When it comes to ethical trade, the most well-known name in the game is Fairtrade. But another model is quietly reshaping the fruit export industry: South American & African Fruit Trade Assistance or SAFTA for short.

While both SAFTA and Fairtrade aim to create fairer conditions for producers, they take very different approaches.

So, which one works best for farmers? Let’s break it down.

What is Fairtrade?

Fairtrade is a certification system that protects small-scale farmers from unpredictable market fluctuations. It sets a minimum Fairtrade price to ensure that producers don’t sell at a loss if the market crashes. When the market price is higher than the minimum, farmers receive the market rate.

In addition, Fairtrade-certified producers receive a Fairtrade Premium, an extra sum of money used for community development (such as schools, healthcare, or infrastructure).

Sounds great, right? Not so fast.

Challenges of Fairtrade

While Fairtrade has good intentions, the reality is unfortunately not always as promising:

A | Not all products sell at Fairtrade prices

Just because a farmer is Fairtrade certified does not mean all their produce will be bought at Fairtrade prices. The Fairtrade Minimum Price only applies if buyers (such as supermarkets and importers) choose to purchase the product as Fairtrade-certified goods. If demand is low, farmers must sell some of their harvest at regular market rates, which can be lower than the Fairtrade price.

A farmer grows 10 tons of bananas, and the Fairtrade Minimum Price is $1 per kilo.
A supermarket that supports Fairtrade buys all 10 tons (10,000 kg) as Fairtrade bananas
→ The farmer earns $10,000.
Only 5 tons (5,000 kg) are purchased at the Fairtrade price, while the remaining 5 tons must be sold at the regular market rate, which could be as low as $0.60 per kilo.
This means:
- Fairtrade revenue: 5,000 kg × $1 = $5,000
- Market price revenue: 5,000 kg × $0.60 = $3,000
- Total earnings: $8,000 instead of the expected $10,000
Farmers still bear the cost of Fairtrade certification and compliance, but they may not get the financial benefit for all their products.
This makes income unpredictable, as farmers cannot control how much of their harvest will be sold at the Fairtrade rate.

B | Certification is costly

Farmers must pay for certification and audits, which can be expensive and bureaucratic.

Example:

A mango farmer seeking GLOBAL G.A.P. certification, often required alongside Fairtrade certification, may pay up to €5,000 per year for registration, audits, and compliance costs. If the farmer produces 20 tons of mangoes, this adds €0.25 per kilo in costs before considering packaging, labour, and transport.

If the Fairtrade Minimum Price does not account for these extra costs, farmers may struggle to break even despite being certified.

C | Limited flexibility

The Fairtrade Minimum Price is determined by industry consultation, not by the actual production costs of individual farmers.

Example:

A banana farmer might have production costs of $0.85 per kilo, but if the Fairtrade Minimum Price is set at $0.80 per kilo, they are forced to sell at a loss.

Unlike SAFTA, which tailors pricing to real production costs, Fairtrade does not adjust its price structure based on individual farmer expenses.

How is SAFTA Different?

SAFTA was built with a different goal: ensuring stability and transparency for fruit exporters from Latin America and East Africa.

Instead of relying on certification, SAFTA operates through direct agreements between exporters and buyers.

SAFTA’s FOB+ Pricing Model

The SAFTA model is simple:

Calculate the actual production cost per kilo of fruit
Add a 20% profit margin → This becomes the FOB+ price
Buyers commit to this price—even if the market crashes
If the market rises above the FOB+ price, the extra profit is split 50/50 between the exporter and SAFTA.

A grower grows 10 tons of bananas, and the production cost per kilo is $0.70.
FOB+ price (cost + 20%):
$0.70 + (20% × $0.70) = $0.84 per kilo
(if all bananas are sold under SAFTA Plus agreements):
10,000 kg × $0.84 = $8,400
Extra profit per kilo = $1.00 - $0.84 = $0.16 per kilo
SAFTA Plus: 50/50 profit split:
$0.08 extra per kilo for the farmer
Total earnings for grower with SAFTA Plus:
10,000 kg × ($0.84 + $0.08) = $9,200
SAFTA covers the difference and pays the minimum guaranteed price based on the FOB+ to the grower:
10,000 kg x $0.84 = $8,400

SAFTA Certification vs. European Certification

SAFTA itself does not require certification, but exporters must meet European standards like Global GAP to access European markets. This ensures food safety and compliance with European import regulations without adding unnecessary Fairtrade certification costs.