Explain how fair trade may benefit producers in the developing world. (4 marks)

Fair trade farmers receive a guaranteed price for their produce (e.g. cocoa, bananas) therefore they have higher and more secure income in comparison to non-fair trade. This is beneficial for producers as it allows them to re-invest in farming methods to increase production further. In addition, in some developing countries Fair-trade Co-operatives have been set up (e.g. Kuapa Kokoo in Ghana), which have benefited from Fairtrade Premium projects such as increase the provision on mosquito nets to improve health.