Fair Trade 101: Everything you need to know about ethical trade
Image: Common Good Coffee, who’s profits go towards supporting community development in Kolkata, India.
While browsing for ethical products online or in supermarkets, you might have come across the terms Fairtrade, Fair Trade, or fairly traded.
We know these sound very much like the same thing and are sometimes used interchangeably, but there’s actually a distinction between each one.
So what exactly do they mean?
Is the higher price tag placed on Fair Trade goods worth it? More importantly, does it truly make an impact on the lives of producers around the world?
To help navigate these questions and wrap your head around the tricky definitions, we’re breaking down the basics of Fair Trade for you!
Fairtrade is…
Fairtrade products are easily recognised by the blue and green trademark you see on many brands and products, including coffee, chocolate and bananas. You can trust that these products are ethical, and here’s why.
Products with the Fairtrade Mark have met rigorous internationally agreed standards and have been independently certified. In Australia and New Zealand, Fairtrade Australia New Zealand helps certify and audit brands and products.
As a global organisation, 50% of Fairtrade is owned by producers, farmers and worker organisations!
The blue and green Fairtrade certification lets you know that your products are ethically made or sourced.
With an equal voice, producers have a say in decision-making from the ground level right up to Fairtrade International’s Board of Directors. This includes decisions on overall strategy, use of resources and setting prices, premiums and standards.
We absolutely love this about Fairtrade!
When you buy a Fairtrade product, you can know that farmers are guaranteed a Minimum Price for their crops, providing stability and safety.
Farmers and workers also receive a Fairtrade Premium, an extra sum of money, on top of the minimum price, that farmers and workers receive with every sale.
The majority of Bennetto Natural Food’s cocoa is now sourced from Acopagro, a Fairtrade cooperative at the base of the Amazon Jungle in Peru.
The Fairtrade Standards are the cornerstone of Fairtrade. They ensure fair terms of trade between farmers and buyers, protect workers’ rights, and empower producers to build thriving farms, organisations and communities.
Traders are also covered by these standards, which shows you how much commitment brands and businesses make to ensure that their supply chains and operations are ethical.
Fair Trade is…
Fair Trade (two words) refers to a general movement that aims to minimise poverty and create opportunities for disadvantaged workers by encouraging and promoting fairer trade.
That means enabling workers to create their own sustainable livelihoods through stable employment, regular income, better working conditions, and more direct access to markets.
All Good Bananas believe that Fairtrade and organic shouldn’t be exceptions, they should be the rule.
Fair Trade members are businesses and organisations who support and promote the Fair Trade movement and vision.
While there is no official certification of products, Fair Trade members’ business and trading practices are guided, monitored and endorsed by the World Fair Trade Organisation (WFTO). They set the standards with The 10 Principles of Fair Trade, which members must adhere to.
In New Zealand, the WFTO is represented by The Fair Trade Association (FTA of Australia and New Zealand ).
Learn more about The Fair Trade Association
The WFTO 10 Principles of Fair Trade are:
Opportunities for economically disadvantaged producers.
Transparency and accountability.
Fair Trade practices
Fair payment
No child labour, no forced labour
Non-discrimination, gender equity and freedom of association
Good working conditions
Capacity building
Promote Fair Trade
Respect for the environment
Learn more about the 10 Principles of Fair Trade here.
View The WFTO 10 Principles of Fair Trade
We think these are excellent principles, and they align with our very own fair&good values.
Fairly traded is…
Unlike Fairtrade and Fair Trade, fairly traded is an unregulated term. Brands use this general term to refer to ethical trade, the fair trade movement, or any trading based on the principle of being 'fair' to producers.
It’s absolutely possible for a brand to be ethical without having Fairtrade certification. Some smaller initiatives, for example, may not have the size or resources to qualify for Fairtrade certification.
However, it’s important to double-check with these brands to find out what really makes their products “fairly traded”.
Ethical brands are always transparent about their claims, so you should be able to find out as much information as you can from their website. If not, feel free to get in touch and ask them:
How are their products “fairly traded”?
Can their supply chain be traced back to its original source?
How do they ensure that their supply chain is monitored and that their makers/ farmers are being treated fairly?
Building empowered communities
While fair wages are an essential part of Fair Trade, the benefits go far beyond dollars and cents.
Yes, Fair Trade products may seem more expensive next to their conventional counterparts.
But in reality, these products are competitively priced and often cut out the middlemen so that a greater percentage of the money can go to the producers.
Every dollar you spend on Fair Trade products goes towards breaking the perpetual cycle of poverty and inequality in developing nations.
Fair Trade creates an independent and sustainable lifestyle for vulnerable communities around the world. It facilitates a dialogue based on transparency and partnership between consumers, businesses, and makers. It fosters respect for producers from all walks of life.
And we believe it absolutely makes a difference.
Karma Drinks live up to their name and their Fairtrade certification. To date, they have sent 133 girls to school!
How can you get involved?
The best way to support the Fair Trade movement is to vote with your dollars!
As a consumer, you have the power to make a difference by choosing brands that are ethical, transparent, and doing good things for people and the planet.
We are proud to partner with so many amazing Kiwi brands that live up to these principles.
When you browse our directory, you’ll come across brands that are certified Fairtrade, Fair Trade or fairly traded.
But don’t worry, we’ve done the research to guarantee that each of our brand partners is truly ethical, so you don’t have to!
Shop ethical brands that live up to your values here.
When you buy Fair Trade from brands like Trade Aid, you’re supporting hundreds of small-scale farmers and artisan around the world.
