The rest is used to fund training, farming techniques, processes and inputs. Only about half of this premium goes to the farmers as income or cash. Unlike the Fairtrade program, the premium on cacao commodity is not fixed but variable and negotiated with farmers each year. Rainforest Alliance and UTZ Certification are two other Fair Trade style certifications programs also used in the cocoa supply chain. Critics also note that Fairtrade ingredients are marketed towards larger businesses, due to their positive reception and low minimums for labeling. While farmers are paid more for their certified products, some of that income is earmarked for community development and only a portion goes back to each individual farmer.Įven though the cost of Fair Trade ingredients is higher, to add the label to their packaging, companies only need to purchase 20% of their volume from a Fair Trade-certified producer. Producers seeking Fairtrade certification must pay for FLOCERT to come and inspect their practices both initially and annually, which many producers cannot afford. Fairtrade chocolate has been criticized for placing further burdens upon farmers. Some Fairtrade chocolate is made with only one Fairtrade-certified ingredient, and will be marked as such Organizations under the Fair Trade umbrella include: the certifying body (FLOCERT), the global labeling organizer (Fairtrade International), and the group of Fairtrade-certified enterprises (WFTO).Įvery Fairtrade chocolate you buy has been made with some portion of ingredients grown on a farm certified by FLOCERT, labeled by Fairtrade International, and potentially made or distributed by a WFTO enterprise. For Fairtrade chocolate this means using certified cacao, sugar, and vanilla, at a minimum of 20%. What Is Fair Trade & Direct Trade Chocolate? FLOCERT & Fairtrade Internationalįair Trade is an international group which works with farmers and businesses to ensure their sustainability and ethics within the global supply chain. But both refer to a more ethical and traceable way of sourcing raw materials but Fair Trade does not guarantee that cocoa is free from child labor and does not guarantee living standards for the farmers. At their core, the two are very different. But recently Direct Trade chocolate has come into the spotlight, also promising fairly-sourced and -processed ingredients. Up until a decade ago, Fair Trade chocolate may have seemed like the only ethically-made and -sourced chocolate.
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