Fairtrade Certification Research Articles

Multi-tier captive relations in the global value chain of tuna: The case of Fair Trade certification of small-scale tuna fishery in Indonesia

Voluntary sustainability standards have been used as a governance mechanism to ensure the sustainability of fisheries products traded from developing countries. Different standards have become market forces that actors along the value chain are expected to follow to access markets and remain competitive. Recent attention is also being paid to small-scale fisheries, but there is relatively little information about the efficacy of the translation of standards by all actors in the value chain. This study examines how a voluntary sustainability standard is translated from an international buyer down to the producer and the effectiveness of this on social and environmental sustainability. The global value chain (GVC) modular framework is applied to assess the implementation of and compliance with the standard. The analysis is done at the micro, meso, and macro levels. We use the first-ever Fair Trade USA certification for handline small-scale tuna fishery in Maluku, Indonesia, as our case study. The findings indicate that the captive forms of governance prevailing at the micro and meso levels of the value chain vary considerably. This adds a layer of complexity to the extent to which a sustainability standard changes the structure and governance of the value chain. The efficacy of such changes in promoting social and environmental sustainability is constrained by the unequal power dynamics among the various actors operating at the different levels. The findings from this study may contribute to optimizing the value chain for greater sustainability outcomes by involving local actors and accommodating various governance mechanisms to organize the value chain.

Fair trade certification and class formation in Nicaragua’s coffee plantations

ABSTRACT Focusing on the first Fair Trade USA-certified coffee plantation in Nicaragua, this paper examines its overlooked effects on class formation among coffee workers. It first explores the type of workers the certification aims to shape; second, their impact on short-term material interests; and third, the emergence of a distinct class with a conscious understanding of their struggles. I show how, by emphasizing economic aspects, the certification oversimplifies the complex and antagonistic relationship between workers and landowners. I argue that the ‘market-driven’ class formation resulting from certification can hinder workers’ transition from a ‘class-in-itself’ (socio-economic category) to a ‘class-for-itself’ (political category).

Fairer farms in the USA: Exploring the implications of the Fair Trade USA certification for farmer worker health and wellbeing at the first certified farm in the U.S.

Decades of interdisciplinary research suggest that fair trade certification may have significant implica­tions for the development of more equitable and sustainable agricultural practices. The certification was originally established to support smallholder farming cooperatives in developing countries. However, a recent organizational division separat­ing Fairtrade International from Fair Trade USA has created a bifurcation in certification standards.[1] Under the new Fair Trade USA program, the first domestic certification standard for U.S.-based farms is now being implemented. The aim of this study is to understand the impact of the new certi­fication on farm operations and farm worker well­being at the first U.S. fair trade certified farm, from the perspectives of farm workers, farm management, and the supply chain. The initial findings from this limited exploratory study indicate that the certification can be used as a tool to improve farm worker empowerment while also providing mate­rial benefits and resources. More research is needed to determine the long-term impact and feasibility of more widespread implementation.

Fairtrade Wine in South Africa: Does Fairtrade Labelling Guarantee Social Upgrading for Farmworkers?

Fairtrade International (FTI) is an international certificatory body that seeks to restructure market relationships to support marginalised producers. In order to do this, FTI sells certified products at a higher price, allowing for a Fairtrade premium to be provided to the otherwise marginalised producers. In the South African wine industry, FTI has extended its certification to large-scale wine producers, despite the extensive history of exploitation and oppression that has framed the industry in which these producers operate. This article asks if the Fairtrade label provides social upgrading to the farmworkers of these producers. In exploring the experiences of 30 Fairtrade farmworkers across five Fairtrade-certified farms, this article concludes that Fairtrade certification does not guarantee social upgrading. Instead, historical issues of dependency are being perpetuated on some wine farms despite their Fairtrade certification.

