Fair trade, defined simply, is when producers in developing countries are paid a fair price for their work, by companies in developed countries. It's when the price we pay for products gives enough to producers for them to afford life's essentials - like food, education and healthcare.
Fair trade commodities are goods that have been exchanged from where they were grown or made to where they are purchased, and have been certified by a fair trade certification organization, such as Fair Trade USA or World Fair Trade Organization. Such organizations are typically overseen by Fairtrade International.
Bananas, coffee, chocolate, tea, flowers, sugar - these are all items we often take for granted and are all examples of Fairtrade products.
The Fairtrade Minimum Price is supporting the farmers that grow products such as cocoa, coffee and bananas to become more income-secure and less vulnerable to poverty. ... This can enable them to negotiate a higher price for their product than the conventional market price.
Fairtrade enables small-scale farmers and workers to drive forward a better future for all. Investments in community development is a key use of the Fairtrade Premium, sparking wider economic, social and environmental change.
Organizations involved in Fair Trade, including Fair Trade USA and the Fair Trade Federation, have outlined several basic principles for both buyers and sellers to follow:
10 Principles of Fair Trade
Fairtrade gives shoppers the opportunity to live and shop according to their principles and take action to support farmers and their families. Fairtrade provides consumers with an opportunity to connect with the people who grow the produce we enjoy and need.
Fair Trade is an organised social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability. The movement advocates the payment of a higher price to producers as well as social and environmental standards.
Top 10 Must-Have Fair Trade Products 2020
The costs of these standards can be quite high, meaning that although you have more chance of selling your produce, the cost of maintaining standards can sometime actually outweigh the amount made by selling your produce, therefore making Fairtrade detrimental to the livelihood of the Fairtrade farmers.
The more sales, the more premium to invest in the community, the more produce is protected by the Fairtrade Minimum Price which guarantees the farm will at least get the cost of production in times of global price crash, and more money comes to the co-operative group that can be spent on projects to benefit the wider ...
Another disadvantage that is often mentioned is that getting Fair Trade certification is expensive for the individuals and small businesses that the program wants to help. The initial process of getting certified can be expensive. But the benefit to the business is enormous.
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