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.
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.
Landless labourers are some of the most disadvantaged producers in the world. While most Fair Trade goods are produced by small-scale farmers, the standards also cover products which are mainly grown on bigger farms that employ workers. Examples include tea, flowers, and sports balls.
Workers can participate in Fair Trade if they are organized, normally into unions.
