Fair Trade USA
Farm Workers Standard
Version 1.11
www.Fair TradeUSA.org
1
Updated October 2013: inclusion of Annex 2: Special Price and Premium Terms
Updated June 2014: Prohibited Materials List (Annex 1) monitoring and review extended until June 2015
© 2014 Fair Trade USA. All rights reserved.
Contents
Introduction .................................................................................................................................................. 2
1.0
Empowerment (EM) ...................................................................................................................... 6
2.0
Economic Development (ED)....................................................................................................... 10
3.0
Social Responsibility (SR) ............................................................................................................. 13
4.0
Environmental Stewardship (ES) ................................................................................................. 19
5.0
Trade Requirements (TR) ............................................................................................................ 25
Annex 1: Fair Trade USA Prohibited Materials List .................................................................................... 27
Annex 2: Special Price and Premium Terms .............................................................................................. 38
FTUSA_FWS_Standard_1.1_EN_060114
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Introduction
Purpose
This document contains the requirements of the Fair Trade USA Farm Workers Standard Version 1.0 for
participation of large farms in Fair Trade Certification.
Goal and Objective
Fair Trade USA developed the Farm Workers (FW) Standard to serve farm workers that do not own land,
but work on larger farms. The objective of the standard is to increase empowerment, including
leadership and organization of farm workers employed on the farm, economic development, and to
ensure fair working conditions and environmentally responsible production methods.

Empowerment. Through the process of electing a Fair Trade Committee, developing a Fair Trade
Premium work plan and making choices on how to spend the Fair Trade Premium, this standard
aims to enhance the capacity of individuals or groups to make choices and transform them into
desired actions and outcomes. Through these actions, our vision is that workers are able to build
individual and collective assets and improve their effectiveness and participation on the farms
for which they work. Specifically, workers are able to represent themselves effectively in their
negotiations with management for improved working conditions, as well as partner with farm
management to increase empowerment of all workers.

Economic Development: Our aim is to increase the income of workers by establishing wage
requirements and premium funds, and guaranteeing that services such as housing, products
sold at on-site stores, and health services are provided either free of charge or at reasonable
prices.

Social Responsibility: Farms are responsible for ensuring that conditions of employment are in
line with or exceeding sector regulations, the regional average, and official minimum wages.
Health and safety measures are established in order to avoid work-related injuries.

Environmental Stewardship: Farms are responsible for caring for the earth by developing
monitoring systems, limiting use of agrochemicals and fertilizers, implementing biological pest
management techniques and waste management procedures, and protecting soil, water and
biodiversity.
Scope
The Standard is designed to be broad in scope, with the goal of eventually extending its application to
large- farms across a wide range of agricultural products, not including dairy and livestock. The Fair
Trade USA Prohibited Materials List (PML) referred to in the standard is also attached as Annex 1. A full
technical review of the Fair Trade USA PML will be conducted in late 2012/early 2013. Fair Trade
Certification requires supply chain traceability. In order to use the Fair Trade logo and claim, all entities
FTUSA_FWS_Standard_1.1_EN_060114
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involved in the production, processing, manufacturing, handling and selling of the product need to be
Certified by, or registered with, Fair Trade USA.
Structure of the Standard
The Fair Trade USA Farm Workers Standard takes a development approach in that it differentiates
between minimum criteria and progress criteria. Minimum criteria are assessed during the first
certification audit and represent minimum practices in social empowerment, economic development,
and environmental responsibility. These criteria are met prior to initial certification. Progress criteria are
fulfilled after the first year of certification and represent continuous development towards increased
social empowerment and economic development as well as best practices in environmental
responsibility. Details on which year requirements must be met are listed in the compliance criteria.
Implementation
In addition to this standard document, we have developed compliance criteria in conjunction with our
certification body and technical expert, SCS Global Services (SCS). Certification decisions are made by
the certifier, based on compliance with these criteria as established in onsite audits conducted by SCS or
other certification bodies approved by Fair Trade USA.
Some criteria are identified as “major” requirements. Non‐compliance with a Major Requirement may
result in a decision to suspend the certification contract until compliance has been ensured, or even
deny certification in the program, depending on the severity and extent of the Non‐Conformity.
Additionally, the compliance criteria reflect the difference between minimum criteria “year 0” and
Progress criteria “year 1 / year 3”/ “year 6”.
Additional information on implementation, e.g. program prerequisites; a step-by-step description of the
certification process; certification fees; and a procedure for complaints, appeals and disputes, can be
found in the Fair Trade USA Certification Manual on the Fair Trade USA website
(http://fairtradeusa.org/certification/standards).
Standard Development and Pilot Project
Fair Trade USA began researching the feasibility of certifying large farms in 2010 and in 2011 developed
and published the Draft Farm Workers Standard Version 1.0 based on consultation with experts and
review of other standards.
The Draft Fair Trade USA Farm Workers Standard V 1.0 was available for public comment and
stakeholder review from November 1, 2011 through April 2012. Fair Trade USA actively reached out to
Fair Trade producers, industry partners, NGOs and advocacy groups, in addition to forming stakeholder
groups such as the Coffee Innovation Council. Fair Trade USA reviewed and incorporated this feedback
into the standard, with the help of technical experts including board members and SCS. This feedback is
public, and can be viewed online at: http://fairtradeusa.org/certification/standards.
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Fair Trade USA also developed pilot projects in coffee and produce to test the relevancy and applicability
of the standard in a variety of national settings, and within different agricultural commodity sectors and
supply chains. Fair Trade USA is developing an impact assessment system that examines the
effectiveness of the standard, our certification program and the effect of introducing Farm Workers
Standards in coffee on Small Producer Organizations.
Certificates granted during the pilot project (2011 – 2013) are valid for three years, with renewal of the
certificate occurring in the fourth year of the audit cycle. Certificates are effective from the date of the
certification decision. Entities that were audited against the draft V 1.0 of the Farm Workers Standard
Compliance Criteria will be audited against the final V 1.0 of the Farm Workers Standard Compliance
Criteria at the next annual audit.
References
Fair Trade USA reviewed several standards and their compliance criteria, including those published by
Rainforest Alliance, Fairtrade International and SA 8000. Additionally, this standard requires adherence
to national law or international standards, whichever is highest. Relevant ILO conventions include:
29 - Forced Labor
87 - Freedom of association and protection of the right to organize
98 - Right to organize and collective bargaining
100 - Equal remuneration
103 - Maternity Protection
105 - Abolition of forced labor
110 - Plantations Convention
111 - Discrimination
138 - Minimum age
155 - Occupational Health and Safety Convention
158 - Termination of Employment Convention
169 - Indigenous & tribal peoples
182 - Worst forms of child labor
Price and Premium Requirements
In addition to the requirements in this standard, minimum prices and premium will also be set by Fair
Trade USA. Price and Premium requirements are part of the Fair Trade USA Trade Standard and are
available at http://fairtradeusa.org/certification/standards.
Monitoring of Changes
Fair Trade USA is open to receive comments and feedback on the standard at anytime
([email protected]). As recommended by ISEAL, Fair Trade USA will review the Farm Workers
Standard regularly, at least every five years. Fair Trade USA reserves the right to change Fair Trade USA
Farm Workers Standard after internal and public review of the Standards.
