The nuts and oil industry

There is a great diversity of producer organisations harvesting nuts, oilseeds and oleaginous fruits – in fact they can range from small-scale farmers, plantation workers and contract workers. From Fiji to Nicaragua, and Benin to Pakistan, one commonality is that despite soaring global demand for their products, these farmers and workers too often struggle to make a decent living.

In addition, for some producers, remoteness presents logistical challenges. Brazil nuts, for instance, grow naturally in sections of the Amazon rainforest. Gatherers must first collect the fruits as they fall from trees, then extract the seed nuts from the fruit, dry and sort them and finally transport them in small boats or by foot out of the forest to ports.

Current challenges

Fluctuating market prices and global economic shifts add another layer of complexity to the intricate web of challenges faced by those involved in the nuts and oils supply chain.

• Unpredictable weather patterns. This can include extreme temperatures and irregular rainfall, which pose a threat to both quality and quantity.
• Price fluctuation. More extreme weather patterns and political instability can drive price volatility, which means smallholder farmers and plantation workers can struggle to earn enough from their crops.
• Lack of connectivity. Many producers work in remote areas, with poor transport and telecommunications links. This pushes up production costs, interferes with their market access and market information and forces them to rely on a small pool of traders.

How Fairtrade makes a difference

There are a number of ways Fairtrade farmers can confront the challenges they face to grow their businesses.

• The Fairtrade Minimum Price. This aims to cover the average costs of farmers to produce nuts or oils. It acts as a safety net when market prices drop and stable prices instead.
• Diversification. Fairtrade encourages producers to not only to grow, but to process products, for example, shea butter, to add value and access wider markets.
• Environmental protection. Fairtrade works with farmers and workers to nurture an environment in which nature can also flourish. This includes training and support on sustainable farming, including eliminating deforestation, better use of water resources, drought-resistant crop varieties and diversifying into climate-resilient income streams.

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