Rie Makita

Although most studies on the Fair Trade initiative are, to some extent, cognizant of its contribution to environmental sustainability, what the environmental aspect means to Fair Trade has not yet been explored fully. A review of environmental issues in the Fair Trade literature suggests that Fair Trade might influence participant producers' farming practices even if it does not directly impact natural resources. This paper attempts to interpret Fair Trade certification as an intermediary institution that links two significant objectives of rural development in the global South-environmental conservation and poverty reduction. This theoretical concept is examined in different real settings by observing four cases of Southern small farmer groups involved in the Fair Trade initiative. Findings from these case studies imply that if Fair Trade certification ensures tangible benefits for small farmers, it can not only help such disadvantaged farmers but also work as an approach for natural resource management.

The promotion of intensive farming through organic and fair trade certification appears contradictory to the increasing significance of non-farm income sources in rural Asia as well as in many other parts of the rural South. By observing a sugarcane producer co-operative comprising land reform beneficiaries in the Philippines, this paper explores the reality of livelihood diversification as practised by member households of the certified co-operative, focusing on the compatibility of certification-supported farming with diversified activities. In this case, diversification at the household level progressed both away from farming and into farming. Behind the long-term use of agricultural certification, there are compelling reasons for continuing both certification-supported farming and diversified activities, and for employing mechanisms that further the compatibility at all phases between the former and the latter, and maximising income-generating opportunities. The operation of communal land with agricultural certification may be an effective form of assistance to land reform beneficiaries who share a strong desire to be landowners.