The effect of Fairtrade on forest protection and deforestation prevention

In the context of the European Union Deforestation Regulation (EUDR), Fairtrade commissioned a study to investigate whether Fairtrade incentivises or deincentivises deforestation in the cocoa and coffee sectors, the respective drivers behind this, and how Fairtrade affects cooperatives’ ability to protect forests. The study also had an objective to making recommendations on how Fairtrade can improve forest protection in the context of small-scale cocoa and coffee production. Conducted by KIT - Royal Tropical Institute, the Chain Collaborative, and Expressing Origin, the study included a desk review of more than 60 documents, interviews with Fairtrade staff and external stakeholders, and a set of interviews, focus group and survey with coffee and cocoa cooperatives in Colombia, Honduras and Côte d’Ivoire. Non-Fairtrade cooperatives were included for counterfactual comparison. Study authors conclude that Fairtrade cooperatives are better positioned to protect forests than non-certified counterparts. Factors include the Fairtrade Minimum Price and Premium which provide essential resources for cooperatives and farmers to invest in conservation as well as EUDR-related steps such as geolocation mapping. The Fairtrade Standards promote adoption of forest protection measures, with the knowledge often spreading beyond just Fairtrade cooperatives. Fairtrade producer networks also provide programmes and training on topics such as on agroforestry and agroecology. Fairtrade cooperatives tend to have more external partnerships than their non-certified counterparts. The study outlines recommendations, such as that more compensation is needed for the extra work that cooperatives are having to do related to regulatory compliance. In addition, cooperatives need financial support for forest conservation measures such as reforestation and agroforestry. "Through its pricing and premiums regulations, standards and tools, and producer support, the Fairtrade system is correlated with action on curbing deforestation and forest protection. (...) As Fairtrade farmers may be at a lower risk of deforestation than non-Fairtrade farmers, as they now must comply with EUDR regulation and are likely to conduct agroforestry, Fairtrade can be considered an important partner for any trader looking to demonstrate their own compliance with EUDR and other environmental best practices.”