1333:Campaigns
1259:Alter Eco
1101:Worldshop
878:: 50–55.
445:Fairtrade
411:standards
377:standards
242:standards
177:Australia
2077:Category
1875:Auditing
1696:equality
1360:No Sweat
942:Branded!
894:62222709
872:Contexts
734:Archived
715:Archived
505:Ecolabel
473:See also
159:'s, the
149:movement
106:May 2010
2088:Commons
2041: (
1917:Related
1900: (
1890: (
1689: (
1633:social)
329:is paid
90:scholar
1727:SA8000
1701:social
1657:Social
1598:Racism
1471:Ethics
1456:Social
1395:(book)
892:
447:lite".
332:spent.
169:Africa
165:Europe
92:
85:
78:
71:
63:
1374:Media
890:S2CID
207:local
143:is a
97:JSTOR
83:books
1563:Harm
1458:and
1137:FINE
967:2023
426:The
323:The
316:The
240:The
179:and
173:Asia
69:news
1473:and
880:doi
151:of
52:by
2111::
983:.
957:.
888:.
876:13
874:.
870:.
183:.
175:,
171:,
167:,
139:A
2045:)
1904:)
1894:)
1703:)
1448:e
1441:t
1434:v
1029:e
1022:t
1015:v
969:.
896:.
882::
669:.
468:.
458:.
119:)
113:(
108:)
104:(
94:·
87:·
80:·
73:·
46:.
23:.
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