SPECIAL REPORT: Changing the Lives of Farmers Through Certification

23 May 2016

23 May 2016 --- Fairtrade is a label we are all familiar with; and fair trade is a concept which is widely discussed. Fair trade is the social principle of a fair exchange between farmer and buyer – it is an aspect of sustainability, which also encompasses environmental principles.

Sustainability of farming for some of the world’s most common commodities such as coffee and cocoa has significant importance to the world that we live in, now more so in 2016 than it has ever been. As common practice, the food industry is under the obligation to understand the farming processes and are generally encouraged to support sustainability certification requirements. Fairtrade is one such certification program, alongside others like UTZ, the Rainforest Alliance, and many others for different ingredients and products.

The movement focuses in particular on commodities, or products which are typically exported from developing countries to developed countries, but also consumed in domestic markets most notably coffee and cocoa. The movement seeks to promote greater equity in international trading partnerships through dialogue, transparency, and respect. The food industry is more widely accepting of sustainability certification as it gives so much back to the environment and the communities in which produce is made. Typically farmers in regions underneath the equator make a living for their families by producing some of the world most sought after commodities.

FoodIngredientsFirst takes a closer look into the processes of certification and how it affects the lives of today’s many

farmers all over the world. Speaking with Fairtrade International’s Martin Hill, (pictured) Interim CEO of Fairtrade International, stresses the mission of Fairtrade: “Our mission is to promote fairer conditions for international trade and create a more equitable economic system by connecting small-scale producers, farmers and workers with consumers and empowering them to combat poverty in their communities and take more control of their own lives.”

Why join a sustainability certification program?
“Consumers are increasingly demanding transparency about where their food comes from and how it is produced,” states Hill. “Fairtrade enables companies to meet consumer demands that the benefits of trade are more equally distributed throughout the supply chain. Fairtrade enables the suppliers of certified companies to prosper by giving them opportunity to invest, innovate and grow sustainably, which in turn benefits the companies that rely on them,” he says.

Exploiting farmers, workers, women and children in the pursuit of ever cheaper food and ever greater profit is ultimately unsustainable – sustainability programs/certification enables companies to ensure their products are not based on exploitative labor and the unsustainable exploitation of natural resources.

The Fairtrade Standards incorporate comprehensive social, economic, environmental criteria which enable farmers and workers to strengthen the communities they live and work in, for the generations to follow. The Fairtrade Standards are set through a rigorous and transparent process with participation by producers and workers, businesses and external experts.

Many farmers and workers are disempowered by a global trade system which enriches the few at the expense of the many: 500 million small farms worldwide provide up to 80 percent of food consumed in a large part of the developing world.

“Farming is the single largest employer in the world, providing livelihoods for 40 percent of today’s global population,” claims Hill, “It is the largest source of income and jobs for poor rural households.”

Hill goes on to explain: “At the same time, only four corporations trade 90 percent of the world’s grain, five retailers control half of all European food sales and the top ten brands account for 15 percent of the global food market. The problems faced by poor farmers and workers result from centuries of marginalization and exploitation by powerful interests; these root causes of inequality and disempowerment must be tackled.” He adds, “Trade itself is not a bad thing – it can and should be used as a vital tool and catalyst to help close the gaps that exist across society.”

“Certification is an important tool to check that the Fairtrade Standards are met; however, certification by its nature relies on sampling and is not a 100 percent guarantee,” explains Hill, “Fairtrade therefore takes a comprehensive approach to support producer communities to tackle the problems they face, including training, development of programs, standards and certification.”

Another sustainability certification program that is looking after the welfare and status of farmers around the world is UTZ, the global sustainability program for coffee, cocoa, tea and hazelnuts. UTZ certified products are sold in 136 countries, and are produced in over 36 countries all over the world.

“The most important thing to know is that certification has two sides – the companies who buy certified products, and the

farmers who produce in a sustainable way,” Melanie Mokken, (pictured) Public Relations Officer tells FoodIngredientsFirst. “Both sides are vital. We need to work with companies to increase demand for sustainable products, as that’s the best way to extend the benefits of certification to more farmers.

Mokken explains how UTZ has changed over the years: “UTZ Kapeh (Mayan for “good coffee”) was founded in 2002 and started off as a program for sustainable coffee, over the years the program was expanded, in 2007 the cocoa program was added and tea in 2009 so they dropped the word kapeh and then it became UTZ Certified. At the beginning of this year, the ‘certified’ part of the name was dropped to represent that we are expanding our scope beyond certification,” Mokken says.
“Certification remains the core of what we do. The guidance we give on better farming methods and working conditions, in turn this will lead to better production, a better environment and in the end better livelihoods for farmers.”

