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One of the big virtues of the Fairtrade
Labelling System is the generation of financial resources through
trade that help producer organisations and workers to produce and
live in a sustainable way.
The Trade Auditing System of FLO makes sure that the certified producer
organisations actually receive the revenues for their products sold
under the Fairtrade Label:
• The Fairtrade Minimum Price, that covers the cost of sustainable
production.
• The Fairtrade Premium, that allows investments in the social
and economical development of the producer organisations.
Details are fixed in the Fairtrade
Standards.
All FLO registered traders are obliged to regularly report their sales
figures to FLO-Cert. The auditing of the trade chain from the producer
organisations in the South to the Licensees in the North is done by
a combination of desk-top checking of the reports, on-site spot checks
at traders and external audits. |
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