Help for Farmers

Socially conscious shoppers look for the fair-trade label. But what does it mean?

You've probably come across the "Fair Trade Certified" logo while browsing the grocery store aisles — and if you're like most shoppers, you probably aren't quite sure what it means.

U.S. consumers bought some $1.2 billion in fair-trade products last year, but only 29 percent know what fair trade is, said Stacy Wagner, director of media and public relations for TransFair USA, the leading third-party certifier of fair-trade products in the U.S.

"It's the most successful program that no one's ever heard of," Wagner said.

Awareness is spreading as more products become fair-trade certified, a program that ensures farmers receive a living wage, work under ethical conditions and invest in their businesses and communities. A decade ago coffee was the only fair-trade commodity, but now there are more than 6,000 fair-trade certified products available in the U.S., including tea, bananas, rice, wine and olive oil. The offerings continue to expand, with clothing and spirits debuting this year.

Ben and Jerry's became the biggest brand to go 100 percent fair trade when earlier this year it announced that by 2013 every ingredient in its products that can be fair-trade certified will be.

Here's how fair trade works: Farmers form a co-op and agree to abide by fair-trade standards, which include using sustainable farming methods and providing safe working conditions. In return, buyers guarantee a minimum fair-trade price that protects farmers from plunges in the market price, plus a social premium used for community development projects picked by the democratically elected co-op leadership. There's an additional premium for organic products. TransFair — the only third-party organization in the U.S. certified by Fairtrade Labelling Organizations, the international group that sets the fair-trade standards — audits the process to verify that everyone is complying with the rules, and it bestows the label.

The fair trade mission is to help farmers lift themselves out of poverty. TransFair estimates that since it started certifying in 1998, farmers have received almost $200 million more than they would have without fair-trade status.

Consumers generally have to pay more for fair-trade products as a result, but it's not always obvious when you look at the supermarket shelf: A fair-trade product often bears the same price as its non-fair-trade peers, but it comes in a smaller container.

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