About
OVERVIEW
Our logo assures you that
the product was produced under environmentally and economically sustainable conditions. Fair Trade Certified farmers and farm workers are guaranteed higher prices, better working conditions, more direct trade, access to credit and support for sustainable agriculture.
The social impact statements that most closely apply to our organization's mission statement
Economic empowerment and value
Our organization screens
Production process, Impact of use, Business practices
How often our organization monitors compliance of our standards
Annual
How our organization monitors compliance of our standards
On-site audit, Chain of ownership audit
Our mission statement
TransFair USA enables sustainable development and community empowerment by cultivating a more equitable global trade model that benefits farmers, workers, consumers, industry and the earth. We achieve our mission by certifying and promoting Fair Trade products.
The history of our organization
In 1988, world coffee prices dropped dramatically, impoverishing farmers around the world. In response, a Fair Trade Certified label was created in the Netherlands, to guarantee that more of each dollar reached the producers. Since then, twenty separate national labeling initiatives have emerged throughout the developed world. In 1997, FairTrade Labelling Organizations International (FLO) was formed to standardize and coordinate the work of the national Fair Trade labels. TransFair USA was founded in 1998 and is a leading member of FLO. Over $100 million in additional income has been generated by farmers and farm workers in over fifty countries through U.S. Fair Trade sales. Since 1998, the number of Fair Trade products in the U.S. market has increased more than tenfold; there are more than 700 American companies licensed by TransFair USA; and Fair Trade products are available in more than 40,000 retail locations in the U.S.
Our organization's standards for producers, products, or sellers
TransFair USA operates within the FairTrade Labeling Organizations International (FLO). FLO manages the application and certification process for our producers, guaranteeing that their products meet international Fair Trade standards. Below, you will find the minimum conditions that producers must meet to be approved by FLO, a link to the product-specific standards that TransFair USA certifies for the US market, and the standards for our relationship with US sellers.
For Producers:
Fair prices: Democratically organized farmer groups receive a guaranteed minimum floor price and an additional premium for certified organic products. Farmer organizations are also eligible for pre-harvest credit.
Fair labor conditions: Workers on Fair Trade farms enjoy freedom of association, safe working conditions, and living wages. Forced or child labor is strictly prohibited.
Direct trade: With Fair Trade, importers purchase from Fair Trade producer groups as directly as possible, eliminating unnecessary middlemen and empowering farmers to develop the business capacity necessary to compete in the global marketplace.
Democratic and transparent organizations: Fair Trade farmers and farm workers decide democratically how to invest Fair Trade revenues.
Community development: Fair Trade farmers and farm workers invest Fair Trade premiums in social and business development projects like scholarship programs, quality improvement trainings, and organic certification.
Environmental sustainability: Harmful agrochemicals and GMOs are strictly prohibited in favor of environmentally sustainable farming methods that protect farmers? health and preserve valuable ecosystems for future generations. Fair Trade environmental standards are the second highest in the industry, following close behind the standard for organic certification.
For Products:
TransFair USA certifies the following products for the US market: Coffee, Tea, Herbs? Cocoa, Flowers, Sugar, Rice, Vanilla, Bananas, Mangoes, Pineapples, and Grapes. To learn about the product-specific standard for each, visit the FLO website at: http://www.fairtrade.net/standards.html.
For Sellers:
U.S. companies must purchase from FLO-certified Fair Trade producer groups, pay TransFair USA a per-pound fee for certification, regularly report purchases and sales of FTC products, and sign a licensing agreement and Letter of Intent (LOI) with TransFair USA. Additionally, coffee roasters make available up to 60% of the value of the contract in pre-financing or other credit facilities on request of the producer organization.
How we developed our standards
While the concept of Fair Trade has been around since the end of WWII, the development of the certification system began in 1988 in response to a crisis in the coffee market where prices fell well below the cost of production. Fair Trade guaranteed a minimum floor price to cover the cost of sustainable production. Direct trade relationships were required between the international importers and developing countries’ producers, to bypass the middlemen who otherwise absorb much of the money. Additionally, in order to ensure that producers’ communities had the resources they needed to prosper, a social premium beyond the floor price was included for democratically-determined community development projects. Fair Trade Certified standards have evolved to include the industry’s most stringent environmental standards outside of organic certification, additional premiums for organic products, and an ever-increasing number of product-specific guidelines.
Summary of our process for screening new producers, products, or sellers
Prospective licensees submit a Letter of Intent (LOI) to TransFair USA that outlines their plan for marketing and developing their Fair Trade Certified product line, including specific initial volume projections and growth estimates. The LOI is a tool that helps set realistic mutual goals with our new company partners, aligning our respective expectations and establishing a foundation for success. Our importers must purchase their products from producer organizations certified by TransFair USA’s umbrella organization, FLO. All products must be purchased at a price that meets or exceeds the product-specific international Fair Trade minimum price (available here: http://www.fairtrade.net/producers.html). Our licensees must agree to our logo use policy, ensuring that every product with the Fair Trade Certified logo meets our strict social and environmental criteria. With our label, we present a universally recognizable brand that consumers rely on. To see the complete rules regarding our logo, visit: http://transfairusa.org/pdfs/LUG/LabelUseGuide.pdf.
How we regularly monitor compliance of our standards
To maintain Fair Trade certification, producer groups undergo an annual renewal inspection. The inspection reports are reviewed by an international committee comprised of FLO members.
TransFair USA tracks Fair Trade products from the producer group all the way through the retailer and consumer. Our licensed importers and roasters must submit reports of their Fair Trade transactions. For each transaction between an importer and a producer, we require three pieces of documentation to ensure that the producer received the established Fair Trade price.
After tracking certified products, our certification team addresses and reconciles discrepancies. In the marketplace, we make a tremendous effort to ensure proper use of the Fair Trade Certified label. We reserve, and occasionally exercise, the right to terminate our business relationship with any company that fails to comply with our strict auditing and label use requirements.
Our monitoring process including who performs the monitoring
TransFair USA's Certification Department, in cooperation with Fairtrade Labelling Organizations International (FLO) audits the global supply chain from the farmer, to the importer, to the product manufacturer and retailer.
The fee structure for our monitoring system
TransFair's licensing fees enable us to operate a system that is transparent and consistent, and that balances the need for our work to be adequately resourced with the objective of maximizing market opportunities for Fair Trade producers. It is therefore important that the fees are set at a realistic level but that they do not act as a barrier to entry or a disincentive to increase sales. As of 2006, our fee structure was as follows: Product TransFair USA License Fee per lb. Coffee $0.10 Cocoa $0.10 Tea $0.18 Rice $0.035 Sugar $0.035 Fruit $0.01 Note: Some fees may vary based on volume. Please contact our Business Development office for further information: (510) 663-5260.
Monitored regions
Fair Trade Certified products come from developing countries in Latin America, Asia, and Africa. TransFair USA monitors all transactions between international FLO certified producer groups and US companies.
More information about our organization
We'd also like to tell you...
For businesses or producers that want to work with us, we recommend you do the following...
Give us a call or send an e-mail. From there, we’ll point you in the right direction. For more information on the standards that your organization is required to meet, visit www.fairtradecertified.org.