We sometimes wonder what the difference is between Fairtrade and fair trade and what it actually means. At Kalani we are Fairtrade Cotton certified and we do fair trade.

With Kalani, we are part of a vast global community: producers, workers, companies, consumers and even governments, united in defending a fairer model of trade.

What does FLO-CERT Fairtrade certification mean?

Fairtrade’s mission is to build a fairer, more humane world, where farmers and workers are at the heart of the global economy, enabling them to improve their lives, invest in their communities and protect our shared environment. A Fairtrade certified brand firmly believes in a future where every producer can live with dignity, develop their potential and have the freedom to shape their own destiny.

To achieve this, Fairtrade has created the Fairtrade certification (controlled by FLO-CERT international). This label guarantees that the certified brand, company or retailer pays a fair price to workers and farmers (usually organised into cooperatives) in southern countries for the production of products (or the harvesting of raw materials) that are then imported into northern countries to be marketed (or processed), that responsible production practices are respected, and that decent working conditions are guaranteed. In addition to the fair price paid to local producers for their work, Fairtrade has introduced the Fairtrade Premium. This is an additional sum of money paid to producers’ cooperatives. This premium is intended to finance community, social or environmental projects chosen democratically by the farmers and workers within the cooperatives (education, healthcare, infrastructure, sustainable farming practices).

Fairtrade certification is one of the many South-North Fairtrade certification labels, and is probably the best known and most widely used. However, there are other certifications that are just as valid and just as well controlled.

Because of its international reputation, the Fairtrade label is sometimes criticised by certain market players (for its cost) and by certain competing labels (for agreeing to certify supermarket chains that do not always work fairly with all products). Under Fairtrade certification, royalties are high (around 2% of sales), but they are used to finance marketing and communication campaigns to promote Fairtrade. They are also used to finance the support provided to cooperatives by the three producer networks within the Fairtrade system: NAPP (for Asia), Fairtrade Africa (for Africa and the Middle East) and CLAC (for Latin America and the Caribbean). For example, 36% of the royalties of Fairtrade Belgium – which is part of the NFOs (National Fairtrade Organisations) – are paid to the international system to directly help cooperatives comply with Fairtrade standards and European legislation, such as the EU Deforestation Regulation (EUDR). They also enable studies to be carried out, for example to define Living Income Reference Prices for farmers and producers of different Fairtrade products.

It is true that Fairtrade does not only certify brands and producers, but also distributors, particularly supermarket chains. But it’s a very interesting approach that doesn’t amount to ‘selling your soul to the devil’, as the most virulent critics sometimes shout. On the contrary, involving retailers in the Fairtrade approach and certification has been a very intelligent move on Fairtrade’s part. Not only has it enabled many more people to find out about Fairtrade products, but it has also enabled some retailers to take a very clear-cut stance on their own brands by committing to 100% Fairtrade.

And finally, the most important thing is to have greatly increased the volume of Fairtrade products sold worldwide, thus contributing to a significant increase in the Fairtrade Premiums paid to farmers and producers, enabling them to finance community projects.

Fairtrade certifies food products (coffee, chocolate, sugar, bananas, etc.), flowers, gold and cotton. As a household linen brand, Kalani is interested in Fairtrade cotton. If our cotton comes from the South, we want it to be Fairtrade certified. Since 2016, the brand Kalani has been Fairtrade certified by FLO-CERT (certification number FLO ID 35216). This certification allows us to guarantee that organic and Fairtrade cotton farmers in India receive the Fairtrade Premium for each Kilo of cotton grown. However, at Kalani, along with other small and medium-sized brands, we have decided to offer the cotton cooperative we work with an average of 13.5% above the Fairtrade Premium. In this way, not only are the farmers paid a fair price for their work, but the cooperative to which they belong can also invest in education, health and the environment.

Fairtrade versus Fair Trade

Fair trade is about trading with mutual respect, and with a view to combating the domination of large buyers having buying power over small producers, who are sometimes forced to sell at prices that are too low, or even at a loss. Fair trade means a fair price for everyone, all year round.

The concept of fair trade was born many years ago with the creation of well-known labels such as Max Havelaar, Fairtrade, Small Producers, Naturland Fair, Fair for Life, etc. Originally, fair trade was born to protect farmers and producers in the South against globalisation and the domination of players in the North. In recent years, however, the concept has evolved to become less stereotypical and restrictive. Today we can find :

• North-North fair trade, between buyers in the North and farmers/producers in the North, who are sometimes also under price pressure from multinationals;
• South-South fair trade, between buyers from large companies in the South and farmers/producers in the South.

The definition of fair trade evolves with time and commercial practices, but unfortunately it still exists. ‘Unfortunately’, because our aim is for all trade to become fair trade and for farmers and producers always to be respected and to be able to make a decent living from their work in their own country, whatever that may be. In a utopian world, we might dream that this could happen and that the term ‘fair trade’ would disappear. But we’re realists, and we’ve known about the human race for a long time. And if we can do our bit to change things and increase the volumes of Fairtrade cotton and other fair trade products, we’ll already have won some great battles and tens of thousands of farmers and producers whose daily lives and those of their communities will be improved.

Kalani: Fairtrade and fair trade. What does Kalani do fairly that is not Fairtrade certified?

When Kalani started out, it produced exclusively organic and Fairtrade cotton bed and bath linen in India. Since 100% of the organic cotton used was long-staple cotton (Egyptian cotton type) grown in India, everything was Fairtrade certified by FLO-CERT.

The brand then evolved and developed new collections. For these, the certifications vary depending on the product (GOTS, DownPass®). Not all our products are Fairtrade certified, but they are all developed within the framework of fair trade, whether North-South or North-North, without compromising on sustainability and ethics.
Kalani has been a member of Fairtrade Belgium since 2016 and of the Belgian Fair Trade Federation (BFTF) since 2019, thereby also supporting political advocacy and investment in the promotion of Fair Trade in the wider sense.

Conclusion

Over the years, Kalani has developed a network of partners in the spirit of fair trade. In its North-South relations (products made in India), Kalani is Fairtrade certified. This guarantees a fair price to Fairtrade-certified farmers and ethical production factories that are also Fairtrade-certified. For European production (with local raw materials), i.e. in its North-North relations, Kalani is also part of a fair trade logic with other certifications that also highlight the ethical aspect, respect for human and animal welfare, local raw materials and environmental protection.

Producing fairly and in a spirit of partnership not only with the garment factories, but also with the entire supply chain is not simple and is much more expensive. Since its launch in 2016, Kalani’s mission has been to offer high-end, sustainable (ethical, fair trade and ecological) products at fair and affordable prices. Today, we are proud to say that this mission has not changed and that these values continue to guide us.