- The Fairtrade Minimum Price is a guaranteed price that is said to cover the costs of sustainable production. The set Fairtrade Price is always the minimum price paid but rises if market prices are higher.
- The Fairtrade Premium is a separate payment designated for social and economic development in the producing communities. The producers themselves decide how these funds are to be spent. As part of the Fairtrade criteria, registered producers are accountable to FLO-CERT for the use of this money. It is generally used for improvements in health, education or other social facilities, although it may also be used for certain development projects to enable farmers to improve productivity or reduce their reliance on single commodities.
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Social Premium is for the collective use in the different islands. It is allocated to each island, not to Fair Trade Groups or individual farmers. The Fair Trade groups discuss the use of the social premium and develop proposals to the National Fair Trade Committees for use of the social premium. The National Fair Trade Committees develops national work plans for each year based on the recommendations of the groups; this work plan is then taken back to the groups for discussion and final approval. Social Projects Social projects financed from social premium monies are benefiting not only Fair trade farmers but rural communities as a whole. Schools (pre-, primary and secondary), clinics, community centers, and youth skill training programs have all received support from the social premium so far. These include: • Refurbishing/construction of agricultural center in Grace, • Mabouya Valley and Vigé/Cacoa (St. Lucia) • Equipment for Science laboratories for two schools (St. Lucia) • Nebulizer for clinic in overland (St. Vincent) • Construction of a community center in Grace (St. Lucia) • Bus sheds (Dominica and St. Vincent) • Furniture and equipment for school in St. Vincent and Dominica • Computer for Primary Schools Farm Improvement The social premium has also contributed to the farm improvement and farmer education in all the islands. These include: • Improvement of Banana boxing plant in Richland Park (St. Vincent). • Weed-eaters to farmers groups for collective use (all islands). • Revolving loan for to farmers (1% interest) for farm improvement (St. Vincent) • Farm road improvement (all islands) • Packing shed improvement (all islands) • Implementation of Buffer Zones (all islands ) • NIS (Social security) contribution for farm workers (St. Lucia). • Training in farm, business and waste management and pesticide use in Fair Trade. Administration and Capacity Building: A part of the social premium is also use to strengthen the institutional capacity of the Fair trade groups, the National Committees and WINFA to make the initiative sustainable. These include; • Establishment of National Fair Trade Offices for the in St Lucia and Dominica. • Employment of coordinators/monitors in St. Lucia and Dominica • An on-going farmers training focused on organization and leadership development.
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