Definition

Fairtrade certification (usually simply Fairtrade or Fair Trade Certified™ in the United States) is a product certification system designed to allow consumers to identify products which meet agreed environmental, labour and developmental standards. Overseen by a standard-setting body, FLO International, and a certification body, FLO-CERT, the system involves independent auditing of producers to ensure the agreed standards are met. Companies offering products that meet the Fairtrade standards may apply for licences to use the Fairtrade Certification Mark for those products.

The FLO International Fairtrade certification system covers a growing range of products, including bananas, honey, oranges, cocoa, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea and wine.

In 2005, Fairtrade labelled sales amounted to approximately �1.1 billion worldwide, a 37 % year-to-year increase.[1] As per October 2006, 586 producer organizations in 58 developing countries were FLO-CERT Fairtrade certified.[2]

Given the development focus of Fairtrade, FLO International standards contain minimum requirements that all producer organisations must meet to become certified as well as progress requirements in which producers must demonstrate improvements over time.

Fairtrade standards

There are two types of Fairtrade standards for disadvantaged producers: standards for small farmers' organizations and for hired labour situations. Fairtrade standards for small farmers' organizations include requirements for democratic decision making, ensuring that producers have a say in how the Fairtrade Premiums are invested etc. They also include requirements for capacity building and economic strengthening of the organization.

Fairtrade standards for hired labour situations ensure that workers receive decent wages and enjoy the freedom of join unions and bargain collectively. Fairtrade certified plantations must also ensure that there is no forced or child labour and that health and safety requirements are met. In a hired labour situation, Fairtrade standards require a "joint body" to be set up with representatives from both management and workers. This joint body decides on how Fairtrade premiums will be spent to benefit plantation workers.

For some products, such as coffee, only Fairtrade standards for small farmers' organizations are applicable. For others, such as tea, both small farmers' organizations and plantations can be certified.

Fairtrade standards and procedures are approved by the FLO International Standards Committee, an external committee comprising all FLO stakeholders (labelling initiatives, producers and traders) and external experts. Fairtrade standards are set by FLO International in accordance to the requirements of the ISEAL Code of Good Practice in standards setting and are in addition the result of an extensive consultation process, involving a variety of stakeholders: producers, traders, external experts, inspectors, certification staff etc.[4]

Fairtrade inspection and certification

Fairtrade inspection and certification are carried by FLO-CERT, an independent body created by FLO in 2004. FLO-CERT ensures that both producers and traders comply with the FLO International Fairtrade Standards and that producers invest the benefits received through Fairtrade in their development.

FLO-CERT works with a network of 72 independent inspectors that regularly visit producer and trade organizations and report back to FLO-CERT. All certification decisions are then taken by a Certification Committee, comprised of stakeholders from producers, traders, national labelling organisations and external experts. An Appeals Committee handles all appeals.

FLO-CERT inspections and certification follow the international ISO standards for product certification bodies (ISO 65).