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Fair trade addresses many of the issues that arise as a result of unfair market competition. The most important is enabling smaller producers and growers based in developing countries to compete on a level playing field.
The fair trade model works based on a minimum price. Setting a limit helps
farmers and producers of products like coffee and fair trade bananas to increase
their earnings, reduce the risk of poverty and increase the security of their jobs and
household income.
Fair trade is also encouraging growers and farmers to work together to form
stronger, more powerful communities and cooperatives, which have greater
buying power. Economic gains also enable growers to invest in training to create
better quality products. The extra income obtained from fair trade initiatives can
also be injected into communities to develop better, more efficient farming
techniques and increase the size and value of crop yields.
Fair trade regulations and standards protect and shield the environment, outlining key areas including reducing greenhouse emissions, conserving wildlife species and preventing the use of harmful chemical pesticides.
Fair trade also actively encourages farmers and growers to undertake training to help them better understand the environmental impact of agricultural practices and to improve yields while simultaneously doing their bit for the planet. More and more money is also being made available to invest in techniques and methods that combat climate change.
Fair trade promotes equality. People who produce fair trade products have more control over their crops, they work in suitable, secure, safe environments, and they should not be subjected to discrimination or prejudice.
Fair trade revenue is also injected into community development and initiatives that target areas like housing, healthcare, and education. Fair trade programs have helped to improve and enhance the quality of life in many farming communities across the world, especially in rural areas where opportunities are limited.
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