FAIR TRADE DAN PERIKANAN TUNA DI INDONESIA (ANALISA PERAN YAYASAN MASYARAKAT DAN PERIKANAN INDONESIA)

Indonesia is one of the largest tuna producers in the world. In Indonesia tuna is produced by small-scale fishermen. This shows that small-scale tuna fisheries play an important role and as the mainstay of national food. However, the number of fish caught has not been followed by the welfare of small-scale fishermen. The exported tuna commodity also face difficulty in entering the market because it does not meet the requirements of the importing country, one of which is related to traceability. This is the concern of the Indonesian Fisheries and Community Foundation (MDPI). MDPI is a non-governmental organization that promotes fair trade-based fisheries in Indonesia. The evidence of fair trade fisheries implementation is through fair trade certification. The focus of this study is to analyze the role of the Indonesian Fisheries and Society (MDPI) in fair trade certification for tuna commodities in Indonesia. The research was conducted using descriptive qualitative research methods sourced from secondary data in the form of literature studies. In this study, the authors use the concept of the role of non-governmental organizations and fair trade. Researcher found that in fair trade certification for tuna commodities in Indonesia, the MDPI Foundation carries out three roles partner, implementer and catalyst. research is important to understand that non-governmental organizations play an important role in fair trade.

Analisis Kesediaan Membayar (Willingness to Pay) Konsumen Terhadap Produk Kopi Berlabel Fairtrade di Berbagai Wilayah Indonesia

The increase in demand for coffee has not been in line with the increase in the welfare of the farmers. Fairtrade certification has a social premium for ensuring the welfare of farmers, but companies must anticipate higher production costs. This study aims to analyze the characteristics of consumers of coffee products in Indonesia, analyze the maximum WTP (Willingness to Pay) average value, and the factors that influence this value. This research was conducted in various regions in Indonesia with a sample of 218 respondents. Analysis was performed using descriptive analysis method, contingent valuation method (CVM) analysis, and multiple linear regression analysis. The results showed that the average coffee consumer was a woman aged 21-30 years, undergraduate education level, income less than IDR 2,000,000, bought 2-4 coffees per month, and had a moderate knowledge score. Respondents who were willing to pay more were 199 respondents with an average value of readiness to pay a maximum of IDR 4,909.55 and a total WTP aggregate value of IDR 977,000.00. Gender Factors, age, education level, income level, purchase quantity, attitude towards the environment, and lifestyle simultaneously influence the WTP value of Fairtrade coffee, while gender, knowledge, and lifestyle factors do not partially affect the WTP value of coffee Fairtrade label.

Mission Accomplished? Balancing Market Growth and Moral Legitimation in the Fair Trade Moral Market

Mission Accomplished? Balancing Market Growth and Moral Legitimation in the Fair Trade Moral Market

Agricultural associations and fair trade in the Peruvian rainforest: a socioeconomic and ecological analysis

Fair trade initiatives represent an essential support for the scarce opportunities that have arisen in the agricultural sector, as they cover various areas that contribute to increasing good trade practices. It is essential to highlight the contribution of fair trade in urban and rural areas, as it becomes a valuable incentive for differentiation. The main objective of this study was to determine how Fair Trade is applied in the socioeconomic and ecological sphere in an association of sustainable agricultural producers in the Peruvian jungle. This is quantitative research with a non-experimental cross-sectional design. The survey technique was used, and a questionnaire was applied to 99 agricultural producers in the Amazon region of northern Peru, because it would help to analyze the new challenges of fair trade. In addition, data analysis and processing was carried out with Microsoft Office Excel and SPSS. The results show that 51% of the producers surveyed have been sensitized to adopt socially responsible actions aimed at strengthening sustainable development, social responsibility and good practices for fair trade in favor of the preservation of the resources of the Peruvian Amazon, as well as the socioeconomic development of farmers and the region itself. Forty-seven percent carry out social responsibility activities under the guidance of the Fairtrade organization, which has accompanied farmers to obtain Fairtrade certification. In addition, 59% of respondents say that they engage in healthy competition that generates trust among farmers. Fairtrade enables associated farmers to improve their ethical behavior and respect for their rights as well as those of the entire community.

