Microtrade and the Fair Trade Movement

Benjamin Huybrechts Introduction The organizational landscape of fair trade has evolved towards increasing complexity and diversity, even when only taking into account organizations that have a central focus on importing and retailing fairly traded products (Becchetti and Huybrechts 2008; Gendron, Bisaillon and Rance 2009; Huybrechts 2012). Hence, ambiguities may occur when delineating and naming these organizations. Moreover, focusing on ‘fair trade’ as the defining characteristic of ‘fair trade organizations’ shifts the attention away from how these organizations are structured and from the many similarities they share with other organizations outside the fair trade sector. This chapter suggests that the notion of ‘social enterprise’ is useful to capture the DNA of organizations focused on fair trade and to locate them within a broader organizational taxonomy. Without seeking to impose a new term that may not resonate for certain actors or regions, this chapter aims to bring two contributions to fair trade research and practice. First, it is suggested that the social enterprise approach is particularly useful as an analytical tool enabling researchers and other stakeholders to capture the evolution and diversification of organizational models in fair trade. Second, the use of a broader organizational approach that is not specific to the sole fair trade sector allows for connections with similar organizations in other sectors and brings a shift from considering mainly what the organizations do (fair trade in this case) towards also addressing what they are (innovative social enterprise

Fair trade is one of the trading system that concern about the fairness and the development of the small producers that tend to be treated unfairly by free trade system since the main idea of competitive advantage from free trade incline to be exploitative towards these small producers. Indonesia has many small producers, artisans and farmers that do trading with international society, therefore, fair trade is supposed to be one of a beneficial trading system that Indonesia should implement. But the fact is that, fair trade is not developed well in Indonesia, even many NGOs and fair trade organization went bankrupt in Indonesia. One of the fair trade organization that still do well and have been categorized as success in implementing the fair trade system is APIKRI, a fair trade organization in craft industry that located in the special region of Yogyakarta. In this paper, we argue that based on APIKRI success, it�s not impossible to implement the fair trade system in Indonesia that will bring a beneficial result to the majority of Indonesian producers which are the small producers, artisans and farmer.

We examine the operations, fairness, and social implications of fair trade certified products. We consider the market for fair trade certified products, which may serve as a substitute to a regular product. A fair trade organization chooses standards for the certification, namely, the (unit) premium and minimum fraction of fair trade raw materials, to maximize the total premium transferred to farmers. We analyze the operations of various stakeholders in the fair trade value chain, as well as the role and social welfare of fair trade organizations with different philosophies. We characterize the firms’ entry decision in the fair trade market as well as the resulting market equilibrium. Furthermore, we examine the impact of mainstreaming, i.e., whether to allow large‐scale plantations (often owned by large corporates) to be eligible for fair trade certification or not, which is one of the most discussed topics in the fair trade movement. We also identify the welfare allocation among various stakeholders in the value chain under different certification policies, and thereby address the fairness issue of the fair trade market as well as its resulting social welfare implications. Finally, we obtain a number of policy insights and suggestions to support this nascent marketplace.

Approaching maturity, fair trade faces challenges at both ends of the supply chain, reflecting the dual approach of fair trade as a business and development instrument. Who should supply the fair trade market, what support do producers require and what is the impact of the relationship between fair trade organizations and producers? How can fair trade continue to assert its unique selling point in the market place and what messages should it be transmitting to the consumer? The paper draws on research, consultancy and engagement with the fair trade movement to explore issues of producer development, accountability, and competition in the consumer market and to look forward to potential strategies for the movement, especially as other approaches to trading ethically are becoming more active in the market place.

Orange production in the Totonacapan region of the state of Veracruz it is one of the main economic sources in the region and throughout the state. However, the downward movements in prices and intermediary have led producers to seek new market inser-tion alternatives such as the fair trade and organic production. The need of producers to have more elements of trial for to decision making regarding the best alternative motivated the present study. Therefore, the objectives of the same is to assess the minimum price paid out in the market farm for fair trade with regard to the cost of orange production from four organizations registered under this model. Additionally, contrast results achieved whit a group of producers dedicated to the organic production. In both cases it was used the methodology of the Fairtrade Guide to Sustainable Production Costs (COSP). The indicator shows that fair trade organizations are profitable as long as they have an average profit margin that ranks from 20% to 34% of the cost their production per hectare. The profit margin of the organization of organic orange producers is higher than fair trade organizations with a profi-tability 158% considering of the cost its production per hectare. However, the producers should regard others factors in matter of commercialization, organization and social profit prevenient to decision making.

