Fair Trade and Organic Agriculture in Developing Countries: A Review

Fair trade regimes and organic agricultural systems are 2 innovations that increasingly play an important role for agriculture in developing countries. Whereas fair trade regimes have their origin in the developing countries, organic agriculture was started in the rich countries and has only recently become popular in the Third World. Both innovations can be mutually reinforcing as fair trade often combined with organic production standards opens up new market prospects. In this article we explore the opportunities and constraints of marketing organic products from developing countries under fair trade regimes. Based on available literature, we review evidence of the magnitude of organic production and fair trade systems in developing countries. We also propose a framework for studying the impact of fair traded organically produced commodities using the case of black pepper in India. The framework will generate testable hypotheses regarding the 2 innovations.     

Framing as strategy for effective communication about Fair Trade products in Flanders

This paper investigates whether reframing an issue related to sustainable consumption can influence citizens' attitude towards that issue. Our investigation focuses on the case of Fair Trade in Flanders, Belgium. Fair Trade contributes to sustainable development by offering better conditions to marginalized producers in the South. Using an internet-based experimental setup, 1617 individuals were exposed to an NGO-based frame, a retailer-based frame, an experimental frame or no frame. Statistical analysis then indicated whether the experimental frame performed better than the control group and the other frames in shifting people's attitudes. Our results suggest that a brief exposure to a combination of tone, messenger, value and metaphor that signals the systemic aspects of Fair Trade may be successful in shifting the attitude and opinion of Flemish consumers/citizens in favour of Fair Trade. Our analysis suggests that the foundations metaphor that has been developed in the context of the environmental impact of food production can also be applied in the context of the social impact of food production.     

Fair Trade,Diversification and Structural Change: Towards a Broader Theoretical Framework of Analysis

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.     

Do Ethical Consumers Care About Price? A Revealed Preference Analysis of Fair Trade Coffee Purchases

The existing literature on socially responsible purchasing relies heavily on stated preference measures elicited through surveys that utilize hypothetical market choices. This paper explores consumers' revealed purchasing behavior with regard to fair trade coffee and is apparently the first to do so in an actual market setting. In a series of experiments, we investigated differences in consumer responsiveness to relative price changes in fair trade and non‐fair trade brewed coffees. In order to minimize the hypothetical bias that may be present in some experimental settings, we conducted our experiments in cooperation with a vendor who allowed us to vary prices in an actual coffee shop. Using a choice model, we found that purchasers of fair trade coffee were much less price responsive than those of other coffee products. The demonstration of low sensitivity to price suggests that the market premiums identified by stated preference studies do indeed exist and are not merely artifacts of hypothetical settings. La littérature existante sur la consommation responsable repose fortement sur les mesures des préférences déclarées recueillies lors d'enquêtes utilisant des choix hypothétiques. Le présent article examine le comportement d'achat révélé des consommateurs concernant le cafééquitable et constitue apparemment le premier article du genre à le faire dans le contexte d'un marché réel. Au cours d'une série d'expériences, nous avons examiné les différentes réactions des consommateurs concernant les changements du prix relatif des cafés infusés équitables et classiques (non équitables). Pour minimiser le biais hypothétique qui pourrait exister dans certaines situations expérimentales, nous avons effectué nos expériences en collaboration avec un fournisseur qui nous a donné la permission de modifier les prix dans un véritable café‐restaurant. À l'aide d'un modèle de choix, nos résultats ont montré que les consommateurs de cafééquitable réagissaient beaucoup moins au prix que les consommateurs de café classique. Cette faible sensibilité au prix donne à penser que les primes de marché identifiées dans les études sur les préférences déclarées existent effectivement et qu'elles ne sont pas de simples phénomènes de situations hypothétiques.     

Market access,organic farming and productivity: the effects of Fair Trade affiliation on Thai farmer producer groups*

The study analyses the impact of Fair Trade (FT) and organic farming on a sample of FT rice producers in Thailand. It finds that per capita income from agriculture is positively and significantly affected by years of organic certification and FT affiliation. The estimated FT and organic certification contributions to producers’ economic well‐being are higher when account is taken of the relatively higher proportion of self‐consumption among affiliated farmers. But the per capita income effect does not translate into higher productivity owing to a concurrent increase in hours worked.     

THE A.E.S.: A COMMENTARY ON ITS PAST,PRESENT AND FUTURE

This commentary, written during the Society's fiftieth anniversary year, describes its origins and early activities and traces the evolution of its Conferences and the Journal of Agricultural Economics. It comments on the professional and non-professional achievements of the Society to date, and briefly, considers the future. Emphasis is given to the Society itself rather than to individual members although a series of appendices list many of the individuals who have been especially involved in the conduct of the Society's affairs.