Sustainability labels in the Spanish coffee market: A hedonic price approach

Aim of study: Focused on the coffee sector, the purpose of this paper was to determine the implicit price paid for the main sustainability certifications (Fairtrade, Organic, Rainforest Alliance and UTZ certifications) using the hedonic price approach. Area of study: Spain. Material and methods: The total sample included 645 coffees. The characteristics were collected between the months of September and October 2021 from coffee packs sold in the main five supermarkets of retail chains in Spain. A log-log price/attribute function was used to estimate the hedonic price function. Main results: The attributes UTZ certification, origin, and coffee intensity received significant positive effects leading to higher premium prices of 28.51%, 25.50% and 26.50%, respectively. In contrast, Fairtrade certifications had a negative impact on the average price of coffee. Research highlights: The proposed model could be considered as a first approximation of a hedonic pricing model estimation for sustainable coffee in Spain. The results provide useful information for the coffee sector in developing effective marketing strategies that support the sustainability of food.

Lotus Foods’ Experience Developing Value Chains for SRI Rice

Since 2008, Lotus Foods, a US-based importer of heirloom and pigmented rice produced on family farms, has been sourcing marketable surpluses of rice grown by farmers using System of Rice Intensification (SRI) practices. It presently sources SRI-grown rice in Cambodia, India, Indonesia, and Thailand. Lotus Foods’commitment is based on the recognition that SRI is a more efficient, environmentally responsible, and equitable way to grow rice, especially for smallholder producers. In the countries where it sources rice, it works with long-term business partners who aggregate the rice and process it for shipment, handling also certifications and quality control. In the US, Lotus Foods has the job of ensuring final quality, packaging, marketing, sales and distribution. While the company has increased the amount of SRI rice it imports over the past 10 years, it had expected to be importing a lot more. This is due to challenges on both the supply and demand side. This includes supply chain partners’ initial lack of experience in processing, business skills, and export, as well as access to credit and modern equipment. The price of Lotus Foods’ SRI rice in the marketplace is thus at the upper range due to premiums paid for organic and fair-trade certifications and supply chain inefficiencies. Nonetheless, pro-active outreach to educate American consumers and the food industry about the benefits of SRI has resonated with both and generated growing support for the company’s pioneering efforts to help “change how rice is grown around the world”.

Fairtrade as a Social Innovation: Brazilian Experience of Rural Organisations

The objective of this article is to describe the dynamics of fair trade in organisations that adhered to the Fair Trade International system, based on the principles of fair trade and the dimensions of social innovation, and to identify why there was a disruption in commercial transactions. Four organisations from the state of Rio Grande do Norte, Brazil, which won the fair trade seal, were analysed. Primary data collection occurred through semi-structured interviews and simultaneous annotations and, later, secondary data were collected from official documents, articles, academic works and websites. The results show that the experiences of organisations with Fair Trade International have numerous properties of the dimensions of social innovation. There was the emergence of an emerging development model with the opportunity to work collaboratively and collectively. These changes required adaptation and new practices, as producers underwent a period of changes in their working and production. The formation of cooperatives and fair trade certification had the mobilisation and participation of various actors, who also provided collective learning, both in technical terms and in terms of civic and interpersonal management, especially for rural producers.

