The trade of goods, such as coffee and bananas, is a significant source of income for smallholder farmers in South and Central America facing poverty. An estimated 500 million smallholder farming families worldwide produce about a third of the world’s food, yet many of these farmers live on less than $2 per day, making them among the world’s poorest. Consequently, FairTrade certification on purchased and traded goods plays a crucial role in the fight against poverty.

Poverty and FairTrade’s Goal

In countries like Colombia and Ecuador, where many smallholder farmers reside, a significant portion of the population ranges from unemployed to upper-middle income, with various levels of poverty. Recognizing this, FairTrade International has set a goal to eradicate poverty by 2030. It emphasizes that poverty extends beyond lack of money, inadequate access to health care, discrimination and inability to provide for children. To achieve this goal, the organization creates a safety net for certified farmers, ensuring they receive a living wage and protection from market volatility. Additionally, it provides extra funds for farmers to invest back into their communities, helping elevate everyone collectively.

FairTrade International Certification

FairTrade International maintains a meticulous certification process to ensure that funds reach those most in need. Primarily executed through FLOCERT, certifications adhere to quality norms, assurance codes and include on-site audits. Follow-up audits serve to maintain transparency and prevent distrust. The certification process can take up to three years, striking a balance between rigorous scrutiny and promoting development and health. Once achieved, a FairTrade International certification is among the most reliable available.

Coffee and Bananas

The FairTrade Standard ensures that products grown and traded by smallholder farmers are not only of good quality but that the farmers are fairly compensated. This “Standard” addresses both product quality and the standard of living. Coffee and bananas are among the most common goods from FairTrade-certified smallholder farmers. Despite a price dip in 2019, coffee sales have surged, and consumers report that they would pay an extra $1.36 per pound for FairTrade coffee. This premium allows more funds to support smallholder farmers.

High demand for quality coffee has spurred the development of community infrastructure in impoverished rural areas, including roads, bridges, clean water lines, schools and health care centers. Similarly, demand for bananas remains strong, with consumers willing to pay more for FairTrade certification. Even with recent market struggles for bananas, significant funds have continued to be distributed. Smallholder farmers of both coffee and bananas have noted that FairTrade International plays a crucial role in their income and their fight against poverty.

Looking Ahead

The continued growth of FairTrade certification holds the promise of better livelihoods and stronger communities for smallholder farmers in South and Central America. Through sustainable practices and fair compensation, these farmers are poised to break the cycle of poverty and improve their quality of life.

– Isaac Songster

Isaac is based in Wheaton, IL, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr