If you feel that the world of Fair Trade has its very own language – do not worry! With this glossary we would like to guide you through the specific technical terms used by FLOCERT, Fairtrade International and the World Fair Trade Organization (WFTO).
Fairtrade Premium (FP)
Fairtrade Premium is an amount paid to producers in addition to the payment for their products. The use of the Fairtrade Premium is restricted to investment in the producers’ business, livelihood and community (for a small producer organization or contract production set-up) or to the socio-economic development of the workers and their community (for a hired labour situation). Its specific use is democratically decided by the producers.