Benefits of CSR Through Quinoa Biotrade in South American Communities

In recent years, the demand for organic, native products with high nutritional value, that do not contain any type of chemicals or preservatives and that have a certification, has increased. On the other hand, the sustainable development of companies, producers and agricultural areas do not keep pace with this growth. At the same time, companies have begun to make efforts to improve their corporate image by carrying out activities for the benefit of the communities. The main objective of this research is to identify what is known about the benefits of Corporate Social Responsibility (CSR) through the biotrade of quinoa in South American communities in the scientific literature between the years 2010 to 2020. In addition, it specifically focuses on the importance of CSR in quinoa-producing communities and the benefit of Fair-Trade certification in the populations. This way, the models and strategies found can be replicated in the future. Therefore, a systematic review of the literature was carried out, where information was collected on the CSR and Fair-Trade variables following the PRISMA statement (identification, screening, eligibility and included). For which four databases were used, such as: Redalyc, Ebsco, Google Scholar and Scielo; Finally, under the inclusion and exclusion criteria, 22 scientific articles were selected for this work. The results obtained show that companies that incorporate CSR have better management and a positive impact on the community, in the same way, fair-trade improves the quality of life of the producing community and provides environmental benefits. Finally, The research concludes that CSR through the biotrade of quinoa allows development and progress of the producing communities in South America, improving aspects of education and increasing jobs; at the same time, it generates value and increases the image of organizations. More studies focused on CSR in specific communities and the analysis of their adaptation to the context of the pandemic are recommended.

FAIR TRADE CERTIFICATION PRACTICES IN THE EXPORT PROCESS OF INDONESIAN COFFEE COMMODITIES TO THE UK MARKET IN TERMS OF THE TECHNICAL BARRIERS TO TRADE (TBT) AGREEMENT

The application of fair trade certification to enter specialized markets in the United Kingdom affects the coffee trade transactions exported from Indonesia to the United Kingdom. This certification then becomes a challenge and creates unnecessary trade barriers. These barriers are included in technical barriers which in international trade activities are regulated through the Technical Barriers to Trade (TBT) Agreement.
 Based on the results of this study are first, the application of fair trade certification on Indonesian coffee commodities that want to enter the United Kingdom specialty market is an unnecessary international trade barrier. Second, Indonesia can take legal remedies through the WTO or other efforts such as negotiation, mediation, conciliation, and arbitration for dispute resolution.

Appropriate Strategies for the Use of Fairtrade Certification to Improve the Organizational Climate in a Fairtrade Banana-Producing Company

This article studies an international banana and plantain trading company in Colombia and its relationship with the largest Fairtrade producer in the world, whose importance lies in the global trade certification that allows consumers to buy products that were produced under fair labor standards, regulated by the Fairtrade International organization. This ignores some administrative principles that put this type of organization at risk, resulting in a series of inconsistencies in business operations. We aim to design strategies that can be implemented in this type of company, improve the organizational climate, and adapt it to certification. For the design of this model, the deductive research method with a qualitative approach will be used. The obtained results seek to improve the organizational climate and the operational and administrative efficiency of certified companies.

Musculoskeletal Symptoms and Assessment of Ergonomic Risk Factors on a Coffee Farm

In Honduras, some coffee farms must comply with strict standards of social, economic, and environmental sustainability, due to their organic, gender and fair-trade certifications. The principal research aim is to evaluate the musculoskeletal risks in occupations in a Honduran coffee farm certified in sustainable environments and to know the status of its workers within the farm. Musculoskeletal symptom perception during the last twelve months was consulted, assessing exposure to risk factors for work-related musculoskeletal disorders using the Quick Exposure Check method. Data regarding 48 workers were analyzed to provide the results. Within the body regions where discomfort is concentrated, the back, shoulders, wrists, knees, and feet stand out, and the highest risk exposures are presented for the coffee cutters at the neck level and in the wrist/hand segment, in the coffee pickers at the back, shoulder–arm segment, and wrist/hand segment, and in the processors in the back area and shoulder–arm segment. It is concluded that, in all the coffee fruit harvesting processes, the people who work in these jobs are exposed to ergonomic risks.

Harvesting consent: South Asian tea plantation workers’ experience of Fairtrade certification

ABSTRACT Fairtrade certification of plantations seeks to productively intervene in the continuity of exploitative labor conditions that tea plantation workers in South Asia have experienced since the plantations’ inception under colonial rule. Based on a mixed methods study conducted in 2016 in India and Sri Lanka, this article engages with the puzzling reinterpretation of certification as a reward for workers’ commitment rather than for management's compliance. By taking labor process theory on a journey to transnational labor governance in Indian and Sri Lankan tea plantations, the article argues that Fairtrade certification provides plantation companies with tools to ‘harvest workers’ consent’ to management's pursuit of profit.

