As Fairtrade certification is built on ethical standards, auditing is integral to maintain the integrity of the certification. The auditing fees are necessary to ensure that Fairtrade producers and traders are moving towards better, fairer standards. Or is it a chocolate trader in Europe?
While Fairtrade focuses on the long-term financial sustainability of its producers and workers, one potential issue lies in its fundamental philosophy of an open-door system: Fairtrade always welcomes producers who want to join the Fairtrade chain. But what happens when you have a growing number of farmers focused on producing one specific crop? You potentially end up with an oversupply, as the supply exceeds demand.
This ultimately impacts the number of products that end up being sold under Fairtrade terms, meaning farmers may need to sell their products under conventional trade. Growing clusters of monocultures also present an issue from an environmental perspective. And this represents another problem: long-term financial sustainability cannot be achieved without considering environmental sustainability. Fairtrade is now exploring the concept of climate risk insurance for its small-scale producers, 7 and is working with smallholder farms to increasingly diversify their land.
However, while Fairtrade standards encourage sustainable agricultural practices like responsible water use and waste management, enhance biodiversity and soil fertility , it is not mandatory. The benefit of being part of the Fairtrade system, though, is that producers can earn more and reinvest some of their higher revenue into sustainable practices.
Perhaps one of the biggest critiques the Fairtrade system faces is its unapparent impact on farmworkers. Here are two ways in which the Fairtrade system may be limited in its benefits for workers:.
One study in the Costa Rican coffee sector showed that Fairtrade certification successfully increased the income for coffee millers and had benefited their local community overall, but pointed out that unskilled workers like coffee pickers and farm labourers saw no increase on their wages. The cookie is used to store the user consent for the cookies in the category "Other.
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Second step, a pink circle with a phone icon: Get in touch to discuss it. Third step, a blue circle with clipboard icon showing ticked check boxes: Use our custom portal CONNECT to submit product and packaging information and artwork. Fourth step, an orange circle with icons of four people from the torso up: Our dedicated customer service team will check and approve everything.
Fifth step, a green circle with a thumbs up icon: Congratulations! Your Fairtrade product is ready to go. Sign up to our Newsletter — Keep in touch with the latest news from Fairtrade. What is Fairtrade?
Why does Fairtrade mean sustainable trade? Here at Traidcraft, we know our stuff when it comes to all things fair trade. How do we know so much about fair trade, you may be thinking? Well, back in , we pioneered the fair trade movement. Chocolate , coffee , tea , fruit juice , wine, rice, honey, charcoal, rubber… believe it or not, but almost everything that we know today as being fair trade began with Traidcraft.
Fair trade, defined simply, is when products including food, drink and craft, are sourced through a fair supply chain, where small-scale farmers, producers and artisans are treated with dignity, respect, equality and fairness. Sourcing these items involves developing trading partnerships to help producers in developing countries achieve better trading conditions.
Fair trade is when the price we pay for products such as food, drink, fashion and crafts, gives enough to producers to cover the cost of their products — and to have enough left over to invest in their farms, of businesses. Fair trade was created as an alternative way of doing trade find out a little bit more about the origins of fair trade in the UK in our timeline.
It is based on partnership, which means that the interests of farmers and workers are just as important as other commercial considerations. It also represents a solution to poverty and a model for development. If you want to see fair trade in action, have a look at the fair trade goods we have on offer, and the stories behind them, too. Before going any further into what fair trade means, it is important to understand the differences between fair trade and Fairtrade.
Here are the definitions of both. See more on Fairtrade labels in our article. These social, economic and environmental standards are for both companies and the farmers and workers to adhere to. As for the farmers and workers, the standards include the likes of product quality and environmentally friendly farming practices.
Fair trade, written as two words, means that something has been fairly traded, often above and beyond the minimum standards which Fairtrade sets. The Fairtrade Mark ensures that these minimum standards have been observed, which is of course a great start.
Companies like Traidcraft, however, have a more nuanced view which focuses not on a set of minimum standards, but on a holistic approach to food. We deliberately only buy food from smallholders farmers who own their own land and not from plantations which are often owned by mega-corporations. We focus on organic produce wherever possible and on good food quality.
Our philosophy extends to how we treat our own staff, the rights of non-discrimination, self-organisation, for opportunities to train ourselves and for the pay gap between top and bottom to be no more than a factor of 2. This is all embedded in what fair trade written as two words always set out to achieve. For producers, farmers, growers and artisans, fair trade offers many advantages:. Fair trade has grown enormously since its origins.
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