Fair Trade Facts

What is Fair Trade?

Well, fair trade is many things. Essentially, it is the idea that healthier trade relationships, where both the producer and the consumer benefit, should be encouraged. This stems from the problem of supply-and-demand situations where businesses abuse their relationship with suppliers, who are often located in developing nations. Fair trade seeks to create a more balanced approach that gives producers a fair price for their goods, encouraging their economy and helping to combat poverty in their nations.

This means that fair trade goods, while often sold at a slightly higher price, return a much higher percentage of profit to the original suppliers, the farmers and workers who helped to create them. Fair trade companies also benefit by diverting some of this profit to its original source, since this encourages stronger relationships and stimulates local economies on both sides. Fair trade standards are standards created to maintain these healthy relationships through worker representation, worker safety, democratic co-ops, and a minimum producer price, known as a fair trade price.

There are several different companies and organizations that specialize in fair trade goods and the fair trade initiative. One of the most important is the FLO, or the Fairtrade Labeling Organization International, which works to promote fair trade through a variety of methods and certifies specific products as “fair trade goods”, or products that fall under specific regulations. There are many different types of organizations that belong to the FLO, and some have their own labeling system for fair trade goods.

Fair Trade Goods

Fair trade items can usually be spotted by the fair trade certification labels or stickers that they wear. For the FLO, this is a symbol known as the Certification Mark, a yin-yang-like blue and green circle with the word Fairtrade stamped beneath it. This label is especially popular with produce, such as fruit from overseas. Other types of products that the FLO works with include flowers, cocoa, cotton, rice, and honey, among other types of food. Of course, the mark is not only found on food–it can also be used for sport balls and certain kinds of composite items. For a complete list of Fairtrade products supported in your country, you can choose from a list at the FLO website. You should keep in mind that the Fairtrade mark applies only the specific product on which it is placed, not necessarily the company or store as a whole.

Of course, the FLO symbol is not the only fair trade label used. In the United States, one of the most common fair trade emblems is TransFair USA logo, the black and white image suspended between the words “Fair Trade Certified”. You may have seen this label on coffee or tea–these are two of the most widely certified products, and many cafes and stores highlight their fair trade benefits for interested customers. The TransFair logo is also used on herbs, chocolate products, fruit, sugar, rice, and vanilla.

As fair trade practices become more popular in the public eye and consumers begin favoring the marked goods, the market for fair trade products is expected to continue growing. Keeping an eye open for these fair trade goods is great way to both encourage sustainable practices and form positive relationships with hard-working producers around the world!