Fair Trade has its origins in a significantly distinct and diverse style of engagement with Southern producers, which is largely attributed to the work of Alternative Trade Organisations (ATOs). In recent years, ATOs began identifying as Fair Trade Organisations (FTOs). They operate as socially motivated business entities that are active in international trade by creating an alternative network of exchange, dedicated to enhancing the development prospects of marginalised producers in developing countries. In this articulation of Fair Trade, trade as a process (reflected in the structures and networks of participating businesses), is emphasised.

ABSTRACTFair trade is a new form of commercial partnership whereby actors in the North engage with actors in the South on a number of conditions, including setting a minimum price, a development bonus, and so on. But above all, fair trade organizations in the South are implementing mechanisms that more or less facilitate the empowerment of their members. This article analyzes the empowerment effects of two fair trade organizations in South India. It shows that while positive effects can be seen, the prevailing social norms in India are extremely influential for women at the moment, so that women are putting all their hopes on their daughters through their education.

What is the impact of fair trade on producers? This article describes the case of an organic rice project in Thailand, in which organic farmers, conventional farmers and those who used to farm organically were interviewed. How farmers' input costs, their yields and their gross margins were affected by farming organically, and by being 'in transition' is examined. It appears that once full organic status is achieved, and when a premium is applied, organic farming through a fair trade organization can be very profitable compared to conventional farming; however,many poorer farmers cannot afford the transition period. Other benefits include improved health and the social advantages of belonging to a farmers'network.

This chapter explores the processes through which the mainstreaming of fair trade has occurred and how this history is understood by coffee activists and ethically consuming citizens. The transformation of the relationship between the fair trade movement and corporate actors has been catalytic to its mainstreaming. During the course of approximately six decades, various political and economic transformations have impacted on the metamorphosis of fair trade from being the ‘business’ of solidarity groups to being part of the world of business. This recent stage in the history of fair trade has not been without turbulence. It has been followed by a change of sails which has seen corporations entering the market one at a time, signifying the presence of the marketopoly in coffee activism. The involvement of supermarkets and businesses which have bought into the fair trade market ranges from minor to major adoption of fair trade standards. I illustrate the changes that fair and solidarity trade initiatives have undergone by accounting for the consequences of mainstreaming coffee activism through an identification of the processes which have pulled coffee activism away from a niche and towards a normalised status. As a result, coffee activism has been directly influenced by processes which are instilled in the market, such as branding, fetishism and commodification, which repackage the politics of the cause into a capitalist-friendly activity.KeywordsFair TradeConsumer ActivismEthical ConsumptionFair Trade ProductFair Trade CoffeeThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

The subject of this paper is the transition of exhibition activity from physical to digital and hybrid exhibitions, with particular emphasis on how the COVID-19 pandemic will affect the future of trade fairs. According to the literature, the COVID-19 global pandemic health crisis has shown that technology has contributed to the flexibility of trade fairs, as digital trade fairs have been an effective means of adapting to the adverse conditions imposed by the pandemic. Nevertheless, it seems that exhibitors continue to show a preference for physical trade fairs, while recognizing the benefits of digital ones. In the context of the present paper, the case study of Thessaloniki was examined, conducting primary research with the method of the questionnaire to exhibitors of TIF—HELEXPO SA in order to investigate the views of the participants toward the physical, digital and hybrid trade fairs, but also the investigation of their views on the future of exhibition activity in the post-COVID era. The results show that exhibitors recognize the benefits of digital trade fairs and digital tools that can be used, but do not want to replace physical trade fairs.

