Fair Trade Original acts in accordance with the following fair trade principles:
Offering opportunities to disadvantaged producers Fair trade suppliers are trading partners that procure their products from disadvantaged producers and companies which conduct an explicit social policy. The trading partners, as necessary with Fair Trade Original’s assistance, initiate development within their companies and at their producers and employees. Trading partners with Max Havelaar Fairtrade Seal of Approval certification, where relevant, are assigned priority.
Transparency Accountability: All players in the trading chain are transparent and maintain clear administrative records. The parties inform each other about important developments in the market and within their organization. Chain responsibility: all those involved in the chain bear the responsibility, on the basis of their position in the chain, for the origin of the raw materials, the quality of
the products and production processes and compliance with the fair trade principles.
Fair trade conditions Advance financing: Fair Trade Original offers its partners advance financing of a maximum of 60% of the amount of the order to bridge the period between the acceptance of the order and payment. Long-term trading relationships: Fair Trade Original strives to maintain trading relationships with the organization’s trading partners for a period of at least 5 years, a period required to implement sustainable developments. The trading partners’ (export) expertise is developed gradually, a process which also needs to take account of the occasional relapse. The trading partners are also required to enter into a long-term relationship with their producers and employees. Orders and payments: the purchase and sale agreements concluded within the chain must be understandable and realistic, and must include a explicit specification of the rights and obligations of the parties involved relating to the product (the specifications and
statutory requirements) the price and the delivery date. Deliveries must be paid on time. Development premium: this premium is paid – on top of the purchase price, see below – for products with the Max Havelaar Fairtrade Seal of Approval and an increasing number of food products without the seal of approval. The payment of this premium is subject to the condition that the employer forms a democratic, joint body comprised of the employer and employees to decide on the allocation of the premium fund.
A fair price Fair Trade Original pays the organization’s trading partners a price which is above the cost price. This price must be sufficient to pay the employees an acceptable wage and cover the production and trading costs. This price is set in consultation with the trading partner, in part on the basis of a transparent cost-price calculation. The trading partner in turn negotiates with the producer. When the cost price of a product is structurally excessive then we work with the trading partner on the implementa-
Fair trade The Fairtrade Labelling Organizations International (FLO e-V)1 , World Fair Trade Organization (WFTO) and European Fair Trade Association (EFTA) have adopted worldwide fair trade principles that lay the foundations for the fair trade movement’s operations. Each organization has a specific focus. The Max Havelaar Fairtrade Seal of Approval covers 15 (agricultural) products2. Products containing at least 50% raw materials with fair trade certification may bear this Seal of Approval.
tion of cost savings and efficiency improvements. Self-evidently, Fair Trade Original also works on the control of its own costs. The Max Havelaar Fairtrade Seal of Approval guarantees the payment of a fixed minimum price for the raw materials (coffee beans, oranges, grapes) for a number of foods to ensure than the cost of production is covered in a commercially, socially and environmentally-responsible manner. Fair Trade Original uses the EFTA fair trade assessment for all other products to verify that the employees and producers receive an acceptable wage and that the prices
are set on the basis of a transparent cost-price calculation.
No child labour, no forced labour No child labour: fair trade products are made without child labour, i.e. children below the age of 16. When children help then this may never be to the detriment of their schooling, health, or time to play. The trading partners respect the rights of the child. They can demonstrate that they employ no children. No forced labour: every form of violence, compulsion and slave labour is unacceptable. Should any
Published on Jul 12, 2011