The Impacts of Fairtrade

December 7, 2015 in Environment, Fairtrade

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Welcome back to Week 2 of our discussion series all about Fairtrade. This week we are going to be discussing the impacts of Fairtrade.

Fairtrade has many social, economical and environment impacts on farmers and workers lives.

Economic Impactsimage Impacts

  • The Fairtrade Minimum Price is supporting farmers growing products such as cocoa, coffee and bananas become more income-secure and less vulnerable to poverty.
  • Fairtrade is gradually empowering communities to organise into cooperatives and improve their negotiating position within the supply chain. This can enable them to negotiate a higher price for their product than the conventional market price.
  • Fairtrade improves access to agricultural services like organic training and premium markets. As a result farmers have an incentive to farm better and sell more.
  • Additional income through the Fairtrade Premium is supporting better farming, strong cooperatives and investment in collective assets to improve crops and yields.


Environmental Impacts

  • The Fairtrade Standards cover key areas for environmental protection, including energimage Impacts 2y and greenhouse gas emission reduction, soil and water quality, pest management, biodiversity protection, prohibition of genetically modified organisms and harmful chemicals and waste management.
  • The Fairtrade Standards promote training for farmers, which can include advice on switching to environmentally friendly practices, such as developing nutrient-rich soils that support healthy plants and encouraging wildlife to help control pests and diseases.
  • For some farmers, the Fairtrade (and organic) Standards have resulted in switches to less toxic pesticides, which, as well as being better for the environment, has a positive impact on producers’ health.
  • Fairtrade can provide access to finance, producer support and expertise in tackling climate change, supporting long-term environmental sustainability.


Social Impacts

  • Farmers and workers who choose to participate in Fairtrade often feel a real sense of control over their future with greater power and voice.
  • Fairtrade can support workers to realise their rights and negotiate the terms and conditions of their work through trade unions and collective bargaining.
  • Fairtrade can provide producer support and expertise in deepening gender equality.
  • For workers employed on Fairtrade certified plantations, investments made through the Fairtrade Premium in education, better housing, better schools and medical facilities in worker communities is highly valued.
  • Investment of the Fairtrade Premium by co-operatives in community development projects like improved health facilities and better access to education for children and adults is improving the quality of lives of rural communities.


As part of our commitment to understand the impact of our work better, the Fairtrade system commissions 2-3 outcome and impact evaluations each year.

Click here to read some of their evaluations on The Fairtrade Foundation Website