Fair Trade Benefits You Should Know

Fair Trade

Fair trade is a movement that has been around for a while. While many have heard of fair trade or even purchase fair trade products without thinking much. It is important to know the benefits of fair trade. Knowing fair trade’s benefits allows us to appreciate the products more and support them even more. In addition, help expand and spread the fair trade movement more to help the people in need. So, let’s take a look at what are fair trade’s benefits.

What is fair trade?

As the term itself suggests, fair trade is an alternative and just system of trade that has been introduced to promote social justice and sustainability. In simple words, it can be described as a system where the producers of a country are paid a fair price for their work, by the companies they work for and supply products to. This system of trading has been established in many developed countries and is widely acknowledged as one of the most ethical labels in the world. So basically when we buy products from organizations that are part of the world’s fair trade community we are directly influencing the producers and ensuring their ability to afford daily life essentials like food, education, and healthcare and are assisting the war they are fighting against poverty.

Why was it created?

There are currently millions of hardworking farmers that work tirelessly to produce the food that is just a visit to the grocery store away from us. Yet, these farmers are not sufficiently paid and while we enjoy a variety of food in exchange for a few paper notes, they have to go to bed hungry.
Hence, the main incentive behind the creation of the fair trade idea was to eradicate poverty and end the injustices prevalent amongst society. So the principles of fair trade are based on mutual agreement and partnership where both parties benefit equally, instead of the previous supplier/buyer relationship that presented great financial barriers to the supplier/producer. Henceforth, the fair trade system was introduced to protect the interests of farmers and workers and grant them equal consideration.

Why should we take fair trade benefits into consideration?

Fair trade benefits are tightly involved with the farmers and producers
The world should adopt a fair trade system because it is just fair! Fair trade’s benefits overpower the benefits of all other types of trading systems. It ensures financial and social security to one of the most vulnerable parts of society and could essentially eliminate all traces of poverty and could release hundreds of producers mainly farmers from vicious poverty cycles. Ending poverty is one of the most important fair trade benefits.

What is it based on and how does fair trade work?

This system is based on trading practices that are fair and not one-sided, meaning that it works based on equal partnership and rights to equal opportunities. The producers are paid good prices and payments are often made in advance. The producers are given platforms where they can raise their voices and contribute to the organization. Freedom of association, a healthy and safe working environment, the welfare of women and children are especially prevalent in this system of trade.

What are fair trade benefits?

The fair trade system is fair for everyone. Fair trade benefits are not only limited to farmers because it helps each part of society grow and provides unique benefits to all including the consumers, the trading companies, and even the environment.

Fair Trade relationships help the consumers connect directly to the producers and aware of the issues of social justice and equality. It helps them identify the opportunities for change and inculcates the desire to fight for the under-privileged. It also helps shoppers who believe in social justice and equality y providing them a platform where they can buy products without having to compromise their values and principles.


Fair trade benefits are also inclusive of trading companies. Along with providing a platform to shoppers who desire to shop in a way that is aligned with their beliefs, it provides companies a credible way to help those people that are at the end of the chain too and helps them create platforms to entertain these people. These companies also attract a greater audience because of their morals and values, so they might just get some extra customers as a bonus too!

Main Fair trade benefit: For The Producers

Fair trade has the most incentives for the producers and creates a massive impact on them. It helps them achieve stability by protecting them from fluctuating market prices. It also gives them access to the marketplace that broadens their vision, welcomes them to the norms of the market place and helps them recognize market trends, knowledge, skills, and resources better. All of which they would have been previously excluded from.


Fair trade benefits also cover environmental aspects and are of great value to planet earth because when farmers are paid sufficiently, they have enough resources to adopt more sustainable ways of farming and slowly shift towards organic production. This organic production may prove to be exemplary for the following reasons: protects the local environment through efficiency, promotes a minimal and safe use of agrochemicals, helps the farmers manage erosion problems and waste management issues sustainably, and helps maintain soil fertility.

Greatest Fair trade Benefit

Perhaps, one of the greatest fair trade benefits is its no child policy and strict rules regarding the prohibition of child labor. The fair trade system is designed in a way that it has zero-tolerance for child labor and ensures that no child is robbed of his/her childhood. Children under 18 years are strictly banned from working. This ensures that their education is not harmed in any way and they do not become yet another addition to the growing illiteracy rates.
Mentioned below are some facts and figures that will help you understand the purpose, need, and in-depth meaning of fair trade and fair trade benefits:

  • There are 1.65 million farmers that are working in a fair trade certified producer organizations.
  • There are a total of 1,226 Fair trade producer organizations in 74 countries.
  • At least a quarter of all workers in Fair trade are women.
  • Farmer and worker organizations own around 50% of the global Fair trade system.
  • At least 26% of workers spent finances obtained through Fair trade premiums on education.

(The benefits of Fairtrade)


Cacao Farm - fair trade benefits include environmental ones
Conclusively, it can be said that Fair trade is indeed one of the best trading systems that have been established. Its foundation basis of justice and financial responsibility influences each sector of society in a positive way. Undoubtedly, if this system of trading dominates all trading systems across the globe, soon the world will experience a massive revolution. All social barriers will be eliminated and all traces of poverty will be eradicated from the world.

Looking to learn more about fair trade?
Interested in buying some fair trade products, I recommend these!

“The Benefits of Fairtrade.” Friends of the Earth. 02 Mar. 2017. Web. 22 Feb. 2021.
Author: Monica Chang
Director of Ethical Choice
I am passionate about finding amazing sustainable and eco-friendly products and sharing them with more people. Interesting in plastic-free, reduce waste, and DIY.