Fair Trade is a trading partnership, base on dialogue, transparency and respect, which seeks greater equity in international trade. It contribute to sustainable improvement by offering better trading conditions to, and secure their rights of, destitute producers and workers - specially in the South (FINE, 2001).
Fair Trade certified producer organization must comply with a number of supplies, related to social, economic and environmental development. In addition, labour condition in these organizations must follow certain values.
The necessary characteristic of Fair Trade cocoa chocolates is that producer organizations accept a higher price for their cocoa beans. The Fair Trade price represents the necessary condition for the producer organizations to have the economic ability to fulfil the more than requirements, and to cover the certification fees.
It is calculate on the basis of world market prices, plus fair trade premium. The Fair Trade premium for standard quality cocoa is US$ 150 per ton. The bare minimum price for Fair Trade standard quality cocoa, as well as the premium, is US$ 1,750 per ton. Other profit for certified producer organizations are better "capacity-building" and "market access".
Presently, cocoa sold with the Fair Trade label still capture a very low share of the cocoa market (0.1%). If you wish to know extra on this issue, please visit FAQ and go to "Fair trade".
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