Fair Trade enables pre-financing for producers who require it, and facilitates long-term trading partnerships. So what does this mean for producers?
Many of the world's producers do not have access to financial advances, or mutually agreed contracts. This makes it difficult for them to plan, and presents obstacles to sustainable development.
There are Fair Trade standards for both small producer organizations and hired labour situations. Organizations and companies are expected to achieve a balance between environmental protection and business results. Measures include crop rotation, cultivation techniques, crop selection, careful use of fertilizers and pesticides, and, in some cases, shade-grown production.
Fair Trade includes ethical labour conditions for both hired labour situations and small producer organizations.
Hired Labour
Fair labour standards are especially important in hired labour situations, where bigger farms employ workers. Here’s why:
Employers must pay decent wages; salaries must be equal or higher than the regional average or than the minimum wage in effect. They must also guarantee the right to join trade unions, provide good housing where needed, and ensure that health and safety measures are established.
The trading conditions in many markets, such as those for cocoa, sugar, cotton, and tea, make it very difficult for producers to earn a living. Farmers are often paid prices which don’t begin to cover the costs of production. Trade liberalization, subsidies in developed countries, and monopolies also tilt the scales against small-scale producers.
Fair Trade producers take action to protect the environment in which they work and live. These measures include careful use of fertilizers and pesticides, crop rotation, and, in some cases, shade-grown production.
The following specific environmental commitments apply to both small producer organizations and hired labour situations:
