What is Fairtrade?

Fairtrade aims to change the way that conventional international trade works, building fairer trading relationships between consumers and companies in the developed world and commodity producers in developing countries.

What does Fairtrade mean for cocoa farmers?

• Cocoa farmers’ organisations get a guaranteed minimum price for their cocoa beans of $1600 (about £847) per tonne (1), which covers at least their cost of production and gives them the security to plan for the future. Without Fairtrade, farmers organisations sell into the conventional market, where the price of cocoa fluctuates and can fall below the cost of production.
• An extra 'Social Premium' of $150 (about £79) is also paid on each tonne of Fairtrade cocoa to be invested in community projects such as clean drinking water wells, schools or medical clinics.
• Long-term trading contracts provide security and the possibility of planning.
• The process for buying and selling farmers’ produce is fair, clear and more accountable.
• They benefit from guaranteed minimum health and safety conditions.
• Farmers are encouraged and helped to protect the environment.
• Education and training are provided, in areas such as improving quality and preventing crop disease.
• Farmer co-operatives are democratic, so farmers have a real say in how the organisation that sells their cocoa is run and how the income form Fairtrade is used to benefit the whole community.

Footnotes

1. The international Fairtrade price and Social Premium amount for all Fairtrade commodities is always set in $US