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Author: Loraine Ronchi
Publisher: World Bank Publications
ISBN:
Category : Access to Markets
Languages : en
Pages : 63
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Book Description
This paper concerns an NGO intervention in agricultural commodity markets known as Fairtrade. Fairtrade pays producers a minimum unit price and provides capacity building support to member cooperative organizations. Fairtrade's organizational capacity support targets those factors believed to reduce the commodity producer's share of returns. Specifically, Fairtrade justifies its intervention in markets like coffee by claiming that market power and a lack of capacity in producer organizations 'marks down' the prices producers receive. As the market share of Fairtrade coffee grows in importance, its intervention in commodity markets is of increasing interest. Using an original data set collected from fieldwork in Costa Rica, this paper assesses the role of Fairtrade in overcoming the market factors it claims limits producer returns. Features of the Costa Rican input market for coffee permit a generalization of the results. The empirical results find that market power is a limiting factor in the Costa Rican market and that Fairtrade does improve the efficiency of cooperatives, thereby increasing the returns to producers. These results do not depend on the minimum price policy of Fairtrade and therefore can inform on its organizational support activities. Finally, the results also suggest that producers selling to vertically integrated, multinational coffee mills face lower producer price 'mark-downs' compared with domestically owned non-cooperative mills. This result contradicts the popular view that the increasing concentration of vertically integrated multinational firms accounts for a decline in producers' share of coffee returns.
Author: Loraine Ronchi
Publisher: World Bank Publications
ISBN:
Category : Access to Markets
Languages : en
Pages : 63
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Book Description
This paper concerns an NGO intervention in agricultural commodity markets known as Fairtrade. Fairtrade pays producers a minimum unit price and provides capacity building support to member cooperative organizations. Fairtrade's organizational capacity support targets those factors believed to reduce the commodity producer's share of returns. Specifically, Fairtrade justifies its intervention in markets like coffee by claiming that market power and a lack of capacity in producer organizations 'marks down' the prices producers receive. As the market share of Fairtrade coffee grows in importance, its intervention in commodity markets is of increasing interest. Using an original data set collected from fieldwork in Costa Rica, this paper assesses the role of Fairtrade in overcoming the market factors it claims limits producer returns. Features of the Costa Rican input market for coffee permit a generalization of the results. The empirical results find that market power is a limiting factor in the Costa Rican market and that Fairtrade does improve the efficiency of cooperatives, thereby increasing the returns to producers. These results do not depend on the minimum price policy of Fairtrade and therefore can inform on its organizational support activities. Finally, the results also suggest that producers selling to vertically integrated, multinational coffee mills face lower producer price 'mark-downs' compared with domestically owned non-cooperative mills. This result contradicts the popular view that the increasing concentration of vertically integrated multinational firms accounts for a decline in producers' share of coffee returns.
Author: Loraine Ronchi
Publisher:
ISBN:
Category :
Languages : en
Pages : 63
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Book Description
This paper concerns an NGO intervention in agricultural commodity markets known as Fairtrade. Fairtrade pays producers a minimum unit price and provides capacity building support to member cooperative organizations. Fairtrade's organizational capacity support targets those factors believed to reduce the commodity producer's share of returns. Specifically, Fairtrade justifies its intervention in markets like coffee by claiming that market power and a lack of capacity in producer organizations 'marks down' the prices producers receive. As the market share of Fairtrade coffee grows in importance, its intervention in commodity markets is of increasing interest. Using an original data set collected from fieldwork in Costa Rica, this paper assesses the role of Fairtrade in overcoming the market factors it claims limits producer returns. Features of the Costa Rican input market for coffee permit a generalization of the results. The empirical results find that market power is a limiting factor in the Costa Rican market and that Fairtrade does improve the efficiency of cooperatives, thereby increasing the returns to producers. These results do not depend on the minimum price policy of Fairtrade and therefore can inform on its organizational support activities. Finally, the results also suggest that producers selling to vertically integrated, multinational coffee mills face lower producer price 'mark-downs' compared with domestically owned non-cooperative mills. This result contradicts the popular view that the increasing concentration of vertically integrated multinational firms accounts for a decline in producers' share of coffee returns.
