Social Impact Snapshot

Social Impact of the Fair Trade Certified Farming Model

Global Poverty Snapshot

• 3 billion: Number of people around the world living on less than $2 a day
• 13 dollars: The amount of debt repayment the developing world repays for every $1 it receives in grants

TransFair USA’s mission is to enable sustainable development and community empowerment by cultivating a more equitable global trade model that benefits farmers, workers, consumers, industry and the earth. We achieve our mission by certifying and promoting Fair Trade Certified products.

Here are a few, quick examples of the beneficial impact that Fair Trade certification has had on small-scale farmers, farm workers and their surrounding communities in the developing world:

Benefits of the Fair Trade Certified Farming Model

Democracy and Governance

• Farmers and farm workers on Fair Trade Certified farming cooperatives decide democratically how to use their Fair Trade revenues. Democratically organized farmer groups receive a guaranteed minimum floor price and an additional premium for certified organic products. Farmer organizations are also eligible for pre-harvest credit.

Economic Growth

• Importers purchase from Fair Trade Certified producer groups as directly as possible, eliminating unnecessary middlemen and empowering farmers to strengthen their organizations and become competitive players in the global economy.

Environmental Impact

• The Fair Trade certification system strictly prohibits the use of genetically modified organisms (GMOs), promotes integrated farm management systems that improve soil fertility, and limits the use of harmful agrochemicals in favor of environmentally sustainable farming methods that protect farmers' health and preserve valuable ecosystems for future generations.
• In Ecuador, the El Guabo banana cooperative has made improvements to its irrigation systems, banana-washing stations, and packing areas. These developments have contributed to increased soil fertility and better conservation of resources. In addition, an environmental fund provides members with nominal interest credit to make environmental improvements on their farms. El Guabo trains transitional farmers on the organic and Fair Trade Certified farming requirements, and recycling programs are established on all farms.
• The COARENE coffee cooperative in Honduras pays for the organic certification of interested members and offers a basic line of credit to members to purchase items such as organic fertilizers and seeds or to improve their homes. This has significantly reduced the farmers' dependence on external loans in addition to benefiting the environment.
• The COOCAFE coffee cooperative in Costa Rica has converted approximately 1,200 acres of coffee to organic production and reforested nearly 14,000 acres of land. Café Forestal, a cooperative-sponsored non-profit organization, has funded the construction of water tanks and natural erosion barriers.

Social Impact: Health and Education

• COOCAFE cooperative in Costa Rica developed the Hijos del Campo (Children of the Countryside) foundation, which has provided 1,502 direct scholarships for students and funded 224 local schools.
• At COOPAC coffee cooperative in Rwanda, the first year of Fair Trade Certified product revenues were spent on the construction of two primary schools in the surrounding area. The cooperative has continued to build health clinics, roads and bridges in following years.
• Dukunde Kawa coffee cooperative in Rwanda has developed a credit program, which pays school fees and results in a dramatic increase in school attendance that benefits 1700 families.
• El Guabo banana cooperative in Ecuador now provides all of its workers with health insurance and social security. Fair Trade Certified product sales premiums have gone toward the construction and operation of three pharmacies and medical clinics available to the entire community free of charge.
• Kasinthula sugar cane growers in Malawi drilled wells to provide safe drinking water to two villages. Before the wells, the unsanitary water supply frequently caused diseases such as bilharzia, cholera and dysentery. Kasinthula also supplied the local clinic with 20,000 tablets of Praziquantel, a medication required for the treatment of bilharzia. Though this is a common disease in the area, the government clinic had operated without the medicine for more than three years.

Social Impact: Business Development

• Workers at the Makaibari Tea Estate in India have helped repair bio-gas units and purchase natural gas for cooking and livestock for milk and dairy products, which workers then sold at local markets.
• The El Ceibo cocoa cooperative in Bolivia has invested in trucks and improvements to its processing plant.
• The Bagua Grande coffee cooperative in Peru assists farmers with the purchase of coffee depulpers and other necessary equipment through a rotating loan fund. The cooperative also invested in a centralized wet-milling facilities, for use by all members. In addition, Bagua Grande offers ongoing technical assistance to implement social and business development projects and coffee-quality improvement projects.