Fairtrade certification explained: what it means and why it matters

When you’re at the supermarket, you might have spotted a blue-and-green Fairtrade label on your bag of coffee and wondered, Is this a better choice? That familiar Fairtrade logo features on lots of products in the store, from tea and coffee to bananas and rice, but what does it really mean? And why is it on some products, but not on others? Let’s take a look at what Fairtrade means, so that next time you find a product with a Fairtrade label, you’ll know exactly what you’re getting and what the label stands for.

What are ethical labels?

Ethical food labels are special stickers or symbols you see on products that tell you something important about how the food was made. They're like badges that show companies have followed certain rules to protect people, animals, or the environment. Some labels focus on making sure farmers get paid fairly (like Fairtrade), others promise that animals were treated kindly (like RSPCA Assured), and some guarantee sustainable farming practices were used (like Organic). You might also see labels about protecting rainforests, using less water, or making sure workers have safe conditions. These labels exist for those of us who want to know their food choices aren't hurting anyone or anything. While the labels aren't perfect and sometimes cost more, they give us a way to support companies trying to do better.

What is Fairtrade?

Think about a chocolate bar for a second. Someone had to grow the cocoa beans, someone else had to turn them into chocolate, and then someone brought it to your local shop. That's a lot of people!

Fairtrade is a certification system that promises that the product you're buying was made fairly. It means everyone involved, from the farmers to the workers, was treated and paid fairly and worked in safe conditions. It’s about fairness in the whole journey from farm to shop. Fairtrade works in two simple ways to help farmers.^{1 2}

• Minimum price: This is like a safety net. It promises that farmers will always get paid a certain minimum amount, even when the price drops on world markets. This helps them cover their costs, plan for the future and live better.
• Premium: Second, it gives extra money that helps the farmers’ community. The premium is bonus money that doesn’t go to individual farmers, but into a shared pot for the whole community. They might fix a broken well so everyone has clean water, build a new school for the children, or buy better farming tools that everyone can share.

So, let's look at how the Fairtrade system works.

How does a product become Fairtrade

When you pick up a Fairtrade-certified product, such as a packet of rice or a box of tea, you might notice it costs a bit more. The reason for the premium price is to ensure the money is distributed more fairly to all the people working in the farming and production of the product. Here’s how the system works:²

Farmers join Fairtrade

First, farmers or farmers cooperatives (groups of farmers) decide to join Fairtrade. For example, coffee growers in countries like Costa Rica and Nicaragua and cocoa farmers in countries such as the Ivory Coast and Ghana. The key reason these farmers join Fairtrade is the promise of a fair price for their goods. 

Independent checks happen

Independent inspectors come to check that the farmers are following these rules. This provides transparency and keeps the Fairtrade label trustworthy. 

Certified trading only

Fairtrade doesn’t just cover farmers. It also applies to the exporters, the manufacturers (who transform the raw beans into the finished chocolate and coffee) and the sellers. Farmers sell their products to traders and buyers who are also Fairtrade certified. Everyone who handles the product from farm to shop must be certified, creating a “clean” chain from farm to factory to shop.

The label appears

When all these steps are done, the product earns the right to carry the Fairtrade label. That’s the badge you see on the bag of coffee beans or the chocolate bar you see at your local supermarket.

What does this mean for you?

When you see a Fairtrade product on the shelf and you can afford to pay a bit extra for it, it’s a great way to help farmers around the world. Every Fairtrade purchase sends a message that you care about farmers being treated fairly. But if Fairtrade products cost too much for your family’s budget, don’t worry or feel bad about it. Lots of changes will need to come from big companies, governments, and the whole trading system working together to make things fairer for everyone. 

Fairtrade is not flawless, but it’s a start

Not all ethical products are Fairtrade, and not all Fairtrade products are perfect. Several reports and studies have shown that Fairtrade has genuinely helped farmers and their communities.¹³

Farmers get more say in how much they’re paid, they keep more of the money from their crops, and that extra premium money creates real improvements in their villages. But like any system trying to do good, Fairtrade isn’t perfect. Here are the most common challenges: 

Fairtrade doesn’t always mean more money

You might think that if a farmer has a Fairtrade certificate, they’ll automatically get paid more. But that’s not always true. Farmers only get paid when companies choose to buy their products. If demand is low, farmers have to sell at regular market prices.³

It costs money to stay Fairtrade

To keep their Fairtrade certificates, farmers have to pay for inspections. These checks are important so that everyone trusts the Fairtrade label. But for farmers, these costs can be a huge burden, especially when they are already struggling to keep their farms going.¹⁴

It’s hard when the group gets big

Fairtrade wants to help as many farmers as possible, but sometimes this causes problems. If too many farmers grow the same Fairtrade crop, and there are not enough companies to buy it, farmers might not end up selling their product as Fairtrade. This means that even though farmers have followed the Fairtrade standards, they might miss out on fair prices and the benefits that come with certification. It’s a tricky balance between expanding work for farmers and making sure there is enough demand to meet the supply.⁷

Workers don’t always earn enough

Farm workers on Fairtrade farms must get at least the legal minimum wage in their country, but this isn’t always enough to live well. It might not cover housing, food, or healthcare. Sometimes, small farmers can’t pay their workers more, as they don’t earn that much themselves.²

Sometimes children still work

Even though Fairtrade rules say no child labour, it’s not always the case. In 2020, journalists found children working on a Fairtrade cocoa farm. Fairtrade inspectors usually warn farms before visiting, so farmers may hide problems.⁵ Some farmers can’t afford to hire adult workers during busy harvest times, so they ask their children to help. It’s not because they don’t want to send their children to school – it’s because they have no other option. Fairtrade works with farmers to try and stop child labour and find better solutions. But it’s not always easy.

Why Fairtrade matters

Fairtrade farmers make up only a tiny fraction of small-scale farmers worldwide. That means the vast majority of small farmers have no system in place to guarantee fair prices or decent treatment for workers. Most of the time, when farmers have been asked directly, they said that Fairtrade has made their lives better, even if it’s not a perfect system.⁶

Choosing Fairtrade products is a way to stand with farmers and workers around the world. Every time you pick up a Fairtrade banana, chocolate bar, or tea, you’re helping to build a fairer, kinder food system. You’re supporting communities to invest in schools, clean water, and better futures. 

And while no system is perfect, having some system in place does help farmers and their communities gain a stronger voice, better pay, and opportunities to improve systems. Our support, even in small ways, helps keep this progress moving forward.