Which statement about a cooperative in Fairtrade is correct?

Which statement about a cooperative in Fairtrade is correct?

• A. They help farmers access free credit from any bank.
• B. They enable direct selling to buyers and reduce middlemen.
• C. They guarantee government subsidies.
• D. They ensure market prices rise automatically.

Answer: (B)

Cooperatives in Fairtrade are groups of farmers who pool their crops to sell them directly to buyers, rather than through many separate merchants. This direct selling cuts out intermediaries who often take a large share of the selling price, so farmers receive more of the money from their harvest. The cooperative can also meet buyers' needs in larger, regular quantities, which strengthens bargaining power and helps secure fairer prices. Fairtrade adds stability with a minimum price and a premium that funds community development, but it doesn’t guarantee free credit from banks, government subsidies, or automatic price rises. Prices in the market still depend on supply and demand, while the cooperative mainly improves access and terms of sale. That’s why this statement best reflects what a cooperative does in Fairtrade.

Cooperatives in Fairtrade are groups of farmers who pool their crops to sell them directly to buyers, rather than through many separate merchants. This direct selling cuts out intermediaries who often take a large share of the selling price, so farmers receive more of the money from their harvest. The cooperative can also meet buyers' needs in larger, regular quantities, which strengthens bargaining power and helps secure fairer prices. Fairtrade adds stability with a minimum price and a premium that funds community development, but it doesn’t guarantee free credit from banks, government subsidies, or automatic price rises. Prices in the market still depend on supply and demand, while the cooperative mainly improves access and terms of sale. That’s why this statement best reflects what a cooperative does in Fairtrade.