We often receive email with questions about the Fair Trade Federation, Fair Trade practices, Retailing and Wholesaling.
Producers receive a fair wage when they are paid fairly for their products.
This means that workers are paid at least that country's minimum wage. Since the minimum wage is often not enough for basic survival, whenever feasible, workers are paid a living wage, which enables them to cover basic needs, including food, shelter, education and health care for their families. Paying fair wages does not necessarily mean that products cost the consumer more. Since fair trade organizations bypass exploitative middlepeople and work directly with producers, they are able to cut costs and return a greater percentage of the retail price to the producers. Cooperatives and producer associations provide a healthy alternative to large-scale manufacturing and sweatshop conditions, where unprotected workers earn below minimum wage and most of the profits flow to foreign investors and local elites who have little interest in ensuring the long term health of the communities in which they work.