Author:
Publisher:
ISBN:
Category :
Languages : fr
Pages :
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Book Description
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 526
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Book Description
This thesis concerns an intervention in commodity markets known as 'Fairtrade', which pays producers a minimum 'fair' price and provides support to their cooperative organisations. Fairtrade justifies its intervention in commodity markets like coffee by claiming that factors like market power and producer organisation inefficiency marks down the prices producers receive ("producer price mark-downs"). As the market share of Fairtrade coffee grows. its intervention in commodity markets is of increasing interest. This is particularly true as international commodity policy also increasingly focuses less on the support and stabilisation of low prices. and more on enabling producers to increase their share of existing returns through gains in efficiency and profitability. Using an original data set collected from fieldwork in the coffee market for Costa Rica, the thesis assesses the role of Fairtrade in overcoming the market factors it claims limits producer returns. Careful research into farm-gate prices paid by milling firms and the detailed construction of an international benchmark price for Costa Rican coffee permit the construction of a producer price mark-down measure that informs on efficiency and market power. In addition to the role of Fairtrade, the measure permits the testing of hypotheses about what explains producer price mark-downs over mills and over time. Features of the Costa Rican input market for coffee permit a generalisation of the results. The empirical results find that market power is a limiting factor in the Costa Rican market and that Fairtrade does improve the efficiency of cooperatives, thereby increasing the returns to producers. The results also suggest that producers selling to vertically integrated multinational coffee mills face lower producer price mark-downs as compared to domestically owned non-cooperative mills. This result contradicts the popular view that increasing concentration of vertically-Integrated multinational firms account for a decline in coffee producer returns over time.
Author: Cathy Farnworth
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
In the last decade, the "fair trade" of agricultural products and food has emerged as an important tool for creating markets for poor and small-scale farmers and simultaneously promoting pro-poor development. At its most basic, fair trade supports two processes: (1) explicit on-the-ground development for some of the most marginalized and poor actors in international agricultural commodity chains' smallholder farmers and plantation workers; and (2) clearly presenting and making visible the relations sustaining international commodities to consumers. In short, fair trade works to connect Southern producers with Northern consumers through international trade networks dedicated to community development.
Author: Sushil Mohan
Publisher:
ISBN: 9780255366458
Category : Anti-globalization movement
Languages : en
Pages : 0
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Book Description
The Theory of Fair Trade; Is Fair Trade Free Market?; Benefits & Detriments of Fair Trade; Alternatives to Fair Trade; Fair Trade as a Long-Term Development; Conclusion.
Author: Loraine Ronchi
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Author: Alex Nicholls
Publisher: SAGE
ISBN: 1446233359
Category : Business & Economics
Languages : en
Pages : 289
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Book Description
′Today, Fair Trade finds itself at a crucial point in its evolution from alternative trading mechanism to a mainstream economic model. As the only certifier in the largest Fair Trade market in the world, TransFair USA has observed the explosive growth in consumer awareness and business interest in Fair Trade certification. New research into the progress of Fair Trade to date and, crucially, its key future directions is urgently needed. Fair Trade is therefore a valuable and timely contribution.The range and depth of the book is considerable. It is international in outlook and engages with a broad spectrum of theory and thinking. Its style is approachable yet rigorous. I would strongly recommend it to industry, academics, students, policy-makers and the interested reader in general′ - Paul Rice, CEO, TransFair USA ′This work - a powerful study of the maelstrom of issues and cross currents in the Fair Trade and Development movements is long overdue. Through case studies, quantative analysis and reasoned arguement, this work makes its case with cogent force′ - Hamish Renton, Product Manager Food You Can Trust, Tesco ′With the fair trade sector growing rapidly, it is vital that the concept is understood properly and the future potential mapped out. Fair Trade provides a comprehensive guide to all aspects of fair trade which make it a "must read" for everyone from casual buyer right through to seasoned producer. Here′s your chance to see how you can easily change the world for the better′ - Mel Young, editor-in-chief, New Consumer, Britain′s only fair trade magazine, www.newconsumer.org. Fair Trade is at a crucial moment in its evolution from alternative trading mechanism to mainstream economic model. This timely and thoughtful book looks at the strategic future for Fair Trade. Each chapter spearheads a key area of Fair Trade thinking and theory and the political, legal and economic context of Fair Trade is given careful scrutiny. Difficult questions are tackled such as `What is the role and value of corporate social responsibility?′ and `What is the brand meaning of Fair Trade?′ Throughout, readers are supported by: - Revealing case studies and useful data analysis; - Concise histories of different Fair Trade organisations; - Chapter summaries and conclusions.
Author: Alastair M. Smith
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper responds to the argument that while Fair Trade governance might increase short-term welfare, it reduces long-term development prospects by discouraging diversification and structural change. Even though it is agreed that lower-value sectors, such as commodity agriculture, are unlikely to offer a long-term solution to global income inequalities, the importance of their short- and medium-term contributions cannot be ignored. Furthermore, critics have evaluated Fair Trade governance against the benchmark of perfect market organization. However, given the realities of the developing world, dismantling Fair Trade abandons poor producers not to theoretical free markets and successful diversification, but to market failures, capability constraints, and risk management issues - all of which present serious obstacles to beneficial change. In light of this, analysis of the Fairtrade Labelling Organizations International is used to argue that, far from being detrimental, Fair Trade might actively contribute to diversification by alleviating some of the real-world obstacles that otherwise retard development. This paper was awarded the "Sanya Lall Prize" for an outstanding contribution to the Oxford Development Studies (2009-2010).
Author: Andy Redfern
Publisher:
ISBN: 9789221134534
Category :
Languages : en
Pages : 61
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Book Description
