by Megan Minnick, Purchasing Director
As we round the corner from September into October, we make the quick transition from Eat Local Month to Fair Trade Month. It’s fitting that these are back-to-back because, in fact, they are two sides to the same coin.
Much has been said (and should be said) about the importance of eating local food, especially in the midst of the pandemic. Keeping small local businesses afloat through this intensely challenging time is something that needs to be at the forefront otherwise there is a real risk that our vibrant local food economy will become diminished.
But like it or not, most of us do not subsist on local goods alone. Anyone who drinks coffee or tea and anyone who eats sugar, chocolate, bananas, avocados, or other imported foods is participating in a global supply chain that, whether they realize it or not, has a real and lasting impact on communities around the world. If buying local is about keeping local economies strong and cultivating appreciation for people who grow and produce our local foods, then buying Fair Trade is the natural and logical next step. Purchasing Fair Trade products shows that we care not only for our local community, but also for the larger global community, and ensures that small farmers and producers all over the world have the same economic opportunities that we wish for our local producers and farmers.
How does Fair Trade work?
There are several different agencies that certify products as “Fair Trade.” Each of these uses their own unique standards, but the most widely used system across the globe, considered by many to be the gold standard, is the Fair Trade International system. This certification has four main components:
• Minimum Price. Fair Trade International publishes a minimum price that must be paid to any farmer for Fair Trade products. This price varies by country, and acts as a safety net to ensure that producers are paid enough to cover their cost of production and living expenses.
• Environmental Standards. The rigorous environmental sustainability component to the Fair Trade International certification includes mandating that farmers preserve and nurture their soils and natural ecosystems; that they reduce their use of greenhouse gases; and that they refrain from using certain toxic chemicals.
• Working Conditions. This includes a prohibition on child labor and forced labor, an emphasis on gender equality, the rights of workers to associate, paid time off, and occupational health and safety requirements such as adequate toilet facilities, access to clean drinking water, and protective gear for staff doing hazardous work.
• Fair Trade Premium. In addition to the minimum price requirement, each sale of a Fair Trade product generates a Fair Trade premium, which is money entrusted to farmers and farmworkers with the stipulation that it must be spent on farm infrastructure or the welfare of workers, their families, or their community.
To put this in perspective, through the purchase of Fair Trade-certified organic bananas and avocados, in the last year, Willy Street Co-op customers contributed almost $15,000 in Fair Trade premium money to farmers in Mexico, Peru, and Ecuador. This is only for bananas and avocados. When you consider sales of coffee, chocolate, sugar, and other Fair Trade products, our impact only grows.
How has Covid-19 affected the Fair Trade system and Fair Trade producers?
With the onset of the COVID-19 crisis, Fair Trade international moved quickly to better support farmers during this unprecedented time. In early April 2020, the above standards were adjusted to include more flexibility and support for Fair Trade farmers and farmworkers.
This included relaxing the guidelines around how Fair Trade premiums can be spent to allow producers to purchase personal protective gear like masks and other hygiene supplies, and to educate workers and community members about proper hygiene. They also allowed producers to move more quickly when spending premium funds—previously they had to go through an approval process, now premium money can be spent quickly and approval received afterward.
The new standards also allowed more premium money to be given out as direct cash payments to farmworkers. Previously, the cap on this was 20% of premium funds. It was increased to 100% due to the fact that farmworkers are likely to be hardest hit by a loss of sales due to the pandemic, or the inability to harvest crops.
In addition, Fair Trade International instituted The Producer Relief and Resilience Fund. This fund, which so far has raised over $3.9 million dollars, is meant to provide immediate relief to Fair Trade producers. Funds can be used to purchase masks and other protective equipment, cover wages for suspended workers, set up local food security initiatives, build medical facilities, and pay for other business continuity costs that arise due to the pandemic.
It’s hard to generalize the welfare of thousands of Fair Trade producers around the world, but it can generally be said that for producers who were part of the Fair Trade system when COVID-19 hit, their association with Fair Trade provided them with a strong foundation to better weather the storm of the pandemic compared to other farmers. This makes sense, as the intent of the Fair Trade system is to give global producers the support they need to be successful and resilient and to help them build strong communities. What better time to have strength and resiliency than a global pandemic?
Real World Examples
Here are a few examples of how the new standards have worked on the ground.
The Finca Triunfo Verde cooperative in Mexico supplies Equal Exchange with coffee— the same coffee you’ll find in our stores! When the government instituted a Stay at Home campaign, the cooperative decided to spend $20,000 in Fair Trade premium funds on emergency food supplies. Through this effort, they were able to feed 490 co-op members and their families for two weeks, allowing those families to stay home and stay safe.
The APBOSMAM Agricultural Co-operative in Peru produces organic Fair Trade bananas. They used Fair Trade premium money to purchase masks, soap, and sanitizer for their workers. When COVID-19 cases began to spike in their region of Peru, they acted quickly to secure Fair Trade Relief Fund money which they used to conduct rapid tests on 44 of their workers. This number soon grew until they had tested their entire workforce of 174 people. Around 40% of the tests came back positive, and the co-op was able to give infected workers paid time off to recuperate, and avoid spreading the disease further.
Manduvira is a sugarcane cooperative in Paraguay, providing Equal Exchange with sugar for their chocolate bars. When a national quarantine was put in place, many people in the community lost their jobs and food access became challenging. The co-op donated premium funds to local healthcare facilities, and provided food kits to families who needed them. They also donated sugar to the local government for distribution to families in need.
It’s easy and natural to turn our focus inward during trying times, and to concentrate our efforts on the needs of our own community. Local businesses need all of us to continue to support them in any way we can. However, as the era of COVID-19 carries on, our support and attention can’t be allowed to only be inward. Farmers and food producers across the globe contribute a great deal to what we put on our plates, and they are just (if not more) vulnerable in the face of the pandemic. Just because they are far away doesn’t make them any less important to our day to day lives.
Buying Fair Trade products is one way to ensure that the people on the other side of your cup of coffee, chocolate bar, or breakfast banana don’t get left behind. It is an investment in the strength and resiliency of farmers across our global community.