Fairtrade and poverty
Fairtrade is about better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world. By requiring companies to pay above market prices, Fairtrade addresses some of the injustices of conventional trade, which traditionally discriminates against the poorest, weakest producers. It enables them to improve their situation and have more control over their lives.
For more than 800, 000 workers and farmers in the developing world, Fairtrade is already meaning better terms of trade and decent production conditions. Here are some examples of the benefits of fairtrade to poor producers:
Cuba
Orange farmers joined the fairtrade system, and used the Fairtrade premium paid to invest in new irrigation systems. This has increased productivity from 8 to 18 tons of oranges per hectare. They have also been able to use the Fairtrade premium to construct a recreational centre for the community.
Chile
Grape farmers joined to a wine co-operative are able to benefit from wine sales as well as the price they receive for their grapes, because the co-operative processes the grapes it buys into wine. Fairtrade gives the growers a guaranteed price, and they are paid 50% of the money in advance.
Ethiopia
Coffee growers growing organic Fairtrade coffee were paid a dividend from their co-operative which has enabled them to pay school fees for their children. Members have also been taught to reduce their reliance on imported food by intercropping coffee plants with fruit and vegetables.
Fairtrade alone is not enough. It cannot address the crisis faced by the millions of small-scale farmers and producers whose livelihoods are threatened by low commodity prices and unfair competition from rich countries. It is important for consumers to become more aware of the conditions being faced by producers in poor countries, and to buy Fairtrade goods to make sure the message is understood by other businesses. But we also need to change the trade rules to make them more just for all producers in the developing world.