In an ideal free market, farmers across the world would have equal access to market information, credit at fair rates and the opportunity to act according to market trends.

In the absence of this ideal, Fairtrade provides farmers with the tools needed for them to help themselves.

When you see the Fairtrade mark on a product, you know farmers are getting ‘a better deal’.

• Fairtrade guarantees farmers a sufficient and sustainable income. It sets a minimum price from which farmers can negotiate according to the market price at the time. This price not only supports a sustainable livelihood but also sustainable production.
• Commodities, such as cotton are vulnerable to volatile market prices. This is compounded by protectionist policies which subsidise a country’s domestic harvest, bringing down the world market price often to below production costs. Fair-trade campaigns strongly against these policies and brings security to the farmers through their minimum sales price.
• Fairtrade gives farmers direct access to the market. In cutting out the numerous ‘intermediaries’ along the supply chain, Fairtrade helps eliminate the inefficiencies and exploitative practices giving farmers an equal footing. Instead of being stuck at the opposite end of the supply chain from the consumer and net price, Fairtrade helps to link farmers directly to the market.
• To encourage more effective and sustainable production practices, Fairtrade promotes long term trading partnerships. A lengthy relationship allows for future planning and sponsors knowledge flow and learning between the two parties. If a farmer needs further production inputs, the trading agreement can also include pre-financing. Pre-financing is incredibly important in that it provides formal access to credit.
• Through capacity building efforts, Fairtrade instils independence and self determination amongst farmers. Many of the farmers are isolated in rural areas, and have basic education and even more basic communication. Fairtrade works to fill this information gap. Market trends are explained to empower the farmers with a stronger negotiating position. They receive technical training to help them adopt the cleanest, most cost effective and efficient practices.
• Fairtrade includes a commitment to long term improvement which is seen in their conservation and community focused outlook. The Fairtrade Labelling Organisation (FLO- Cert) insists that sustainable measures have to be complied with, strongly promoting organic farming practices. Farmer communities themselves also receive money to invest in beneficial projects. Each project is democratically decided upon by the communities and can include anything from improving the local primary school to drilling a bore hole for clean water to developing further income generating activities.
• Further a Fairtrade label guarantees that the supply chain is in accordance with the ILO agreement. This ensures NO child labour, NO forced labour, acceptable working conditions and the Right for workers to collectively assert their voice.