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!
Fairtrade Minimum Price (FMP)
The Fairtrade Minimum Price (where it exists) is the minimum price that must be paid by buyers to producers for a product to become certified against the Fairtrade Standards.
The FMP is a floor price which covers producers’ average costs of production and allows them access to their product markets. The FMP represents a formal safety net that protects producers from being forced to sell their products at too low a price when the market price is below the FMP. It is therefore the lowest possible price that the Fairtrade payer may pay to the producer.