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Translations
French, Spanish and Portuguese translations of this standard will be available in Fall 2012. In case of any
conflict or disagreement between the different versions of the standard, the English version prevails.
Terminology
For definitions of terms used in this and other Fair Trade USA Standards please see the Fair Trade USA
Standards Glossary, available the Fair Trade USA Standards Website.
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1.0 Empowerment (EM)
1.1
Development and Management of the Fair Trade Implementation Plan (DM)
EM-DM 1
The company has prepared a written Fair Trade Implementation Plan addressing the social and
economic development of workers and compliance with the environmental requirements of this
standard.
EM-DM 2
Corporate social responsibility is an integral part of the company’s written mission or policy
statement(s). The company can demonstrate its implementation with concrete evidence.
EM-DM 3
Senior management holds overall accountability for the implementation of these standards.
Management appoints a person responsible for Fair Trade matters (FT Officer) who reports to
the Executive Manager. He/she is responsible for the overall co-ordination of the Fair Trade
Implementation Plan in the company and for ensuring all necessary communications.
EM-DM 4
The employer must demonstrate that any Fair Trade revenues will promote the social and
economic development of the workers.
EM-DM 5
The employer has taken all possible measures to inform all levels of the company about the Fair
Trade concept.
EM-DM 6
Management allocates time during regular working hours and provides other resources that are
necessary for, or conducive to, the successful implementation of the Fair Trade Implementation
Plan.
EM-DM 7
A written grievance procedure is established which ensures that workers have the right to be
heard and the right to appeal. Management does not discipline, dismiss or discriminate against
workers for using any grievance procedure.
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EM-DM 8
A written grievance procedure is in place for cases of sexual harassment. If there has been a
report of sexual harassment, an investigative committee is appointed to resolve any cases of
sexual harassment.
EM-DM 9
The company has carried out a needs assessment of the home community from which most
migrant workers come from. This has been shared with the Fair Trade Committee.
EM-DM 10
Within one year of certification, the company has adopted a development plan for the social
improvement of migrant workers. This development plan has been explained and discussed with
the Fair Trade Committee and the General Assembly of workers.
EM-DM 11
Within one year of certification, management ensures access to primary education for the
children of all workers living on the farm. Management should also pay special attention to the
education of workers’ children in general.
EM-DM 12
Within one year of certification, all levels of the company are aware of Fair Trade matters. To
this purpose, the management ensures that adequate training has been provided to all levels.
The management also encourages and supports training for all workers and their
representatives in order to increase their capacity to participate in and take responsibility for
the implementation of Fair Trade.
EM-DM 13
The company has an appropriate human resources management system that is charged with
implementing good industrial relations, training programs and the development of its
employees.
1.2
Inclusive Participation, Transparency and Financial Accountability (PTA)
EM-PTA 1
A Fair Trade Committee, with representatives of the management and representatives of the
workers, has been created, with the purpose of managing the use of the Fair Trade Premium.
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EM-PTA 2
A legal body is established before any assets are acquired using the Fair Trade Premium. This
body comprises and represents all employees of the company as the owner of any property
acquired with the Fair Trade Premium.
EM-PTA 3
All groups of workers are eligible for nomination and able to participate in the election of the
Fair Trade Committee. The composition of the Fair Trade Committee should reflect the
composition of the workforce. The workers’ representatives are chosen through a democratic
process that is properly documented. Management representatives are formally appointed by
management.
EM-PTA 4
Management participates actively and responsibly in the Fair Trade Committee through its
representatives and assists and supports the workers in the management of the premium.
Management representatives do not have voting rights, but are allowed to veto Fair Trade
Committee decisions where these are clearly illegal or go against the Fair Trade standards.
EM-PTA 5
All expenditure of the Fair Trade Premium and related issues are in accordance with the
Premium Work Plan, which has been approved by the General Assembly, and is in-line with the
Fair Trade Committee and Premium Usage Guidelines.
EM-PTA 6
The Fair Trade Committee, including the management representatives, is accountable to the
workers and certification body for the administration and use of the Fair Trade Premium.
EM-PTA 7
All requests/suggestions for Fair Trade Premium use are documented. Decisions by the Fair
Trade Committee are also recorded.
EM-PTA 8
The Fair Trade Committee should strive to reach decisions by consensus. Decisions must be
approved by the majority.
EM-PTA 9
The Fair Trade Committee meets at least once per quarter at the full pay rate during paid
working hours and convenes a General Assembly at least once per year.
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EM-PTA 10
Information about the Fair Trade Premium amount is reported to all Fair Trade Committee
members.
EM-PTA 11
A separate Fair Trade Premium bank account is established and worker representatives from the
Fair Trade Committee, together with management are joint signatories.
EM-PTA 12
The certification body, Fair Trade Committee members and, if it exists, the internal audit
committee have the right to check the relevant books of the Fair Trade Premium account.
EM-PTA 13
Regular capacity building for workers’ representatives on the Fair Trade Committee is
undertaken in order to ensure that they can carry out their functions. Management helps
facilitate these trainings when necessary and allows this training to take place, partly during
work time.
EM-PTA 14
The Fair Trade Committee, in consultation with the workers, prepares a written yearly Fair Trade
Premium work plan that takes into account the needs of all the various groups of workers.
EM-PTA 15
Within one year of certification, the rules, regulations and procedures of the Fair Trade
Committee, established as part of the constitution required by EM-PTA 1, are in place and
available to workers.
EM-PTA 16
Within one year of certification, the Fair Trade Committee makes use of the Fair Trade training
tools in its preparation of the written Fair Trade Premium Work plan.
EM-PTA 17
The Fair Trade Committee has access to administration and communication tools – telephone,
email and/or fax – and has its own independent email account where infrastructure allows it.
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EM-PTA 18
The Fair Trade Committee has considered and discussed the possibility of developing Fair Trade
Premium projects in migrant worker home communities.
2.0 Economic Development (ED)
2.1
Fair Trade Price Requirements (PR)
ED-PR 1
New Fair Trade prices apply from the date of their announcement. However, existing contracts
must be honored at the existing price already agreed on.
2.2
Fair Trade Premium Requirements (FTP)
ED-FTP 1
The correct amount of Fair Trade Premium is paid to the Fair Trade Committee.
ED-FTP 2
The Fair Trade Premium may not be used to cover the running costs of the company or the costs
of compliance with the minimum requirements of this standard or associated product-specific
standards unless stated differently.
2.3
Conditions of Employment (CE)
ED-CE 1
Conditions of employment, including wages, either meet or exceed the following standards:
sector regulations, Collective Bargaining Agreements that are in place with the employer, the
regional average minimum wage, and official minimum wages for similar occupations. The
employer specifies wages for all functions.
ED-CE 2
All workers are aware of their rights and duties, responsibilities, salaries, and work schedules.
ED-CE 3
Payments are made to workers directly and on time, in legal tender, and according to an
appropriate payment schedule that is monthly or bi-weekly. Workers receive pay slips with each
pay check, and the company provides the worker with access to a proper appeal mechanism if
discrepancies in payment are found.
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ED-CE 4
Deductions in salaries are only permitted as agreed by national laws, as fixed by a Collective
Bargaining Agreement or if the employee has given his/her written consent.
ED-CE 5
An adequate sick leave regulation is put in place.
