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The standards

FAIRTAB works with two sets of Fairtab standards, which acknowledge different types of disadvantaged producers. One set of standards applies to smallholders that are working together in co-operatives or other organizations with a democratic structure. The other set applies to workers, whose employers pay decent wages, guarantee the right to join trade unions, ensure health and safety standards and provide adequate housing where relevant.

Fairtab standards also cover terms of trade. Both, raw tobacco and cigars have a Fairtab price, which is the minimum that must be paid to the producers. In addition producers get an additional sum, the Fairtab Premium, to invest in their communities.

Fairtab prices

The minimum price paid to Fairtab producers is determined by the Fairtab standards. This price aims to ensure that producers can cover their average costs of sustainable production. It acts as a safety net for farmers at times when world markets fall below a sustainable level. Without this, farmers are completely at the mercy of the market.

When the market price is higher than the Fairtab minimum, the buyer must pay the higher price. Producers and traders can also negotiate higher prices on the basis of quality and other attributes.

The Fairtab premium

In addition to the Fairtab price, there is an additional sum of money, called the Fairtab Premium. This money goes into a communal fund for workers and farmers to use to improve their social, economic and environmental conditions.

The use of this additional income is decided upon democratically by producers within the farmers’ organization, or by workers on a plantation. The Premium is invested in education and healthcare, farm improvements to increase yield and quality, or processing facilities to increase income.

Many projects funded by the premium are communal. This means not only the workers alone but the whole community around them benefits from premium paid for the fair traded tobacco products.

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