History of the initiative The fair trade movement emerged in the 1950s when non-profit importers, non-governmental organisations (NGOs) and producer groups formed a partnership to fight poverty in economically less developed countries. With this aim, fair trade organisations formed in several countries, often in close association with development organisations and worldshops. In 1988, a Dutch NGO called Solidaridad created a new seal for coffee to guarantee that it came directly from democratically constituted smallholder organisations at a price that covered all their production costs. At the time, the seal was an absolute novelty that made it possible to work with conventional players in the trade and create volume. The seal was named after Max Havelaar, the hero of a successful 19th century novel about the exploitation of workers on a coffee plantation in Java during colonial times.

The idea was very well received: within a few years, similar organisations emerged in Europe and North America, for example the Fairtrade Foundation in Great Britain, TransFair e.V. (now Fairtrade Germany) in Germany and Rättvisemärkt in Finland, to achieve fairer trading conditions for producers. The organisations set up their own campaigns and independently awarded their own labels.

Fairtrade is born In 1997, some of these organisations established a global Fairtrade umbrella organisation: Fairtrade International, formerly called Fairtrade Labelling Organizations International. Its role was to set Fairtrade standards, support producers disadvantaged in the world market and develop the overall strategy for Fairtrade. In 2002, the single Fairtrade label was introduced, the current version of which can now be found on thousands of different products, including hot drinks, fruit juices, fresh fruits and vegetables, biscuits, pastries and confectionery, sugar, honey, jams and spreads, rice, wines, nuts and beyond food, on flowers, gold, footballs and cotton products.

Fairtrade International currently comprises 25 national Fairtrade organisations, three producer networks and seven marketing organisations. Producers and national Fairtrade organisations have equal voting rights in Fairtrade's General Assembly and Board.