Twenty years ago, Fair Trade started as an effort to enable smallholder producers from developing countries to successfully compete in international markets. Better access to market outlets and stable prices are considered key principles for sustainable poverty reduction and stakeholder participation based on 'trade, not aid'. While Fair Trade is primarily conceived as a trading partnership - based on dialogue, transparency and mutual respect - seeking greater equity in international trade, it relies on an organized social movement promoting standards for production practices and delivery procedures, working conditions and labour remuneration, environmental care and social policies in supply chains of certified tropical goods.Over the past two decades, sales of Fair Trade products have considerably increased. After the first shipments of coffee, the range of products has gradually broadened to include fruit (particularly bananas, pineapple and citrus), tea, cocoa, textiles, cosmetics and a whole series of other products. Global Fair Trade sales have steadily grown to approximately EUR 1.6 billion worldwide, covering almost 600 producer organizations in more than 55 developing countries that represent close to a million families of farmers and workers. In recent years, efforts have been made towards mainstreaming of Fair Trade involving large international companies and retail chains. While numerous case studies and descriptive overviews are available to illustrate the importance of Fair Trade for producers and their families in developing countries, little quantitative evidence has been presented to review the socio-economic impact of Fair Trade.This collection of articles provides the first balanced in-depth analysis of the real welfare impact of Fair Trade, paying attention to key dimensions of income, consumption, wealth, environment, empowerment and gender. The core articles are based on extensive field surveys in Peru, Costa Rica, Ecuador, Ghana, Kenya and Mexico, and provide valuable insights in the contributions and constraints for producers' involvement in Fair Trade. In addition, attention is paid to the broader implications for international trade regimes and the ethical perspectives on Fair Trade.

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.

Scholars, NGOs, and activists, especially from the Global South, have raised concerns that many sustainability-oriented regulations and standardization reflect neo-colonial dynamics (Dehbi & Martin-Ortega 2023: 930; Mason et al. 2023: 977f). Regulations like Germany’s Supply Chain Due Diligence Act, the EU Corporate Sustainability Due Diligence Directive (CSDDD), the EU Organic Regulation (EUOR), and the EU Deforestation Regulation (EUDR) are said to be Eurocentric policies that perpetuate historical power asymmetries, reinforce neo-colonial structures, and marginalize producers and stakeholders in the Global South. This policy brief builds on the findings of the Competence Center Fair Trade’s (CCFT) Policy Brief No. 1: “Neo-colonialism in International Trade?” to examine neo-colonial tendencies within Fair Trade. Policy Brief No. 1 explored the critiques above and assessed the Fair Trade Movement’s as well as the Fairtrade System’s role in addressing such dynamics. Building on that, Policy Brief No. 2 focuses on an exploration of neo-colonial aspects in Fair Trade – particularly the Fairtrade system – and gives recommendations.

The success of fair trade labels for food products imported from the Global South has attracted interest from producers and activists in the Global North. Efforts are under way to develop domestic versions of fair trade in regions that include the United States, Canada and the United Kingdom. Fair trade, which is based on price premiums to support agricultural producers and workers in the Global South, has enjoyed tremendous sales growth in the past decade. Will consumers also pay a price premium to improve the conditions of those engaged in agriculture closer to home? To address this question, consumer willingness to pay for food embodying a living wage and safe working conditions for farmworkers was assessed with a national survey in the United States. The question format was a discrete choice (yes/no) response to one of four randomly selected price premiums, as applied to a hypothetical example of a pint of strawberries. Multilevel regression models indicated that respondents were willing to pay a median of 68% more for these criteria, with frequent organic consumers and those who consider the environment when making purchases most willing to pay higher amounts. Although the results should be interpreted with caution, given the well-known gap between expressed attitudes and actual behaviors, we conclude that there is a strong potential market opportunity for domestic fair trade.

In a world of increasing poverty, anthropologists have used their knowledge and research as proactive agents for marginalized producers who strive to meet the task of daily survival. Among the many strategies developed to improve the plight of impoverished peoples at home and abroad, one area that has particularly enhanced producers' livelihoods and standard of living is the Fair Trade movement. A global grassroots movement, fair trade fosters democratic and equitable international production and exchange. Small-scale craft, clothing and agricultural producers throughout the world trade directly with US, Canadian, European, Japanese, Australian, and New Zealand marketers who guarantee fair prices and other services.1 A number of anthropologists are currently working in the Fair Trade movement as advisors, consultants, curators and marketers (Grimes and Milgram 2000).