Fair Trade Certified Cotton
The difficult economic and social situation of cotton growers in developing countries is the background to the development of the Fair Trade criteria for cotton. The criteria for Fair Trade Certified cotton are generally as follows:
• Explicit rules for chemical handling, including health promotion measures.
• Requirements for long-term trade relations.
• Requirements for democracy development.
• The producer organization must be paid at least a minimum price, i.e. a price that must cover the cost of sustainable production.
• If the world market price is higher than the minimum price, the world market price is applied as the minimum level for the negotiation between growers and buyers.
• A premium per kilo of cotton sold is paid to the producer organization with the aim of stimulating investment in the local community and operations. The members jointly decide, based on democratic forms, how the premium is to be used. For example, school construction in the local community, investments in local healthcare and funds for microloans.