21st Century Vision: A positive FAIRTRADE Story

Nicaraguan small coffee producers benefit from fair trade

A report from id21, the online journal published by the Institute of Development Studies at the University of Sussex, makes positive reading in these depressing times. What can we, ordinary people of Enfield, do to make the world a better place? Well, support the Fairtrade movement is one thing we can all do.

Fairtrade aims to make the global trading system work for disadvantaged producers in the developing world and there is evidence suggesting that it is contributing to poverty alleviation in coffee producing areas of Nicaragua.

Coffee is key for development in much of Nicaragua. Around 30,000 producers generate 30 percent of the country’s total export income. Production has been affected by market liberalisation and coffee industries elsewhere. For the first time in Nicaraguan history many coffee workers are experiencing hunger. Smallholders have had to sell their coffee beans for less than the cost of production, forcing them to take children out of school, go without essential medicines and reduce inputs needed for their farms.

Research from the University of Leeds, UK finds that coffee farmers in northern Nicaragua are better able to cope with the dramatic shifts in commodity prices in the conventional international market because of the stable prices offered by the fair trade market.

Fair trade organisations are helping cooperatives improve production and processing practices, using environmentally-friendly methods. Northern consumers buy fair trade coffee, both for reasons of social justice and because it tastes better. The fair trade movement has provided participating households with basic levels of nutrition, education, and healthcare. Interviews show that:

Producers are eager to learn new production methods, even though the transition often means to lower coffee yields and increase time on farming activities.
Since entering the fair trade market incomes have doubled and producers are less at risk of losing their farms.
While women’s involvement is still minimal the gender equity objective of the fair trade movement is giving women more confidence and management opportunities.

However, it is difficult for communities to benefit as long as extra profit from fair trade products remains very small. The long-term sustainability of fair trade depends on broader political and economic conditions in Nicaragua and trends in Northern markets. It will be important to:

keep developed country consumers informed of the experiences, successes and setbacks of developing country producer organisations
undertake research to assess the extent to which fair trade networks can continue to expand and the demand for fair trade coffee can increase
enable producers to participate in fair trade processes and not just be passive suppliers of a product
provide local leaders with management skills and technical knowledge to adjust to changing developed country demands.

The Fairtrade campaign in Enfield is gathering strength. In June the Council will be voting whether to work towards being a Fairtrade borough. To help you can do several things:

Encourage your workplace to use Fairtrade coffee, tea and other products
Ask your local retailers to stock Fairtrade products and buy them
Contact your councillor and tell them you believe it would be good value for the council to spend a little more on its coffee and tea to support Fairtrade.

For more local information contact the Enfield Civil Society Forum Working Group

For National information look at the Fairtrade Foundation website