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Fairtrade strives for a Living Income

Fairtrade believes a living income is a human right. But unfortunately, this is not the reality for many farmers across the world who do not earn enough to afford a decent standard of living. At Fairtrade we focus on narrowing this gap.

Workers writing

Just being Fairtrade certified 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 and identifies key responsibilities to make this happen. Fairtrade is committed to discover what really works to improve farmers’ incomes and to sharing what we learn along the way.

How Fairtrade addresses a living income

  • Strong standards

  • Fair pricing

  • Value addition

  • Producer support programmes

  • Market access

  • Collaboration

  • Research and data

  • Advocacy and policy change

  • Consumer awareness

"Not only have we received trainings, but we have also been able to provide [opportunities] to workers. Many of them, who previously were unable to cope with their low incomes, are now achieving their objectives." says Miguel Pérez a a small-scale banana producer, belonging to the Asociación de Productores de Banano Santa Cruz.

Living Income Reference Prices - New Online Tool

Fairtrade has developed a holistic price discovery model for establishing Living Income Reference Prices (LIRP), which constitutes an integral part of its Living Income strategy. A Living Income Reference Price indicates the farmgate price needed for a typical farmer household with a viable crop area and a sustainable productivity level to earn a living income from the sales of their crop. A living income is sufficient income to afford a decent standard of living for the household members, including a nutritious diet, decent housing, education, health care, other essential needs and a provision for unexpected events.
Explore the interactive tool

Living Income Prices and the Anker Methodology

Fairtrade calculates Living Income Prices using the Anker Methodology, which considers the local cost of essential items to determine a fair wage for producers. This method takes into account variations in living costs across different regions, ensuring that the living income is context-specific and adequate.
Find out more
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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. Choose Fairtrade today.

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