The goal of fair trade is to pay higher prices to grassroots producers while supporting the enforcement of labor and environmental standards. Consumers pay higher than average prices for goods produced by members of democratically run cooperatives. Producers receive higher incomes for their products. Producers and distributors aim to reduce the number of intermediaries and thus capture a higher share of the value added. Distributors engage in long-term contracts and relationships with producers, which supports market stability and capital investments. National fair trade organizations collect fees from distributors, which are used for monitoring and enforcement of fair trade rules, and for education purposes. An international organization, the Fair Trade Labeling Organization (FLO) oversees the standards and coordinates the activities of national certifiers. More than 600,000 farmers worldwide plus their families in 32 countries currently benefit from fair trade arrangements.
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