Fairtrade works to support the smallholder farmers and agricultural workers to have voice and decision-making power within their organistions and communities.
Sustainable economic growth
Fairtrade’s market and value chain-based model supports small farmers’ and farm workers’ development to meet and sustain international market requirements and to efficiently benefit from production and marketing on one side, and on the other side Fairtrade facilitates market growth for Fairtrade products. Thus, Fairtrade is also driven by consumers, and this is likely to grow as value-driven behaviour becomes more prevalent.
Fairtrade has a direct impact on sustainable development, improved livelihoods and reduced poverty. Additionally, multiplier effect studies have indicated that, due to improved organisational development, Fairtrade producers have greater access to credit than producer organisations that are not Fairtrade certified, either by pre-financing through the buyer (as required in the Policies and Standards), credit schemes run by the organisation itself at advantageous interest rates, or from traditional sources who view Fairtrade producers as having better credit ratings due to their more stable incomes and long-term contracts. As
Fairtrade is built on the foundations of participation and democracy (also embedded in the Standards), Fairtrade producers and workers also report outcomes such as improved confidence and self-esteem, further increasing their ability to negotiate with buyers, or employers, and in general to voice their concerns and interests.