by Sharon Cullars

Created on: May 10, 2008   Last Updated: December 01, 2008

Before Fair Trade was implemented sixty years ago, an average farmer in Ecuador could expect to receive only a few cents per pound for his crops, barely enough to sustain himself, his family and his farm. Middle distributors often abused the system, shortchanging farmers out of a decent livelihood while keeping profits for themselves. The defrauded farmers had little to no recourse but to accept the low prices.

Fair Trade broke through this abusive cycle, empowering small farmers around the world to finally command competitive prices for their crops. According to TransFair USA, a family of four in Ecuador needs about $9.95 a day to provide for basic necessities; non-Fair Trade farms earn as little as $3 a day, a costly deficit. It's an easy equation, really: a vital global economy depends upon sustainable production which cannot exist without farmers in developing countries receiving fair compensation for their crops. Fair trade ensures not only that these farms thrive, but that farmers can afford to feed their families and send their children to school. It also allows farmers to practice environmentally sound farm management that protects the environment.

Under Fair Trade, certain crops are guaranteed a minimum of .80 per pound while other crops are guaranteed more. For example, in Nicaragua, chocolate runs .80 per pound, while coffee growers command at least $1.26 per pound. If certified as organic, both are guaranteed at even higher prices. These minimums are enough to generate profits for their growers, who in turn can invest their monies for their families' futures as well as bolster the agricultural infrastructure of their respective communities. Because only democratic cooperatives can be certified as Fair Trade, democracy gets a boost, while farmers are given a voice in how their cooperative funds are used.

One of the major benefits of Fair Trade is the elimination of child labor, which is prohibited under Fair Trade certification. Although most poor farmers would rather send their children go to school, too often their children are forced to help out on the farm. A 2002 Human Rights report found that in Ecuador, children as young as eight were being used as cheap labor on banana plantations, earning an average of $3.50 a day. In Fair Trade areas, child exploitation is dwindling even as communities build new schools. In the Segovia region of Nicaragua, where coffee is a major Fair Trade crop, forty cooperatives under PRODECOOP (Promotora de Desarollo Cooperativo

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