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Fair pricing essential for smallholder farmers to tackle global food challenges
Smallholder farmers and workers, who produce nearly one-third of the world’s food, often face poverty due to unfair market practices that undervalue their contributions. Ensuring fair pricing is vital to securing their livelihoods and building resilient communities. This, in turn, is key to tackling global challenges such as food security and climate change.
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The crucial role of smallholder farmers in South Africa
In South Africa, over two million smallholder or household farmers play a significant role in food production, compared to just 35,000 commercial growers.
Many smallholders rely on their land to feed their families and generate surplus crops for trade or income. However, their essential contributions are increasingly under threat.
The global importance of farming
“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 often manage plots of less than 10 hectares, face fierce competition in global markets under extremely challenging conditions.
Without fair prices, they endure precarious livelihoods that hinder investment in sustainable practices or the ability to mitigate climate risks.
Climate challenges impacting South African farmers
In South Africa, smallholder farmers face additional challenges from a changing climate.
Extreme weather events such as droughts, floods, heat waves, and high winds are becoming more frequent.
These events harm crops, erode soils, and reduce the land’s capacity to sustain grazing livestock or support crop yields. This affects local food security and threatens the livelihoods of millions.
The solution: Fair pricing
Fair pricing offers a path forward. Fairtrade’s minimum price model provides producers with a baseline safety net when market prices drop, helping them cover basic needs and reinvest in sustainable farming.
Long-term contracts also offer stability, empowering farmers to plan for the future, handle crises, and combat climate 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.”
A call to action
Fairtrade Africa urges businesses, policymakers, and consumers to support initiatives advocating for equitable pricing and partnerships with smallholders.
These actions are crucial to securing better futures for millions of farmers and building a resilient global food system.
Be Fair Right Now: A call for change
Now in its second year, the ‘Be Fair Right Now’ initiative highlights the urgent need to address inequities faced by smallholders. It challenges consumers and stakeholders—from businesses to policymakers—to demand fairer practices in supply chains.
The campaign encourages South Africans to reconsider their buying habits to support fairer pay, gender equality, environmental sustainability, and climate action.
"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.