Source of resilience during COVID-19

The Fairtrade COVID-19 Relief and Resilience Fund supported 667 Fairtrade producer organizations and benefitted more than 815,000 farmers and workers to date. Over €15.8 million was raised from internal sources and multiple external donors, including BMZ (Germany), SECO (Switzerland), and FCDO (United Kingdom). According to research we conducted in late 2021 financed by BMZ and SECO, the Africa and Middle East region seems to have been hardest hit, with almost 70 percent of sampled producer organizations there reporting declines in production and Fairtrade sales volumes.

Fairtrade’s direct financial support was found to be one factor that mitigated the negative effect of the pandemic on producer organizations and farming households, according to a separate forthcoming study.

Governance of producer organizations is an important sustainability factor

In case studies of banana, cocoa and coffee producers looking at four sustainability dimensions – economic resilience, social wellbeing, good governance and environmental integrity – good governance of producer organizations is linked to greater economic benefits for farmer members. The Fairtrade certified producer organizations tend to be more transparent and engage more widely with stakeholders. Compared to their non-certified counterparts, Fairtrade producers have more financial resources and capacity to carry out democratic processes, thanks in part to the way they manage the Fairtrade Premium. Study authors emphasize that “…(u)nless good governance is serious considered, sustainability will remain a mirage.”

Source: Mauthofer and Santos, Assessing the Impact of Fairtrade on Poverty Reduction and Economic Resilience through Rural Development (2022)