Sugar Importers
Core requirements for licensed sugar importers:
- Sign TransFair USA's License/Certification agreement to become a licensed importer.
- Purchase sugar from licensed Fair Trade cooperatives, or companies registered as exporters by Fairtrade Labeling Organizations International (FLO).
- If buying from cooperatives, pay at least the Fair Trade minimum price. This is an internationally standard minimum FOB price set by FLO as follows (except for Malawi and Paraguay):
- $480/MT for raw cane sugar
- $520/MT for white cane sugar
- $650/MT for whole raw cane sugar
For organic sugar, an additional $120/MT must be added to the above prices. If the world price (New York Board of Trade price) rises above these levels, the Fair Trade minimum rises to the market price.
For sugar from Paraguay and Malawi, Fair Trade producers do not own the sugar mills. Sugar from Fair Trade can producers can be purchased from privately-owned mills registered by FLO. The price is freely negotiated between the importer and the mill. The importer must pay a social premium of $60/MT ($80/MT if certified organic) directly to the cooperative of cane producers.
- Sell Fair Trade Certified sugar to packagers and manufacturers licensed by TransFair USA to display the Fair Trade Certified logo. At this point, TransFair is certifying sugar marketed in retail as well as sugar as an ingredient in other products.
- Submit quarterly reports to TransFair detailing sales, purchases, prices paid, ship dates, contracts, proof of payment, etc. on Fair Trade sugar transactions.
- Pay a certification fee to Trans Fair of US$0.035/lb. on Fair Trade Certified sugar purchases.
- On request of the producer organization, make available up to 60% of the value of the contract in pre-financing or other credit facilities
Interested in becoming a licensed sugar importer?
Contact TransFair USA's certification manager for more information: email
sugar@transfairusa.org.