ED-CE 6
All permanent workers must have a legally binding written contract of employment with a job
description, signed by worker and employer.
ED-CE 7
All positions that are of a regular nature are staffed with permanent workers and legal
obligations are not avoided through the excessive use of time-limited employment contracts.
ED-CE 8
Working hours and overtime must comply with applicable law and industry standards. Workers
are not required to work in excess of 48 hours per week on a regular basis.
ED-CE 9
Workers should have at least 24 consecutive hours of rest every 7 days, unless exceptional
circumstances apply.
ED-CE 10
Overtime is voluntary and does not exceed 12 hours per week, unless exceptional circumstances
apply. It cannot be required on a regular basis and shall always be compensated at a premium
rate, which is agreed upon in writing and in advance.
ED-CE 11
Vacation plans meet or exceed national or local law and workers receive at least 2 calendar
weeks of paid time off per year.
ED-CE 12
Maternity leave shall not be shorter than 8 weeks on full pay, not including annual leave. After
returning to work, breastfeeding breaks during work time must be granted.
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ED-CE 13
The company must comply with local law regarding the provision of health insurance and social
security benefits, including pension and disability insurance benefits to workers. In cases where
permanent workers are not legally entitled to health insurance benefits, the company provides
adequate Private Health Insurance or comparable health services.
ED-CE 14
Within one year of certification, the management ensures that there is a prior written
agreement between the management and recruited migrant workers regarding: wages; trip
expenses; trip safety; work hours; overtime arrangements; duration of employment; minimum
age of employment; non-discrimination; breach of contract; and terms of repatriation should
the recruited worker become ill or incapacitated before or after reaching the place of
employment, be found to be medically unfit, or be denied employment after recruitment for a
reason for which he/she is not responsible. Agreements should be explained verbally and in
writing, and in a language understood by the migrant workers.
ED-CE 15
The employer works towards all permanent workers having the benefits of health insurance
(where not already required by law), a provident fund or pension scheme and disability
insurance.
ED-CE 16
Maternity leave, if less than 12 weeks, must be increased each year by one week until 12 weeks
is reached.
ED-CE 17
Within one year of certification, the company’s management undertakes all contracting of
seasonal workers directly rather than through a contractor.
ED-CE 18
Worker representatives and management meet to discuss how they can improve wages and
productivity in mutually beneficial ways, including generating ideas for how to move towards
“living wages” over time.
ED-CE 19
Local and migrant, seasonal and permanent workers receive equivalent wage and overtime
provisions for equal work performed.
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ED-CE 20
If the company provides the workers with housing, the conditions and the infrastructure of the
house must be such as to ensure sanitation, safety, ventilation, reasonable protection from heat
and cold, privacy and security. Housing must be provided at reasonable cost. Fire extinguishers
are provided and workers should be trained on how to use them.
ED-CE 21
Where the company provides workers with housing, there is a clear policy that defines how
workers can access housing, and workers who are not provided with housing receive
compensation.
ED-CE 22
Where children of the workers live on the farm, the company is responsible for providing access
to day-care facilities.
ED-CE 23
Workers are not compelled to make use of stores or services operated by the employer or in
connection to the company. Where access to other stores or services is limited or not possible
due to location, the employer provides goods and services at fair and reasonable prices.
3.0 Social Responsibility (SR)
3.1
Non-Discrimination (ND)
SR-ND 1
There is no discrimination, particularly on the basis of race, color, gender, sexual orientation,
disability, marital status, family obligations, age, religion, political opinion, union or worker's
representative bodies or Fair Trade Committee membership, national extraction or social origin
or any other condition that could give rise to discrimination, in: recruitment, promotion, access
to training, remuneration, allocation of work, termination of employment, retirement or other
activities.
SR-ND 2
Management does not engage in, support or tolerate the use of corporal punishment, mental or
physical coercion and verbal abuse.
SR-ND 3
Management does not engage in, support or tolerate behavior, including gestures, language,
and physical contact, that is sexually intimidating, abusive or exploitative.
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SR-ND 4
Management puts a policy in place regarding staff/worker qualifications. In particular the needs
of disadvantaged/minority groups (including women) should be targeted with training and other
programs.
SR-ND 5
Management ensures that women have equal opportunities in the company and equal access to
the benefits of Fair Trade.
3.2
Freedom from Forced Labor and Human Trafficking (FL)
SR-FL 1
Forced labor does not occur.
SR-FL 2
Employment is not conditional on the employment of the spouse. Spouses have the right to
work elsewhere.
3.3
Protection of Children and Young Persons (PC)
SR-PC 1
Children under the age of 15 (or under the working age defined by national law, if higher) are
not employed.




SR-PC 2
Farm owners’ children below the age of 15 may work on their parents’ farms provided that:
They only work after school or during holidays.
The work is appropriate for their age.
They do not work long hours and/or under dangerous or exploitative conditions.
Their relatives provide supervision and guidance.
SR-PC 3
Working does not jeopardize the schooling or the social, moral or physical development of
workers under the age of 18 (or the age of legal adulthood as defined by national law, if higher).
SR-PC 4
The minimum age of admission to any type of work, which by its nature or the circumstances
under which it is carried out is likely to jeopardize the health, safety, or morals of young people,
is 18 years (or the age of legal adulthood as defined by national law, if higher).
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3.4
Freedom of Association (FA)
SR-FA 1
Management informs workers in writing and recognizes in practice the right of all workers to
establish and join workers’ organizations of their own choosing and to collectively negotiate
their working conditions.
SR-FA 2
Management ensures that neither workers nor their representatives are discriminated against
or suffer other repercussions because of freely exercising their right to organize or because of
their membership or participation in legal activities in their workers’ organization.
SR-FA 3
Management does not undertake any activity which interferes with the right to freedom of
association by controlling or obstructing workers’ organizations.
SR-FA 4
Management ensures the right of workers to gather to discuss workplace grievances without
fear of reprisal or other negative consequences. Facilities are provided on request to enable the
representatives to carry out their functions.
SR-FA 5
If there is an active worker’s organization, within reasonable limits, workers’ representatives can
hold meetings during working hours.
SR-FA 6
If there is an active workers’ organization, regular meetings between senior management and
the workers’ organization are held during working hours.
SR-FA 7
Management ensures that all workers are provided with information on their rights to freedom
of association and on all available options from an independent source.
SE-FA 8
In countries where a Collective Bargaining Agreement (CBA) exists for the sector, the company
meets or exceeds conditions of employment as per the agreement. Where no CBA exists, the
company exceeds industry and legal requirements.
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SR-FA 9
If there is an active workers’ organization, the representation and participation of the workers is
improved through training activities for all employees, workers and management staff alike.
Management provides adequate resources for this to take place.
3.5
Occupational Health and Safety (OH)
SR-OH 1
Work processes, workplaces, machinery and equipment on the production site as well as worker
transportation are as safe as possible and any inherent risk to health is minimized by adequate
control. A written Health and Safety (H&S) policy is in place and covers all the above-mentioned
items. H&S risk assessments are carried out regularly and integrated into the H&S work plan.
SR-OH2
A worker is nominated to be the Health and Safety Officer, the person in charge of occupational
health and safety matters.
