Fairtrade-TransFair is the Fair Trade labeling organization in Italy. A non-profit association of bodies committed to international cooperation, solidarity, ethical finance and fair trade, it was founded in 1996 with the aim of promoting Fair Trade products in large-scale retail trade.
Together with 16 other labeling organizations of Europe, the United States, Canada and Japan, Fairtrade-TransFair Italy is under the worldwide umbrella organization FLO-International (Fairtrade Labeling Organizations International). Fairtrade-TransFair guarantees that the products bearing its symbol, on sale in many shops and supermarkets all over the world, have been manufactured without exploiting workers and causing poverty in the world's Southern emisphere and have been purchased in accordance with the principles of fair trade.
All the national organizations under FLO have agreed on a total reorganization aimed at clearly separating the controllers from the controlled (producers, importers and licensees) and unifying the different Fair Trade labels into a single logo “Fairtrade”, which is the same for all involved organizations and which can be easily identified by consumers.
This resulted in the establishment of a real inspection and certification system, to which any operator in the chain down to the labeled package, has to submit.
As a matter of fact, FLO acts as a regulatory body and as the sole certification body at international level.
Standards
Some general reference standards exist, which are useful in defining the specific product standards.
General standards are of two types: one for small producers and cooperatives, and one for medium-large producers.
Every product standard lays down some minimum mandatory requirements and some “in progress” requirements. The latter are not binding in the initial stage and encourage producers to improve their production.
There are standards for cocoa, coffee, fresh fruit, honey, fruit juices, sugar, tea and soccer balls.
If projects are undertaken for products not covered by a standard, FLO will carry out a feasibility and priority study and start a process leading to the approval of a specific product standard, also at Fairtrade-Transfair Italy’s request.
General principles
Producer
A cooperation is established with groups that have little or no possibility to access the traditional market, making sure that all members participate in the decision-making process regarding the use of the benefits derived from the fair trade price paid. The producers that meet these criteria are listed in the “Producers Register” maintained by FLO. In most cases, these groups are Consortiums or Cooperative Associations.
Fair price
A minimum price is fixed, which covers not only production costs but also gives the producer group a margin for investments.
On top of that price, a Fair Trade Premium is established, to be destined for social initiatives. The decision regarding the use of the Fair Trade Premium lies with the assembly of members and producers.
The real price paid may be much higher than the minimum price, because it is fixed by the producer group and the importer authorized by FLO, based on specific standards and the trend of the Stock Exchange.
Financial support
Producers may have access to loans and/or buyer credit guarantees, up to 60% of the contract value. In this way, the spiral of usurious credit will not be triggered and the working capital will be guaranteed to producers.
A long-term relationship
Buyers are required to establish a stable commercial relationship and to make long-term purchase plans, thus enabling producers to plan their future with less uncertainty. The duration of such agreements must be jointly defined by producer groups and licensees and should include at least two harvest cycles.
Certification system
The certification activity is carried out by the company FLO CERT established by FLO International, with headquarters in Bonn.
This Certification Unit receives the applications for certification and carries out the inspection and evaluation of local producers, exporters and importers, fully meeting the independence and third-party objectivity criteria laid down in the standard ISO 65 (= UNI EN 45011).
Stakeholders
Local producers and exporters (whether large or small), importers, and then the users of the label, are all subject to inspection and certification.
Retail traders and any other subject that just trades products or supplies them to the public (e.g. holiday farms) have no obligation in this connection.
Fairtrade-Transfair has been lately considering the possibility to grant the label also to multi-ingredient products which contain fair trade ingredients, even in small quantities (e.g. baked products containing sugar or cocoa).
Producers play the key role in fair trade. FLO subdivides them according to the type of products and enters them in appropriate registers which are regularly updated and distributed to the importers of fair trade products.
Importers are traders authorized to participate in fair trade. Some of them are organizations (ATOs) which have been promoting alternative trade for more than 40 years with a view to creating a fairer system. The others are traders interested in the objectives of fair trade and willing to provide a growing number of consumers with high-quality products.
Licensees are those who sell the finished products to consumers and are authorized to use the Fair Trade label. They pay license fees to the national labeling organization and undertake to buy the products guaranteed by FLO-authorized traders. Importers at times may also be licensees.
Italian prospective licensees are required to send the appropriate application to Fairtrade-Transfair Italy, sign a license agreement with the Consortium Fairtrade-Transfair Italy, accept inspections and pay the license fees specified in the agreement.
Contacts:
ICEA, International Relations
Responsible person,
Fairtrade-Transfair Italia
Passaggio De Gasperi, 3 35031 PADOVA, Italy
Tel +39 +49.8750823 Fax. 049.8750910
FLO International
Kaiser-Friedrich-Str. 13 D - 53113 BONN
Tel: +49-228-949230 Fax: +49-228-2421713 Mobile: +49-175 598 9128
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