In international markets small farmers are disadvantaged. With fair trade Malawi smallholders are boosted with the support it provides. Those who are able to access global markets with this assistance are guaranteed income that exceeds market prices.
This is extremely important for a very poor nation where 85 percent of the labor force is confined to the agricultural sector. This country is one of the most densely populated countries in Africa. It has a national average of family landholdings of just 1 hectare. Yet, agriculture is vital to the economy constituting 90 percent of foreign export income and 35 percent of GDP.
In one of the poorest parts of Africa, the life span is relatively short and child mortality rate is high. Its GDP per capita remains below half the subSaharan average. The poverty of the majority of the population has also caused the highest inequality on the African continent.
There has been significant change since 1994 with the liberalization of agricultural production. The result was new challenges for vulnerable smallholders. First of all there was a shocking fall in price. Additionally they were cheated by Middlemen of their rightful earnings. These middlemen had entered the market after 2004, the year Government stopped its direct purchase of produce.
By getting together agricultural producers have learned to help themselves and earn improved incomes. The National Association of Smallholder Farmers represents more than one hundred and eight thousand farmers. It has developed institutional mechanisms to train smallholders and to set up quality control systems. Vulnerable members of the agricultural labor force also have an additional support in the form of an international trading partnership.
The Fairtrade Foundation is the lynch pin for a trading partnership that seeks greater equity in international trading. It offers better trading terms for producers and agricultural labor in developing countries marginalized by the market. To join this partnership, farmers must follow environmental, social and economic standards. Social requirements demand upholding of labor rights and the following of democratic decision making processes so that all members can participate. The economic requirement ensures a minimum price which covers the production costs with a premium intended for community and business development. The environmental standards support sustainable agriculture practices and business development. Current efforts are targeting the diversification of crops to encourage local processing and bring added value to the existing practice, creating jobs and enhancing regional trading opportunities.
Buyers are encouraged to participate in long term contracts and to offer pre-financing. This helps to level the playing field. It also guarantees a trading system which offers traceability and transparency to consumers. This makes them more willing to pay the higher prices such products may demand. But more consumers are keen to support ethical practices, especially as more are learning of the short cuts large producers take that may detrimentally affect their health.
There is certification to confirm the standards are met along the supply chain. Since 2004 more than twelve thousand four hundred smallholders entered the global market through this partnership. Already the results are heartening as indicated by a study conducted in 2010. The support of fair trade Malawi partnerships has reduced poverty in the country.
This is extremely important for a very poor nation where 85 percent of the labor force is confined to the agricultural sector. This country is one of the most densely populated countries in Africa. It has a national average of family landholdings of just 1 hectare. Yet, agriculture is vital to the economy constituting 90 percent of foreign export income and 35 percent of GDP.
In one of the poorest parts of Africa, the life span is relatively short and child mortality rate is high. Its GDP per capita remains below half the subSaharan average. The poverty of the majority of the population has also caused the highest inequality on the African continent.
There has been significant change since 1994 with the liberalization of agricultural production. The result was new challenges for vulnerable smallholders. First of all there was a shocking fall in price. Additionally they were cheated by Middlemen of their rightful earnings. These middlemen had entered the market after 2004, the year Government stopped its direct purchase of produce.
By getting together agricultural producers have learned to help themselves and earn improved incomes. The National Association of Smallholder Farmers represents more than one hundred and eight thousand farmers. It has developed institutional mechanisms to train smallholders and to set up quality control systems. Vulnerable members of the agricultural labor force also have an additional support in the form of an international trading partnership.
The Fairtrade Foundation is the lynch pin for a trading partnership that seeks greater equity in international trading. It offers better trading terms for producers and agricultural labor in developing countries marginalized by the market. To join this partnership, farmers must follow environmental, social and economic standards. Social requirements demand upholding of labor rights and the following of democratic decision making processes so that all members can participate. The economic requirement ensures a minimum price which covers the production costs with a premium intended for community and business development. The environmental standards support sustainable agriculture practices and business development. Current efforts are targeting the diversification of crops to encourage local processing and bring added value to the existing practice, creating jobs and enhancing regional trading opportunities.
Buyers are encouraged to participate in long term contracts and to offer pre-financing. This helps to level the playing field. It also guarantees a trading system which offers traceability and transparency to consumers. This makes them more willing to pay the higher prices such products may demand. But more consumers are keen to support ethical practices, especially as more are learning of the short cuts large producers take that may detrimentally affect their health.
There is certification to confirm the standards are met along the supply chain. Since 2004 more than twelve thousand four hundred smallholders entered the global market through this partnership. Already the results are heartening as indicated by a study conducted in 2010. The support of fair trade Malawi partnerships has reduced poverty in the country.
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