Producer Standards

The problems experienced by producers and workers in developing countries differ greatly from product to product. The majority of coffee and cocoa, for example, is grown by small farmers, working their own land and marketing their produce through a local co-operative. For these producers, receiving a minimum price for their beans may be more important than any other aspect of a fair trade. Most tea, however, is grown on estates. The biggest concern for workers employed on tea plantations is likely to be fair wages and decent working conditions. To address these realities there are two sets of Fairtrade Generic Standards.

Generic producer standards for small farmers' organizations:

This standard applies to small farmers organized in co-operatives or other organizations with a democratic, participative structure.

 
For more information on this topic, please see our explanatory documents.

Generic Standards for Hired Labour Situations:

This set of standards applies to organized workers, whose employers pay decent wages, guarantee the right to join trade unions and provide good housing when relevant.

If you would like to have more information on this topic, please see our explanatory documents.

Additional Standards and Rules producers must comply with:

1) Fairtrade Producer Standards are limited to a certain scope of countries defined by FLO. Only producers located in these countries can apply for Fairtrade Certification.

2) Producers also have to comply with standards specific to their products.

 

3) As part of the Generic Standards, there is a list of prohibited materials that Fairtrade Certified producers cannot use for their production. 

 

4) For cotton in India and Pakistan and rice in India, Contract Production Standards are also applicable:

Standard Principles - The following Fairtrade Standards principles are conisdered in all Fairtrade Standards applicable to small farmers and workers and their organizations:

Fairtrade Standards distinguish between minimum requirements, which producers must meet to be certified, and progress requirements that encourage producer organisations to continuously improve in all standard's areas and to invest in the development of the organizations and their producers/workers. This concept is developed for the target group of Fairtrade; disadvantaged producers. It encourages sustainable, social, economic and environmental development of producers and their organizations.

If you want to find out more about Fairtrade Standards for Small Farmers and/or for Hired Labour situations, you can read our Explanatory Documents.

 

1) Social development: For small farmers Fairtrade Standards require an organizational structure that allows the farmers to actually bring a product to the market. All members of the organization need to have access to democratic decision-making processes and as far as possible participate in the activities of the organization. The organization needs to be set up in a transparent way for its members and must not discriminate any particular member or social group.

For hired labour situations the Fairtrade Standards require from the company to bring social rights and security to its workers. Some of the core elements are: training opportunities, non discriminatory employment practises, no child labour, no forced labour, access to collective bargaining processes and freedom of association of the workforce, condition of employment exceeding legal minimum requirements, adequate occupational safety and health conditions and sufficient facilities for the workforce to manage the Fairtrade Premium.

2) Economic development: For all products Fairtrade Standards require the buyers to pay a Fairtrade Minimum Price and/or a Fairtrade Premium to the producers. The Fairtrade Minimum Price allows the producer to cover the costs of sustainable production. The Fairtrade premium is money for the farmers or for the workers on a plantation to invest in improving their livelihood. Premium money in this sense is meant to improve the situation of local communities in health, education, environment, economy etc. The farmers or workers decide themselves on what are the most important priorities for them and manage the use of the Fairtrade Premium.

Also, Fairtrade Standards require buyers to give a financial advance on contracts, called pre-financing, if producers ask for it. This is to help producers to have access to capital and so overcome what can be one of the biggest obstacles to their development. This promotes entrepreneurship and can assist the economic development of entire rural communities.

3) Environmental development: Fairtrade Standards include requirements for environmentally sound agricultural practises. The focus areas are: minimized and safe use of agrochemicals, proper and safe management of waste, maintenance of soil fertility and water resources and no use of genetically modified organisms. However, Fairtrade Standards do not require organic certification as part of its standards. Higher costs for organic production are considered though, by higher Fairtrade Minimum Prices for organically grown products.

 
Besides these common principles, there are Fairtrade Standards specific principles only for small farmer organizations and Fairtrade Standards specific principles only for hired labour situations.