The fair trade Easter bunny check
Low incomes despite record cocoa prices. The major challenges in the cocoa industry underline the importance of fair production and trading conditions for cocoa farming families in the countries of origin.
Despite the current high raw cocoa prices, these farmers in particular are facing major challenges. In the past, farming families received little money for a lot of cocoa; they should now be getting a higher price for their significantly smaller harvests, but the reality is different.
The farming families have to adhere to long-term contracts that do not cover the current price increases. At present, therefore, not nearly enough money can be earned at source to secure a living income, says Hartwig Kirner, Managing Director of FAIRTRADE Austria.
On the contrary: financially disadvantaged farming families are the big losers in the current development.
Jon Walker, Senior Advisor for Cocoa at Fairtrade International, comments on the current situation:
The underlying causes of the high world market prices are worrying. The drastic increase is the result of falling supply. This was triggered by crop failures due to plant diseases, the effects of the climate crisis and rising production and living costs.
It remains to be seen whether supply will recover or whether the current trend will continue.
"We have long been of the opinion that the cycle of rising and falling prices is unsustainable for smallholder families. They need more stability in their income to be able to invest in their farms and adapt to climate change. Higher prices offset by lower productivity will only lead to insecure incomes that keep farming families in poverty and jeopardize the future of cocoa," Walker further analyzes.
Fair trade is therefore particularly important in times like these. The FAIRTRADE premium strengthens rural communities in difficult times and supports them on their way to a living income.
There is also still a need for action at a political level.
"The new directives being introduced and discussed in Europe, such as on deforestation and corporate due diligence, are urgently needed but will also increase costs for cocoa farming families," says Kirner. "Strong partnerships and co-investment are key to surviving price shocks and securing more sustainable cocoa supply chains," concludes Kirner.
FAIRTRADE Austria will therefore be in Parliament on March 21 on the subject of cocoa. The pillared hall of the House will provide the setting for an exhibition on fair trade, which will be opened by the President of the National Council, Wolfgang Sobotka. FAIRTRADE Austria will be represented by Managing Director Hartwig Kirner and Chairwoman Johanna Mang.
The test result:
You can find the full results of the Easter Bunny Check here.
