fair trade label definition

... "Food Justice Certified is a label … We seek to alleviate poverty by continually and significantly expanding the practice of trade that values the labor and dignity of all people. Major sellers of Fair Trade coffee include: Most of the world’s cocoa comes from African countries, particularly Côte d’Ivoire (Ivory Coast), where child labor and slave labor are widespread. This is perhaps where Fair for Life differs the most from other certifications. They claimed that the only meaningful way to improve the lives of coffee growers was to focus on “disenfranchised” small farmers rather than expanding to larger plantations. It’s used in a variety of products, both organic and conventional, including chocolate bars, hot chocolate mix, and ice cream. Fair for Life Factories that make Fair Trade clothing must meet standards for environmental health, wages, working conditions, and workers’ rights. Certification progams can only go so far when it comes to eradicating the Worst Forms of Child Labour including slavery. Here are several tips for shopping Fair Trade without blowing your budget: Shopping Fair Trade can sometimes cost more, and it definitely doesn’t offer you as wide a selection as having every product in a shopping mall – or on the Internet – at your disposal. One reason for this is that they often cost more than other products in the same category. That’s hardly surprising, considering that Fair Trade pays farmers a higher price for their crops. “Years of hard work have gone into certifying all our teas Fair for Life,” … Advertiser partners include American Express, Chase, U.S. Bank, and Barclaycard, among others. Fair Trade USA triggered a major controversy when it broke away from Fairtrade International in 2011. Fair Trade rules ban all forms of worker abuse, harassment, and discrimination, including discrimination based on political affiliation or union membership. Fair trade may be a movement to support farmers and laborers in achieving better trade conditions, but it’s also a system of organizations that label products and certify producers. This means not just paying them in the short term, but also helping them improve their skills, increase standards of living and create secure and sustainable livelihoods for future generations. On average, 75% of Fair Trade USA's revenue is derived from income earned from over 1,1000 business partners that pay to use the Fair Trade Certified™ label. When a group is ready to acquire a license to use the Fair Trade Certified label, SCS, the third-party independent certifier, issues the license. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. The point of all the fair trade labels and logos is to help the consumer decide which products to buy, yet there is a fair amount of confusion, sometimes brought on by the very language the certifiers use. So far there are only a handful, but it shows an impressive dedication to prioritizing transparency in business at all levels. World Fair Trade Organization Fairtrade certification system is also known as fair trade labeling. Fair Trade importers often deal with collectives – groups of small-scale growers who run their own farms with little or no hired labor. Fairtrade helps businesses of all sizes meet their sustainability and supply chain needs. Cutting out the middleman enables the importers to pay the farmers a larger share of the money their products will eventually fetch on store shelves. There are differences between each, and that’s what we aim to tackle here. Pro Tip: There are many versions of the Fair Trade Certified logo. “According to a GlobeScan Study, 73% of consumers that are aware and familiar with the Fair Trade Certified label also trust it.”, Fair Trade USA products include Apparel and Home Goods, Grains like Quinoa, Body Care, Cocoa, Coffee, Flowers, Fruits & Vegetables, Herbs & Spices, Honey, Nuts, Seafood, Spirits, Sports Balls, Sugar, Tea, and Wine. However, the products that are available, whether for coffee, chocolate, or clothes, tend to be high quality. Fair Trade products are a hot commodity. The Fair Trade movement first started with coffee, and coffee remains the most important Fair Trade product today. They also certify sports balls. A growing need for updated information on fair trade labels. The FAIRTRADE Mark is a registered certification label for products sourced from producers in developing countries. Why do some labels say “Fair Trade Certified Ingredients” or “Fair Trade Certified Factory” and some just say “Fair Trade Certified”? Fair Trade promotes open, honest communication among producers, buyers, and consumers. By buying Fair Trade cocoa and chocolate, conscientious consumers can be sure their money doesn’t support these abuses of human rights. Instead of working with an existing certification body Fair Trade USA developed their own standards and compliance criteria, which you can access in their Standards Download Center. Fair-trade agreement definition is - an agreement between a producer and a seller that commodities bearing a trademark, label, or brand name belonging to the producer be sold at or above a specified price. These enterprises transform local communities, pioneer upcycling, empower women, champion refugee rights and practice organic farming. #choosefairtrade #eco #ethical. Companies that use some or all Fair Trade cocoa in their products include: Clothing is one of the newest Fair Trade products, but it’s growing quickly. Definition: a nongovernmental organization