Fair Trade and Community Empowerment

1
Fair Trade and Community Empowerment
Examination of Impact in Southern MalawiDavid
Phillips, PhD Student (ESRC CASE Studentship)
Fair trade is a strategy for poverty
alleviation and sustainable development. One
approach is the empowerment of poor producers to
increase participation in processes that affect
their lives.
Case study 2 Tea and Eastern Outgrowers. This
small farmer organisation was formed in
2007 since when they have been receiving
Fairtrade premiums. They receive 0.50 per kg as
a social premium for tea sold to
Fairtrade markets. These funds have been set
aside for investment in tea sheds and tea bushes.
This research examines fair trade intervention
to understand how it is empowering poor
producer communities
Malawi is one of the ten economically
poorest nations where over 50 of people live on
less than one dollar per day. Tobacco is
the countrys leading cash crop export, followed
by tea and sugar. Together these 3 represent
90 of Malawis agricultural exports.
Case study 1 Sugar and Kasinthula Cane Growers.
This outgrower scheme started in 1996. They have
been receiving Fairtrade premiums since 2003.
They receive 60.00 per tonne as a social premium
for sugar sold to Fairtrade markets. Community
benefits include Drugs for bilharzias
treatment Maize for farmers during the 2005
famine Boreholes, water taps and electricity
infrastructure
In the tea and sugar sectors the smallholders and
out-growers are dependent upon a large commercial
estate or plantation to post harvest process and
market their produce .
Small farmer tea bushes
Small farmer tea shed
Beneficial impacts as expressed by respondents
Better income, credit access, and some training
in business and crop management for sugar
farmers Use of funds to assist the producer
organisations International exposure of the
producer groups Development of producer group
networks
Electricity infrastructure
Borehole construction
Fairtrade goods using Malawi products
Supervised by Mr Geoff Bockett, Traidcraft, Dr
Alex Hughes and Dr Kate Manzo, Newcastle
University