Fairtrade calls for ban on agricultural prices below production costs

Fairtrade Deutschland and 13 partner organizations, including Oxfam Deutschland and Misereor, are calling for a ban on purchasing agricultural products below production costs. They argue that such pricing constitutes an unfair trade practice that threatens the survival of farms and prevents necessary investments.

Global producers are facing severe economic pressure. According to the FAO, approximately 5.5 million small-scale coffee producers in Brazil, Colombia, Indonesia, and Ethiopia live on less than $3.20 per day. Similarly, many of the 25 million cotton farmers in India and West Africa earn only one to three dollars daily.

The crisis is not limited to the Global South; the European Union has seen the number of agricultural holdings drop from 14.4 million in 2005 to 8.8 million in 2023. Rising costs for energy, labor, and materials, combined with climate extremes, have left many producers unable to cover their basic operational expenses.