that develops one or more formal statements of rules of conduct regarding environmental and/or social domains of sustainable agriculture that producers voluntarily agree to implement ... Consumers pay more because of the fair trade label. - Costs, Benefits & Drawbacks, What Is Slow Food - Join the Movement for Healthy Meals on a Budget, 5 Tips to Buy Ethical and Eco-Friendly Clothing & Fashion on a Budget, What Is a 1031 Exchange – Defer Taxes on Like-Kind Real Estate. The Fair Trade Federation (FTF) is not a certification program; rather, it’s a membership organization for U.S. and Canadian companies that follow Fair Trade principles. }); See why 218,388 people subscribe to our newsletter. So choosing Fair Trade products can be a way to treat yourself and help others out of poverty at the same time. There are several different organizations that certify Fair Trade products, each with its own label and its own set of standards. Respect for Local Culture It works with more than 1,200 different producers in 74 countries, which employ more than 1.5 million farmers and workers. Fair Trade Fair trade standards are enforced by the Fairtrade Labeling Organizations International (FLO) (in the U.S. by Fair Trade USA ). Fairtrade International employs an organization called FLOCERT to certify all its members and enforce its standards. When you buy fair trade products, you can enjoy peace of mind. Things like coffee, chocolate, fruits, rice, flowers, and also cotton can be Fair Trade Certified, by one of the certifiers below. 2. For coffee, for instance, they get paid an extra $0.20 per pound, plus an extra $0.30 if it’s grown organically. The have a network of Fairtrade organizations in 24 countries, including Fairtrade America. Direct Trade In particular, Fair Trade Federation’s impact is felt throughout North America due to its efforts to promote organizations that are devoted to the. Do all the logos, labels & certifications mean the same thing? Fair trade sourcing means not only are workers paid fairly but also they have safe and environmentally-friendly working conditions. Between 2009 and 2013, researchers found that in parts of Africa where Fairtrade International cooperatives dominated the coffee trade, workers actually earned less and had worse working conditions than those who worked on larger plantations – and the community projects funded by Fair Trade premiums, such as schools and health clinics, were often unavailable to them. WFTO is the global network and advocate for Fair Trade, ensuring producer voices are heard. They host events, conferences, campaigns and advocate for fair trade. Fair Trade importers work with producers as directly as possible. The fair trade landscape has grown rapidly over the past few years and with that, the number of products available has also grown. Learn more. Fairtrade is about better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world. Most food and non-food commodities alike, including raw materials to the finished product can be certified. Fair Trade USA certifies a wide variety of products, including coffee and tea, fresh fruits and vegetables, spices, wine, and clothing. Inspections for these goods are performed by a third-party certifier called SCS Global Services. They are social enterprises that fully practice Fair Trade. Buyers also extend credit to their producers – for instance, paying them in advance of the harvest – to make sure the producers have all the resources they need to turn over their goods on time. Buyers promise to pay producers promptly for their goods, and producers promise in turn to pay a fair wage to all their workers. There is a wider variety of fair trade products available today than ever before! Fair Trade USA envisions a world where conscious consumers can achieve a “Fair Trade Lifestyle” and be able to shop ethically in all product categories. Fair Trade dealers do their best to give growers the information they need about market conditions, share what they know about the best growing practices, and provide technical assistance when needed. Importers seek to build long-term relationships with growers and work with them to solve any problems that come up. The WFTO has a five-stage guarantee system to monitor all its members and make sure they conform to the principles of Fair Trade and to the group’s own Fair Trade standard. It is a certification system designed to allow consumers to identify goods which meet agreed standards. Amy Livingston is a freelance writer who can actually answer yes to the question, "And from that you make a living?" Paul Rice, the CEO of Fair Trade USA, claimed this move was the best way to help the world’s poorest farmers, who weren’t really benefiting from the existing Fair Trade rules. In a 2012 interview with Just Means, Rice pointed out that small-scale farmers usually don’t have enough land to support their entire families, so many members end up working on the large coffee plantations. Extending Fair Trade to the large plantations, he argued, is the best way to make sure those workers get the same fair wages and decent conditions as those who work for the collectives. The use of pesticides and fertilizers – particularly the most harmful ones – is restricted. UTZ Certified Still, if you’re used to buying the cheapest coffee on the shelf, it’s easy to get sticker shock from the “gourmet” price of a Fair Trade equivalent. Fair trade is a component of the quality of life and social justice aspects of agricultural sustainability. They impact 1m livelihoods, 74% of whom are women. Fairtrade Labeling Organizations (now Fairtrade Interna-tional, FI), International Fair Trade Association (now World Fair Trade Organization, WFTO), the Network of European Worldshops (NEWS!) Fairtrade is about making sure people get their fair share of the pie. