1. Fairtrade Farmers:
- Minimum Price: Fairtrade farmers receive a minimum guaranteed price for their crops, which is set by Fairtrade International. This minimum price is designed to cover sustainable production costs and provide a fair living wage to farmers.
- Fairtrade Premium: In addition to the minimum price, Fairtrade farmers also receive a Fairtrade premium for their products. This premium is paid over and above the minimum price and is intended to support community development projects, such as improving healthcare, education, and infrastructure.
2. Non-Fairtrade Farmers:
- Market Prices: Non-Fairtrade farmers are paid the prevailing market price for their crops. These prices can fluctuate significantly and may be influenced by factors such as global supply and demand, weather conditions, and market speculation.
- Lack of Price Guarantees: Non-Fairtrade farmers do not have the benefit of minimum price guarantees or Fairtrade premiums. They may be more vulnerable to price volatility and may face economic difficulties if market prices fall below their production costs.
It is important to note that the earnings of both Fairtrade and non-Fairtrade farmers can be influenced by a range of factors specific to their individual situation, including the scale of their operations, their access to resources, and their ability to negotiate favorable prices with buyers. As such, it is challenging to provide a definitive comparison of their earnings without considering these individual factors.