Traders as well as producers must comply with Fairtrade standards. Companies and producers that are trading Fairtrade products must meet the requirements as outlined in the generic Fairtrade trade standards.
The main requirements contained in the generic Fairtrade trade standards are that companies trading Fairtrade products must:
- Pay a price to producers that aims to cover the costs of sustainable production: the Fairtrade minimum price
- Pay an additional sum that producers can invest in development: the Fairtrade premium
- Partially pay in advance (pre finance), when producers ask for it
- Sign contracts that allow for long-term planning and sustainable production practices.
You can download these standards from the FLO website here.