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. 14 Best Cash-Back Credit Cards – Reviews & Comparison, 9 Best Low APR Interest Credit Cards – Reviews & Comparison, 18 Best Travel Rewards Credit Cards – Reviews & Comparison, 15 Best Hotel Rewards Credit Cards – Reviews & Comparison, 11 Best Gas Credit Cards – Reviews & Comparison, 12 Best Credit Cards for College Students – Reviews & Comparison, 26 Best Small Business Credit Cards – Reviews & Comparison, 10 Best Secured Credit Cards to Rebuild Credit – Reviews & Comparison. Certifying products as fair trade, and being part of a fair trade community means more than a catchy label and more than good vibes. 5. Goods that are produced and sold in support of these aims usually carry a fair-trade label. Fairtrade International requires all its coffee to be grown on democratically run, farmer-controlled collectives. Fair Trade Federation Member Because of their efforts, in 1988 the first bag of Max Havelaar sealed coffee from Mexico was delivered to Holland's Prince Claus… Fairtrade certified products are mostly food items like coffee, tea, chocolate, bananas, rice, etc. Every step of production can be certified, including producers, manufacturers and traders, whereas other certifiers simply certify the finished product or only a couple steps of the production. Shop: … A 2015 article in MarketWatch reports that the amount of Fair Trade apparel and home goods on the market grew to almost five times its former size during 2014. These funds go toward projects like building new schools, providing scholarships, improving nutrition and healthcare, and digging wells. Fair trade, defined simply, is when producers in developing countries are paid a fair price for their work, by companies in developed countries. It shows that the product has been certified to offer a better deal to the farmers and workers involved in its production. Decent Conditions googletag.enableServices(); It is quite extensive, and separated into categories such as Independent Shareholders, Farmworkers, Trade, Apparel and Home Goods, and Capture Fisheries. Run from a central office in the Netherlands, the WFTO represents over 370 member organizations and 40 individual associates, spanning 70 countries and 5 continents. Fair trade is a component of the quality of life and social justice aspects of agricultural sustainability. Demonstrating compliance earns Fair Trade Enterprises the designation "Guaranteed Fair Trade". One of the largest certifiers in the world, Fair Trade USA, is an independent, non-profit organization that sets standards, certifies, and labels products that promote sustainable livelihoods for farmers and workers. Take a stroll down the coffee aisle of any large supermarket, and there’s a good chance you’ll see at least one or two bags of beans sporting a little label that says “Fair Trade.” These bags don’t look obviously different from the others on the shelf, but their price is definitely on the high end – at least $7 per pound, and as high as $15 per pound. The WFTO Fair Trade Standard specifies criteria for assessing if an enterprise truly implements the 10 Principles of Fair Trade. You might be asking how we’re all supposed to remedy this confusing situation, and you wouldn’t be alone. All Rights Reserved. The number of Fairtrade International products has increased tremendously over the past decade or so. 7. The FAIRTRADE Mark is the most widely recognized and trusted ethical label in the world. In addition to other benefits, approximately €86 million was distributed to communities in 2013 for use in community development. In some instances, like with tea, it will even have the percentage of the product that is fair trade. It also bans all use of child labor and forced labor, which are widespread in many parts of the world – particularly on cocoa plantations, as CNN reported in 2012. Fair trade certification, at this time, refers to commodities that are grown, and therefore can be monitored at a farm level. Worldwide, the Fair Trade movement that year supported more than 1.4 million farmers and workers in 74 countries. Learn more about fair trade in the U.S. and abroad, as well as standards and certifications available to farms and businesses that focus on the social aspects of agricultural sustainability. It is the logo or symbol you see on a product that meets the rigorous international Fairtrade Standards. Published in early 2015, the guide is a useful tool for professional purchasers, public and local authorities, and consumers’ associations needing updated information on fair trade labels. This confusion is also a little exciting, though. Is “Fair Trade Certified” the same thing as “Fair Trade” and vice versa. We are proud of our membership and of being part of a distinct group of like-minded businesses all fully committed to fair trade. Purchases have sent $740 million to farmers and workers since 1998. While we can’t say what the near future will hold for fair trade certifications, we have put together a few tips on understanding just what each fair trade logo means. The goal of Fair Trade is to reduce poverty for farmers and workers in developing countries. Fair trade or Fairtrade is a social movement which aims