what is fair trade?

more than a good deal

The concept of Fair Trade begins with a conscious decision on the part of a grower to subscribe to the requirements of a Fair Trade label. Obviously, this is a voluntary decision, and is enforced by routine unscheduled audits performed by the label’s organization. The requirements are very specific, and seek to set international standards for quality of a work environment. Some of the specifics that most Fair Trade labels seek to standardize are things like paid maternity leave, minimum age requirements, paid vacations, base salary, chemical handling regulations, and many other stipulations.

who it benefits

Why would a grower choose to participate in something so restrictive? Because growing as a Fair Trade organization gives the grower three invaluable tools. The first is a system that all but guarantees higher prices, and therefore higher revenues, for the same products. The second is what is referred to as the “Fair Trade Premium”, which is a percentage of a purchase that is added on to the FOB value of that purchase—typically 8-12% of the FOB price. This added “premium” flows into a fund that is completely managed by the workers at the farm, and is typically used to invest in community-building and educational projects that benefit the workers and their families directly.

The third benefit flows from the other two: better prices and better communities mean a more satisfied work force. This high morale, on the business side, results in higher-quality service from each of our employees. It also means less turnover [not one person left Panda Flowers in 2006], which means sustainable, reliable quality.