Why FLO deals with Wine

Some of the small-scale grape growers in developing countries have a low income per head. Often the costs of production and cost of living are not covered. This leads to the situation that farmers have only little or negative savings. Consequently only little investment in their farming system and processing facilities is possible. Inadequate financial resources and reduced productivity are a result of this situation, which again lowers the annual income per head.

The fairtrade price guarantees the producers in Asia, Africa and Latin America a better deal. It covers the cost of living and cost of production. In addition to that a premium is paid to allow the producer organisations to invest in their future. Improved productivity of their farming systems and socio-economic situation will make life better for the farmer and his family.