Fair Prices for a Fairer Future

Smallholder farmers and workers are the backbone of global food production, supplying nearly one-third of the world’s food. Despite their essential role, these farmers and workers are often trapped in cycles of poverty due to unfair global market practices that undervalue their work and products. Now, more than ever, fair pricing is critical to securing their livelihoods, building resilient communities, and addressing global challenges like food security and climate change.

In South Africa, there are over two million smallholder or household farmers compared to just 35,000 commercial growers. Many of these smallholder farmers depend on their land not only to feed their families but also to produce surplus crops for trade or income. However, their hard work and vital contributions are under increasing threat.

“Farming sustains 40% of the global population, particularly in rural areas where it is the primary source of income,” says Paul Colditz, Commercial Director at Fairtrade Africa. “Smallholder farmers – who manage plots often less than 10 hectares – compete in global markets under extremely challenging conditions. Without fair prices, they face precarious livelihoods that limit their ability to invest in sustainable practices or protect against climate risks.”

In South Africa, these challenges are compounded by the changing climate. Extreme weather events, including droughts, floods, heatwaves, and excessive winds, are becoming more frequent. These events damage crops, erode soils, and reduce the ability of land to sustain grazing livestock or support crop yields. This not only affects local food security for millions but also undermines the livelihoods of smallholder farmers.

Fair pricing offers a solution. Fairtrade’s minimum price model ensures producers receive a baseline safety net when market prices drop, enabling them to cover basic needs and reinvest in sustainable farming methods. Additionally, long-term contracts foster stability and empower farmers to plan ahead, weather crises, and combat climate-related challenges.

“Fair pricing isn’t just about economic justice,” Colditz explains. “It’s about ensuring that the people who grow our food have the dignity of a sustainable livelihood and the means to contribute to a healthier planet.”

Fairtrade Africa urges businesses, policymakers, and consumers to support initiatives that advocate for equitable pricing and partnerships with smallholders. Together, these actions can secure better futures for millions of farmers and a more resilient global food system. Their latest ‘Be Fair Right Now’ initiative shines a spotlight on the urgent need for change, calling for immediate attention to the inequities smallholders face and challenging stakeholders – from consumers to businesses – to demand fairer practices in supply chains.

Now in its second year, Be Fair Right Now invites South Africans to rethink their buying choices to support fairer pay as well as gender equality, environmental sustainability, and climate action. Through Fairtrade’s interactive online quiz, participants can discover the impact of their current purchases, explore practical ways to support fair trade-certified products that pay smallholder farmers fairly.

“Fairness in trade affects us all. Without thriving smallholder farmers, South Africa’s food security and rural economies are at risk. Fair pricing strengthens communities, reduces poverty, and promotes sustainable agricultural practices essential to combating climate change,” Colditz reiterates.

To participate, South Africans can visit Fairtrade’s campaign page, take the quiz, and discover how their choices can support fairer prices for essential commodities like sugar, coffee and tea.