Fairtrade strives for decent livelihoods
In a world where farmers are often not able to cover basic needs like housing and food with their earnings - despite growing the crops that drive supply chains worth billions on the global market – being able to earn a "living income" or "living wage" is an urgent matter to address.
Fairtrade is actively working to support farmers and workers achieve incomes that enable them to live dignified lives—a fundamental right endorsed by the United Nations for seven decades.
However, despite this recognition, countless individuals in producing countries continue to struggle with incomes that merely cover the costs of essential necessities.
How Fairtrade supports decent livelihoods
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Strong standards
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Fair Pricing
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Community Development Premiums
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Sustainable Farming Practices
How Fairtrade supports decent livelihoods
Strong standards: At their core, Fairtrade Standards specify requirements that contribute to improving farmer incomes and wages. New requirements are also considered to be added based on the results of past projects on this area.
Fair Pricing: Fairtrade’s minimum price supports producers receiving a fair prices for their products, covering production costs and providing a reasonable income. But sometimes this is not enough. Going beyond the Fairtrade Minimum Price and Premium, we also developed the concept of a Living Income and Wages Reference Price to address this.
Community Development Premiums: A portion of the premiums paid for Fairtrade products is invested in community projects, such as schools, healthcare facilities and raising the living standards of workers and their communities.
Sustainable Farming Practices: Fairtrade encourages environmentally friendly and sustainable agricultural methods. This leads to better crop yields and further contribute to a living income.
Advocacy: Fairtrade advocates for ambitious policy regulation and sector commitments to create an enabling environment that raises the bar of the level playing field to ensure real progress towards decent livelihoods.
Beyond basics: Living Income and Wages Reference Prices
Living income and wages are integral components of Fairtrade's strategy. These concepts are centered on the idea that workers and producers should earn enough to cover their basic needs and lead dignified lives. In the context of Fairtrade, ensuring living wages and income for farmers and workers is a fundamental commitment. This approach is part of a broader strategy aimed at promoting economic fairness, human rights and ethical trade practices.
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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. Decent work and a decent living – it’s not too much to ask, right?