Impacts of Fair Trade certification on coffee farmers, cooperatives, and laborers in Nicaragua

Valkila, Joni; Nygren, Anja

doi:10.1007/s10460-009-9208-7

Cited by 174 publications

(203 citation statements)

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“…Recent exceptions include Valkila and Nygren (2009) and Dragusanu and Nunn (2014), who do not find clear evidence that Fairtrade benefits workers.…”

Section: Fairtrade Standards 'Theory Of Change' and Wage Employmentmentioning

confidence: 99%

“…A growing body of evidence based on more careful research methods reveals the limitations of these poverty reduction claims. This includes econometric analysis, which has usually focussed on producers (Ruben & Hobinck 2015;Ruben and Fort 2012;COSA 2013) and, much less frequently, also wage workers (Valkila and Nygren, 2009;Dragusanu & Nunn 2013). This paper's contribution is to add to the especially thin literature on the labour market implications of Fair Trade.…”

Section: Introductionmentioning

confidence: 99%

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Fairtrade and Labour Markets in Ethiopia and Uganda

Cramer

Johnston

Mueller

et al. 2016

The Journal of Development Studies

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Drawing on four years of fieldwork in Ethiopia and Uganda, this paper addresses gaps in knowledge about the mechanisms linking agricultural exports with poverty reduction, the functioning of rural labour markets, and the relevance to the lives of the poorest people of Fairtrade. Statistical analysis of survey evidence, complemented by qualitative research, highlights the relatively poor payment and non--pay working conditions of those employed in research sites dominated by Fairtrade producer organizations. We conclude that Fairtrade is not an effective way to improve the welfare of the poorest rural people.

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“…Recent exceptions include Valkila and Nygren (2009) and Dragusanu and Nunn (2014), who do not find clear evidence that Fairtrade benefits workers.…”

Section: Fairtrade Standards 'Theory Of Change' and Wage Employmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Fairtrade and Labour Markets in Ethiopia and Uganda

Cramer

Johnston

Mueller

et al. 2016

The Journal of Development Studies

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“…without the label at world-market prices (e.g. Valkila and Nygren, 2009;Panhuysen and Pierrot, 2014). 4 Moreover, annual license fees are high for both roasting companies and, in particular, for farmers, which contrasts with the idea that an NGO maximizes label participation.…”

Section: Coffee Market and Fairtradementioning

confidence: 99%

Competition between For-Profit and Industry Labels: The Case of Social Labels in the Coffee Market

Baake

Naegele

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Competition between for-profit and industry labelsThe case of social labels in the coffee market * Pio Baake † Helene Naegele ‡ September 19, 2017 AbstractWe model strategic interaction on a market where two labeling organizations compete and firms in duopoly decide which labels to offer. The incumbent label maximizes its own profit, and is challenged by an industry standard which maximizes industry profit. Using a nested logit, the result of this multi-stage game depends crucially on the degree of horizontal differentiation. Joint firm profit always increases with the introduction of the industry standard. The industry standard wants to segment the market and strategically distorts its label quality downwards, such that each firm specializes in a different label. Social welfare however increases with the number of labeled products. A policy imposing a minimum label quality is only binding in the case of strategic quality distortion by the industry standard.JEL classification: L15, D43, L13

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“…Moreover, coffee contributes significantly to national incomes in SSA, and represents a vital source of the foreign exchange earnings that governments rely upon to improve health, education, infrastructure, and other social services [18]. In relation to FT, coffee was the first product to become FT-certified in 1988, and is the most established item in the global market for FT-labeled products [19]. Today, of the 1.6 million farmers and workers involved in FTaround the globe, nearly 50% are small coffee farmers [20].…”

Section: Introductionmentioning

confidence: 99%

“…Particularly, Tellman et al [23] show that small coffee farmers face several sets of barriers that limit their participation in FT markets, including certification costs, economies of scale in coffee production, stringent quality requirements, and altitude constraints. As a result of these barriers, Valkila and Nygren [19] point out that small FT coffee farmers in SSA are able to sell only 30-60% to FT markets, and direct the remainder of their FT-labeled coffee to conventional and domestic markets.…”

Section: Introductionmentioning

confidence: 99%

Fairtrade and Sustainability: Motivations for Fairtrade Certification among Smallholder Coffee Growers in Tanzania

Pyk

Hatab

2018

Sustainability

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Drawing on a survey of 148 Fairtrade-certified smallholder coffee farmers in the Kagera region of Tanzania, a quantitative investigation was performed on the farmers' motivations for Fairtrade certification. A factor analysis approach was used to analyze the importance of economic, social, and environmental motivations in farmers' decision-making on Fairtrade-labeled coffee certification. Moreover, three ordered logit models were estimated to assess the determinants of motivational behavior for Fairtrade certification among different socioeconomic groups in the survey sample. Overall, the results indicate that Fairtrade certification is predominantly economically motivated. Particularly, farmers are relatively less environmentally motivated to adopt the Fairtrade system. However, female coffee farmers are significantly more environmentally driven to adopt Fairtrade certification. Surprisingly, the results suggest that farmers' level of education has no significant influence on their motivation for Fairtrade certification. Moreover, lower-income and smaller-scale coffee farmers are less economically and environmentally motivated for Fairtrade certification. In light of these findings, we suggest that efforts to promote Fairtrade certification among smallholder growers should be designed in ways that balance economic, social, and environmental outcomes. Furthermore, the findings call for targeted measures to strengthen Fairtrade's commitment to empowering disadvantaged smallholder farmers, including women, to achieve sustainable development goals in the region.

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Impacts of Fair Trade certification on coffee farmers, cooperatives, and laborers in Nicaragua

Abstract: While Fair Trade has promoted premiums for social development for participating producers and strengthened the institutional capacities of the cooperatives involved, its ability to enhance significantly the working conditions of hired coffee laborers remains limited.

Cited by 174 publications

References 30 publications

Fairtrade and Labour Markets in Ethiopia and Uganda

Fairtrade and Labour Markets in Ethiopia and Uganda

Competition between For-Profit and Industry Labels: The Case of Social Labels in the Coffee Market

Fairtrade and Sustainability: Motivations for Fairtrade Certification among Smallholder Coffee Growers in Tanzania

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