Glossary

If you feel that the world of Fair Trade has its very own language – don’t fret! We’ll keep you in the know!

With this glossary we’ll guide you through the common technical terms used by FLOCERT, Fairtrade International and the World Fair Trade Organisation (WFTO).

Learn about the wor(l)ds of Fair Trade below!

Navigate the glossary by letter

Permission to Trade
Intermediate, temporary allowance to start trading under Fairtrade conditions. It by no means represents a valid Fairtrade certificate and it is …
Physical Traceability
In a Fairtrade supply chain, Physical Traceability is the ability to follow a specific product throughout the supply chain and all stages of …
Plantations
An agricultural company that structurally depends on Hired Labour. It is a Single Estate that might comprise single or multiple production sites, but …
Pre-financing
The practice of providing funding in advance of delivery or receipt of a product.
Primary product
An agricultural or non-agricultural product as it is extracted or harvested. Fairtrade Minimum Price and/or Premium are generally set for the primary …
Processed product
A product that originated as a primary product, but that has been modified.
Processing Plants
Plants in the ownership of or subcontracted by an organisation, where the raw and intermediate product is transformed into a product with higher …
Producer Certification (PC)
Within Fairtrade, Producer Certification refers to the certification of producers against the relevant Fairtrade Standards. Learn here how …
Producer Executive Body (PEB)
A Producer Executive Body (PEB), in the context of Contract Production, comprises elected representatives of the individual contracted producers. The …
Producer Networks (PN)
A regional network of producers and/or regional associations who work together for their common interest. The focus of those efforts may vary …
Producer that also exports for others
Any Fairtrade producer organisation that takes care of exporting a Fairtrade product for another producer organisation from the country of origin …
Producing country/Country of origin
A country where a product is originally grown or where a handicraft product is originally produced. In the context of Fair Trade, the term usually …
Product Category
The respective Fairtrade Product Standard classification, such as fresh fruit, banana, coffee, etc.
Product Compensation
The term Product Compensation is used when a buyer purchases a product from a non-certified producer or conveyer under ordinary conditions …
Product Form
The processed form of a product, not limited to forms mentioned in the Fairtrade Standards. The form can vary up to the point of the product becoming …