Who really benefits from Fair Trade?
Fair Trade ensures a sustainable livelihood, by engaging producers to build their capacity and work towards their long term profitability. This is possible by empowering the producer to negotiate along the supply chain, so that he establishes his right to a fair price.
For workers hired by producers,
the Fair Trade system helps secure healthy and safe working conditions, fair pay, and a working environment free from discrimination and harassment.
For producer organisations,
the Fair Trade system rewards strong collaboration with individual producers, facilitates identification of key needs and priorities for capacity building, and then helps ensure resources to address those needs over time. The harmony in fair trade for producer organization lies in the long term association with producers contrary to conventional trading, where the buyer would need to look at monitory returns more on short term basis. Thus a trading relationship doesn’t exist.
For buyers and brand owners,
the Fair Trade system helps identify reliable sources of responsibly produced products which hold a differential value as being directly responsible for sustainable livelihood development of producers, while meeting fair trade standards every step of production process. This will create a brand identity that for the first time represents both social and environmental value system attached to the brand. Adding value to already established brands can ensure wider market share.