at supporting sustainable farming and helping producers in developing countries by introducing better trading conditions for them. The test showed that sales increased by 10% for the fair trade label, but that sales fell when the price was hiked by 30% for a standard blend that was fair trade certified. Fair trade supporters believe that by incentivizing changes in the supply chain of certain products it is possible to introduce changes in the rural … For instance, a one-pound bag of organic, Fair Trade coffee from the Congo region costs $12 in the Equal Exchange online store, while a one-pound bag of Ethiopian coffee from Starbucks – which is neither Fair Trade nor organic – costs $14. What, you might wonder, makes them worth that extra money? However, research done by The Guardian tells a different story. Fair Trade Fair trade is all about building sustainable sectors where each link in the chain is committed to this shared responsibility, particularly in terms of supply and production, thereby helping to promote greater equity in world trade. Make sure to note which one is on the package so you know exactly what part of the product is fair trade! The growth has thrown into question the very definition of fair trade and exposed rifts between the movement’s founders. to enable producers to improve their livelihoods and communities through Fair Trade. Fair Trade Standards Rigorous standards are the way we fulfill our mission and deliver benefits to producers and businesses we work with. However, both Fair Trade USA and Fairtrade International certify some manufactured products as well, including clothing, wine, and sports balls. Here’s a closer look at some of the most common Fair Trade Products (and where they’re sold) to help you form more socially responsible eating and drinking habits. Fair for Life was developed as a complementary approach to the existing fair trade certification system: at the time it was limited to certain products and models of fair trade. Should you need such advice, consult a licensed financial or tax advisor. Many supporters of Fair Trade, including the groups Equal Exchange and the Fair World Project, argued that Rice’s decision would weaken Fair Trade standards. Fair Trade USA is a non-profit organization that has granted fair trade status to over 800 manufacturers and distributers. MoneyCrashers.com does not include all banks, credit card companies or all available credit card offers, although best efforts are made to include a comprehensive list of offers regardless of compensation. No other certifier does this. What does fair trade actually mean? There are several different Fair Trade labels you might spot as you cruise the supermarket aisles. Sellers of Fair Trade clothing and textiles include: Fair Trade USA and Fairtrade International do not provide certification for craft items, such as handmade jewelry, pottery, and artwork. In return for membership dues, each organization gains credibility, showing that they follow the fair trade principles in all they do. googletag.pubads().enableSingleRequest(); Today, we are proud to offer more Fair Trade Certified™ sewn styles than any other apparel brand. They see fair trade not just as a market, but as a social movement that offers real choice to consumers and real change to farmers and workers. Specifically, fair trade is a trading partnership, based on dialogue, transparency, and respect, that seeks greater equity in international trade. According to their website, over 27,000 products carry the Fairtrade mark, sold in 120 countries. The Fair for Life label can be used for nearly any type of goods – food or non-food, raw material or finished product – and certain types of services as well. A simple sleeveless cotton dress from Mata Traders, made by a Fair Trade women’s cooperative in India, costs $85; a similar dress from ModCloth, which is not Fair Trade, costs $110. The fact that more than one fair trade label exists is the result of the fair trade movement’s growth over the past decades. Farmers also pledge to use energy efficiently and manage waste properly, reducing, reusing, and recycling whenever possible. The Solidaridad informed large audiences of the mistreatment of coffee producers and poor living conditions in developing countries. The content on MoneyCrashers.com is for informational and educational purposes only and should not be construed as professional financial advice. On the other hand, since Fair Trade importers work directly with farmers and eliminate the middleman, the higher prices the farmers get paid don’t always translate into higher prices for the consumer. … Why can products like coffee or bananas be “certified,” but not things like a bracelet or journals? If the higher price of Fair Trade goods is a deterrent for you, remember that you don’t have to buy them all the time. Most of them are agricultural goods, such as coffee, tea, chocolate, herbs and spices, sugar, flowers, and produce, such as bananas and mangoes. The main reason for the split was that the two programs didn’t agree on what their standards should be for coffee growers. The same guarantees apply to other products bearing the Fair Trade label, such as chocolate, sugar, bananas, and cotton. Do you buy Fair Trade products? It just means there is no system in place to monitor the entire supply chain. Committing to such stringent independent standards is no mean feat. This organization, formerly known as Transfair USA, was once a part of Fairtrade International, but it split