Fairtrade certification has recently gained in importance for various export crops produced in developing countries. One of Fairtrade's main objectives is to improve the social conditions of smallholder farmers. Previous research showed that Fairtrade has positive effects on farmers' sales prices and incomes in many situations. However, more detailed analysis of the effects on food security and other dimensions of household living standard is rare.
Farm workers in developing countries often belong to the poorest of the poor. They typically face low wages, informal working arrangements, and inadequate social protection. Written employment contracts with clearly defined rights and obligations could possibly help, but it is not clear how such contracts could be introduced and promoted in traditional peasant environments. To address this question, we develop and implement a randomized controlled trial with farmers in Côte d’Ivoire.
It is often assumed that voluntary sustainability standards – such as Fairtrade – could not only improve the socioeconomic wellbeing of smallholder farmers in developing countries but could also help to reduce negative health and environmental impacts of agricultural production. The empirical evidence is thin, as most previous studies on the impact of sustainability standards only focused on economic indicators, such as prices, yields, and incomes.