SR-OH 3
A Medical Officer (worker or manager) responsible for management of healthcare programs,
concerns and paperwork and protection has been appointed and identified to the workforce.
SR-OH 4
Workers and their representatives are trained in the basic requirements of occupational health
and safety, relevant health protection and first aid. Special measures are taken to identify and
avoid reoccurring health risks to vulnerable workers operating in high risk areas.
SR-OH 5
Workers engaged in any potentially hazardous work are adequately trained and informed of the
specific risks to mental, reproductive, or neurological health.
SR-OH 6
The company provides, or pays compensation for, adequate emergency first aid equipment and
appropriately trained first aid staff to meet all reasonably foreseeable emergency first aid
situations. Records are kept of all work accidents and related first aid response.
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SR-OH 7
The company provides medical care for all workplace injuries and illnesses and pays for recovery
to any work-related illnesses or injuries.
SR-OH 8
All workers must have access to potable water and clean sanitary facilities.
SR-OH 9
All indoor workplaces have adequate lighting, heating and ventilation for the work to be carried
out in the context of local weather conditions.
SR-OH 10
Fire exits, escape routes, firefighting equipment and fire alarms are provided for all buildings on
farm property. They are properly marked and kept clear of obstructions, allowing swift and safe
exit during emergencies. No exit doors are locked against exiting when workers are inside
production facility. Workers and residents receive training on evacuation procedures.
SR-OH 11
Electrical equipment, wiring and outlets are properly placed, grounded and inspected for
overloading and leakage by a professional on a regular basis.
SR-OH 12
The following persons are not allowed to be engaged in any potentially hazardous work: persons
younger than 18 years; pregnant or nursing women; persons with incapacitating mental
conditions; persons with chronic, hepatic or renal diseases; and persons with respiratory
diseases.
SR-OH 13
Workers handling hazardous chemicals are provided with adequate personal protective
equipment of good quality and in good condition at the company’s expense. Workers must
always use such equipment and must never take it to their homes.
SR-OH 14
Workers engaged in handling any potentially hazardous chemicals are given medical
examinations at regular intervals by a physician of their choice.
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SR-OH 15
Chemical, physical, and biological substances and agents on the production site are stored,
issued, handled and used in such a way that health risks are minimized.
SR-OH 16
Any spraying operation is undertaken in a safe manner.
SR-OH 17
After spraying pesticides on the production site, minimum re-entry intervals as specified in the
user instruction and/or the Fair Trade product-specific standard are strictly observed. Above all,
the foliage must be completely dry before harvesting or other work is undertaken.
SR-OH 18
Workers and their representatives’ capabilities and awareness of occupational health and
safety, relevant health protection and first aid are improved through continuous training.
SR-OH 19
Within one year of certification an occupational Health & Safety committee with workers’
representation is established.
SR-OH 20
All workers are medically examined by a physician of their choice and individual health records
are opened at the beginning of their employment. Records must be established within one year
of certification.
SR-OH 21
There is a dedicated area with separate facilities for men and women at the workplace for
undressing and for washing personal spraying protection equipment. There is a dedicated area
for washing equipment that is used for applying agrochemicals.
SR-OH 22
In cases where workers are required to wear a uniform or other PPE, there are separate
changing rooms for men and women, and individual lockable storage facilities are available to all
workers.
SR-OH 23
Suitable rooms in which to rest and, if considered necessary and requested by the workers,
canteens with cooking facilities are provided for all workers.
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SR-OH 24
The Medical Officer and Health and Safety Officer work together to prepare an annual work plan
and/or report, which is approved by management. The work plan includes an evaluation of the
breadth and depth of health care coverage for all workers and recommendations on improving
it.
4.0 Environmental Stewardship (ES)
4.1
Monitoring Systems (MS)
ES-MS 1
The company ensures that a written plan giving details of how to comply with these
environmental standards is put in place. Within one year of certification this plan must be fully
implemented.
ES-MS 2
The company has implemented a procedure to raise awareness among its workers in relation to
the criteria in Environmental Stewardship.
ES-MS 3
The company ensures that for certified products no plant material is gathered from protected
areas or is propagated in contravention of national and international regulations.
ES-MS 4
The company undertakes no new plantings in natural forest areas.
ES-MS 5
The company maintains records that include land usage, crop rotation and agrochemical usage.
4.2
Integrated Pest Management (IPM)
ES-IPM 1
The company has access to and receives guidance from an expert in integrated pest
management (IPM) strategy.
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ES-IPM 2
Preventive measures to avoid pest development and alternatives to pesticide application are
implemented in order to demonstrate control against pest and disease in the Fair Trade crop.
ES-IPM 3
The company monitors pests and diseases of the Fair Trade crop, and establishes an economic
threshold beyond which the need to use chemical pesticides is justified.
4.3
Agrochemicals (AC)
ES-AC 1
Materials on the red list (prohibited materials) on the Fair Trade USA Prohibited Materials List
(see annex 1) are not used or otherwise sold, handled, or distributed by the company.
ES-AC 2
The decision to use herbicides is based on the presence of weeds and lack of alternative
controls. If used, herbicides are only one element of an integrated strategy against weeds, and
are only used in spot applications.
ES-AC 3
All employees, including those not directly handling pesticides or other hazardous chemicals, are
made aware of the hazards related to these materials.
ES-AC 4
Pesticides or other hazardous chemicals are not applied near areas of daily human activity (e.g.,
housing, canteens, offices, warehouses or the like). Unless there is a barrier that reduces
pesticide drift effectively, chemicals are not applied within 10 meters of these areas.
ES-AC 5
The build-up of resistance to agrochemicals is avoided through appropriate production and
dosage techniques and selection of appropriate plant varieties.
ES-AC 6
The timing and type of chemical application(s) is chosen with the aim of minimizing the
quantities used and the threat of human or animal exposure and environmental harm.
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ES-AC 7
Aerial spraying by the company or a subcontractor is only undertaken for fungicide application,
and only when there is not a feasible alternative. Aerial spraying over buffer zones (if any), open
water bodies or residential areas is not undertaken.
ES-AC 8
Agrochemicals are used, handled and stored correctly according to their specific characteristics
(toxicity) in order to avoid dangers to the people and the environment. The agrochemicals are
applied by trained persons only.
ES-AC 9
The company ensures that all agrochemicals are only used for the crops for which they are
specifically labeled and/or registered in the company’s country.
ES-AC 10
Areas where pesticides are applied are signaled.
ES-AC 11
Areas for preparing chemicals for use are equipped to handle spills and other mishandling
effectively (for example with absorbent material). Spills must not be allowed to seep into soils or
water supplies.
ES-AC 12
The company maintains safe storage and disposal of all agrochemicals and their containers.
ES-AC 13
All products and packages are clearly labeled.
ES-AC 14
The company maintains a written record of all agrochemicals purchased, used and disposed of.
4.4
Handling Fertilizers (HF)
ES-HF 1
Fertilizers (organic and inorganic) are applied in amounts that correspond to the nutrient needs
of the crop.
FTUSA_FWS_Standard_1.1_EN_060114
21
ES-HF 2
Fertilizers (inorganic and organic) are stored in a way that minimizes the risk of polluting water.
Fertilizers and pesticides are stored separately.
4.5
Waste Management (WM)
ES-WM 1
The company disposes of any non-agrochemical hazardous waste in a safe manner.
