What is Fair trade?

Fair trade is about better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world. It enables these farmers and workers to improve their situation and have more control over their lives. There are a number of conditions that have to be met before a product can be considered fairly traded and they include:

• a price that covers the cost of production
• an additional premium for social development purposes, for example funding to support schooling
• part payment in advance to help avoid small producers falling into debt
• long term trade relations that allows proper planning and sustainable production practices
• fair production conditions

For further information on how a town can become a 'Fair trade town', see the Fairtrade Foundation action guide or website.