off in 2011, adopting a new name and its own set of standards. This is unfortunate, as the point of fair trade is to offer products that consumers can trust, knowing they were made as fairly as possible. The first three are certifiers and the last two are membership groups. The World Fair Trade Organization (WFTO) is a global network of smaller Fair Trade organizations, as well as individual companies. The Fair Packaging and Labeling Act (FPLA or Act), enacted in 1967, directs the Federal Trade Commission and the Food and Drug Administration to issue regulations requiring that all "consumer commodities" be labeled to disclose net contents, identity of commodity, and name and place of business of the product's manufacturer, packer, or distributor. to ensure fair and positive relations between producers and their cooperatives or contracting companies, between workers and their employer, between sellers and buyers on the world market while at the same time ensuring performance of standards. The term fair trade means that they receive a fair price for the goods that they produce. For instance, Fairtrade International requires all its coffee to come from collectives of small farmers, while Fair Trade USA also accepts coffee from large plantations run by a single company. Fairtrade This seal indicates that the coffee beans were sourced directly from small-scale farmers who were paid a fair price. "Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. Unlike Fair Trade, UTZ doesn’t guarantee farmers a baseline price for their crops, but it does pay them a premium over the market rate, as well as helping them improve quality and yield so their crops are worth more. Let’s dive right in! Why or why not?window.googletag = window.googletag || {cmd: []}; You can find Fair Trade clothing and home products at many different retailers. Some of them deal exclusively in Fair Trade clothing and home products, while others sell just a few specific products that carry the Fair Trade label. Environmental Sustainability The certification process is administered by the Institute for Marketecology. To conduct a fair experiment, they placed fair trade labels on two types of coffee and compared them to a placebo equivalent that looked the same but made no ethical claim. googletag.defineSlot('/1035677/MoneyCrashers_', [[300, 139], [300, 360], [630, 139], [630, 475], [630, 250], [1, 1], [300, 250], [300, 475], [630, 360]], 'div-gpt-ad-1590780665633-0').addService(googletag.pubads()); Together they aren’t big enough to be … Respectful Relationships googletag.cmd.push(function() { Fair Trade Winds + Momentum are members of the Fair Trade Federation as retail stores. In fact, in some cases, Fair Trade products actually cost slightly less than conventional equivalents. Fair Trade guarantees farmers a reasonable minimum price for their crops, no matter how low the market price falls. to connect disadvantaged producers and consumers, promote fairer trading conditions and empower producers to combat poverty, strengthen their position and take more control over their lives. If you want to trade or retail Fairtrade certified products and show your commitments to customers, here’s where to begin. To date, Patagonia’s Fair Trade program has impacted more than 66,000 workers in 10 countries around the globe. In this way, growers can keep their traditions alive while still increasing their production to keep up with the market’s demands. It’s about cultivating economically and environmentally sustainable communities around the world, as well as delivering better products to you. Membership organizations like the World Fair Trade Organization and the Fair Trade Federation are an important part of the fair trade movement. As proud members of the Fair Trade Federation, Fair Trade Winds + Momentum only carry products that are either fair trade certified, or come from producer groups who are also members of the FTF or WFTO. Below is a graphic of the most common fair trade food items. If you see a #fairtrade label on a product, it supports the welfare of the farmer. For those who care about the principles of Fair Trade, products with the Fair Trade USA label are a perfectly reasonable choice. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. Fair for Life’s certification system is based on a non product-specified standard. Fair Trade coffee dealers guarantee the growers a fair wage for their products, and in return, the farmers promise to provide decent conditions for their workers and to grow their coffee in an eco-friendly way. Fairtrade International believes that there can be sustainable development that benefits the world’s poorest if trade is equitable and has transparency. This means not just paying them more in the short term, but also helping them improve their skills, build up their communities, and protect the local environment so its resources will be there for future generations. The bottom line is, while the two groups have different approaches, there isn’t enough evidence to say that Fairtrade International’s standards are inherently better or stronger than Fair Trade USA’s. The term “Fairtrade” is based on the concept of ensuring that the people involved in the production and manufacture of a product receive a fair deal for their trade. However, they must show that they meet the group’s strict code of practice for all their products – a strict standard that only 50% to 60% of all the companies that apply are able to meet.
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