Fair Trade Status and Premiums Could Be At Risk

In the end, cane farmers run the risk of losing out on the Fair Trade Premium paid to Associations on an annual basis. These premiums are paid as an extra sum of money, on top of the selling price to invest in projects of their choice. Having a signed commercial agreement is one of the prerequisites to qualifying for that premium.  

Mac McLachlan

Mac McLachlan, VP of International Relations

“Fair trade is an internationally recognized standard, which basically is designed to encourage agriculture production in sustainable ways. And, it provides an avenue for return of funding directly to cane farmers associations. A part of that, it is policed by Fair Trade, through independent auditors who visit every year and they audit all Fair Trade Associations. It is involved in many different areas. They have cocoa and a lot of different commodities that Fair Trade works with to international standards. And, there are ground rules, clear ground rules, which Fair Trade operates. Now, I am not the expert on these things, but one thing I do know is that this mill needs to have a commercial contract with farmers and farmers need to have a commercial contract with the mill to be able to qualify for Fair Trade. Because, that is one of the principles on which Fair Trade is built.”