Fairtrade strives for a Living Income
Fairtrade believes is a precondition to fulfil basic human rights. But unfortunately, this is not the reality for many farmers across the world who do not earn enough to afford a decent standard of living. At Fairtrade we focus on narrowing this gap.
Just being Fairtrade certified doesn’t guarantee that farmers will earn a living income – it depends on multiple factors, and on everyone playing their part, from farmers, to cooperatives, to businesses, governments, and shoppers.
This is why our Living Income Strategy outlines what needs to be done beyond business as usual and identifies key responsibilities to make this happen. Fairtrade is committed to discover what really works to improve farmers’ incomes and to sharing what we learn along the way.
How Fairtrade addresses a living income
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Strong standards
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Fair pricing
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Value addition
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Producer support programmes
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Market access
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Collaboration
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Research and data
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Advocacy and policy change
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Consumer awareness
Living Income Reference Prices - New Online Tool
Fairtrade has developed a holistic price discovery model for establishing Living Income Reference Prices (LIRP), which constitutes an integral part of its Living Income strategy. A Living Income Reference Price indicates the farmgate price needed for a typical farmer household with a viable crop area and a sustainable productivity level to earn a living income from the sales of their crop. A living income is sufficient income to afford a decent standard of living for the household members, including a nutritious diet, decent housing, education, health care, other essential needs and a provision for unexpected events.
Explore the interactive tool
QUOTE
“Before the project we spent without calculations or planning. We had no control over our expenses. Now I know how to keep records and plan my business. I know how to define clear, realistic and achievable financial objectives and I am able to find out if my farm makes a profit.” (Kouadio Yao Emmanuel, Producer Kapatchiva)
Living Income Prices and the Anker Methodology
Fairtrade calculates Living Income Prices using the Anker Methodology, which considers the local cost of essential items to determine a fair wage for producers. This method takes into account variations in living costs across different regions, ensuring that the living income is context-specific and adequate.
Find out more
The ability to earn a decent living offers the next generation of farmers and workers a sustainable future. It will require everyone playing their part – including shoppers choosing to stand up for farmer and worker livelihoods. Choose Fairtrade today.