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Fairtrade certification (Fairtrade, known as Fair Trade Certified in the United States and Canada) is a product certification system designed to allow people to identify products that meet agreed environmental, labour and developmental standards. Overseen by a standard-setting body, FLO International, and a certification body, FLO-CERT, the system involves independent auditing of producers to ensure the agreed standards are met. Companies offering products that meet the Fairtrade standards may apply for licences to use the Fairtrade Certification Mark (or, in North America, the applicable Fair Trade Certified Mark) for those products.
The FLO International Fairtrade certification system covers a growing range of products, including bananas, honey, oranges, cocoa, coffee, shortbread, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea and wine.
In 2008, Fairtrade certified sales amounted to approximately €2.9 billion (US $4.08 billion) worldwide, a 22% year-to-year increase. Sales are further expected to grow significantly in the coming years: according to the 2005 Just-Food Global Market Review, Fairtrade sales should reach US$ 9 billion in 2012 and US$ 20-25 billion by 2020.
Although many attempts to market fair trade products were observed in the 1960s and 1970s, fair trade sales only really took off with the Max Havelaar labeling initiative in 1988 and the establishment of FLO (which included other regional initiatives like it) in 1997. Fair trade sales prior to labeling initiatives were contained to relatively small world shops (also called charity shops), operated by alternative trading organizations (ATOs) such as Oxfam and Traidcraft. Many felt that these world shops were too disconnected from the rhythm and the lifestyle of contemporary developed societies. The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers. The only way to increase sale opportunities was to start offering fair trade products where consumers normally shop, in the large distribution channels. The problem was to find a way to expand distribution without compromising consumer trust in fair trade products and in their origins.
In 2002, FLO launched a new International Fairtrade Certification Mark, effectively replacing most previous Max Havelaar and TransFair certification marks. The goals of the launch were to improve the visibility of the Mark on supermarket shelves, facilitate cross border trade and simplify export procedures for both producers and exporters.
Today, all but two Labeling Initiatives, namely TransFair USA and TransFair Canada, have fully adopted the new mark. These two organizations currently use the Fair Trade Certified Mark. TransFair USA has apparently elected to continue with its own mark for the time being, while the Canadian organization currently allows certified products to carry either mark.
In January 2004, Fairtrade Labeling Organizations International was divided into two independent organizations: FLO International, which sets Fairtrade standards and provides producer business support, and FLO-CERT, which inspects and certifies producer organizations. The aim of the split was to ensure the impartiality, the independence of the certification process and compliance with ISO 65 standards for product certification bodies.
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Text 1. BUSINESS EXCELLENCE | | | Text 3. ISO STANDARTIZATION PROCESS |