Questions and answers

South Africa’s apartheid system (1948-1992) resulted in unequal access to South Africa’s productive resources and opportunities based on racial segregation. When it came to an end in 1992, 85% of agricultural land was held by the minority white farmers. The mainly black workforce was left largely oppressed and uneducated. Lots of positive developments have been made since, but many historically disadvantaged groups still have limited land ownership and control of agricultural production, so there’s still a way to go.

Fairtrade is about empowering small-scale farmers and workers on commercial farms, and giving them the chance to develop economically and socially. This is the aim in South Africa, just like all other producing countries where Fairtrade works. Fairtrade in South Africa has grown steadily in the number of producers and products since it began there in 2000. There are around 42 certified producer organisations and three of these are small producer organisations.  Most of South Africa’s Fairtrade producers are in the Western Cape Province and produce wine grapes and wine.

BEE stands for Black Economic Empowerment. The government’s Broad–Based Black Economic Empowerment (B-BBEE) Act of 2003 made a legal framework to promote economic empowerment throughout South Africa’s black populations following apartheid. The term ‘black people’ in this context refers to all ‘African, coloured and Indian people’ who are South African citizens and were disadvantaged during apartheid. The Act aims to transform the economy so that black people have better access to job opportunities and greater inclusion in the country’s economy. The Act also aims to put more black people in business ownership, management and skilled occupations.

Producer organisations produce and supply the global Fairtrade market with wine, wine grapes, citrus, plums, pears, table grapes, rooibos tea, apples, raisins, avocados, lychees, nectarines and mangoes.

Given South Africa’s unique history, Fairtrade has a specific role to play in supporting government policies designed to improve the position of historically disadvantaged black populations.  All South African producers dependent on hired labour have to comply not only with international Fairtrade standards, but also a specific Fairtrade BEE policy for South Africa. The policy measures four specific parts of the government’s policies which are particularly relevant to Fairtrade worker empowerment, they are:

1) ownership;
2) management control;
3) employment equity and
4) skills development.

Independent studies commissioned by the Fairtrade Foundation have shown that as well as benefitting from the Fairtrade minimum price and premium, the additional impacts of Fairtrade in South Africa include:

•    Better wages and conditions for workers

•     A safer, more secure working environment for workers through improved health and safety and formal contracts

•    The Fairtrade standards have made  organisations more transparent, democratic and improved the communication between farmers, workers and management

•    In conjunction with trade unions, a stronger voice for workers on hired labour farms in negotiating better terms of employment

•    Formal training to develop workers’ skills and progression to more senior positions

•    More chances for producers to sell their goods for better prices on international and domestic Fairtrade markets, giving increased income, stable trading relationships and the chance to
move up the supply chain to receive a fairer share of the final product’s value

•    Fairtrade standards empower smallholder farmers through developing their organisations and helping their commercially viable products to compete on better terms with large-scale commercial companies in national and global markets.

•    The Fairtrade premium (and other funds secured as a result of Fairtrade partnerships) has made it possible for farmers and workers to make improvements in their social services and infrastructure, with education, health, and environmental projects delivering immediate and tangible benefits to workers, farmers and their wider communities.

For more examples, please see the full report at www.fairtrade.org.uk/reports

Fairtrade can’t change everything overnight and we recognise there are ways to improve the system to have a deeper impact in South Africa. Challenges include:

•    Improving understanding of Fairtrade among farmers and workers, as well as rights to Freedom of Association and trade union membership

•    Supporting farms to continue to meet challenging B-BBEE objectives

•    Securing international market opportunities to increase Fairtrade sales and therefore increase financial benefits

•    Supporting farms to reduce agro-chemical use and encourage environmental sustainability

•    Encouraging worker empowerment through training and skills development and subsequent career development

•    Continuing to support smallholder farmers to compete with large-scale commercial farmers on national and international markets.

For more examples, please see the full report at www.fairtrade.org.uk/reports

As Fairtrade continues to grow and strengthen in South Africa and globally we will be able to support South African farmers and workers better, helping them meet Fairtrade standards and certification requirements and ways to build their businesses, opening up opportunities for local training and networking and giving them more chances to sell their goods as Fairtrade in South Africa, through Fairtrade Labelling in South Africa (FTLSA), the newly established Fairtrade marketing organisation.