The Effects of Fair Trade Certification: Evidence from Coffee Producers in Costa Rica

Abstract We study the effects of Fair Trade (FT) certification of coffee on producers and households in Costa Rica. Examining the production dynamics of all Costa Rican coffee mills from 1999 to 2014, we find that when global coffee prices are lower and the FT guaranteed minimum price is binding, FT certification is associated with a higher sales price, greater sales, and more revenues. We also find that certification reduces the probability of a mill closing down and exiting the industry. Looking at households, we find that certification is associated with higher incomes for farm owners. Part of this is due to a transfer of income from intermediaries whose incomes decrease due to FT. We find no effect of FT on unskilled workers, who are the more disadvantaged group within the coffee sector.

Do Certification Schemes Enhance Coffee Yields and Household Income? Lessons Learned Across Continents

While the market for sustainably certified products grows, the debate on whether smallholder farmers benefit from this certification movement is far from over. We present empirical findings across three continents. Identical household surveys were conducted among 738 smallholder coffee farmers organized in primary cooperatives in Ethiopia, India and Nicaragua. The comparative analysis which is based on the propensity score matching approach shows that the impacts of Fairtrade certification on coffee yields and income vary across countries. In Ethiopia, the coffee farmers from Fairtrade certified cooperatives fare worse than their non-certified counterparts both in coffee yield and income. In the Indian case study, the Fairtrade cooperative members have yield and price advantages over the non-certified farmers. This has in turn led to higher net revenue from coffee for certified farmers. In Nicaragua, coffee farmers from Fairtrade and double (Fairtrade-Organic) certified cooperatives also benefit in terms of net revenue but there is no statistically significant effect on yield and household income. A comparison of the Fairtrade minimum floor price and the weight-equivalent Fairtrade cooperative price in the three countries shows that Nicaraguan Fairtrade certified farmers have obtained a higher average price than the Fairtrade mandated minimum price, whereas in Ethiopia the certified farmers received a much lower price. In India, the certified average price was closer to the minimum floor price. We conclude that coffee cooperatives and the motivation and capability of their staff play a central role in training their member farmers about each aspect of coffee growing and certification.

The Ethically Conscious Flower Consumer: Understanding Fair Trade Cut Flower Purchase Behavior in Germany

Fair trade flowers are an important niche product relevant to ethically conscious consumers. The study proposes a model that investigates key factors affecting the behavior of these cut flower consumers in Germany. The study serves to complement the existing studies dedicated to preferences for flower attributes and products, as well as consumers’ willingness to pay. It builds on an online survey with a representative sample of 772 German cut-flower consumers. Partial least squares structural equation modelling shows that concern for the treatment of workers from countries with poor environmental and labor reputations, the breadth of fair trade cut flower information sources, and familiarity with the fair trade concept and its influence on flower production issues positively impact the relative importance that consumers dedicate to fair trade certification as a cut flower attribute. The same factors also positively impact fair trade cut flower buying behavior. Socio-demographic factors did not show any impact. The study concludes with best practice recommendations for retailers and horticultural marketers on how to address the needs and wants of ethically conscious consumers.

Sustainability and firms’ mission in a developing country: the case of voluntary certifications and programs in Costa Rica

Voluntary environmental and social certifications represent a channel by which firms can contribute to sustainable development. Using qualitative and quantitative methods, we explore the motivations and obstacles that Costa Rican companies face when adopting Carbon Neutral (CN) and Fairtrade (FT) certifications. CN is a domestic certification aimed at reducing or offsetting carbon emissions and fighting climate change. FT is a well-known international label that guarantees compliance with environmental and social standards. We conclude that ethical and environmental reasons influence the managers’ decision, along with economic and strategic incentives, such as improving the image of the company and the relationship with stakeholders. High investment and certification costs are ranked as the most difficult obstacles to overcome. By exploring the differences between both certifications, we find out that increasing sales, market shares or prices are more important motivations for the FT companies than for CN ones.