The fruit industry

In regions such as Latin America, Africa and Asia, the fruit and juices industry is a major economic driver, with vast orchards and plantations dedicated to producing a variety of fruits for export. These large-scale operations require significant investment to maintain, covering everything from irrigation systems and transportation infrastructure to advanced technology and packing facilities. Workers on these plantations perform a range of tasks, from harvesting the fruit to processing and packaging it for export. These operations are typically managed by national companies or multinational corporations with extensive supply chains spanning multiple countries.

Conversely, small-scale fruit farmers and juice producers often operate with limited resources and rely heavily on physical labour. The smaller scale of their farms means they struggle to compete with the larger plantations that dominate the market and supply major multinational companies. This competitive imbalance makes it difficult for smallholder farmers to secure a stable financial position or invest in the growth and expansion of their businesses, perpetuating economic disparities within the industry.

Current challenges

Small-scale fresh fruit farmers often struggle to make a decent living. This financial instability poses significant hurdles for the industry.

• Limited resources and investment. Small-scale farmers frequently lack the funds to invest in sustainable farming methods, better equipment and improved productivity. This lack of resources hinders their ability to grow their operations and secure a stable income.
• Gender inequality. Women make up more than half of all fruit farmers and workers worldwide. Despite their significant contribution, they rarely get a fair share of the rewards and face considerable barriers in owning their own land or accessing credit. This disparity exacerbates the economic challenges within the industry.
• Climate change impact. Higher temperatures, droughts, floods, cyclones and hurricanes, along with crop diseases, soil depletion, and forest degradation, mean fruit growers are highly hit by climate change. 

Addressing these challenges is critical for fair and sustainable livelihoods for fruit farmers around the world.

How Fairtrade makes a difference

Small-scale fresh fruit farmers often struggle to earn a fair income, but by working together with Fairtrade, they can mitigate these challenges. Here is how we support:

• Fairtrade Minimum Price - Fairtrade fresh fruit farmers receive a minimum price which provides a safety net and helps them remain resilient in the face of market fluctuations. For example, Fairtrade organic avocado growers in Mexico can earn up to US$1.00 more per kilo than non-Fairtrade prices.
• Fairtrade Premium - Paid on top of the selling price, the Fairtrade Premium allows producers and workers to invest in business or community projects of their choice. This could include enhancements in healthcare services, better housing or environmental initiatives.
• Fairtrade Standards - Fairtrade standards cover health and safety, including the use of pesticides and protective equipment as well as guidelines for holidays, social security and contracts.
• Working conditions on plantations - Workers on Fairtrade certified fresh fruit plantations benefit from formal labour contracts and the freedom to join trade unions. The Fairtrade Base Wage ensures higher wages, while the Living Wage Differential helps close the living wage gap.
• Training and support - Fairtrade supports smallholder farmers by providing training and support on sustainable farming practices. This includes agroforestry, efficient water use, drought-resistant crop varieties and diversifying into climate-resilient income streams.
• Climate resilience - To achieve Fairtrade certification, fresh fruit farmers must enhance soil and water quality, manage pests responsibly, avoid harmful chemicals, manage waste, reduce greenhouse gas emissions and protect biodiversity. Fairtrade provides the necessary skills, knowledge, training, and access to finance to enable growers to become more climate resilient.

Fairtrade fruits and juices are good for people, planet and business. Find out how your company can get involved.