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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
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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
331:
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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796:"Fairtrade Minimum Price And Fairtrade Premium Table." (2014). Bonn, Germany: Fairtrade International, pp. 3.
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760:"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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244:. 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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923:. 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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667:"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
836:"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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772:(2014). Bonn, Germany: Fairtrade International, pp. 8.
751:. Fairtrade International (2014). Accessed 25 October 2014.
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Workers have the right to join an independent union to
849:"Fairtrade is an unjust movement that serves the rich"
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Fair Trade Association of Australia & New Zealand
448:, 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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Asociación del Sello de Productos de Comercio Justo
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166:. The most widely used fair trade certification is
67:. Unsourced material may be challenged and removed.
30:"Fairtrade" redirects here. For the movement, see
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461:Counter Culture Direct Trade Certification is a
1985:Environmental, social, and corporate governance
1158:International Resources for Fairer Trade (IRFT)
1128:Fairtrade Labelling Organizations International
937:. Fairtrade International. 2020. Archived from
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258:
255:set for different stakeholders are as follows:
475:, a purchasing initiative launched in 2007 by
287:Forced labour and child labour are prohibited.
232:A T-shirt made from Fairtrade certified cotton
220:social, environmental, and economic projects.
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399:Fairtrade certified products sold through a
817:How Fairtrade monitors and measures impact.
706:Fair Trade Federation: What is Fair Trade?.
692:Center for Global Development, Policy Paper
382:Fairtrade helps the rich to a larger extent
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1189:International Fairtrade Certification Mark
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808:How Fairtrade monitors and measures impact
172:International Fairtrade Certification Mark
1184:FLO-CERT (inspection & certification)
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432:Other certification and product labelings
428:are no substitute for public regulation.
127:Learn how and when to remove this message
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1819:Pollutant release and transfer register
1250:Fair Trade USA (formerly TransFair USA)
877:Cole, Nicki Lisa; Brown, Keith (2014).
14:
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1604:Principles for Responsible Investment
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879:"The Problem with Fair Trade Coffee"
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65:adding citations to reliable sources
36:
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1783:Environmental full-cost accounting
1012:Fairtrade America Official Website
444:The FTO Mark, launched in 2004 by
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1240:Max Havelaar-Stiftung Switzerland
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703:Fairtradefederation.org, (2014).
348:How fairtrade measures its impact
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1564:Extended producer responsibility
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1087:Alternative trading organization
966:"Counter Culture Coffee website"
370:Little money reaches the farmers
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1773:Eco-Management and Audit Scheme
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1143:European Fair Trade Association
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52:needs additional citations for
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2040:Socially responsible investing
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646:Vegetarian and vegan symbolism
626:Sustainable consumer behaviour
621:Standards of identity for food
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2035:Socially responsible business
1356:List of Fairtrade settlements
1133:World Fair Trade Organization
742:"Aims of Fairtrade standards"
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446:World Fair Trade Organization
418:multi-stakeholder initiatives
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1980:Environmental pricing reform
1511:environmental responsibility
992:"Fair's Fair at Whole Foods"
990:Alyce Lomax (2 April 2007).
865:Small Enterprise Development
718:Info.fairtrade.net, (2014).
395:Inefficient marketing system
259:Small producer organizations
7:
2010:Market governance mechanism
1866:Global Reporting Initiative
1836:standards and certification
1743:Social return on investment
1310:Gepa The Fair Trade Company
998:. Accessed 29 October 2023.
586:Global Ecolabelling Network
483:
10:
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1950:Community interest company
1894:Community-based monitoring
1728:Genuine progress indicator
814:Fairtrade.org.uk, (2014).
805:Fairtrade.org.uk, (2014).
511:Community-based monitoring
491:Blue Angel (certification)
76:"Fair trade certification"
29:
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1975:Environmental degradation
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284:their working conditions.
196:Fair Trade Certified Mark
2005:Health impact assessment
1876:Sustainability reporting
1845:Toxics Release Inventory
1639:Transparency (behavioral
1614:Social impact assessment
1503:Corporate accountability
1225:The Fairtrade Foundation
1174:Fair trade certification
951:Conroy, Michael (2007).
896:10.1177/1536504214522009
811:(Accessed 24 Oct. 2014)
732:(Accessed 24 Oct. 2014).
709:(Accessed 19 Oct. 2014).
375:The Fairtrade Foundation
338:is a sum of money which
158:within the market-based
152:fair trade certification
2060:Supply chain management
2000:Global justice movement
1799:profit-and-loss account
1179:Fairtrade International
1072:Fair trade and politics
1067:Fairtrade certification
854:(Accessed 26 Oct. 2014)
838:(Accessed 27 Oct. 2014)
820:(Accessed 25 Oct. 2014)
787:(Accessed 26 Oct. 2014)
781:Fairtrade.net, (2014).
