The Shop for Change Fair Trade benefits for producer groups
Shop for Change Fair Trade is all about empowering farmers and artisans by improving livelihoods and strengthening producer groups. We aim to achieve this by opening up new value-added markets in India for marginalised producers.
Producer groups receive an additional 15% capacity building premium on top of the price negotiated with buyers for their crops. This premium is used for training and education programmes to help farmers farm sustainably, increase profitability, create efficiencies and raise social and environmental standards. The premium also supports farmers in meeting the Shop for Change standards.
Shop for Change links farmer groups with new fair trade buyers in India, helping them access value-added markets that directly improve livelihoods.
Shop for Change Fair Trade seeks to hand more control and security to farmer groups during the negotiation process with buyers. By setting a framework for the composition of contracts, farmer groups enjoy more favourable terms and conditions and have more certainty when trading. Contracts must include:
- the negotiated price and capacity building premium
- quality and quantity specifications
- delivery and transport conditions and schedules
- who is responsible for late deliveries under different circumstances
- pre-delivery loans (if agreed upon)
- a termination clause
- provision for unforeseeable problems (such as droughts)
- conflict resolution procedures
Buyers must negotiate a price with farmer groups that takes into account market conditions, overheads, crop quality and other costs borne by the farmer group.
Shop for Change seeks out ethically conscious buyers that are interested in establishing fair trade supply routes. When buyers engage with Shop for Change, we expect them to work in good faith towards building long-term trading relationships with farmer groups. This includes negotiating and signing contracts and informing farmer groups about special requirements, such as quantity and quality, in advance of the crop season.
Shop for Change Fair Trade promotes transparency and accountability to protect farmers and the Shop for Change Mark. By working with Shop for Change, buyers understand that they are open to increased scrutiny and that engaging with fair trade means trading fairly. We expect buyers to communicate concerns about delays or quality issues in advance so that farmer groups have a reasonable amount of time to respond.