Fair Trade vs Fairtrade

"Fair Trade" and "Fairtrade" designate two legally distinct certification bodies with shared origins but different models. Fairtrade International (FLO), headquartered in Bonn, operates the cooperative-only system used in Europe, Africa, and most of the world — only democratically-run smallholder cooperatives qualify. Fair Trade USA split from FLO in 2012 and introduced its own standard that allows large plantations to certify individual "hired labour" workers, a move widely criticised by cooperative advocates. Both systems set minimum floor prices for green coffee and pay a social premium, but leading specialty roasters point out that these floors — currently around $1.80–$2.20/lb — sit well below what quality-focused specialty buyers pay through direct trade relationships.