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Fairtrade Standard Revisions Aim to Increase Sales, Trader Participation
Expanded transparency and retro-certification policies are among the changes. Expanded transparency, retro-certification and flexible payment policies were included in the changes.
WGB Staff
June 1, 2018
2 Min Read
Expanded transparency, retro-certification and flexible payment policies were included in the changes.Photo courtesy of Fairtrade America
Fairtrade America has unveiled revisions to the Fairtrade Standard for fresh produce, which is designed to expand the window for getting ripe produce to store shelves, make it easier for traders to participate and for producers to increase sales on Fairtrade terms.
Sales of fair-trade produce grew an estimated 51% from 2016-2017, according to Fairtrade America. A recent study by GlobeScan revealed that not only is consumer demand for fair-trade produce growing, but the majority of consumers (64%) are also willing to pay up to 10 cents more per pound for fair-trade certified bananas.
Yet the challenge to ensure that fresh produce is at peak ripeness by the time it arrives on store shelves while also upholding Fairtrade Standards remains at the forefront.
“Fairtrade is about finding the right balance between rigorous standards and accessibility to markets,” said Derek Mulhern, business development manager for Fairtrade America, in a statement. “These new changes can help make markets more accessible while ensuring impact for farmers and workers.”
In an effort to increase transparency and ensure producers are complying with agricultural best practices and food safety requirements, Fairtrade now requires that all fruits—not just bananas, as previously required—indicate packing station, date of packing and identification of small-producer organizations when applicable.
Fairtrade has also revised retro-certification, where now traders can retro-certify fresh produce after a conventional purchase from a certified producer organization. All volumes are required to be reported, especially to producers, and payment of Fairtrade Premiums and any required price adjustments must be made.
Additional changes to Fairtrade Standards include:
Flexible payment: Fairtrade’s new requirement allows payments for produce to be made in one sum to save on transaction costs if the producer organization agrees.
Floor wages: Fairtrade now requires that base wages paid to workers in Fairtrade Hired Labor setups cannot fall below the global poverty line of $1.90 per day, in line with the World Bank’s Purchasing Power Parity rules.
Payment of Fairtrade Premium for wine grapes: Payment terms for the Fairtrade Premium in wine graphs has been extended to 60 days reflecting current business practices.
The Fairtrade Standards are also designed to provide rules on payment terms, flexibility for shortfalls on sales, quality claims and clarification of the different roles throughout the supply chain, offering improved transparency and ensuring mutually beneficial trade terms.
In conjunction with producer organizations, traders, brands and stakeholders worldwide, Fairtrade International routinely reviews and updates standards and pricing policies through in-depth consultations and workshops, whereby changes are then approved by the Fairtrade Standards Committee, which includes representatives from traders, farmers, workers and independent experts.
Fairtrade is the only ethical certification with equal representation for farmers and workers in the general assembly, board and standards committee.
Fairtrade-certified fruits include pineapple, mangos, pomegranate, physalis, passion fruit, cucumbers, green beans, peas, apples pears and berries—as well as bananas and avocados, which are the most popular fair-trade produce.
