A NEW STUDY ASSESES THE IMPACT OF FAIR TRADE ON RURAL DEVELOPMENT
AND CONFIRMS POSITIVE EFFECTS
A new study systematically examined the effects of Fairtrade on rural development in the producing countries, as well as what are the decisive factors for maximizing benefits. The study was co-financed by the Swiss State Secretariat for Economic Affairs (SECO), the German development co-operation organisations Misereor and Brot für die Welt/EED and was developed by research institute CEval of Saarbrücken, Germany.
A range of qualitative and quantitative data was gathered for this study. Farmers and dependent workers in Ghana, Peru, Kenya & India were interviewed in 32 group discussions and 128 individual interviews. 3750 survey forms as well as primary and secondary literature were evaluated. Case studies from the coffee, banana, tea, cotton, cocoa and flower product ranges were evaluated. The study compared the development of Fairtrade Certified small farmer co-operatives, plantations and contract production with that of conventional organizations.
"The latest results show that Fair Trade creates an improved income and contributes to povery reduction in rural areas ... and conventional farmers have even started copying Fair Trade standards, for example, when it comes to paying a premium or improving their working conditions." Dieter Overath, General Manager of Trans Fair, Germany.