How and where Fairtrade works
What we do
We empower millions of farmers and workers around the world by tackling poverty and poor working conditions, as well as conserving the environment. It’s hope for a better future by making trade fair.
How Fairtrade works
The Fairtrade Minimum Price
This is about providing a safety net for the small-scale farmers. Many sectors often force a farmer to sell below the cost of production, perpetuating a cycle of poverty and inequality. That’s where Fairtrade certification comes in – ensuring producers receive a Fairtrade Minimum Price which acts as a safeguard against falling prices, allowing farmers and workers to plan for their future. Furthermore, if the market price increases, they’re able to reap (and keep) the rewards. Fairtrade is the only certification scheme that offers this unique minimum price protection.
The Fairtrade Premium
The Fairtrade Premium is a fixed additional amount of money that provides farmers and workers with the capacity to invest in improving the quality of their businesses and communities. They decide democratically how to use the money for their community or economic benefit, or even to improve the environment around them. This could be a well or a hospital, better farming equipment or even training and investment to help them switch to organic farming.
The Fairtrade Standards
The Fairtrade Standards are the cornerstone of Fairtrade. The Fairtrade Standards instill fair terms of trade between farmers and buyers, protect workers’ rights, and are the framework for producers to build thriving farms and organisations.
Read more about The Fairtrade Standards here.
Fairtrade is 50 percent owned by producers
Fairtrade works with a range of stakeholders, but our global system is 50 percent owned by producers representing farmer and worker organisations. With an equal voice, producers have a say in decision-making within our General Assembly and on Fairtrade International’s Board of Directors. Through the Board and its committees, they are involved in decisions on overall strategy, use of resources and setting prices, premiums and standards.