Fairtrade farmers and producers tend to enjoy greater economic benefits — including higher incomes, farm revenues and net returns — than they would otherwise have done, according to a recent study. Fairtrade also provides greater price stability and more money to invest in businesses and communities.

These are some of the findings of the Fairtrade Evidence Map 2021-2024, a study commissioned by Fairtrade International to better understand our impact, and identify areas where we can improve.

The main focus of the study is a close analysis of 122 studies and other data relevant to the areas that are part of a “theory of change” of how aspects of Fairtrade translate into real-world benefits for farmers and workers in the medium and long term.

The basis for change

As noted in the study, the strongest and most consistent effects in the evidence map are in areas closely linked to Fairtrade's certification model and pricing mechanisms. The medium-term outcomes of price stability, Fairtrade Premium investments, and adoptions of climate-resilient farming practices are the result of pricing mechanisms, capacity building, and robust standards.

Researchers David Jodrell and Willemijn de Bruin concluded that Fairtrade can have “strong confidence” in those areas, as well as in improving labour conditions, trust and satisfaction of Fairtrade producers and buyers, and in contributing to sustainable, resilient and fairer supply chains.

The researchers also note that in many areas, context is key.

“Fairtrade can confidently claim success across most intermediate outcomes, and at the same time the influence of external factors increases the further we look downstream from Fairtrade’s interventions,” said David Jodrell. “Certain change pathways – such as long-term environmental sustainability or gender equity – are susceptible to context-specific things like market conditions, cultural norms, and national labour laws, which certification alone cannot overcome.”

Areas of strongest influence span economic, environmental and social issues

When it comes to economic benefits, the majority of studies suggest that Fairtrade provides cooperatives with greater price stability, extra Fairtrade Premium funds for both producers and their communities, and higher incomes, revenues and net returns for farmers.

Fairtrade was also found to encourage climate-resilient farming practices, including using fewer agrochemicals, conserving soil, water and forests, training and planning for climate-related disasters and investing in green technologies such as solar-powered irrigation.

Women farmers also tend to get a better deal with Fairtrade. Analysis indicates that Fairtrade is linked to inclusiveness and representation, including higher participation by women in cooperatives, gender-focused capacity building and inclusion, women’s leadership opportunities and higher economic status.

Employees of large-scale farms also tend to do better in Fairtrade businesses — they enjoy better working conditions such as fair contracts (and written contract for migrants), higher health and safety standards and safer workplaces, and compliance with legal working hours.

Trust and satisfaction also shows good progress — both farmers and workers value Fairtrade particularly for its financial benefits, social investments, training and the services provided by Fairtrade producer networks. Consumers tend to trust Fairtrade and are willing to pay slightly more for ethically produced goods, while businesses value Fairtrade for its robust sustainability goals, reputation and monitoring data. The majority of studies also point to Fairtrade’s positive longer-term influence on sustainable, resilient and fairer supply chains and trade relationships in some sectors.

Indications for the future

Alongside these encouraging signs, there is room for more to be done. Workers on large Fairtrade certified farms, for example, have not benefitted to the same extent that farmers and cooperatives have. Improvements in workers’ wages have been limited, and women’s participation does not always  translate into real influence at the leadership level. Young people and marginalised communities are an increasing focus for us, the effects of which will hopefully be captured in future studies.

The researchers also had recommendations for revising how we measure success in some areas. “Generally, 'hard' indicators, such as income gains and certification compliance, yielded clearer, more consistent results,” noted researcher Willemijn de Bruin. “Desired changes that rely on 'softer' indicators, such as shifts in norms or empowerment, were more variable, highly context-dependent, and not as well researched.”

Other areas where existing research is too limited to draw valid conclusions about Fairtrade’s impact are analytics and insight (for instance, access to market data for decision-making, and social or environmental data); freedom of association; and achieving public policies to support broader societal change. These are important areas for further research, especially as they have the potential to improve the lives of all farmers and workers.

Want to know more?

Read the full report and get details of all 122 studies included in the research. You can also explore our interactive Fairtrade impact map, find useful information for businesses, stories about producers, and how to get involved with your local Fairtrade organisation.