Ecolabels improve the lives of farmers, research shows

Voluntary certification schemes and ecolabels like Fairtrade often drive up product prices - but is that extra cost we pay actually helping farmers? While these certification schemes aim to enhance the sustainability through specific standards, an Utrecht University study now suggests that ecolabels in fact also lead to better conditions for feedstock producers.

In their analysis of 75 scientific articles, Costanza Rossi, Li Shen, Martin Junginger and Birka Wicke looked at the supply chain of feedstocks such as palm oil, soybean and sugar cane. The researchers saw that there are not only financial benefits for the feedstock producers, but also better health and education.

Benefitting directly and indirectly

One of the key advantages of many certifications is improved yield, which often results from better management and production practices encouraged by these schemes, the research shows. Together with better market access and consumer willingness to pay a premium, certification can increase farmers’ incomes and enhance economic feasibility. “Certification schemes also improve the access to healthcare and education,” mention the researchers. “This might be a result of the higher income of feedstock producers after certification”.

Focus currently not on social sustainability

However, most certification schemes and labels direct their efforts towards environmental and economic dimensions of sustainability. “Neither the schemes nor current policy actually focus on health, education or well-being,” the researchers agree, “future policies should put an emphasis on the social side of sustainability”.

Enabling small scale farmers to participate in the certification programs pushes more sustainable production practices

Participation more difficult for small-scale farmers

“High initial costs disproportionately impact small-scale farmers and farmers in low-income regions,” says author Costanza Rossi, a PhD candidate at Utrecht University’s Copernicus Institute of Sustainable Development. Many also lack the skills and resources to meet certification requirements. The study emphasizes the need for financial support for small-scale farmers from external organizations and governments. “Enabling small scale farmers to participate in the certification programs pushes more sustainable production practices”.

Consumer choice impacts farmers

Following a set of environmental, economic, and/or social requirements for the purpose of certification allows farmers to charge more for their products. This is what motivates farmers to get certified in the first place and makes up for the high certification costs, the study shows. Buying a more expensive, but certified product in the supermarket therefore directly benefits the people involved in the supply chain. “We saw that people who are aware of the positive impacts are more willing to pay for certified products,” the researchers add. Especially labels with very strict sustainability requirements have higher certification costs. “If people are not willing to pay more for these products, it becomes unprofitable for the farmer.”