631:Sustainable consumption
467:Fairtrade certification
354:Ongoing market progress
329:Fairtrade Minimum Price
145:Fairtrade International
18:Fairtrade certification
2025:SDG Publishers Compact
1787:Environmental conflict
1594:Organizational justice
1300:Equal Exchange Trading
1235:Stichting Max Havelaar
1220:Fairtrade Mark Ireland
1097:Trade Justice Movement
970:Counter Culture Coffee
233:
147:
143:Certification logo of
2131:Product certification
2015:Product certification
1814:Life-cycle assessment
1733:Performance indicator
1624:Social responsibility
1589:Organizational ethics
1519:social responsibility
1335:Ten Thousand Villages
1153:Fair Trade Federation
1062:History of fair trade
636:Sustainable packaging
616:Organic certification
526:Energy input labeling
496:Carbon emission label
473:Whole Trade Guarantee
439:Fair Trade Federation
420:adopt weak or narrow
242:third world countries
231:
156:product certification
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2020:Public participation
1955:Conflict of interest
1545:inequality in the UK
1537:in the United States
1529:Environmental racism
1376:World Fair Trade Day
1315:Handcrafting Justice
1203:Labeling initiatives
867:, 14(2), pp. 42
282:collectively bargain
61:improve this article
1990:Ethical consumerism
1940:Benefit corporation
1832:metrics and indices
1634:Sullivan principles
1549:injustice in Europe
1425:Category:Fair trade
1361:Fairtrade fortnight
1320:SERRV International
1305:Rainforest Alliance
1260:Alternative trading
606:Mandatory labelling
536:Ethical consumerism
531:Energy rating label
465:alternative to the
412:Not fit for purpose
236:Fairtrade develops
224:Fairtrade standards
2078:Environment portal
1850:Triple bottom line
1778:Emission inventory
1683:Double bottom line
1629:Stakeholder theory
935:"Fit for purpose?"
847:Sylla, N. (2014).
832:The Globe and Mail
747:2014-10-31 at the
728:2014-10-31 at the
477:Whole Foods Market
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1935:Bangladesh Accord
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1791:impact assessment
1768:Carbon accounting
1698:Impact assessment
1649:UN Global Compact
1541:in Western Europe
1493:Aarhus Convention
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1082:Fair trade debate
611:NSF International
596:Green consumption
581:Friend of the Sea
561:Fair trade coffee
426:private standards
336:Fairtrade Premium
318:Fairtrade pricing
246:private standards
238:private standards
168:FLO International
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452:UTZ Certified
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78: –
77:
73:
72:Find sources:
66:
62:
56:
55:
50:This article
48:
44:
39:
38:
33:
19:
2097:
1970:Eco-labeling
1945:Child labour
1912:
1840:supply chain
1838: /
1834: /
1830: /
1826: /
1797: /
1793: /
1789: /
1785: /
1559:Ethical code
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1531: /
1517: /
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1509: /
1505: /
1402:
1392:
1330:Twin Trading
1173:
995:
986:
974:. Retrieved
969:
960:
952:
947:
939:the original
929:
919:
913:
886:
882:
872:
864:
859:
852:The Guardian
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769:
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737:
720:
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675:. Retrieved
671:the original
661:
591:Green brands
501:Carbon Trust
463:direct trade
415:
398:
385:
373:
359:
351:
335:
328:
321:
292:minimum wage
275:Hired labour
250:
235:
214:
210:
207:How it works
201:
151:
149:
123:
114:
104:
97:
90:
83:
71:
59:Please help
54:verification
51:
2050:Stakeholder
1828:measurement
1569:Externality
1524:Dirty hands
1396:(2006 film)
1121:Federations
1055:Core topics
955:p. 252
551:EU Ecolabel
405:monopsonist
401:monopsonist
192:New Zealand
2126:Fair trade
2120:Categories
2054:engagement
1909:Fair trade
1760:accounting
1693:Higg Index
1670:accounting
1486:principles
1393:Black Gold
1325:Traidcraft
1280:Cafédirect
1102:Sweatshops
1048:Fair trade
976:30 October
834:, (2014).
677:2011-01-07
653:References
576:Free range
365:Criticisms
294:in effect.
174:, used in
164:fair trade
87:newspapers
32:Fair trade
1995:Euthenics
1960:Disasters
1919:ISO 19011
1859:Reporting
1809:ISO 14031
1804:ISO 14000
1723:ISO 45001
1718:ISO 26000
1599:Pollution
1533:in Russia
1507:behaviour
1344:Campaigns
1270:Alter Eco
1112:Worldshop
889:: 50–55.
456:Fairtrade
422:standards
388:standards
253:standards
188:Australia
2088:Category
1886:Auditing
1707:equality
1371:No Sweat
953:Branded!
905:62222709
883:Contexts
745:Archived
726:Archived
516:Ecolabel
484:See also
170:'s, the
160:movement
117:May 2010
2099:Commons
2052: (
1928:Related
1911: (
1901: (
1700: (
1644:social)
340:is paid
101:scholar
1738:SA8000
1712:social
1668:Social
1609:Racism
1482:Ethics
1467:Social
1406:(book)
903:
458:lite".
343:spent.
180:Africa
176:Europe
103:
96:
89:
82:
74:
1385:Media
901:S2CID
218:local
154:is a
108:JSTOR
94:books
1574:Harm
1469:and
1148:FINE
978:2023
437:The
334:The
327:The
251:The
190:and
184:Asia
80:news
1484:and
891:doi
162:of
63:by
2122::
994:.
968:.
899:.
887:13
885:.
881:.
194:.
186:,
182:,
178:,
150:A
2056:)
1915:)
1905:)
1714:)
1459:e
1452:t
1445:v
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124:(
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115:(
105:·
98:·
91:·
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57:.
34:.
20:)
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