Fairtrade’s approach to living incomes for farmers
Without a living income, farmers can’t afford proper housing, a balanced diet, sending their children to school, and more. Even less likely are they able to invest in their farms to improve their productivity and take care of environmental priorities, leaving them trapped in poverty. At Fairtrade we want living incomes to be the norm, not the exception.
A living income is a human right. It's defined as sufficient income to afford a decent standard of living for all household members – including a nutritious diet, clean water, decent housing, education, health care and other essential needs, plus a little extra for emergencies and savings.
Fairtrade certification alone doesn’t guarantee that farmers will earn a living income – it depends on multiple factors, and on everyone playing their part, from farmers, to cooperatives, to businesses, governments, and shoppers.
This is why our Living Income Strategy outlines what needs to be done beyond business as usual, in three interconnected pillars:
- responsible procurement, including Living Income Reference Prices
- sustainable production for healthy and productive farms and
- enabling environment.
Fairtrade is committed to discovering what really works to improve farmers’ incomes and to sharing what we learn along the way.
Fairtrade's living income model
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Responsible procurement: fair prices and long-term trade relationships
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Sustainable production: improving yields sustainably
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Enabling environment: policies and consumer awareness
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Measuring what works
What’s the price of a living income?
We have pioneered the concept of a Living Income Reference Price, which is what a farmer needs to be paid to earn a living income from the sale of their crop, assuming certain farm size and productivity parameters. We have published more than 20 Living Income Reference Prices for eight products and multiple origins, from cocoa to coffee to vanilla. We also develop custom prices for companies that want to move toward living incomes in their supply chains. Our interactive reference price map is designed to help companies find out what prices they need to pay to enable living incomes in their supply chains.
Explore the reference price tool
Choose Fairtrade today
The ability to earn a decent living offers the next generation of farmers and workers a sustainable future. It will require everyone playing their part – including shoppers choosing to stand up for farmer and worker livelihoods.