Guaranteed purchase price & Fairtrade Premium
Fair trade provides producers with "guaranteed purchase prices" to enable farmers to increase their income and avoid the impact of price fluctuations such as crop failure due to climatic conditions, so that farmers and workers do not have to be forced to adopt environmentally harmful production methods, but encourage farmers Turn to organic cultivation that causes less harm to humans and the ecological environment, and ensure that they are cultivated in an environmentally friendly and sustainable policy.
In addition, the General Fair Trade Organization will collect annual fees from concessionaires that sell fair trade, and use the funds as "Fairtrade Premiums" to assist production organizations in developing countries to establish drinking water facilities, build schools, and build hospitals Facilities to start the first step in economic development. In order to make the use of funds more flexible, Fair Trade Cooperatives implement a democratic system, and local residents vote on how to use it.
By investing in fair trade grants in community building, farmers can invest more time and money in environmental education and training, quality testing and equipment improvement, develop sustainable farming techniques, and least environmentally harmful production methods to obtain Quality farming.
Fair trade can unite small farmers in developing countries with weak powers and establish sustainable development alliances, so that small farmers are no longer alone, they can better control the value of agricultural products, regain the bargaining power without being dominated by the market, but also together By purchasing production tools and making profits together, through stable transactions, they can also learn from each other and produce better agricultural products.