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THE IMPACTS OF FAIRTRADE ON BANANA FARMERS AND FARM WORKERS

Fairtrade stickers applied on bananas at the ASOBANU Coop in the Dominican Rep.14.12.2011 - As the volume and value of Fairtrade sales grows across the world, there is increasing demand to measure and demonstrate the difference that engagement with Fairtrade has made to participating producers and workers, and their households, as well as to producer and worker organisations and the wider community – in other words the impact that Fairtrade has had.

This report was commissioned to the Institute of Development Studies (University of Sussex, UK) and focuses on Fairtrade banana producers. Fairtrade bananas account for 20% of the total UK banana market with retailers such as Marks & Spencer offering over 50% of their bananas as Fairtrade.

The research involved three Fairtrade small producer organisations (co-operatives) and three Fairtrade plantations in four locations: Ecuador, the Dominican Republic, Ghana and the Windward Islands. Farmers, traders, farm workers and communities were interviewed during 2010.

Here the summary of the key findings, but you can download the full report by clicking here.

Impacts on Small Producer Organisations (Co-operatives)
Positive Impacts

• Higher prices than conventional market, leading to higher and more stable incomes
• Improved market access
• Improved bargaining power with traders
• Increased ability to save for small farmers
• Improved access to health, education (especially for children) and housing through Premium investments
  

Challenges

• Rising cost in banana production means Fairtrade is having an income stabilising rather than a boosting effect
• Fairtrade benefits not effective enough for very small farms
• Potential producers are wary of the opportunities for Fairtrade sales
• Long-term trading relationships sometimes difficult to maintain
• Over-reliance on single trading partner
• Worries about competition from Fairtrade plantations
• Little impact on gender discrimination in certain countries
  

Impacts on farm workers on plantations
Positive Impacts

• Better working conditions and better worker / management relations
• Fairtrade has helped unionisation and is helping addressing workers' rights issues
• Workers have higher salaries than workers on non-Fairtrade plantations
• Premium has boosted health, housing and education prospects
• Improved job security
  

Challenges

• Workers wages still too low, although conforming to legal minimums
• Women not sufficiently represented
• Fairtrade Premium not benefitting migrant workers
• Fairtrade Workers' Committees are sometimes 'competing' with trade unions
• Understanding of Fairtrade amongst workers is sometimes patchy
  

Find more research about the impact of Fairtrade on our Research & Literature section.