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 and temporary allowance to start trading under Fairtrade conditions. By no means does it represent a valid Fairtrade Certificate and it …
Physical Traceability
In a Fairtrade supply chain, Physical Traceability is the ability to follow a specific product throughout the supply chain and at 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
A Processing Installation is owned or subcontracted by an organisation where the raw and intermediate product is transformed into a product with …
Producer
The term Producer refers to any type of producer set-up as found in the Fairtrade Standards: Hired Labour, Small-Scale Producer Organisations, …
Producer Certification
The certification of producers against the Fairtrade Standards relevant to them. Learn how Fairtrade Certification works at: …
Producer Executive Body
Elected representatives of the individual contracted producers, in the context of Contract Production. The Producer Executive Body (PEB) is the …
Producer Networks
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 is taking 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
When a buyer purchases a product from a non-certified producer or Conveyer under ordinary conditions (non-certified), and wants to convert that …