If you feel that the world of Fair Trade has its very own language – do not worry! With this glossary we would like to guide you through the specific technical terms used by FLOCERT, Fairtrade International and the World Fair Trade Organization (WFTO).
The term product compensation is used when a buyer purchases a product from a non-certified producer or conveyer under ordinary conditions (non-certified), and wants to convert that product into a certified product. To do this they must purchase the equivalent quantity and quality from a certified producer. The original product is then used as a non-certified product at a later date. Product compensation is only granted in very exceptional cases and needs a formal application and approval process with FLOCERT.