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Being Fair Trade certified: what does it mean?
Fair trade: definition and legal framework
Since 2001, fair trade has been defined as “a trading partnership based on dialogue, transparency and respect, whose objective is to achieve greater equity in global trade”.
In France, Article 94 of the Hamon Law on the Social and Solidarity Economy (2014) extended the use of the term “fair trade” to North–North supply chains, whereas it had previously been reserved for exchanges between producers in the Global South and actors in the Global North. The law specifies the objective of fair trade: “to ensure the economic and social progress of workers in situations of economic disadvantage due to their precariousness, remuneration and qualifications“. Since this law, it has become possible to use the fair trade designation on French products, provided that the founding principles of fair trade are respected.
The commitments of fair trade as defined by French law are as follows:
- A long-term commercial commitment between the parties (minimum 3 years)
- A fair and remunerative price for producers, based on production costs and balanced negotiation
- Autonomous producers through democratic governance
- The payment of an additional amount to finance collective projects, in addition to the purchase price or included in the price
- Transparency and traceability of supply chains
- The implementation of consumer awareness actions on sustainable production methods
Article 257 of the Climate and Resilience Law (2021) strengthened the legal definition by adding an objective of investment in agroecology and biodiversity protection. It also makes the use of a label mandatory for all companies claiming to engage in fair trade.
The Ecocert Fair For Life certification
Fair for Life is a certification that supports fair trade and responsible supply chains. It is a branch of the certification body ECOCERT, a global leader in the certification of sustainable practices.
The Fair for Life label guarantees, through a precise set of specifications, compliance with the core principles of fair trade.
In concrete terms, what does this change for winemakers?
Vignobles Gabriel & Co is a collective of 33 winemakers. Vignobles Gabriel & Co purchases the production of its partner winemakers and also handles wine distribution.
For us, in concrete terms, this is how it translates into everyday practice:
An economic model with ethical practices
based on a fair pricing policy and respectful dialogue with producers
A 3-year contract tacitly renewed, facilitating a long-term vision
David Arnaud, a partner winemaker, explains the benefits of this contract: “We are bound by a social and remunerative contract. It reassures us regarding the constraints of commercialization and allows us to focus on crafting the product, while respecting natural balances, and to have a serene vision of the future.”
Respect for the environment
All partner estates commit to respecting the environment, biodiversity and the climate by progressively implementing sustainable agricultural practices that encourage conversion to organic farming.
More than 66% of the collective’s wines are already organic and/or biodynamic, or in conversion to organic farming.
Supporting consumers in their purchasing decisions
through educational packaging
Ensuring traceability
of our products
Involving partner winemakers
through transparency regarding the company’s figures and current activities
Fair remuneration
The remuneration of the collective’s partner winemakers is based on production costs. The floor price is equal to the cost price, which means that winemakers cannot produce at a loss.
Different added values are applied to the floor price depending on the wine profiles, ensuring that partner winemakers receive higher remuneration than the Bordeaux wine market:
- 20% for conventional wines
- 10% for organic wines
- 10% for biodynamic wines
- 10% for wines with no added sulfites
Additional value is also given to wine quality. Every year, blind tastings are carried out by a tasting committee elected by the partner winemakers, with the allocation of a bonus/malus.
In all cases, compliance with the Ecocert Fair For Life specifications implies minimum remuneration exceeding 5% above production costs for wines from conventional agriculture and at least 10% above production costs for wines from organic agriculture.
“The wine market goes up and down a lot. Not knowing each year at what price we are going to sell is a huge source of stress for us and does not necessarily allow us to invest in the future. Today, knowing that every year I will have a fair price that will not fluctuate according to the market is one less source of stress for us.”
David Arnaud
Respecting human rights and fair working conditions
for our employees, our partner winemakers and their staff
Giving a voice to our partner winemakers
Highlighting partner winemakers and their know-how
to clients and consumers
Because winemakers are the ones who speak about it best...
Discover the testimonial of David Arnaud, a winemaker from the Côtes-de-Bourg appellation