Fairtrade Standards for Products and Producers
Improving Business Opportunities For Disadvantaged Producers
Oct 28, 2009
Providing development opportunities for developing nations and leveling the playing field, the Fairtrade standards set out the requirements for producers and employees. Three sets of generic Fairtrade standards exist:
- Small Producers’ Organizations;
- Contract Production; and
- Hired Labour.
The Generic Fairtrade Standards are supported by standards for individual products such as coffee, tea, sports balls, wine grapes and fresh fruits and vegetables. Businesses currently incorporating Fairtrade into their supply chain include Starbucks, Dunkin’ Donuts, Safeway and Wal-Mart.
Fairtrade Generic Standard for Small Producers’ Organizations
Small Producers’ Organizations are democratic groups working in co-operative or similar structures in order to produce goods. To be able to achieve Fairtrade certification, these organisations are required to operate in accordance with the Fairtrade Generic Standard for Small Producers Organizations, which incorporates:
- Social development standards including plans to ensure environmental and economic sustainability of projects;
- Socioeconomic development and the Fairtrade premium;
- Environmental Development including impact assessments, use of chemicals and water management; and
- Labour conditions.
Fairtrade Generic Standard for Contract Production Projects
Contract production refers to small producers that do not operate in an organised manner but working an intermediary body to sell products and is applicable only to Indian and Pakistani cotton producers and Indian basmati rice producers. As with the Fairtrade Generic Standard for Small Producers’ Organizations, there are minimum requirements and progress requirements. Collective groups are required to adopt policies and practices in relation to:
- Social development including a requirement for the intermediary to work with producer organisations to form a separate producer legal entity;
- Economic development including Fairtrade premium and a requirement for the intermediary to be able to export and market goods produced;
- Environmental protection requirements; and
- Labour conditions in relation to avoiding the use of forced and child labour.
Fairtrade Generic Standard for Hired Labour
Adopting principles set out in the International Labour Organization, the Fairtrade Generic Standard for Labour Hire requires business to adopt strong corporate social responsibility practices, as well as ensuring that workers:
- are free from forced labour;
- have access to collective bargaining;
- work in a safe and healthy workplace.
Hired Labour organisations are required to create a joint body to distribute the Fairtrade premium monies throughout the community and all workers are entitled to vote for employee representatives to sit on the joint body. Businesses are also required to adopt environmental protection policies and procedures.
Minimum requirements and progress requirements are defined for each section of the generic standards. An organisation needs to meet all of the minimum requirements in order to obtain initial certification as a Fairtrade producer. The progress requirements provide means for organisations to implement continual improvement processes.
Fairtrade Individual Product Standards
The Fairtrade Initiative has created a number of individual product standards for Small Producers’ Organizations and Hired Labour projects. The individual Fairtrade Standards include information on the pricing of the good including the Fairtrade premium. Product standards for Small Producers' Organizations include:
- coffee
- tea
- honey
- herbs and spices
- quinoa; and
- rice.
In the majority of product standards for Small Producers' Organizations, no additional social, environmental or economic development standards are imposed.
Products made using hired labour are subject to individual product standards, which may apply to all producers or only to producers in specific geographic regions. The Fairtrade Standards for Sports Balls and Flowers and Plants are applicable to all producers. In the case of fresh fruit (excluding bananas) and fruit juices, specific requirements relating to Fairtrade certification exist for labour hire operations in Brazil.
The Fairtrade Generic Standards and Product Standards exist to provide a benchmark for certification of Fairtrade projects. The standards set out requirements relating to the social, economic and environmental development of communities in order that the community can obtain sustainability.
Sources
Fairtrade Labelling Organizations International, 2009, Fairtrade Generic Standard for Small Producers’ Organisations
Fairtrade Labelling Organizations International, 2009, Fairtrade Generic Standard for Contract Production
Fairtrade Labelling Organizations International, 2009, Fairtrade Generic Standard for Hired Labour
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