Unfair Trade The Broken Promise of Fair Trade Farming in Africa

Since the early 1990s, fair trade agriculture has been touted as a tool to help farmers in developing nations raise their income by securing better prices for raw products that enjoyed high demand in Europe and the United States.

Most of the intended beneficiaries are in Africa, and grow labor-intensive crops like cocoa, coffee, tea, flowers, and bananas.

The standards are high: From production to shipping, nearly every step from farm to table has to be certified, by a number of organizations. In this system, many farmers who decide to adopt organic and fair trade practices sell produce and flowers to cooperatives, which in turn receive money from Europe-based Fairtrade International.

Fairtrade cooperatives are supposed to function as democratic unions, where members decide how premiums are divided and monies spent. Members are also required to be small-scale producers who run their farms independently. Fairtrade promises to protect laborers on certified farms, where decent working conditions and employee rights are respected.

The reality of fair trade in Africa, however, falls short of the goal.

Reporters from 100Reporters and Journalists For Transparency found small-scale farmers who supply Fairtrade International products living in abject poverty, unable to afford basic needs, such as medicine or  education for their children. Meanwhile, unfair employment practices on some Fairtrade-certified farms persist.

Workers were found toiling in hazardous conditions for wages that did not cover basic needs, in apparent violation of Fairtrade standards. In Kenya, women said they were ordered to work with agricultural chemicals on flower farms when pregnant, that caused them to miscarry.

In a written statement, Fairtrade International said that it took seriously any breach of standards. “No certification system, company or individual can give a 100 percent guarantee that a supply chain is free of unacceptable labour practices, but Fairtrade ensures that if we receive information on any violation of the rights of children or vulnerable adults, we take immediate action to protect the impacted individuals,” said Eric Fichtl, a spokesman for Fairtrade International. “We work with national protection agencies and/or human rights organizations when possible to ensure duty bearers engage in safe remediation and secure the impacted individuals’ long-term well being.”

The harsh conditions exist as a stark backdrop to rising demand for fair trade products.

According to Fairtrade International, from 2015 to 2016, demand for fair trade cocoa, coffee, and bananas grew by 27, 18, and 12 percent respectively. By the end of 2016, global retail sales grew to $9.45 billion, up from $5.7 billion in 2010.  

European consumers – principally in France and Germany – are willing to pay a significant markup for goods with the Fairtrade International label. They believe that by doing so, they are helping improve the lives of farmers who’ve won certification.

But the process has not been as fair, transparent, or as democratic as some farmers–or consumers–expected.

For two straight years, the 53-year-old has been crowned the best farmer in his village of Aponoapona, in eastern Ghana. In a region renowned for its organic cocoa yields, Nartey is the single-largest producer of organic fair trade cocoa.

For his efforts, the cocoa farmer sees little more than the $10 premium paid for each bag. Since he doesn’t earn enough to make ends meet harvesting cocoa, he supplements his income by producing local gin to pay for his children’s education.

“Even though I get money from selling cocoa, it’s not enough to solve all my problems. Sometimes, too, the money from selling cocoa does not come on time, so you don’t want to focus on just one thing and get into financial difficulties,” he said.

According to their standards for hired workers, farm owners have 30 days to pay the cooperative the premium. However, it doesn’t set at deadline for when cooperatives have to give farmers the premium. Instead, they are only supposed to be transparent and documented transfers.

Nartey’s six school-aged children have fallen behind because sometimes the family must skip paying the school fees. His big hope is that fair trade farming develops so he can afford the school fees.

“It is important that Fairtrade (International) provides us with some support for things like the kids’ education. If they help us that way, it motivates us to produce more. Personally, I have produced a lot of cocoa bags in this community for Fairtrade,” he explained.

Nartey has also struggled to pay for his medication after a stroke five years ago. He is in recovery, but here, too, he must scrimp because money for prescription medication falls short.

“When conditions get tough, I sometimes have to sacrifice money meant for my medicine on the kids’ education. I have not been able to send them beyond high school because I don’t have the financial strength to push them through,” he said.

Ghana is a cocoa-producing powerhouse as one of the four West African countries producing more than 70 percent of the world’s cocoa.  Established in 1947, the Ghana Cocoa Board (COCOBOD) manages the country’s cocoa market.  The state-run industry regulator has helped sustain the cocoa industry in Ghana, ensuring access to the best markets at the highest prices.

According to COCOBOD’s operational requirements, all sales contracts, including Fairtrade sales, must be registered with the industry regulator.   The body was established to protect and organize Ghana’s cocoa supply. The high quality of its cocoa beans means the country receives a market premium of as much as $150 a ton, above the prevailing world cocoa price.  In recent years, premium prices paid to COCOBOD have reportedly been better than what Fairtrade pays. Because of this, Fairtrade has yet to win over a significant share in Ghanaian cocoa production, with volumes of Fairtrade cocoa amoun