ES-WM 2
Unused agrochemicals are returned to the supplier if possible.
ES-WM 3
The company ensures that organic waste is used in a sustainable way (e.g. composting,
mulching, etc.).
4.6
Soil and Water (SW)
ES-SW 1
The company has undertaken procedures and practices designed to reduce and/or prevent soil
erosion caused by the effects of wind, water, and/or human or animal impact.
ES-SW 2
The company has undertaken procedures and practices designed to enhance fertility and soil
structure.
ES-SW 3
The company has identified areas where groundcover is needed and has a written plan to
establish groundcover in these areas.



ES-SW 4
The company ensures that waste water discharged from any system with which the organization
is involved must be handled in a way that does not:
pollute water that might be used as part of a human or animal drinking supply.
contaminate soil or crops with chemicals or their by-products.
contaminate crops or soil with excessive nutrients or contaminate harvestable crops with
pathogenic microbes.
FTUSA_FWS_Standard_1.1_EN_060114
22
ES-SW 5
Untreated sewage water is not used for irrigation and processing of Fair Trade crops.
ES-SW 6
The company evaluates possible health risks from irrigation water and, if necessary, takes action
to alleviate the risks. Where significant risk is identified, an evaluation must be undertaken by an
independent third party.
ES-SW 7
The company maintains an inventory of water sources that are used for irrigation and
processing of Fair Trade crops.




ES-SW 8
The company implements procedures to make efficient use of water sources. These procedures
include:
Prediction of volumes of water needed to irrigate the crop.
Measuring (or estimating) volumes of water extracted from sources and volumes actually used
in irrigation and processing.
Providing maintenance to the water distribution system.
Adopting, as applicable, methods to re-circulate, reuse and/or recycle water.
ES-SW 9
The company has conducted an evaluation identifying the risks to local water sources (e.g.
whether water sources are being depleted; in a critical situation, or under excessive pressure).
If local environmental authorities or other entities consider water sources to be depleted, in a
critical situation or under excessive pressure, the company engages in a dialogue with the
authorities to identify possible ways to be involved in research or problem solving.
ES-SW 10
The company uses the best available irrigation and processing technology to optimize water use.
4.7
Genetically Modified Organisms (GM)
ES-GM 1
The company does not grow any GMO products.
FTUSA_FWS_Standard_1.1_EN_060114
23
4.8
Biodiversity (BD)
ES-BD 1
The operation has no negative impacts on protected areas or areas with high conservation
value, within or outside the farm or production areas. Areas used for production of the Fair
Trade crop comply with national legislation in relation to agricultural land use.
ES-BD 2
Buffer zones are maintained around water bodies and watershed recharge areas, and between
production areas and areas of high conservation value (either protected or not). Pesticides,
other hazardous chemicals and fertilizers are not applied in buffer zones, and animal manure is
not applied or disposed of in buffer zones.
ES-BD 3
Harvesting of Fair Trade products from uncultivated areas is done in a manner that assures the
sustainability of the collected species in its native habitat.
ES-BD 4
The company ensures that no collecting or hunting of rare or endangered species is undertaken
and that no alien invasive species is introduced.
ES-BD 5
The company participates actively in local or regional environmental projects or has a
biodiversity plan.
ES-BD 6
The company evaluates the implementation of agro-forestry systems as well as agricultural
diversification, as applicable.
4.9
Energy and Greenhouse Gas Emissions (GHG)
ES-GHG 1
In processing facilities where non-renewable energy is used, the company keeps records of
energy consumption, takes measures to use energy more efficiently and replaces nonrenewable sources with renewable ones, where feasible.
ES-GHG 2
The company conducts research, and implements practices, in order to reduce greenhouse gas
(GHG) emissions and increase carbon sequestration.
FTUSA_FWS_Standard_1.1_EN_060114
24
5.0 Trade Requirements (TR)
5.1
Basic Requirements (BR)
TR-BR 1
The company facilitates both announced and/or unannounced Fair Trade audits carried out by
Fair Trade USA-approved certifiers, and reports to Fair Trade USA on its Fair Trade transactions
(according to the frequency determined by Fair Trade USA: quarterly, bi-annually or monthly).
5.2
Product Sourcing (PS)
TR-PS 1
For newly certified producers, product that was produced more than one year before initial
certification may not be sold as Fair Trade.
5.3
Physical Product Traceability (PT)
TR-PT 1
Voluntary for producers of cocoa, tea, sugar, and fruit juice:
Fair Trade certified products are not mixed with non-Fair Trade certified products. Fair Trade
products are transported, stored, processed/manufactured and delivered separately from nonFair Trade products.
TR-PT 2
Voluntary for producers of cocoa, tea, sugar, and fruit juice:
Fair Trade products are marked clearly and can be identified as Fair Trade certified at all stages
(i.e. storage, transport, processing, packaging, labeling, handling and sale). These products are
also identified as Fair Trade certified in all related records and documents.


TR-PT 3
Only applicable to producers of cocoa, tea, sugar, and fruit juice that process their own products:
If the physical traceability requirements of TR-PT 1 and TR-PT 2 are not met, the volumes sold as
Fair Trade do not exceed the equivalent volumes produced by the Fair Trade Certified farm.
Producers selling to traders that fulfill physical traceability requirements are also responsible for
meeting physical traceability requirements. Producers that are not responsible for maintaining
physical traceability may mix product from their Fair Trade Certified farm with product from a
non-certified farm at the processing level if the following criteria are fulfilled:
Mixed Fair Trade and non-Fair Trade (mass balanced) product is not sold to the buyer prior to
Fair Trade product being actually produced.
Fair Trade Certified input and non-Fair Trade Certified input is processed at the same location.
FTUSA_FWS_Standard_1.1_EN_060114
25
5.4
Traceability Through Documentation (TD)
TR-TD 1
All Fair Trade certified products are clearly identified as Fair Trade certified in sales
documentation (e.g. invoices, contracts, bill of lading, and delivery notes).
5.5
Fair Trade Contracts (CR)
TR-CR 1
All elements of the Fair Trade contracts are honored unless both parties agree to a change in writing.
5.6
Contract Suspension (CS)
TR-CS 1
When a producer or buyer is suspended: within 6 months, the contracts that have already been
signed are fulfilled, and new contracts are only signed with the organization’s existing trade
partners (commercial transactions that have taken place in the previous 12 months).
5.7
Decertification (DC)
TR-DC 1
The company may not sell products to decertified operators for sale as certified products, from
the date of decertification. Contracts that have not yet been shipped are not classified as Fair
Trade contracts.
5.8
Use of the Fair Trade Trademark (FTT)
TR-FTT 1
Finished products: Only licensed partners of Fair Trade USA may use the Fair Trade Certified
certification mark on finished products. Organizations that are certified to sell Fair Trade
certified products may use the Fair Trade certification mark in promotional materials (such as
brochures, websites or wholesale packaging). See the Fair Trade USA Label Use Guide for more
detailed information.
FTUSA_FWS_Standard_1.1_EN_060114
26
Annex 1: Fair Trade USA Prohibited Materials List 2
The Fair Trade USA Prohibited Materials List is divided into two parts: the Red List and the Amber List.
