What is the Fairtrade movement?

Fair trade is a type of international trade that enables farmers a chance out of poverty by guaranteeing fair prices and sustainability. It allows producers to compete in the global marketplace. If a product has Fair Trade Certification, consumers can recognize and support the just trading policies of the producer by purchasing their product. This ensures that farmers will receive profits.

How does Fairtrade work?

© Fairtrade Australia

The minimum price - this price aims to ensure that producers can cover their average costs of sustainable production. 

The Fairtrade Premium - this money goes to communal fund for workers and farmers to use to improve their social, economic and environmental conditions. The Premium is invested in education and healthcare, farm improvements to increase yield and quality, or processing facilities to increase income.

Key facts about Fairtrade

The concept of 'fair trade' has been around for over 40 years but a formal labelling scheme wasn't launched until the late 1980s.

The first Fairtrade coffee from Mexico was sold in Dutch supermarkets in 1988. It was branded Max Havelaar, after a fictional Dutch character who opposed the exploitation of coffee pickers in Dutch colonies. 

Fairtrade began with coffee, now you can buy all sort of Fairtrade certified products: fruits, vegetables, chocolate, cotton, cereals, even gold… 

In 1997, Fairtrade Labelling Organizations International (FLO) was established in Bonn, Germany to unite the labelling initiatives under one umbrella and establish worldwide standards and certfication. 

The Fairtrade system currently works with 1.3 million people - farmers and workers - across more than 70 developing countries.

More than 27 000 products worldwide are bearing the Fairtrade Mark.

In 2012, farmers and workers from some of the world's poorest countries received €80 million in Fairtrade Premium to invest in business, social and environmental projects in their communities.

Fairtrade products are sold in more than 125 countries.

78% of consumers recognise the Fairtrade mark. Do you?

Fair trade principles

• A fair price - Farmers are guaranteed a minimum price on their goods, and are guaranteed an additional price for organic products. They are also eligible for pre-harvest credit.

• Fair labor conditions - Safe work place, no forced child labor, living wages, freedom of association.

• Direct trade - Fewer middle men between the farmers/producers and retailers helps ensure greater profits for farmers.

• Democratic and transparent organizations - Farmers collectively decide how they invest revenue.

• Community development - A portion of revenue supports the community; it may be invested in scholarships, quality improvement, or social and business development.

• Environmental sustainability - No harmful agrochemicals and genetically modified organisms or GMOs. This protects farmer health and preserves the ecosystem.

Download full report on Benefits of Fairtrade 4th Edition here or the 5th Edition (May 2014) here.