While fair trade generally has a positive impact on the environment, it was actually designed as a social standard to help marginalized workers and farmers in developing countries. Though small scale farmers and laborers benefit most directly, however, there are some large scale benefits for consumers and the environment as well.
Producers
Farmers and laborers in developing countries benefit greatly from fair trade in large part from the wages they earn.
By earning appropriate wages, they not only raise their standards of living, they also feed more money into their communities. This allows producers to help establish better healthcare and education, and a wider variety of skill sets among community members.
Additionally, farmers can move beyond making the bare minimum, and further their production by purchasing more advanced equipment.
Consumers
Consumers benefit from fair trade practices because by buying fair trade, they are making a global impact.
Before fair trade, consumers were helpless in determining the principles that make the world go round, but now consumers have the option of higher quality products that come from ethical sources.
As for agricultural products, consumers enjoy the added benefit of a healthier product.
Environment
While not every fair trade item is organic, many of them are. If a product isn't, producers still follow specific production practices that are environmentally sustainable.
If their farm is not organic, producers practice some organic farming techniques such as minimizing pollutants, herbicides and pesticides. Many of the most dangerous pesticides have even been banned from use on fair trade farms.
While it may not seem like much, by banning and limiting use of harmful chemicals, farmers are producing more natural crops and reducing their environmental impact.