Red List
The Red List includes materials that must not be used by producers while handling Fair Trade
products. ‘Handling’ means all activities that producers are involved in, such as production, post-harvest
treatment, processing, storage and transportation.
Amber List
The Amber List includes materials that are currently being evaluated by Fair Trade USA, and may soon
be included in the Red List. Materials on the Amber List may still be used on Fair Trade crops, but
producers must report their use for monitoring purposes. Monitoring will last until June 2015, by which
date a revision of the Red and Amber lists will be made. Producers should be aware that these materials
may eventually be prohibited and are encouraged to abandon their use. However, any materials added
to the Red list from the Amber list in June 2015 will have a minimum phase-out period of two years,
with exact timelines dependent on the findings of the research.
Structure of the Red and Amber List
The lists contain the following information:
Substance: specifies the name of the material
Reference list: shows in 7 columns the international list or regulation that mentions the material. The
reference lists are:
POP: The Stockholm Convention on Persistent Organic Pollutants
PIC: The Rotterdam Convention on the Prior Information Consent Procedure for Certain
Hazardous Chemicals and Pesticides in International Trade
PAN 12: Pesticide Action Network’s “dirty dozen” list (currently 18 pesticides)
WHO 1a and 1b: World Health Organization Acute toxicity classification 1a and 1b
EU: Banned or severely restricted in the European Union according to PAN List of Lists
US: Banned or severely restricted pesticide EPA according to PAN List of Lists
Specific regulations in the Red List
These provide information for specific use of materials and include:
• Extension possible and required prior to use: The material must not be used unless an extension is
granted by the certification body. The possible product scope and timeline for derogations is indicated.
• Prohibition only for specified crops and use: The material may not be used on certain crops, or for
certain purposes.
• Prohibition introduced with current revision: The material was previously allowed, but is now
prohibited. The certification body will define a transition period for certified producers to eliminate this
material or may grant an extension upon request, as applicable.
2
Version FTUSA_PML_EN_060114
FTUSA_FWS_Standard_1.1_EN_060114
27
Part 1: Red List of prohibited materials
Substance
POP
1,2 dibromethane
(ethylene dibromide)
(EDB)
1,2-dichloroethane
(ethylene dichloride)
2,4,5-T (2,4,5trichlorophenoxyacetic
acid) and its salts and
esters (dioxin
contamination)
3-Chloro-1,2propanediol (Alphachlorohydrin)
acrolein
aldicarb
aldrin
allyl alcohol
alpha HCH (alphahexachlorocyclohexane)
amoxicillin
asbestos (such as
crocidolite, actinolite,
anthophyllite, amosite
and tremolite)
azinphos-ethyl
azinphos-methyl
PIC
X
PAN
12
X
Reference list
WHO
WHO
1a
1b
X
X
X
bromadiolone
US
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Prohibited in bananas
post harvest
X
X
X
X
beta – cyfluthrin
beta HCH (beta-hexa
chlorocyclohexane)
binapacryl
blasticidin (blasticidinS)
brodifacoum
Specific regulations
EU
X
X
FTUSA will consider
phase-out plans
submitted before June
1st, 2015 for citrus and
deciduous crops.
Prohibited since 2011.
FTUSA will consider
phase-out plans
submitted before June
1st, 2015
X
X
X
X
X
X
X
X
FTUSA_FWS_Standard_1.1_EN_060114
28
Substance
POP
PIC
PAN
12
bromethalin
Reference list
WHO
WHO
1a
1b
X
butocarboxim
X
butoxycarboxim
X
cadusafos (ebufos)
X
calcium arsenate
X
X
captafol
X
chlordane
X
chlordecone (kepone)
X
X
X
FTUSA will consider
phase-out plans that
are submitted before
st
June 1 , 2015 for citrus
and deciduous crops
and for flowers and
plants.
X
X
X
X
X
X
X
X
X
X
X
FTUSA will consider
phase-out plans that
are submitted before
st
June 1 , 2015 for
flowers and plants.
X
chlorethoxyfos
X
chlorfenvinphos
X
chlormephos
chlorophacinone
X
X
carbofuran
chlorobenzilate
US
X
calcium cyanide
chlordimeform
Specific regulations
EU
X
X
X
X
X
X
copper acetoarsenite
(Paris Green)
X
coumaphos
X
coumatetralyl
X
FTUSA_FWS_Standard_1.1_EN_060114
FTUSA will consider
phase-out plans that
are submitted before
June 1st, 2015
29
Substance
POP
PIC
DBCP
dibromocloropropane
PAN12
Reference list
WHO WHO 1b
1a
Specific Regulations
EU
US
X
X
cyfluthrin
Prohibited since 2011
FTUSA will consider
phase-out plans that
are submitted before
June 1st, 2015
DDT (Dichlorodiphenyldichloroethylene)
X
X
X
X
demeton-S-methyl
X
dichlorvos
X
dicrotophos
X
dieldrin
X
X
X
X
difethialone
X
dinoseb, its acetate
and dinoseb salts
X
X
diphacinone
X
disulfoton
X
X
FTUSA will consider
phase-out plans that
are submitted before
st
June 1 , 2015 for citrus
and deciduous crops
X
X
dinoterb
DNOC (dinitro-orthocresol) and its salts
(ammonium,
potassium, sodium)
X
X
difenacoum
X
X
X
FTUSA_FWS_Standard_1.1_EN_060114
X
30
Substance
POP
Dustable powder
formulations
containing a
combination of: benomyl at or above
7%, - carbofuran at or
above 10%, - thiram at
or above 5% (PIC: 15%)
PIC
PAN12
Reference list
WHO WHO 1b
1a
X
X
endosulfan
X
endrin
X
X
X
EPN
X
X
ethiofencarb
X
Prohibited since 2011
X
X
ethoprophos
(ethoprop)
X
X
X
famphur
X
fenamiphos
X
flocoumafen
X
Allowed in bananas
and pineapple under
exceptional
circumstances. For
other products, FTUSA
will consider phase-out
plans that are
submitted before June
1st, 2015.
