Fair trade certification

A fair trade certification is a product certification within the market-based movement fair trade. The most widely used fair trade certification is FLO International's, the International Fairtrade Certification Mark, used in Europe, Africa, Asia, Australia and New Zealand. Fair Trade Certified Mark is the North American equivalent of the International Fairtrade Certification Mark. As of January 2011, there were over 1000 companies certified to the FLO International's certification and a further 1000 or so certified to other ethical and fairtrade certification schemes around the world.

The Fairtrade International certification system covers a wide range of products, including banana, coffee, cocoa, cotton, cane sugar, flowers and plants, honey, dried fruit, fruit juices, herbs, spices, tea, nuts and vegetables. These commodities have different locations of production and number of farmers and workers covered for production and distribution.

Fair trade is a strategy for poverty alleviation and sustainable development, aiming at creating greater equity in the international trading system. Through trading partnerships with marginalised farmers and craftspeople in developing countries, social and economic opportunities are created for these producers in a way that more customers are accessible to their products and a better deal is issued. In return, the producers have to comply with all the standards laid down by Fairtrade International.

In reality, packers in developed countries pay a fee to the Fairtrade organisation for the right to use the Fairtrade certification logo. Importers of fairtrade certified products are required to pay exporters a price higher than the market price of non-fairtrade certified products, so as to cover the additional costs used by Fairtrade certified firms in marketing and inspection. Any surplus after paying these costs must be used for local social, environmental and economic projects

Fairtrade Standards are designed to aid the sustainable development of some smaller producers and agricultural workers in third world countries. In order to become certified Fairtrade producers, the cooperatives and their fellow farmers have to strictly comply with the standards laid down by Fairtrade International. FLO-CERT, the for-profit side, is responsible for inspecting and certifying producer organizations in more than 70 countries in Europe, Asia, Africa and Latin America.

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