Benefits of Fairtrade

For producers Fairtrade is unique in offering four important benefits

1. Stable prices

For most products there is a Fairtrade Minimum Price that aims to cover the costs of sustainable production – even when world market prices fall. See the table of Fairtrade Minimum Prices here.

2. A Fairtrade Premium

The Premium helps producers to improve the quality of their lives. It is paid on top of the agreed Fairtrade price, and producers decide democratically how to use it. Typically they invest it in education, healthcare, farm improvements or processing facilities to increase income.

3. Partnership

Producers are involved in decisions that affect their future. Fairtrade certified producers jointly own and manage Fairtrade International. Through the Fairtrade International's Board, its Committees and consultation processes producers can influence prices, premiums, standards and overall strategy.

4. Empowerment of farmers and workers

This is a goal of Fairtrade. Small farmer groups must have a democratic structure and transparent administration in order to be certified. Workers must be allowed to have representatives on a committee that decides on the use of the Fairtrade Premium. Both groups are supported by Fairtrade International to develop their capacity in this area.

With Fairtrade everyone wins

Consumers

Shoppers can buy products in line with their values and principles. They can choose from an ever growing range of great products. By buying into Fairtrade consumers support producers who are struggling to improve their lives.

Traders/companies

Since its launch in 2002 the FAIRTRADE Mark has become the most widely, recognised social and development label in the world. Fairtrade offers companies a credible way to ensure that their trade has a positive impact for the people at the end of the chain.

Environment

Fairtrade rewards and encourages farming and production practices that are environmentally sustainable. Producers are also encouraged to strive toward organic certification. Producers must:

  • Protect the environment in which they work and live. This includes areas of natural water, virgin forest and other important land areas and dealing with problems of erosion and waste management.
  • Develop, implement and monitor an operations plan on their farming and techniques.  This needs to reflect a balance between protecting the environment and good business results.
  • Follow national and international standards for the handling of chemicals. There is a list of chemicals which they must not use.
  • Not, intentionally, use products which include genetically modified organisms (GMO).
  • Work out and monitor what affect their activities are having on the environment. Then they must make a plan of how they can lessen the impacts and keep checking that this plan is carried out.
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