In the context of agricultural commodities "fair trade" is a voluntary program practiced by some importers and food companies to create an alternative market for traditionally disadvantaged producers in developing countries, usually small-scale farmers. The components include:

• direct purchasing from to those who are poorly served by the conventional markets, specifically small farmers and their cooperatives
• agreed upon commodity floor prices that provide for a dignified livelihood
• a promise by importers to make affordable credit available to the farmer cooperatives
• a world-wide network of non-profit certifying organizations
• a fee paid by the importers and wholesalers to cover the cost of certification
• a seal that assures consumers that a product was fairly traded

Fairtrade Labeling Organizations International (FLO) in Bonn, Germany handles the certification of fair trade commodity production and exports. They may be contacted at: www.fairtrade.net, Phone (dialing from the US): 011-49-228-949230, coordination@fairtrade.net. FLO has member organizations in each importing country that handle the certification of fair trade imports and use of the fair trade seal on packaging. In the United States that group is TransFair USA, based in Oakland, California, www.transfairusa.org.

See "Fair Trade" section in Our Co-op for more info.