Sugar
Sugar is a staple in most kitchens, but behind its sweetness lies a bitter truth: small-scale sugar cane farmers face intense pressure from large-scale producers, price swings and the growing threat of climate change.
The sugar industry
Sugar cane farmers grapple not only with price volatility but also with competition from other sources. For example, in 2017, when the caps on beet sugar production in the EU were abolished, small-scale sugar cane farmers, especially in African, the Caribbean, and Pacific region faced the prospect of losing a major market for their sugar.
Beyond market fluctuations, frequent and extreme cyclones and floods followed by droughts have resulted in damaged crops and delayed harvests, ultimately impacting sugar cane farmers' income.
For small farmers to adapt to a changing climate, the relationship between climate change and agriculture is key to understanding the social, economic, and ecological contexts in which small-scale sugar cane producers operate. The rise in weather changes is negatively impacting the future of agriculture as it leads to declining yields and, thus, to a reduction of already low incomes.
Current challenges
The sugar industry, a cornerstone of global agriculture, grapples with a myriad of challenges that impact both the environment and the well-being of those involved in its production.
- Climate Change Impact: The spectre of climate change looms large over the sugar industry. Changing weather patterns, increased frequency of extreme events, and rising temperatures pose significant threats to sugarcane crops. Unpredictable rainfall patterns and prolonged droughts can disrupt cultivation, impacting yields and putting the livelihoods of sugar farmers at risk.
- Labour conditions and exploitation: Many sugarcane workers face long working hours, exposure to harmful agrochemicals, and, in some cases, substandard living conditions.
- Volatile Prices and economic instability: The sugar market is notorious for its price volatility, impacting the economic stability of both smallholder farmers and larger producers. Fluctuations in global sugar prices can lead to unpredictable income for farmers, making it challenging to plan for the future.
How Fairtrade makes a difference
There are a number of ways Fairtrade farmers can confront the challenges they face to grow their businesses.
- Better labour conditions: In addition to sturdy Fairtrade standards, we have the global Fairtrade Better Labour Practices programme (BLP) for Fairtrade sugar cooperatives in areas with a high risk of human rights violations and significant risks to vulnerable individuals.
- Decent livelihoods: Unlike other Fairtrade products, there is no Fairtrade Minimum Price cane for sugar because price-setting mechanisms are highly complex and often distorted. In many countries, farmer organisations benefit from revenue-sharing systems with the sugar mills and exporters that process their sugar cane into various types of sugar. In addition, small-scale farmers benefit from a Fairtrade Premium of US$60 per tonne of sugar, and US$80 per tonne of organic sugar which producers decide for themselves how to spend.
- Climate resilience: Fairtrade provides training and support on sustainable sugar farming, better use of water resources, drought-resistant crop varieties and diversifying into other income streams. In addition, the Climate Resilient Cane Production programme assesses the carbon and water footprint of key Fairtrade sugar supply chains (up to exports) at origin.
- Stronger operations: The Fairtrade Standards are a tool for development for small-scale farmer organisations to become stronger as a business and enhance production. The Fairtrade Producer Networks also support farmers to improve productivity and income, irrigation and drainage infrastructure and diversify their crops. We also support explore the market for producers towards sugar by-products such as producing rum, fragrances and bioplastics.
Better Labour Practices in Fairtrade sugar cane supply chains programme
Sugar cane production and harvesting are highly labour intensive and for long durations and low and unfair wages, combined with hazardous working conditions, have led to a shortage of skilled workers. The programme includes producers, workers and traders and promotes guidelines and training to mitigate unacceptable labour practices involving child labour, forced adult labour and gender-based and other forms of workplace violence and exploitation. For example, by identifying, supporting and developing appropriate monitoring and response systems to find, fix and prevent human rights abuses.
