Goal and Objective

While Fair Trade USA will always recognize FLO-CERT certification, we are also making Fair Trade USA standards available to give more producer groups more options for getting the benefits of Fair Trade.

Fair Trade USA developed the Smallholder Organization (SHO) Standard to support the thousands of small-scale family farmers who are empowered by selling their products collectively via an organization that they manage democratically. SHOs can be powerful tools for collectively negotiating better terms of trade, organizing education and capacity-building for their members, pooling investment funds, and implementing community development projects. The standard incorporates the core Fair Trade USA principles:

1. Empowerment: Inclusive Participation and Transparency
   • The Smallholders control their organization through a democratic process, and are jointly responsible for decisions on the use of the Fair Trade community development premium.
   • The SHO must develop all financial, business, and community development plans in conjunction with their members, and present all related information in a transparent way to the General Assembly of SHO members.
2. Economic Development: Stable business relationships and pre-determined premiums
   • Fair Trade USA standards require pre-determined community development premiums to be paid on every sale.
   • Fair Trade guarantees a minimum floor price to farmers, which acts as a safety net when market prices are low.
   • Fair Trade contracts are honored so that stable trade relationships can develop and SHOs can better commercialize their products.
3. Social Responsibility
   • Fair Trade prohibits child and forced labor and ensures health and safety measures are established.
   • Community Development premiums can be used to provide greater access to and quality of healthcare and education.
4. Environmental Stewardship
   • The SHO provides training to its members on sustainable farming practices and protect biodiversity.
   • The SHO ensures that its members protect biodiversity and do not use restricted chemicals such as the PAN Dirty Dozen or GMOs.

Standards Development and Stakeholder Review

To draft the Fair Trade USA Draft SHO Standard, Fair Trade USA will review several standards and their compliance criteria. The SHO Standard will be available for comment in Q2 2012.

Download FLO's Small Producer Organization (SPO) Standard (English, French, Spanish or Portuguese).