Fairtrade products carry the Fairtrade mark which denotes
that that have been sourced in accordance with the ethical
principles of trade with Third World countries defined by
the Fairtrade Foundation. These impose conditions on both
the producer organisations and the importers:
Fair and sustainable standards in the producer organisation:
- Small-scale farmers can participate in a democratic organisation.
- Plantation/factory workers can participate in trade union
activities and have decent wages, housing, and health and
- No child or forced labour.
- Programmes for environmental sustainability.
Fair terms and funding by importers:
- A price that covers the cost of production.
- A social ‘premium’ element within the price
of the product to be used by the producers to improve their
living and working conditions. (This is normally 5 US cents
per pound but for certified organic coffee, there is an additional
premium of 15 cents per pound. Producers use the premium to
improve living and working conditions and, as in the case
of RECOCARNO, part is usually paid to the co-operatives (for
community projects) and part goes directly to the producers as bonuses at the end of the season.
- Advance payment to avoid small producer organisations falling
- Contracts that allow long term planning and sustainable