Fairtrade international is an NGO, multi-stakeholder association that includes three producer networks, 25 local Fairtrade organizations, and the overarching Fairtrade International and FLOCERT: the independent certification body of the global Fairtrade system. With True Price, Fairtrade International wanted to insights into farmer household income of Fairtrade certified coffee farmers to inform their sustainability programs and to ultimately improve the income of coffee farmers.
True Price developed a rigorous and scalable methodology to measure the farmer household income of coffee producers across 7 countries; Rwanda, Tanzania, Uganda, Kenya, India, Indonesia and Vietnam. We established local contacts to collect data from approximately 500 farms. Results allowed us to compare wages and incomes to regional benchmarks. The analysis included insights in the distribution of farmer household income, the profitability of coffee and the value added (profit + labour costs) per FTE.
Benefits to the client
This study can be used to inform the Fairtrade Minimum Price setting and the Fairtrade Premium Projects, among other things. Moreover, insights from this study can be used as a starting point for future research on several subjects, such as farm management practice and productivity.
* The customer was working with the Impact Institute under its former name, True Price