The main goal of Fairtrade is to give farmers a fair chance to improve their own market position. The Fairtrade Labelling Organizations (FLO) was founded in 1997 to bring together the various fair trade labelling initiatives in consumer countries, the first of which was Max Havelaar in the Netherlands in 1988. Currently, there are 20 such initiatives operating in 21 countries, creating a huge market for Fairtrade products. Around 21 cocoa producer organizations in Africa and Latin America produce Fairtrade certified cocoa.

FLO Standards are divided into smallholder producer standards and hired labor standards. Smallholder producer standards include social development criteria, such as the ability for Fairtrade to add development potential and for producer groups to have a democratic structure and transparent administration.

The FLO system guarantees a Fairtrade minimum or floor price that is based on the estimated costs of sustainable production. The Fairtrade minimum price is $1600/tonne + $150 premium. When the New York price is $1600 or above, then the Fairtrade price is the New York price + $150 premium. This additional premium is intended for use by cooperatives for social and economic investments at the community and cooperative level. Besides, if the cocoa is also Organic certified, the additional premium rises to $200/tonne.

For more information visit www.fairtrade.net