Fairtrade certification explained

Fairtrade Month is the perfect opportunity to delve a little deeper into this certification!

It's important to know that Fairtrade is a trading system whose goal is to help producers in developing countries establish sustainable and equitable trade relationships. When you choose Fairtrade certified coffee, you contribute to helping more than 750,000 coffee farmers thrive despite an unstable market. You enable them to earn a decent income, protect their environments, and invest in their farms and communities.

The reality of coffee producers

Small -scale farmers cultivate 80% of the world's coffee. Many of them struggle to earn a living wage, and one of the main problems is price volatility. In fact, the price of coffee on global markets changes on average every three minutes. Generally, coffee price volatility is explained by weather conditions in producing countries, currency fluctuations, or simply by the dynamics of supply and demand.

The global coffee industry now generates over $200 billion annually. Yet, the average income of coffee farmers has remained stagnant for the past 20 years. In fact, it has declined, given rising agricultural production costs. The economic consequences of this income stagnation are considerable, and the repercussions for coffee-producing families include increased child and forced labor, a decline in proper environmental management, greater food insecurity, increased migration, and a decrease in coffee quality. Indeed, farmers who cannot cover their production costs are unable to reinvest in necessary farm renovations or in more rigorous agricultural processes that could generate a more consistent supply of quality coffee. This further impacts their sales. This cycle of poverty is pushing current generations of coffee farmers to give up this activity, and it is also a deterrent for future generations.

Why choose Fairtrade?

Fairtrade is the only global sustainability certification that guarantees a minimum price for coffee. This minimum price acts as a safety net for farmers against price volatility. Fairtrade-certified coffee cooperatives currently receive a minimum price of $1.40 per pound, and $1.70 per pound for organic products.

It also allows producers to receive a premium on the sale of their green coffee. This premium is an additional sum of money paid into a common fund that farmers and workers use to improve their social, economic, and environmental conditions. The producers determine what is most important to them, whether it be investing in education and healthcare for their children, making improvements to their businesses, or even contributing to the construction of vital infrastructure in their community, such as roads and bridges.

The positive impacts of Fairtrade

Fairtrade establishes much more than a fair price. This system has a lasting influence on three interconnected spheres: economic, social and environmental.

THE ECONOMIC IMPACT

1. Thanks to the fair minimum price established for most products, Fairtrade certified farmers can count on a more solid income, and are less vulnerable to market volatility;

2. In many key sectors, Fairtrade certification allows farmers to negotiate a price higher than the market price;

3. Thanks to the Fairtrade premium, additional funds support higher quality agriculture, strong cooperatives, investment in the common good and local infrastructure;

4. Long-term trade contracts with exporters and traders allow producers to develop their businesses and plan for the future.

THE SOCIAL IMPACT

1. Fairtrade strengthens the capacity of farmers by facilitating the formation of their groups into cooperatives. The cooperative model improves their bargaining position in the supply chain. Farmers and workers who choose to participate in Fairtrade then experience a genuine sense of control over their lives, with more power and a stronger voice;

2. Workers on large farms are protected by Fairtrade standards, which require better working conditions, health and safety measures at work, and the right to unionize;

3. These standards also encourage gender equality, and prohibit child labor and forced labor;

4. The Fairtrade premium is often invested in projects that benefit entire communities, such as the construction of health facilities, schools, housing, and drinking water distribution points.

THE ENVIRONMENTAL IMPACT

1. Fairtrade standards encourage efficient management of natural resources, such as soil and water, and limit the use of harmful chemicals;

2. Fairtrade favours organic farming, which offers farmers financial benefits and access to new markets;

3. Because of the impact of climate change on farmers, Fairtrade provides access to financing, support, and expertise to help with adaptation. We also offer the Fairtrade Carbon Credits program, which allows producers to contribute to climate change mitigation.

We all have a role to play in the sustainability and long-term viability of the coffee sector: we can show our support by buying fair trade products, and by demanding decent conditions for those behind your cup.