FAQ Report (General)
The Fair Trade 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 producers and traders and guarantees that producers receive a price which covers the cost of sustainable production. When the market price is higher than the Fairtrade minimum price, the market price is payable.
The Fair Trade premium is paid on top of the Fairtrade minimum price that is invested in social, environmental and economic developmental projects, decided upon democratically by a committee of producers within the organisation or of workers on a plantation.
You can visit FLO's website to view a database of Fair Trade minimum prices and premiums.
There is no need to become a licensee unless your company plans to repackage and manufacture product on-site.
However, as a retailer, if you would like to tell consumers that you offer Fair Trade Certified products in your location, you may sign up your location on our website: Fair Trade Finder.
If you would also like to promote your products by using the logo on your own POS materials, flyers, in store signage, you can sign a "promotional partner agreement" with us in order to commence this relationship.
TransFair Canada contributes to the success of the international Fair Trade Certification system by:
- Promoting the benefits of Fair Trade Certification to Canadians;
- Developing a strong, diverse market for Fair Trade Certified Products within Canada;
- Building trust in the Fair Trade Certified mark through a rigorous certification and licensing process;
- Working with like-minded organizations to enhance the fairness and impact of the Fair Trade Certification system.
We have a list of companies registered to sell Fair Trade products posted on our website here: http://transfair.ca/en/business-centre/registered-companies Some, although not all, of these companies sell products through their websites.
You can also use our community-powered Fair Trade Finder to locate Fair Trade Certified products near you: http://transfair.ca/en/fair_trade_finder
FLO's members include 19 Labelling Initiatives, 2 Marketing Organizations, and 3 Producer Networks:
Fair Trade Labelling Initiatives:
AUSTRALIA: Fairtrade Labelling Australia and New Zealand
AUSTRIA: Fairtrade Austria
BELGIUM: Max Havelaar Belgium
CANADA: TransFair Canada
DENMARK: Fairtrade Mærket Danmark
ESTONIA: Fairtrade Estonia
FINLAND: Fairtrade Finland
FRANCE: Max Havelaar France
GERMANY: TransFair Germany
IRELAND: Fairtrade Mark Ireland
ITALY: Fairtrade TransFair Italy
JAPAN: Fairtrade Label Japan
LATVIA: Fairtrade Latvia
LITHUANIA: Fairtrade Lithuania
LUXEMBOURG: TransFair Minka Luxembourg
THE NETHERLANDS: Stichting Max Havelaar Netherlands
NEW ZEALAND: Fairtrade Labelling Australia and New Zealand
NORWAY: Fairtrade Max Havelaar Norway
SPAIN: Asociación del Sello de Comercio Justo
SWEDEN: Fairtrade Sweden
SWITZERLAND: Max Havelaar Stiftung
UK: The Fairtrade Foundation
USA: TransFair USA
Fairtrade Marketing Organizations:
SOUTH AFRICA: Fairtrade Label South Africa
CZECH REPUBLIC: The Czech Fair Trade Association
Producer Networks:
African Fairtrade Network (AFN)
Coordinator of Fairtrade Latin America and the Caribbean (CLAC)
Network of Asian Producers (NAP)
- What is Fair Trade?
Fair Trade is about making changes to conventional trade, which frequently fails to deliver on promises of sustainable livelihoods for people in the poorest countries in the world. It seeks to change the terms of trade for the products we buy - to ensure the farmers and artisans behind those products get a better deal. This includes fair prices, social and economic premiums, fair and safe labour, environmental sustainability, access to credit, and long-term contracts for producers.
- What is Fairtrade Canada and what does it do?
Fairtrade Canada is a national, nonprofit Fair Trade certification organization, and the only Canadian member of the Fairtrade International (FLO) . We are engaged in certifying Fair Trade products in Canada, licensing Canadian companies to use the Fairtrade certification marks on their products, and promoting Fairtrade certified products.
- How do I know if a product is Fair Trade Certified?
The Fair Trade Certified Mark appears on Fair Trade products that have been independently Fair Trade Certified. Different labels have been used around the world over the years, and the two most often found in Canada today are below. In order to ensure that a product is Fair Trade Certified, look for these labels on products wherever you shop:
- What is Fairtrade International (FLO) and what does it do?
Fairtrade Canada is a member of Fairtrade International (formerly known as the Fairtrade Labeling Organizations International (FLO)). Our co-members are 19 other national Labelling Initiatives and three Producer Networks.
Together, the members of Fairtrade International are responsible for producing or promoting Fairtrade certified products around the world. We are also responsible for decision making within the organization, for example at the annual General Assembly.
Fairtrade International owns FLO-CERT, an independent, ISO 65 accredited certification company that provides certification services in over 70 countries. Fairtrade International is responsible for the international coordination of Fairtrade standards, support for producers around the world, a global Fairtrade strategy, and the promotion of trade justice internationally.
- What is a Fair Trade Town?
The Fair Trade Towns campaign is an exciting initiative that allows communities to support Fair Trade at the local level. The campaign increases the availability and awareness of Fair Trade Certified. In Canada, the movement is still young. The first city to be awarded Fair Trade Town status was Wolfville, Nova Scotia, on April 17, 2007. Since then, additional cities such as La Peche, Quebec, Gimli, Manitoba and Golden, British Columbia have joined in, allowing Fair Trade Towns to stretch from coast to coast. There are currently 10 Fair Trade towns in Canada.
Click here to view the list of Fair Trade towns and learn more about the campaign
- How much are your promotional products?
- If cafes buy coffee from wholesale roasting companies and re-bag for retail sale, how do I check that the coffee is Fair Trade?
- Where did Fair Trade begin?
Fair Trade started around the 1950s as a partnership between non-profit importers and producers, as a way of alleviating poverty in poorer countries. Over the years, more and more Alternative Trade Organisations (ATOs) were created in different countries, often closely linked to development organizations and World Shops. These networks of ATOs and World Shops played a vital role in the development of Fair Trade as we know it today. In 1988, in an effort to expand the distribution of fair trade products to mainstream retailers, a Dutch ATO created a label called Max Havelaar.
The concept caught on: similar organizations such as TransFair Canada emerged in an effort to create fairer trading conditions for producers of different products. The organizations created and launched their own campaigns and Certifications Marks independently. Already working together, these Fairtrade Labelling Initiatives formed Fairtrade Labelling Organizations International (FLO) in 1997.
There are two great places where you can read more about the origins of Fair Trade:
World Fair Trade Organization (WFTO): Where did it all begin?
FLO: FAQs (See "How was Fairtrade labelling created?")
- Who decides to make my town a Fair Trade Town?
You do! We invite you to join the movement by supporting the campaign already underway in your town, or by starting one yourself.
To get started, have a look at our Fair Trade Towns pages for all the details on how to become a Fair Trade Town.
- How do producer organizations become Fair Trade Certified?
FLO-CERT is responsible for the inspection and certification of producer organisations against Fair Trade standards. Details of the application process and how the system works can be found on their website.
- What are the Fair Trade standards?
Fair Trade standards comprise both minimum social, economic and environmental requirements, which producers must meet to be certified, plus progress requirements that encourage continuous improvement to develop farmers’ organisations or the situation of estate workers.There are producer and trade standards.
Producer standards cover organizational transparency, as well as environmental and social norms. There are generic standards for small farmers and for hired labour situations.
The Generic Trade Standards govern the terms of trade for all Fair Trade products. Product specific requirements are found in Part C of the small farmer product specific standards and hired labour product specific standards.
- Where can I find a Fair Trade laptop?
- Do free trade agreement signed between Canada and other countries affect how a product can be Fair Trade certified?
- Are children allowed to work on Fair Trade certified farms?
Whereas child work could loosely equated with safe chores on the family farm, child labour is any work that is hazardous, exploitive or undermines a child’s education or emotional and physical health.
Child labour is strictly prohibited within the Fair Trade certification system. We, and our partner organizations such as FLO, are committed to combating the root causes of child labour and to actively preventing abuse and exploitation of children.
Qualified auditors inspect Fair Trade certified producer organizations on a regular basis to monitor for child labour. If detected, immediate action is taken to address it and to protect the children involved.
In cases of unconditional worst forms of child labour, the certification body will report to an authorized child protection agency and will follow up to ensure the wellbeing of the impacted child. It then suspends or decertifies the Fairtrade producer organization where these worst forms of labour were found until protective and corrective measures are put in place.
Producer organizations must set up internal systems to identify and eliminate child labour within their own communities.
- Do you manufacture _____ products?
- Why are Fair Trade products more expensive than conventional products if their supply chains are shorter?
Also, Fair Trade products are often no more expensive than their non-Fair Trade counterparts, provided you're comparing equivalent products (e.g. similar quality). This is particularly true in more mature Fair Trade markets like coffee and chocolate.
Other factors that can affect price include the size of the market (number of companies selling similar products, the general demand, etc), whether or not a company is able to sell a lot of the products (economy of scale), how much companies think consumers are willing to pay, how much is paid to the producer, and certification costs.
- When did fair trade become popular?
Nearly everyone who hears about Fair Trade seems to think it's great, and every year more Canadians learn about it and buy more Fair Trade products. So, if popularity is based on how much people like something, then Fair Trade's probably been popular since it got started.
But a whole lot of Canadians still don't know what Fair Trade is, which means Fair Trade could become much more popular still. In other countries, such as the UK or Switzerland, Fair Trade can be found everywhere and a significant percentage of the populations of those countries know what it is.
- How many producers does Fair trade impact?