Tea 201 - Fair Trade - The Effects of Sustainable Investment in People

Chris Giddings -

🌍 Fair Trade – What Does It Mean?

🤔 What is Fair Trade?

You’ve probably seen the words Fair Trade in tea shops and coffee shops. But what does it actually mean?

Fair Trade is an economic model that eliminates the middleman between growers and retailers. This allows farmers to compete fairly in the global market and earn a living wage.

📜 The Origins of Fair Trade

Fair Trade was established in 1988 after the collapse of coffee prices, which left small farmers struggling to survive. The model was created to ensure farmers received fair compensation for their products.

📌 Read more about Fair Trade

💰 Why Does Fair Trade Cost More?

When you see a Fair Trade label, you may notice that the product is priced higher than a typical store-brand item.

This is due to a “social premium”, meaning part of the cost goes directly into community programs like:

  • Education 📚
  • Healthcare 🏥
  • Business Development 📈
  • Sustainable Farming 🌱

🔑 Six Key Principles of Fair Trade

According to Rishi Tea, there are six major Fair Trade principles:

1️⃣ A Fair Price:

  • Farmers & workers receive a living wage and a social premium for community projects.

2️⃣ Fair Labor Conditions:

  • Workers must have safe conditions & fair wages.
  • Child labor is strictly prohibited.

3️⃣ Direct Trade:

  • Fair Trade cuts out unnecessary middlemen, empowering farmers to be global market competitors.

4️⃣ Democratic & Transparent Organizations:

  • Workers vote democratically on how to invest Fair Trade premiums in their communities.

5️⃣ Community Development:

  • Investments in healthcare, education, farming improvements, and business growth.

6️⃣ Environmental Sustainability:

  • No GMOs ❌
  • Crop rotation & soil fertility programs 🌱
  • Limited chemical use to protect soil, air, and water 💧

🌱 Why It Matters

Fair Trade ensures ethical labor practices, supports farmers, and promotes sustainability. It’s a business model where everyone wins!

Do you buy Fair Trade products? Let’s discuss! 👇

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