Goods that are the result of fair trade can be labelled with a Fairtrade seal. The seal characterises products that have been manufactured in compliance with certain social, ecological and economic criteria. They are usually 0.50 – two euros more expensive than conventional mass-produced goods.

The Fairtrade International organisation is responsible for developing the Fairtrade standards. This organisation is made up of

• national Fairtrade Organisations (NFO),
• Producer networks,
• Fairtrade marketing organisations and
• the Comercio Justo México.

The NFO consists of almost 20 organisations for 24 countries in Europe, North America, Japan, Australia and New Zealand. Companies wishing to label their products with the Fairtrade seal conclude a licence agreement with the relevant NFO in their own country, which is intended to ensure compliance with the standards developed by the organisation. The organisations also take care of public relations work and publicising fair trade in their own countries. While Transfair acts as the NFO in Germany, in Switzerland it is the Max Havelaar Foundation and in Austria Fairtrade.

Fairtrade certificate

If a company wants to sell or purchase fair raw materials, it must have a certificate from FLO-CERT GmbH. FLO-CERT is an independent, international certification body for fair production processes and products.

In order to be able to sell fair products, licence fees must be paid to TransFair e.V.. The fees vary depending on the product and country. In Germany, for example, the following fees apply (as of 2014):

• Cotton products / textiles: 2 per cent of the net retail value
• Coffee: 0.22 euros per kilogramme
• Cocoa / drinking chocolate: 0.16 euros per kilogramme
• Tea: 0.42 euros per kilogramme
• Sports balls: 2 per cent of the net retail value

Licence agreements usually stipulate that the fee is due at the end of the quarter. A more detailed overview of the licence fees for fairly traded products in Germany can be found on the TransFair Germany website.

The criteria and indicators for labelling are

• Long-term and continuous commitment
• Credible commitment
• Innovative role
• Targeted producer support
• Special commitment in retail
• Special commitment to public relations work for the NFO
• Current commitment
• Visions for the idea behind it

You can find more information under Blue Economy.

Image licence: CC BY-SA 3.0, Author: Mikmac7