Fair Trade USA coffee plantation certification: Ramifications for workers in Nicaragua

Laura T. Raynolds and Claudia Rosty

Development Policy Review, 2021, vol. 39, issue S1, O102-O121

Abstract: Motivation Certification programmes shape global coffee production conditions. Fairtrade International oversees the major ethical coffee certification for small farmers. Since Fair Trade USA left the global system to certify coffee plantations in 2011 and now has its own standards, programme‐specific research is needed to understand the implications of certification for workers. Purpose We provide the first academic analysis of Fair Trade USA’s coffee plantation certification to identify its key programmatic features and ramifications for workers, particularly how certification has affected workplace and employment conditions, workers’ wellbeing and labour rights. Approach and methods We analyse programme documents to explain Fair Trade USA’s standards and how they diverge from those of Fairtrade International. To demonstrate the impacts of Fair Trade USA certification, we draw on qualitative research on one of the first certified coffee plantations in Nicaragua, including interviews with managers and interviews and focus group discussions with workers. Findings Fair Trade USA has maintained key elements of Fairtrade International certification, but its labour rights standards are significantly weaker. In the Nicaraguan case, Fair Trade USA certification has fostered major improvements in workplace and employment conditions and some improvements in workers’ wellbeing through the Premium programme. Certification has not significantly advanced labour rights. Policy implications National conditions shape certification’s implications for workers, creating a central paradox. Fair Trade USA certification is likely to bring the greatest gains for workers where conditions are worst, where bringing plantations into legal compliance is a victory. The programme cannot pull workers out of poverty or guarantee decent work.

Date: 2021
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