Social · supply chains
Fair trade
Definition
Fair trade is an organised trading approach, built on dialogue, transparency and respect, that seeks greater equity in international trade by securing better terms for marginalised producers and workers. In its certification form — standards set by Fairtrade International and verified by FLOCERT across product categories — producer organisations receive a Fairtrade Minimum Price intended to cover average costs of sustainable production, plus a Fairtrade Premium for investment in social, economic or environmental projects; the system reaches around 1.3–1.9 million farmers and workers in more than 70 countries. Alongside certification, the World Fair Trade Organization recognises mission-led fair-trade enterprises against its 10 Principles of Fair Trade.
References
minimum price + premium mechanics, FLOCERT verification, WFTO principles
minimum price covering production costs, premium funding social projects, farmer/worker reach in 70+ countries
Overview
What it means
Fair trade operates on two tracks: product certification (Fairtrade mark on coffee, cocoa, bananas, cotton and more) and organisational recognition (WFTO). Both rest on the same core bargain — guaranteed floors and premiums plus producer organisation and labour standards in exchange for market access and consumer trust.
How it is used
Used by brands and retailers for ethical sourcing claims, by consumers as a purchasing signal, and by development programmes as a market-based poverty instrument.
Why it matters
It is the most widely recognised consumer-facing mechanism for transferring value back to producers and remains the benchmark against which corporate fair-sourcing claims are judged. **Note:** The standard-setting organisation (candidate 1058) and its product standards (1059) are treated as merges into this entry to avoid organisation-only entries.