Fair trade

This business model creates a system that values ethical sourcing, environmental sustainability, and the livelihoods of producers. By emphasising direct relationships, fair pricing, community investment, and sustainable practices, the fair-trade model seeks to rectify the imbalances often found in traditional trade practices. It empowers producers, enhances community well-being, and promotes consumer awareness, ultimately aiming for a more just and equitable global trading environment. Buyers commit to long-term relationships with producers, which leads to stability and mutual growth.

Fair trade usually establishes a minimum price that producers must receive for their products, ensuring they can cover their costs of production and sustain their livelihoods. Fair trade encourages direct connections between producers (often smallholder farmers) and buyers (importers, roasters, retailers), minimising the layers in the supply chain. Producers often form cooperatives, allowing them to pool resources, share knowledge, and gain collective bargaining power in negotiations with buyers. Fair trade organisations provide training and resources to help producers improve agricultural practices, financial management, and business skills. To be officially recognised as fair trade, products and producers must adhere to specific standards set by certifying authority which include social, economic, and environmental criteria. Fair trade encourages practices that are resilient to climate change effects and promotes systems that can mitigate negative environmental impacts.