Small Producer Organizations (SPOs)
The Faitrade Standard for Small Producer Organizations applies to small-scale producers that supply Fairtrade products. These principles, which underly the Standard, apply to all small-scale producers certified by Fairtrade.
- Members must be small-scale producers. The majority of the members of the organization must be smallholders who don’t depend on hired workers all the time, but run their farm mainly by using their own and their family’s labour.
- Democracy. Profits should be equally distributed among the producers. All members have a voice and vote in the decision-making process of the organization.
Hired Labour (HL)
These principles underly the standard for organizations which employ hired labour:
- Management of the Fairtrade Premium. The Fairtrade Premium Committee, which includes workers representatives, is responsible for the management of the Fairtrade Premium in accordance with Fairtrade standards.
- Freedom of association & 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 in effect. Health and safety measures must be established in order to avoid work-related injuries.
This is the standard for small-scale producers who are not yet democratically organized. As a temporary measure, they can join Fairtrade if they have a partnership with an organization (such as an exporter or NGO) who will assist them to form an independent organization.
The Contract Production Standard currently applies only to NAPP within Fairtrade: To rice and cotton in India, cotton and dried fruit in Pakistan, and cocoa in PNG in the Pacific Islands.
To facilitate our work with farmers and workers, we also actively engage with Traders. the principles underlying engagement is to ensure that Companies trading Fairtrade products:
- Pay a price to producers that aims to cover the costs of sustainable production: the Fairtrade Minimum Price.
- Pay an additional sum that producers can invest in development: the Fairtrade Premium.
- Partially pay in advance, when producers ask for it.
- Sign contracts that allow for long-term planning and sustainable production practices.