Evaluate the impact of Fairtrade Essay Example | Topics and Well Written Essays - 2000 words

Evaluate the impact of Fairtrade - Essay Example Alternative trade organizations that are based on philosophies of well being of environment, and also social justice are creating new channels for marketing and trade alongside conventional agricultural export sectors. Social responsibility and ethics have become an important factor in consumer marketing which provides an organization with competitive advantage with respect to its competitors. The changes that are brought about by fair trade have to be looked at first to analyze the impacts of fair trade. One has to consider in this regard the changes that were not possible without the existence of fair trade. When the existence of fair trade benefits farmers, they start to control a significant part of the production chain and also employ workers. When farmers who are certified by fair trade employ workers, those workers have a high standard of living and a working condition that is considered better. If workers have a standard of living that is considered better, they will invest more money in their children’s education. Favourable economic opportunities are provided by fair trade to small farming families such that they also get the opportunity to join manufacturing organizations and produce products with market specifications. These farmers are considered to enjoy higher and stable incomes as compared to those farmers that sell in the conventional market. Buyers pay a stable minimum price known as fair trade price to cover the sustainable cost of production. There also exists opportunity for pre-financing and also contracts for long term planning. It also has an increased access to the export markets (Bassett, 2010, pp. 44-49). The fair trade price is considered to have a lot of significance when in the volatile world the prices of commodities and products fall below the cost of production. Importers tend to import the products of fair trade in their respective countries for further processing of such products and to sell those products themselves or