A 2022 study finds fair trade farmers experience increased economic resilience, social wellbeing, environmental sustainability and governance of their cooperatives, particularly in times of global crisis.
The Fairtrade System uses 2 price mechanisms, the minimum price and the premium, to ensure farmers earn a reliable and, well, fair income. These price mechanisms represent a safety net not only for the farmers who grow the food, but for their co-ops and communities more broadly. From 2012 to 2022 Fairtrade farmers experienced increased earnings, the ability to withstand periods of financial instability and boosted savings. In the case of Fairtrade certified La Florida cooperative in Peru, farmers reported incomes 50% higher than those of non-Fairtrade farmers.
The study also found Fairtrade cooperatives enjoy
more democratic decision-making
increased gender equality
improved workplace health and safety
80% of the world’s food comes from 608 million family farms, with one third of those farming less than 5 acres of land. Not surpisingly, the overlapping global crises of recent years have hit smallholder farms in Global South countries the hardest. With pressure from consumers to keep prices low in the United States, costs are often passed back to small farmers and the land itself. Renato Alvarado, Minister of Agriculture and Livestock in Costa Rica, explains, “producers bear the production costs on our shoulders and the profits remain in the hands of others.”
Carmen is a member of the CONACADO cooperative, and by joining the Fairtrade certified co-op, she has been able to tap into their collective bargaining power when it comes to pricing. Through the co-op, she has secured a better price for her cocoa making it possible to achieve her goals of scaling production and diversifying her crops. And for Carmen, cocoa isn’t just about her own business. It’s about the community working and thriving together. Shoppers in the US are directly participating in this community by purchasing products made with ingredients from Fairtrade certified farms like Carmen’s.