For small-scale producers: Fairtrade standards require an organisational structure that brings scale and allows the producers to bring a product to the market. All members of the organisation need to have access to democratic decision-making processes and be able to participate in the activities of the organisation as much as possible. The organisational set-up must be transparent for the members and must not discriminate against any particular member or social group.

For hired labour organisations: The Fairtrade Standards require companies to uphold social rights and security for its workers. Core elements are: training opportunities, non-discriminatory employment practices, no child labour, no forced labour, access to collective bargaining processes and freedom of association of the workforce, conditions of employment exceeding legal minimum requirements, adequate occupational safety and health conditions, and sufficient capacity and facilities for the workforce to manage the Fairtrade Premium.

Fairtrade Standards require buyers to pay a Fairtrade Minimum Price where applicable and a Fairtrade Premium. The Fairtrade Minimum Price aims to help producers cover the costs of sustainable production. The Fairtrade Premium is money for the producers or for the workers on a plantation to invest in improving their businesses and communities. Premium funds are meant to improve the situation of workers, farmers and local communities in health, education, environment, economy, and other areas. The farmers or workers decide the most important priorities for themselves and manage the use of the Fairtrade Premium.

Fairtrade standards also require buyers to give a financial advance on contracts, called pre-financing, if producers request it. This is to help producers to have access to capital to pay farmers during harvest times, and be able to invest in timely projects. This promotes entrepreneurship and innovation, and can assist the economic development of entire rural communities.

Fairtrade also offers voluntary pathways for companies to invest more in producers reaching living incomes and living wages, through living income and living wage reference prices, projects focused on income diversification, productivity, and more. These are voluntary but increasingly chosen by leading brands….

Fairtrade standards include requirements for environmentally sound agricultural practices. The focus areas are: forest protection and deforestation prevention; climate change risk assessment and adaptation; environmental due diligence; minimised and safe use of agrochemicals; proper and safe management of waste; biodiversity; soil health; water protection and efficient water use; and no use of genetically modified organisms.

Fairtrade standards do not require organic certification, however organic production is promoted and is rewarded by higher Fairtrade Minimum Prices for organically grown products. Fairtrade also supports and incentivises agroecology principles to transition to more resilient farming practices and implement climate change adaptation plans.

Fairtrade Standards incorporate human rights and environmental due diligence (HREDD) requirements. For instance, farmers and workers must be informed about their rights, especially women, young people and vulnerable populations. Producer organisations must have gender policies that outline rights and opportunities for women. Our standards prohibit child labour and forced labour as defined by the International Labour Organization’s (ILO) conventions, and require producers to have monitoring and remediation systems in place. The standards also require producer organisations to have confidential channels and systems to manage and remediate allegations of sexual harassment, workplace violence, and other violations. Traders are required to support producers with their human rights efforts, whether technically or financially.

Members must be small-scale producers. The majority of the members of the organisation must be smallholders who don’t depend on hired workers all the time, but run their farms mainly by using their own and their family’s labour.

Democracy. All members have a voice and vote in the decision-making process of the organisation. Members also decide collectively how to use the Fairtrade Premium, the extra sum of money paid on top of the selling price, to best suit their needs.

Enabling strong producer organisations. The standards provide a framework for small-scale producers to build resilient and inclusive organisations, improve their farming performance, and generate more benefits for their members and their communities.

Management of the Fairtrade Premium – The Fairtrade Premium Committee, made up of workers, is responsible for the management of the Fairtrade Premium in accordance with Fairtrade standards.

Freedom of association and collective bargaining – Workers have the right to join an independent union to collectively negotiate their working conditions.

Working conditions – Working conditions are equitable for all workers. Salaries must be equal or higher than the regional average or than the minimum wage. Health and safety measures must be established in order to avoid work-related injuries.