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		ABOUT FLO >> How is the system financed?
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	> Why does FLO exist? > FLO’s Main tasks > FLO's structure >> How is the system financed? > FAQ


	All stakeholders involved make their contribution to cover the costs of FLO’s system. Although still partly externally funded, the biggest part of the cost of FLO’s system is covered by National Initiatives who charge their licensees a fee for using the Fairtrade label. This pays for the National Initiatives marketing expenses and a part is fed back to FLO via National Initiatives’ annual contributions. Licensees registered with the National Initiatives do not pay FLO. A small part of the costs is covered by producer organisations and traders registered with FLO. Producer organisations pay for FLO certification and in addition a yearly fee based on the volume sold under Fairtrade conditions. The traders registered with FLO also contribute based on their total annual turnover. Traders pass on to consumers the higher Fairtrade price and premium that they pay to the producers and the FLO system. The financial flows go all the way back from the consumer who buys the product, to the producer. The impact of Fairtrade in the end always depends on the goodwill and loyalty of the consumer. The higher retail price for Fairtrade produce contributes to the development of the producer organisations. The FLO Certification adds to the empowerment of the organisation by giving the certified organisations access to the international markets and supporting sustainable business. > BACK TO TOP