FTUSA will consider
phase-out plans that
are submitted before
June 1st, 2015
FTUSA will consider
phase-out plans that
are submitted before
st
June 1 2015
X
flucythrinate
fluoroacetamide
US
X
edifenphos (EDDP)
ethylene oxide
(oxirane)
Specific Regulations
EU
X
X
X
X
formaldehyde
X
Prohibited in flowers
and plants
formetanate
X
furathiocarb
X
X
FTUSA_FWS_Standard_1.1_EN_060114
31
Substance
POP
HCH mixed isomers
(containing less than
99.0% of the gamma
isomer)
heptachlor
PIC
PAN12
Reference list
WHO WHO 1b
1a
X
X
X
X
X
X
X
heptenophos
hexachlorobenzene
(HCB) (benzene
hexachloride)
X
hexachlorocyclohexane
HCH/BCH - (mixed
isomers)
X
X
X
X
isoxathion
X
lead arsenate
X
lindane (gamma-HCH)
Specific Regulations
US
X
X
X
EU
X
X
X
X
X
X
mecarbam
X
X
mercury chloride
X
Mercury compounds
(including mercuric
oxide, mercurous
chloride (calomel),
phenylmercury acetate
(PMA), phenylmercuric
oleate (PMO) other
inorganic mercury
compounds: alkyl
mercury, alkyloxyalkyl
and aryl mercury
compounds)
X
mercury oxide
X
X
X
methamidophos
X
X
X
X
FTUSA_FWS_Standard_1.1_EN_060114
X
32
Substance
POP
PIC
PAN12
methidathion
Reference list
WHO WHO 1b
1a
X
methiocarb
(mercaptodimethur)
X
methomyl
X
methyl parathion
(parathion methyl)
X
X
X
X
nicotine
X
omethoate
X
oxamyl
X
oxydemeton-methyl
X
paraquat (all forms)
parathion
pentachlorobenzene
pentachlorophenol
(PCP), its salts and
esters
phenylmercury acetate
(PMA)
FTUSA will consider
phase-out plans that
are submitted before
st
June 1 , 2015 for citrus
and deciduous crops
FTUSA will consider
phase-out plans that
are submitted before
June 1st, 2015
FTUSA will consider
phase-out plans that
are submitted before
June 1st, 2015
X
X
X
X
US
X
X
mevinphos
mirex
monocrotophos
X
Specific Regulations
EU
X
X
X
X
Allowed in bananas
under exceptional
circumstances. For
other products, FTUSA
will consider phase-out
plans that are
submitted before June
st
1 , 2015
X
X
X
X
X
X
X
X
Prohibited since 2011
X
X
X
X
X
X
FTUSA_FWS_Standard_1.1_EN_060114
33
Substance
POP
PIC
PAN12
phorate
phosphamidon
(fosfamidon)
X
X
phostebupirim
(tebupirimfos)
Specific Regulations
EU
X
US
X
X
polybrominated
biphenyl mixture (PBB)
polychlorinated
biphenyls PCB (except
mono-and
dichlorinated) (Aroclor)
Reference list
WHO WHO 1b
1a
X
X
X
polychlorinated
terphenyls (PCT)
X
X
propetamphos
X
Sewage sludge
(human, untreated)
sodium arsenite
X
sodium cyanide
X
sodium fluoroacetate
(1080)
X
strychnine
X
sulfotep
X
tebupirimifos
(phostebupirim)
X
tefluthrin
X
X
terbufos
X
tetraethyl lead
X
tetramethyl lead
X
X
thallium sulphate
X
thiofanox
X
thiometon
X
toxaphene
(camphechlor)
X
X
X
X
Allowed in bananas
under exceptional
circumstances
X
X
X
X
FTUSA_FWS_Standard_1.1_EN_060114
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Substance
Reference list
POP
PIC
PAN 12
WHO
1a
Triazophos
Specific Regulations
WHO 1b
EU
X
X
vamidothion
X
X
warfarin
(coumaphene)
X
zeta-cypermethrin
X
zinc phosphide
X
tris (2,3dibromopropyl)
phosphate
US
X
Part 2: Amber List or monitored materials
Substance
Reference List
POP
PIC
PAN 12
WHO
1a
WHO
1b
EU
US
2,3,4,5-bis(2-butylene) tetrahydro-2furaldehyde [repellent-11]
X
2,4,5-TCP (potassium 2,4,5trichlorophenate)
X
acephate
X
alachlor
X
amitraz
X
arsenic compounds (EPA: arsenic
trioxide: calcium, copper, lead and
sodium arsenate sodium arsenite)
X
atrazine
X
bromoxynil
X
bromoxynil butyrate
X
butylate
X
cadmium and its compounds
X
carbaryl
X
carbon tetrachloride
X
carbosulfan
X
chloranil
X
FTUSA_FWS_Standard_1.1_EN_060114
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Substance
Reference List
POP
PIC
PAN 12
WHO
1a
chlorfenapyr
WHO
1b
EU
US
X
chloromethoxypropyl-mercuricacetate (CPMA)
X
chlozolinate
X
copper arsenate
X
cyhalothrine (but not lambda isomers
of cyhalothrin)
X
daminozide (alar)
X
DDD (dichlororodiphenyldichloroethan) [TDE]
X
di (phenylmercury)
dodecenylsuccinate (PMDS)
X
dicofol
X
dicofol containing less than 78% p,p Dicofol or >1 g/kg of DDT and DDT
related compounds
X
dimethenamid
X
ethyl hexylene glycol
X
fenthion
X
fentin acetate
X
fentin hydroxide
X
fenvalerate
X
ferbam
X
haloxyfop-R (haloxyfop-P-methylester)
X
leptophos
X
malathion
X
maleic hydrazide and its salts, other
than choline, potassium and sodium
salts ; choline, potassium and sodium
salts; maleic hydrazide containing
more than 1 mg/kg of free hydrazine
expressed on the basis of the acid
equivalent
X
FTUSA_FWS_Standard_1.1_EN_060114
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Substance
Reference List
POP
PIC
PAN 12
WHO
1a
monolinuron
monuron
nitrofen (TOK)
nonylphenol ethoxylates
OMPA
(octamethylpyrophosphoramide)
permethrin
phosalone
propham
pyrazophos
pyriminil (vacor)
quintozene
safrole
silvex
Simazine
technazene
terpene polychlorinates (strobane)
thiodicarb
triazamate
trichlorfon
triorganostannic compounds
(tributyltin compounds)
vinyl chloride
zineb
WHO
1b
EU
X
X
X
X
US
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
FTUSA_FWS_Standard_1.1_EN_060114
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Annex 2: Special Price and Premium Terms 3
Special Price and Premium Terms
This annex contains Special Price Terms as well as information on Relevant Market Prices. Products with Special
Price Terms are identified by an asterisk (*) in the “Special Price Terms” column in the Price and Premium
Database. The Special Price Terms are divided by standard category.
Factory Standard
I.
Special Price and Premium Terms
Product
Category
Product
Special Price Terms
Apparel and
Home
Goods
Factory
The Fair Trade Premium is a minimum of 1% and maximum of 10% of the FOB value
of the order, depending on the wage level assessed in the factory. If the wages
assessed meet the living wage benchmark, the Fair Trade Premium is 1%. If the
wages assessed are closer to the living wage benchmark than to the minimum
wage, the Fair Trade Premium is 5%. If the wages assessed are closer to the
minimum wage than to the living wage, the Fair Trade Premium is 10%.
Agricultural Standards
I.
Special Price and Premium Terms
Product
Category
Product
Special Price Terms
Seed Cotton
Seed Cotton
Coffee
Arabica
Coffee,
Robusta
Coffee
Grains
Quinoa
No additional Fair Trade Premium applies for secondary products (and their
derivatives) that have been derived from the processing of Fair Trade seed cotton,
if the seed cotton has been sold as Fair Trade and the corresponding Fair Trade
price adjustment (if applicable) and Fair Trade Premium have been paid.
This only applies to coffee sold by Small Producer Organizations or Market Access
Partners/Smallholders certified against the Independent Smallholders Standard: at
minimum 25% of all Fair Trade Premium received (or at minimum $.05 USD per lb
of coffee sold on Fair Trade terms) is invested in projects or activities intended to
increase the productivity and/or quality of the coffee cultivation by the
smallholders. This is documented as a part of the Fair Trade Plan.
At minimum, 30% of all Fair Trade Premium received is invested in projects or
activities intended to increase environmental sustainability of the quinoa
cultivation. This is documented as a part of the Fair Trade Plan.
