Fighting back climate change How Fairtrade helps farmers to adapt By Amos Thiong’o, Fairtrade Africa About Fairtrade An alternative approach to conventional trade, based on a partnership between producers and consumers. Fairtrade offers consumers a powerful way to reduce poverty through their every day shopping. FAIRTRADE Certification Mark The FAIRTRADE Mark When a product carries the FAIRTRADE Mark it means that producers and traders have met Fairtrade standards. The standards are designed to address the imbalance of power in trading relationships, unstable markets and the injustices of conventional trade. Fairtrade Africa We represent all Fairtrade certified producers in Africa in the Fairtrade system. Producers are half-owners of the Fairtrade system. What We Do Fairtrade supports farmers and workers: • A minimum price to protect against unstable markets • An extra Fairtrade Premium which is invested in community & business, infrastructure, education, climate change adaptation/mitigation projects etc. • Pre-finance facilities and long-term purchase contracts via traders Fairtrade in numbers: • 1.2 million small-scale farmers and workers from 905 organizations in 63 countries • Over 27,000 product lines available in over 70 countries • Turnover of over 3.7 billion Euros (2011) The Problem • • • Climate change framed as a foreign complicated concept The Funding system has failed farmers There is superficial participation and decision making processes with regards to adaptation mechansms and projects Impact of climate change Climate change is a reality for African farmers • Tanzanian coffee producers’ crop yields dropped by almost 75% in one year. Malawian sugar cane growers have also suffered a 28% drop as a result of drought. • Fairtrade farms in Zimbabwe and Malawi have had to install expensive irrigation systems to compensate for lack of rainfall. • New pests and diseases are striking coffee and tea estates in Uganda • With declining incomes, farmers often can’t send their children to school, and families are beginning to see the impact on their livelihoods. “Climate change has wiped out nearly half of the 10 million coffee trees our members have planted since 2003.” Bernard Kaunda, Mzuzu Coffee Planters Co-operative Union, Malawi Fairtrade as a tool Fairtrade and climate change • Fairtrade Premiums invested in environmental projects – over 5.5 million Euros in premiums (2011) • Participation/ producer led adaptation and policy interventions • Promotion of sustainable agricultural practices through Fairtrade environmental standards • Increasingly supporting adaptation measures – e.g. climate change workshops, training funding • Awareness raising of the plight of (Fairtrade) farmers – e.g. COP17 attendance, www.fairclimatedeal.net • In-setting “Rains now fall heavily for a short period and our dry season is much longer. The coffee plants are badly affected – flowering is stopping. Last year alone we lost about 40% of our production.” Willington Wamayeye, Gumutindo Coffee Cooperative, Uganda Mechanisms used • • We work through a 2 tier process as we believe that climate change requires engagement throughout the policy process Producers hence take the lead in • • Advocacy work Practical climate change adaptation including active decision making Impact of Fairtrade Fairtrade Premiums - Examples of Projects • Productivity Kakuyuni Coffee Co-operative (Kenya) Invested premiums in excavating run-off water harvesting dam. Water to be used for milling during dry period Cost: $ 28,000 Benefits 2,300 farmers and their families Kilimanjaro Native Co-op Union – KNCU (Tanzania) Uses premiums to subsidize disease/drought tolerant coffee seedlings. KNCU members receive seedlings at 30% market value. The nursery produces 280,000 seedlings per year. Cost: $ 35,000 annually Benefits 64,000 farmers and their families Impact of Fairtrade Fairtrade Premiums - Examples of Projects • Livelihoods diversification Rukuriri Tea Factory (Kenya) Invested its premiums to start a dairy farming scheme for its members. By improving their dairy animals through Artificial Insemination, milk production was increased. An artificial inseminator employed and equipped and members can access AI services at subsidized rates. Cost: $ 2,500 to start up the project Benefits 9,000 farmers and their families Our intentions in the future Status Quo (Offsetting) Co-op X (Africa) Produce Multinational trader “Carbon” from China Where we want to go (Insetting) Credits Multinational trader Credits Produce Co-op X (Africa) Our intentions in the future Insetting • We challenge buyers to re-direct off-setting investment into projects in own supply chain • In-setting is investing in the sustainability of farmers livelihoods and therefore own supply • Advantages of carbon projects on farm level: • Additional income for producers • Increased resilience against climate change • Buyers secure their own supply • Buyers get carbon credits with a real meaning Thank you www.fairtradeafrica.net