Frequently Asked Questions

Fair Trade is not a form of donation because the products are competitive in price, quality and performance as compared to regular non-Fair Trade products available in the market. In addition, fairly traded products are certified to be produced in a socially and environmentally responsibly manner, enabling consumers to shop and consume with a clear conscience.

The Fair Trade standard also implies that once a product is sold by the farmer or artisan, he / she will have received a fair price in addition to other benefits such as credit terms, better trading conditions, technical or marketing assistance, and use of sustainable environmental practices.

2. What proportion of the price reaches the poor producers?

The benefits of Fair Trade are not limited to fair prices but includes credit terms, technical or marketing assistance, environmental sustainability etc.

However if only the price is examined, it is more feasible to be calculated for commodity products like coffee because there is a direct comparison between the global market price and the Fair Trade minimum price (the current premium is about USD 0.49 per pound for unroasted green coffee beans). Unfortunately complications may still arise in this computation. For example, part of the weight of green coffee beans is lost during coffee roasting and grinding, so the premium maybe higher than calculated above.

It is not possible to calculate the premium directly for handicrafts since it is not a commodity and thus there is no global market price for comparison. The Fair Trade criteria still requires a fair price in the local context to be paid, and all the other Fair Trade standards for social and environmental responsibility are still applicable.

3. Why are your product offerings limited?

We are currently a modest-sized organisation with limited merchandising funds, therefore our initial offerings do not reflect the wide range of Fair Trade products that are available worldwide. However we are exploring other product expansion options, and hope to offer Singapore consumers more products and choices as we grow.