3
Version FTUSA_SpecialPriceTerms_EN_102413
Note: Prior to October 2013, this information was stored in a separate document. The special price and premium
terms have not changed.
FTUSA_FWS_Standard_1.1_EN_060114
38
Produce
Banana
Mango
Pineapple
The Ex Works-level is defined as the location of the producer where palettization
is executed and bananas are not cleared for export and not loaded in any
collecting vehicle. At Ex Works-level, prices include labor costs for packing
(including palletization) only to prepare the bananas for loading on the collecting
vehicle (truck or container). Ex Works prices do not include any kind of packing
material.
At FOB level, prices include the costs for the following packing material:
standard carton box,
one plastic per carton box (banavac or polypack),
pallet,
edge corners,
strips,
up to 3 labels per banana hand
The costs for these standard packing and palletization materials are covered by
the exporter. However, the service related to packing (labor costs) of above
defined standard packing material is included in the Ex Works prices and provided
by the producer. Neither the Ex Works nor the FOB prices include costs for
additional or special packing materials such as “clusterbags” or “parafilm” and
related services. Costs for those packing materials and any associated labor must
be paid on top of the Fair Trade Minimum Prices to producers at Ex Works or FOB
level and be defined in the contract. Fair Trade Minimum Prices in any case refer
to 18.14 kg of ripened fruit. If boxes with different weight are used, Fair Trade
Minimum Prices and Fair Trade Premiums are calculated pro rata.
All countries:
The Fair Trade Minimum Price set at Farm Gate level includes the following costs:
One-off set-up costs amortized, field preparation, field work, harvest, packing and
organizational costs.
Please note that for mangoes from Haiti, the Fair Trade Minimum Price set at
Farm-gate level covers the following costs: cost of the fruit, profit to producer,
cost of harvesting, initial washing, packing into plastic crates for transport to the
exporter, administration costs and profit to the association. The exporter covers
transportation to the packing house, hot water treatment, stickers, cardboard
boxes, packing into cardboard boxes, palletization and export costs. Please note
that for mangoes from Western Africa and from Ghana, the level Ex Works
means “at the door of the cooperative”. The Fair Trade Minimum Price set at Ex
works covers the following costs: Establishment costs, production costs, harvest
costs (including mango box), the expenses for grouping mango cases at the
cooperative and organization costs. The Fair Trade Minimum Price excludes costs
of transport from the cooperative to the packing and packaging station.
The Ex Works level for pineapple means “at the exit of the pack house”. In other
words, the pineapples are stored, cleaned, packed and refrigerated. They are in
pallets, ready to be lifted in the container and to go to the harbor to be exported.
The FOB level includes the lifting to the container, the transport to the harbor,
customs’ costs, export administrative costs, unloading at the port and margin to
the exporter. In short, the FOB price is when the container is along ship and ready
to be lifted in the ship.
For pineapple for processing, Ex Works is the place where the seller places the
good at the disposal of the next buyer. This is at the gate of the producer’s
organization. This is valid for a hired labor organization as well as for a
cooperative. The FOB level includes the same costs component as the FOB for
fresh pineapple for export. In case that the shift of responsibility between the
seller and the buyer does not match the Ex Works or the FOB level, the incurred
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Nuts
Brazil Nuts
Tea
Camellia
Tea
sourced
from farms
certified
against the
Farm
Workers
Standard
Herbs &
Spices
Rooibos
costs or services need to be deducted (or added) from the Ex Works or FOB
minimum prices.
The Fair Trade Minimum Prices for Brazil nuts set at the “Ex Works without
selection and packing – at the processing plant” level cover the following costs:
one-off set-up costs amortized, field work, harvest, transport to the processing
plant, shelling, and organizational costs.
Sustainability Margin
This only applies to farms certified against the Farm Workers Standard: For
conventional teas from the Camellia plant made using the CTC production
method, and for conventional “fannings” and “dust” made using the orthodox
production method only, 20% of the Premium is to be deducted from the Fair
Trade Premium and paid to the estate. This amount is called the sustainability
margin. The estate must use it to support improvements in working conditions as
part of ongoing certification and compliance with Fair Trade Standards. Where
applicable, split payment between the Fair Trade Premium paid to the Fair Trade
Committee (80%) and to the estate (20%) needs to be clearly documented, for
example by two separate bank payments, or by invoicing the sustainability margin
with the price of goods.
Instant Tea has a split Premium (20% of the Fair Trade Premium is paid to the
estate and 80% to the Fair Trade Committee) if the instant tea is derived from
conventional made tea using the CTC production method, and from conventional
“fannings” and “dust” made tea using the orthodox production method.
There are two different pricing scenarios for Rooibos producers – Smallholder
Organizations receive a higher price and a lower premium, farms certified against
the Farm Workers Standard receive a lower price and higher premium:
Pricing for Rooibos sold by SPO’s in South Africa:
Quality
Currency /
Inco Term
Quantity x
Level
Unit
Organic
ZAR / 1 kg
FOB
Conventional
ZAR / 1 kg
FOB
Organic
ZAR / 1 kg
EXW
Conventional
ZAR / 1 kg
EXW
Fair Trade
Minimum
Price
30,00
25,00
25,00
20,00
Pricing for Rooibos sold by Estates in South Africa:
Quality
Currency /
Inco Term
Fair Trade
Quantity x
Level
Minimum
Unit
Price
Organic
ZAR / 1 kg
FOB
23,00
Conventional
ZAR / 1 kg
FOB
18,00
Organic
ZAR / 1 kg
EXW
18,00
Conventional
ZAR / 1 kg
EXW
13,00
II.
Cocoa
Fair Trade
Premium
5,00
5,00
5,00
5,00
Fair Trade
Premium
12,00
12,00
12,00
12,00
Relevant Market Price
Cocoa
The relevant cocoa market price is based on the Liffe Administration and
Management (‘Liffe’) Cocoa Futures Contract or on the Intercontinental Exchange
Futures US (‘ICE’) Cocoa Futures Contract.
Cocoa semi-processed products purchased from certified producers: The seller
FTUSA_FWS_Standard_1.1_EN_060114
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(i.e. producer) and buyer negotiate the price of the semi-processed product. This
negotiated price is based on, at least, the cocoa beans reference values of USD
1750/MT (for conventional) and USD 2050/MT (for organic) at producers’ level
plus all relevant processing costs. The Minimum Price is calculated using the
average processing yield calculated by the producer. Only if this information is not
available to the producer do the processing yields from beans in the below apply.
Coffee
Processing yield from
beans
Fair Trade Premium
Beans
-
USD 200/MT
Liquor
0.8
USD 250/MT
Butter
0.376
USD 530/MT
Powder
0.424
USD 470/MT
Butter and Powder
(0.8)
USD 250/MT
Arabica
Coffee
For Arabica coffees the relevant market price is based on the New York Board of
Trade "C" contract (NYBOT/ICE). The relevant market price shall be established in
USD-cents per pound, plus or minus the prevailing differential for the relevant
quality, basis FOB origin, net shipped weight.
Robusta
Coffee
For Robusta coffees the relevant market price is based on the London "EURONEXT
LIFFE" contract. The relevant market price is established in US-dollars per metric
ton, plus or minus the prevailing differential for the relevant quality, basis FOB
origin, net shipped weight.
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