The Benefits of Fair Trade

Many people do not understand what “fair trade” is. However, the main benefit of fair trade is to alleviate poverty.

This implies that fair trade offers further benefits to improve the economic justice.

The benefits of fair trade are not only applicable to the producers but also to the consumers. A producer that has fair trade certification can have the opportunity to access in the international market. Likewise, through this program the prices of the products become stable in such a way that the producer can sustain the production regardless of the prices in the world market. The program also manages the price setting and gives support to the producers. Moreover, fair trade also provides benefits to other groups including, households, communities and organizations.

Fair Trade Household Benefits

  • Increased incomes – Fair trade allow small producers to have access in the international markets and at the same time gives higher wage. Workers who have been working under the fair trade program most likely earn three times more as compared to other workers. Due to the increase of income of the workers it alleviates the living conditions.
  • Social networking – fair trade also gives the opportunity to small producers to participate in the fair trade networks. This gives access to the producers to obtain technical assistance to improve their productions. Likewise, the program is also important for farm improvement as well as organizational capability building.

Fair Trade Organizational Benefits

  • Capacity building – Organizations can benefit knowledge and skills that can help improving the business practices. This is due to the broad support network of fair trade program. When the organization is employing capacity building they would not only improve their business practices but also they can have the chance to use their fair trade certificate in applying for loan, collective land trusts, social empowerment and advocacy programs.

Community Benefits

  • Social premium – The community can also take advantage with the social premium given by the fair trade program. This means that the community can access with the various social projects such as education scholarships, producer training, facility improvement, clean water projects as well as credit programs.

Moreover, the program of fair trade is also beneficial to the environment because it encourages organic farming. This means that using of agrochemicals is highly prohibited to reduce the health hazards among the workers. Instead, the program shows other techniques that can improve the health as well as the economy. Therefore, the objective of fair trade is increase the income of the producers and the workers and at the same time improves the economic condition of the community. Through the program the producers employ production practices that are not only good for the health but also to the environment.


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