Have you ever wondered how Fairtrade contributes to change for farmers and workers? What about for their communities, the environment, and systems of trade?

Our Theory of Change explains just that. And now, we have an updated interactive version of our Theory of Change, so anyone can click through the various elements of what Fairtrade does to see what outcomes and impacts we expect.

Here are some facts that can help explain how we create – and measure – change, from initial ripples to far-reaching impact.

1. Data guides our understanding of how change happens

We collect a lot of data on a regular basis, and we also undertake larger studies and evaluations to check on outcomes and impacts that take more time to measure.

Our updated Theory of Change is based on a review of more than 120 studies to see what is working well and what isn’t (or what needs more evidence), and feedback from our producer networks which serve and support producers themselves. These learnings informed our new global strategy and allow us to revise our understanding of the interplay of multiple factors as a catalyst for resilience in achieving stronger, more resilient farmer and worker livelihoods.

In other words, the strategy tells us what we want to achieve, and the Theory of Change explains how we expect to achieve it.

The Theory of Change also provides a valuable resource for researchers. It can help identify evidence gaps, shape research questions, and guide studies that contribute to strengthening Fairtrade's evidence base. To learn more about how Fairtrade conducts and supports research, visit our page on how we measure impact.

2. It’s clearer than ever that decent livelihoods, human rights, environmental sustainability and supply chain resilience are all closely interconnected – and our work reflects that.

Fairtrade is known for specific activities, like certification and standards, Fairtrade Minimum Prices and Premiums, a robust network of producer support, and local campaigns. Our Theory of Change shows how these activities work together to contribute to a number of downstream effects.

For example, improving farmers' livelihoods is about more than increasing prices. Farmers also need strong producer organisations, access to markets, opportunities to improve productivity and quality, and the ability to make informed decisions about their farms and businesses. Fairtrade contributes through a combination of interventions, from Fairtrade Minimum Prices and the Fairtrade Premium to producer support, market access, and partnerships. The Theory of Change helps us understand how these different elements work together to create the conditions for farmers and workers to build more resilient and sustainable livelihoods.

3. We’ve added five pathways that illustrate steps in the change process.

Our updated Theory of Change also includes five interconnected pathways of change, which are sequences of steps that show how specific actions can lead to outcomes and long-term impact. These pathways span all Fairtrade stakeholders in some way, including farmers, workers, producer organisations, businesses, governments, and consumers.

One example is the social inclusion & agency pathway. It illustrates how Fairtrade supports democratic, inclusive, and empowered producer organisations so that farmers and workers can participate in decisions, claim their rights, and influence markets and policies that affect them. Farmers and workers having the power to negotiate their own terms and participate as equal partners in trade has always been a part of Fairtrade’s mission, and this pathway reflects the emphasis we place on producers being able to decide on their own futures.

You can find information about the other pathways – economic; climate and environment; promoting fair and sustainable choices; and strengthened producer organisations – in the Theory of Change (click “About our pathways” at the top).

4. Targeted projects are how we test new approaches or build on successful pathways to change.

Whether partnering with companies or governments, Fairtrade has implemented more than 100 projects and programmes that work with certain producers on specific outcomes in various ways, such as farm productivity and entrepreneurial opportunities for women related to living income goals. Experts with Fairtrade’s regional producer networks develop and deliver these programmes, with details available on our impact platform.

The projects build the elements we know are necessary for change. For instance, the Fairtrade project “Ghana Agroforestry for Impact (GAIM)” worked with 1,200 cocoa farmers to implement dynamic agroforestry practices on 100 hectares of land, ultimately aiming to sustainably improve their livelihoods and prevent deforestation. The project not only focused on the technical knowledge necessary to adopt agroforestry on farm plots (which required building skills within the cooperatives as well), but also included women and young people as important household and community contributors, and also as the next generation of farmers. The aim was to improve soil health, and also diversify into other crops that could be sold or used by the household. Because having a market for sales is a necessary success factor, the project also explored various market options for the new products, and included the establishment of Village Savings and Loan Associations to support the economic resilience of families and communities.

Check out our updated Theory of Change to explore more of the connections we’re working on every day.