What has been achieved so far?
Some highlights from Fairtrade’s latest Monitoring and Impact report:
• In the end of 2014 there were about 1.6 million farmers and workers in Fairtrade certified producer organizations across 74 countries

• Consumers purchase over $5.64 billion worth of Fairtrade products annually

• During the reporting period, 40% of Fairtrade producer groups sold more than 50% of their production on Fairtrade terms

• Certified small producer organizations spent 31% of their Fairtrade Premium on investments supporting productivity or quality improvements

• On certified plantations, 26% of the Fairtrade premium was spent on education

Figures from UTZ's Impact report:
• In 2015 the UTZ program reached more than a million farmers and workers

• UTZ certified coffee, cocoa and tea is produced in 36 countries

• The cocoa program has grown a lot over the past few years, 25% of the world's cocoa is UTZ certified

• In a research among cocoa farmers in Cote d’Ivoire (Ivory Coast):
• 92% of farmers say they have experienced positive changes from certification
• 49% of UTZ farmers use increased cocoa revenues to send their children to school, the main investment among respondents.

• Or a study among coffee farmers in Brazil: UTZ certification has contributed to reduced costs and increased profitability. 60% of farmers mentioned having lower costs

• In 2015, the UTZ label appeared on more than 13,500 products in 136 countries

• This cooperation from UTZ members meant enough coffee, cocoa and tea was sourced to make; 28.6 billion cups of coffee, 2.9 billion cups of tea and 14.4 billion bars of 100g milk chocolate

Climate change
Climate change related events are on the rise, notably in developing countries. Producers in the Global South are increasingly feeling the brunt of climate change effects, including higher temperatures, increased rain, floods, and droughts.

Research carried out by the Natural Resources Institute of the University of Greenwich indicate that climate change “will have mainly negative impacts upon agricultural production, food security and economic development, especially in developing countries.”

Coffee producers in Latin America are currently being severely affected by the spread of the leaf rust disease which is affecting over 50% of the total coffee growing area in Central America, and within the range of 30 – 40% in some South American countries. Climate change has been identified as a key factor facilitating the outbreak. Producers are also being affected in Africa; tea farmers in East Africa, for instance, suffered heavy frost events in early 2012 which destroyed thousands of acres of bushes.

Unfortunately, the picture of the future does not appear promising. In fact, several modeling studies predict that by 2050 the productivity of coffee, cocoa, tea or cotton will severely be affected and production in some areas might even disappear. Many farmers will need to adapt their practices to the new climatic conditions or risk losing their livelihoods.

Hill from Fairtrade International comments: “Fairtrade’s global work plan for climate change focuses on producer services, producer support for climate change adaptation (creating partnerships for adaptation projects), and producer-driven advocacy.”

“The overall mission is to enable vulnerable farmers to adapt to climate change and support them to mitigate the impacts, while promoting further sustainable development practices,” he says.

“It’s very important to UTZ to address the bigger issues that farmers are dealing with such as climate change,” explains

Mokken, “While significant improvements have been achieved through certification; some of the challenges farmers face cannot be addressed by certification alone. That’s why, over the coming years, UTZ will be building on the foundations of certification by working with governments, companies and civil society to tackle these issues and bring about lasting change for a growing number of farmers, producers, workers and their families.”

“We need to make sustainability the norm,” claims Mokken. “UTZ works together with the industry, including big companies like Mars and Nestlé, to bring about sustainability on a large scale.

“We are seeing that more and more companies see the need for sustainability and more companies are willing to commit, that’s a great development and that’s what we are working towards. The same goes for consumers, awareness is increasing and this is promising for the future.”

In terms of improvement of farming issues, what is the impact of the UTZ program on certified farmers? Mokken says that certified farmers experience an improvement in their income and their living conditions.

“The Code of Conduct sets guidelines for better farming methods and working conditions, as well as better care for nature and future generations,” she says, “If the farmer adopts these farming methods he will be able to take care of his surroundings, improve his yield which will increase his income. So it works both ways: farmers grow better crops, generate more income and create better opportunities while safeguarding the environment and securing the earth’s natural resources.”

“This can make farmers more resilient against the challenges they face, such as climate change,” explains Mokken. “In fact, a study among coffee farmers in Colombia discussing the effects of climate change showed that UTZ farmers managed to maintain their yields and even increased their income, while non-UTZ certified farmers saw a 52% drop in yields.”

“In the end it’s not about a label, but it’s really about the farmers, workers and their families. To support them to implement good agricultural practices so they can manage their farms profitably with respect for people and planet – to ultimately make sustainability the norm,” concludes Mokken.

by Elizabeth Kenward