Fair Trade Best for Small Farmers

Fair trade is an organised market based approach that helps producers in developing countries. It advocates higher prices and because of this, producers ensure high standard goods.

Fair trade has become a global trend and embracing it would boost small-scale producers in developing countries, Uganda inclusive.

According to the UN, it is estimated that poor countries lose about $2b (sh400 trillion) per day because of unjust trade rules and this money is 14 times the amount they receive in aid.

Fair trade sales have been growing spectacularly all over the world and market shares of fair trade products grow everyday. People who embrace fair trade are determined to eliminate poverty and inequality. Such people believe that if treated fairly, with dignity, respect and helped to overcome the obstacles of production, they can trade their way to a better life.

Fair trade guarantees what traditional trade cannot — high remunerative wages for producers, knowledge, profitable ventures and equal opportunities for all workers.

By creating relationships and providing markets to those most in need, fair trade provides consumers with an ethical choice to utilise their purchasing power.

From time immemorial, it has been the smaller producers who make less profits than the large producers.

In a liberalised environment, it is important to set up fair trade marketing regimes that address supply constraints, including higher production and certification costs.

Trading partnerships based on dialogue, transparency and respect in international trade and farmer ownership is recognised as the viable fair trading model that needs to be adopted by developing countries.

I, therefore, urge the farming communities and the Government to adopt the farmer ownership model and fair trade systems to ensure sustainable livelihoods of farmers.

The writer is the research and advocacy officer of the National Union of Coffee Agribusiness and Farm Enterprises