Fairtrade is a private ethical certification scheme that sets social, environmental and labour standards for producers and requires that buyers pay a Fairtrade Minimum Price and a social premium, aiming to improve conditions for smallholder farmers and workers.
In trade practice
Suppliers must be certified by Fairtrade International or a recognised national body, and buyers must hold a valid Fairtrade licence to use the mark on products. Each transaction must be covered by a transaction certificate confirming the volume and product are within scope. Fairtrade is most common in coffee, cocoa, bananas and sugar, but standards also cover honey and some other agricultural products relevant to Ukraine-EU trade. Buyers should verify that the specific product and origin are within the supplier’s certificate scope before making claims.
In a specification
Contracts for Fairtrade goods state the requirement for a valid supplier certificate, a buyer licence, and transaction certificates for each shipment; the Fairtrade Minimum Price and premium obligations are governed by the relevant Fairtrade standard, not the commercial contract.