Fairtrade and Living Wage - difference and similarity

As a pioneer in the buying and selling of organic fruit and vegetables since 1990, Eosta has always taken fair trade for granted. This is reflected, among other things, in our Sustainability Flower, through which we measure the sustainable impact of the growers/sales organisations we work with, including good working conditions and a living wage.  

Living Wage at Eosta 

Our commitment to a living wage has led to Living Wage projects in Africa, in partnership with IDH, from their Roadmap on Living Wages. IDH is an internationally renowned social enterprise committed to 100% sustainable sourcing. Living Wage is not (yet) an officially certified standard.  

From Living Wage to Fairtrade 

Due to a growing demand for certified Fairtrade products, Eosta has also been officially Fairtrade certified from August 2023. Currently we supply Fairtrade organic avocados ginger and oranges. We are constantly expanding the range. Our organic Fairtrade avocados from Kenya are unique in Europe. 

The Fairtrade label is the most well-known sustainable label among consumers. In the Netherlands, as many as 88% of consumers know it. Compared to 59% familiarity with the EKO quality mark, for example. This is comparable in other European countries. 

Fairtrade fable  

We regularly hear 'little of the Fairtrade premium ends up with the farmers themselves, much gets stuck in the Fairtrade organisation'. This is not true. Both the minimum set price for Fairtrade products and the set Fairtrade premium go entirely to the farmers.  

The licence fees paid for running a Fairtrade range are partly intended to bear the costs the Fairtrade implementation and monitoring bodies. 

Difference and similarities Fairtrade and Living Wage 

Fairtrade and Living Wage are both aimed at improving the lives of workers, but they focus on different aspects of labour rights and conditions 

Fairtrade 

Fairtrade is a global movement and internationally renowned certification that improves the livelihoods and living standards of farmers and workers in developing countries. By ensuring fair prices and terms of trade, promoting sustainable practices and providing a Fairtrade premium to invest in their communities.  

 Producers have a say in the Fairtrade organisation. And each benefits from the collective knowledge and expertise within Fairtrade. 

A fair wage is a basic requirement in Fairtrade terms. A living wage the aspiration. But on a longer term than Living Wage. Fairtrade-certified small producers must pay the minimum or regionally averaged wage from the start. After three years with a surplus on this. And after six years also offer sick pay and maternity leave. 

For larger 'Hired Labour' organisations, stricter requirements apply.  

Living Wage 

A Living Wage is the minimum income required for a worker to meet basic needs, such as food, housing, healthcare and education and to build up a savings for unforeseen circumstances, for himself and his family. It is usually calculated based on the cost of living in a specific geographical area. And can vary significantly between regions and countries. 

At Eosta, the additional price required for a Living Wage is calculated back to the selling price growers get for their produce.  

Similarity and difference 

Fairtrade ensures fair prices and trading conditions for producers, while Living Wage ensures that workers earn enough to make a decent living. Both focus on social justice and economic equality.  

A fair wage is a basic requirement of Fairtrade, with a living wage being a long-term goal. The latter may take several years to be achieved.  Fairtrade also includes standards for health, environmental protection and transparency in the value chain. It is a recognised hallmark among consumers, while Living Wage is not yet an official standard and partly because of this it is less well known.