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What is the Fairtrade premium?

It’s what makes Fairtrade unique. It’s an additional sum of money paid on top of the Fairtrade minimum price that farmers and workers invest in social, environmental and economic developmental projects to improve their businesses and their communities. They decide democratically by committee how to invest the premium. Read more about how the Fairtrade Premium works.

How Fairtrade is funded

The Fairtrade Foundation receives a licence fee, paid by companies using the FAIRTRADE Mark on their products, which constitutes over 85% of the Fairtrade Foundation’s income. The licence fee covers the cost of monitoring and certification which underpins the independent guarantee offered by the FAIRTRADE Mark. Donations from passionate supporters of Fairtrade, as well as grants from organisations working with us to make trade fairer, are an essential part of the Fairtrade Foundation’s income, making up between 10-20% of our income. We receive grants from DFID (Department for International Development), the European Commission, Comic Relief, and a host of other grantmakers. We also receive donations from individual supporters, schools, faith groups, workplaces, Fairtrade Towns and other community organisations. Breakdown of Fairtrade Foundation funding - Licensee fee from Fairtrade certified products: £10.09m - 86% - Grants and donations: £1.54m - 13% - Other income £0.13m - 1% Major current funders of the Fairtrade Foundation include the following organisations: European Commission, Department for International Development, Traid, and Comic Relief. The following organisations also provide financial support to the Fairtrade Foundation: Shared Interest Foundation, Souter Trust, SMB Charitable Trust, Tinsley Trust, Paget Trust.

What is the Fairtrade Foundation?

The Fairtrade Foundation is the independent non-profit organisation that licenses use of the FAIRTRADE Mark on products in the UK in accordance with internationally agreed Fairtrade standards. The Foundation is the UK member of Fairtrade International, which unites over 20 labelling initiatives across Europe, Japan, North America, Mexico and Australia/New Zealand as well as networks of producer organisations from Asia, Africa, Latin America and the Caribbean.

What is the Fairtrade minimum price?

The Fairtrade minimum price defines the lowest possible price that a buyer of Fairtrade products must pay the producer. The minimum price is set based on a consultative process with Fairtrade farmers, workers and traders and guarantees that producer groups receive a price which covers what it costs them to grow their crop. When the market price is higher than the Fairtrade minimum price, the trader must pay the market price.

What is the FAIRTRADE Mark?

It’s an independent consumer label you see on a product that meets the international Fairtrade standards. It shows that the product has been certified to offer a better deal to the farmers and workers involved. It does not endorse an entire company’s business practices. Read more about the FAIRTRADE Mark.

Who is Fairtrade International?

Fairtrade International (formally known as Fairtrade Labelling Organisations International - or 'FLO') is the international body made up of the Fairtrade Foundation and its partner organisations around the world. We’re proud to say it’s 50 per cent owned by the farmers and workers it works for. Fairtrade International is in charge of developing Fairtrade standards for products, supporting farmers and workers, and operating global certification and auditing systems. Fairtrade International is based in Bonn, Germany, and is composed of two separate organisations:   1. Fairtrade International eV. is a non-profit multi-stakeholder association. FLO develops and reviews international Fairtrade standards and supports farmers and workers to make the most of market opportunities. Read more about Fairtrade International. 2. FLO-CERT GmbH is a limited company in charge of the inspection and certification of farmers, workers and traders. It operates independently of any other interests, and follows the international ISO standard for certification bodies (ISO 65). Read more about FLO-CERT GmbH.

What is a Fairtrade registered licensee?

It’s a company that has signed a Licence Agreement with the Fairtrade Foundation and is therefore entitled to apply the FAIRTRADE Mark to specific products covered by the agreement. Find out how to become a Fairtrade Registered Licensee.

What is a Fairtrade certified producer group?

This is either an association of farmers or a company dependent on hired labour that produces one or more commodities for which there are Fairtrade standards and that has been certified to meet those standards. Once certified, they are added to the Fairtrade product register and registered companies can buy from them under Fairtrade terms. Some Fairtrade certified producer groups are able to sell their entire production under Fairtrade terms, while others sell only a very small percentage and badly need more buyers to offer a Fairtrade deal. It is only by increasing the amount sold as Fairtrade that producer groups are able to receive a steady stream of additional income to improve their lives.

What are Fairtrade standards?

Fairtrade standards comprise both minimum social, economic and environmental requirements, which producers must meet to be certified, plus progress requirements that encourage the continuous improvement of farmers’ organisations or the situation of estate workers. Read more about the standards.

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