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.
- 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 FLO and what does it do?
TransFair Canada is a member of FLO (Fairtrade Labeling Organizations International). Our co-members are 19 other national Labelling Initiatives and three Producer Networks. Together, the members of FLO are responsible for producing or promoting Fair Trade Certified products around the world. We are also responsible for decision making within FLO, for example at the annual General Assembly. FLO owns FLO-CERT, an independent, ISO 65 accredited certification company that provides certification services in over 70 countries. FLO is responsible for the international coordination of international Fair Trade standards, support for producers around the world, a global Fair Trade strategy, and the promotion of trade justice internationally.
- What is TransFair Canada and what does it do?
TransFair Canada is a national, nonprofit Fair Trade certification organization, and the only Canadian member of the Fairtrade Labelling Organizations (FLO) International. We are engaged in certifying Fair Trade products in Canada, licensing Canadian companies to use the Fair Trade certification marks on their products, and promoting Fair Trade 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 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.