• Overview

The term “Fairtrade” refers to a movement that advocates payment of a just price to developing-world producers of agricultural and related products, such as bananas, cocoa, coffee, cotton, flowers, fresh fruit, rice, herbs and spices, sugar, tea and wine. 
 
From its roots in the 1980s, Fairtrade has evolved into an organized and highly trusted labeling system recognized by socially conscious, and increasingly mainstream, consumers. Despite the global economic downturn, the FLO reported a 22% rise in worldwide sales of Fairtrade labeled products, with annual sales of over $4 billion (USD) for 2008. Fairtrade consumers are focused in the US and Canada, Europe, Australia and New Zealand, and East Asia - most prominently Japan, where sales rose by 44% in 2008. Other growing markets are South Africa and Mexico. 

The FAIRTRADE Mark is owned by the Fairtrade Labelling Organizations International (FLO), based in Bonn. FLO members sub-license the use of the FAIRTRADE Mark in their countries, while FLO International sub-licenses the FAIRTRADE Mark to companies where there are no national Labelling Initiatives.

• Role of the standards within the market

Prior to the early 2000s, Fairtrade products were a small niche in the market, often sold by single unit, ethical and new age stores.  This has now radically changed and the FAIRTRADE Mark has become essential for doing business in many markets - bananas and coffee retailing/serving in North America and Europe in particular.  It may soon become a necessity for selling all food, flowers and cotton goods from the developing world into the higher end of these markets too. There are currently over 6000 Fairtrade-certified products from 59 countries available to consumers.
 
Recognizing market and reputation value, more and more global brands are introducing Fairtrade ethics into their procurement policies. Big names such as Starbucks, Ben and Jerry’s, Candico Sugar and Cadbury’s chocolate have started incorporating Fairtrade-certified ingredients into their mainstream products, setting targets to increase their use and actively promoting these activities to improve their public images. Leading retailers such as Tesco (UK) now have their own range of Fairtrade products. 

• Leading standards

There are currently 19 Fairtrade Labelling Initiatives covering 23 countries around the world and a variety of product-specific standards are set by FLO. However, there are only two Fairtrade labels, one for North America and another for the rest of the world. Both involve third party certification by an authorized member of FLO. The Fair Trade Certified Mark is in use in the US and Canada but will gradually be replaced by the International FAIRTRADE Certification Mark.

Rather than competing, these labels are recognized by consumers in their respective regions.  In order to display either Mark on products, retailers and producers must ensure the source of production has undergone an FLO-authorized certification process involving a third party audit of the production facilities and distribution and supply chains.