What is Fair Trade and Why Does it Matter?

What is Fair Trade and Why Does it Matter?

Have you ever wondered if shopping Fair Trade really makes a difference

We’re pursuing a Fair Trade Federation membership because we believe it does. Since dignity for people and planet drives everything we do, fair trade is a no brainer. 

What is Fair Trade? 

According to the Fair Trade Federation, “Fair trade is an approach to business and to development based on dialogue, transparency, and respect. It seeks to create greater equity in the international trading system. Fair trade businesses partner with farmers and craftspeople in developing countries who are socially and economically marginalized in finding markets and customers for their goods.”

But What Is “Fair”? 

A fair wage simply means that producers receive a fair wage and are paid fairly for their products. A fair wage means a living wage in the region that the producer lives in. According to the Fair Trade Federation, a living wage “allows the producer to “cover basic needs, including food, shelter, education and health care for their families.” 

But fair trade is about more than just fair wages. 

According to the Fair Trade Federation, “fair” means that “trading partnerships are based on reciprocal benefits and mutual respect; that prices paid to producers reflect the work they do; that producers share decision making power; that national health, safety, and wage laws are enforced; and that products are environmentally sustainable and conserve natural resources.” 

Are Fair Trade Products More Expensive? 

Not necessarily. Because Fair Trade Federation members bypass exploitative middle people, they can work directly with producers. This avoids unnecessary expenses. Ensuring that a producer is paid fair wages doesn’t necessarily mean that the consumer is paying more for the product. It just ensures that more of the consumer’s payment goes to the producer. 

How Do You Know if a Product is Fair Trade? 

When you see the Fair Trade Federation logo on a product, you can ensure that the company has been screened and verified by the FTF. If a company or organization is a Fair Trade Federation member it means that they don’t just sell a few fair trade products, but rather they integrate fair trade practices and principles into everything they do. A Fair Trade Federation member has a deep level of commitment to fair trade practices and they maintain long-term relationships with small producers. This is the kind of ethical business that we are excited to show the world. 

Why Isn’t Savhera a Member Yet? 

You might be wondering why you haven’t seen the Fair Trade Federation logo on your Savhera products yet. In order to be an official Fair Trade Federation member, a business must go through a rigorous application and approval process. Savhera is in the middle of this process. The Fair Trade Federation must thoroughly trace every part of Savhera’s supply chain and receive recommendations from our supplier partners. This takes time, but we are proud to be moving toward becoming a member of the Fair Trade Federation. 

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