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FairTrade 2007: new facts and figures from an ongoing success story. A report on Fair Trade in 33 consumer countries.
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... Besides this developmental goal, Fair Trade aims to educate consumers in the global north on the detrimental effects of the terms of trade in global market exchange. Originated in the 1960s in the Netherlands and United Kingdom, Fair Trade has become an immensely successful social movement since the early nineties, with high growth rates in turnover, rising consumer awareness across Europe, but also enhanced life chances of Fair Trade farmers in the south (FLO, 2010;Krier, 2007;Nicholls & Opal, 2005). While older economic social movements, like the labor movement, are facing severe problems in mobilizing participants (Ebbinghaus & Visser, 1999), the "success story" (Krier, 2007) of Fair Trade is puzzling. ...
... Originated in the 1960s in the Netherlands and United Kingdom, Fair Trade has become an immensely successful social movement since the early nineties, with high growth rates in turnover, rising consumer awareness across Europe, but also enhanced life chances of Fair Trade farmers in the south (FLO, 2010;Krier, 2007;Nicholls & Opal, 2005). While older economic social movements, like the labor movement, are facing severe problems in mobilizing participants (Ebbinghaus & Visser, 1999), the "success story" (Krier, 2007) of Fair Trade is puzzling. While some observers argue that "the postmodern world is defined by consumption (rather than production)" (Ritzer, 2005) and means of politicizing consumption are driven by an increased reflexivity of citizens (Micheletti, 2003), this paper takes another perspective focusing on the organizational dimension of Fair Trade and the creation of a new organizational form, product certification. ...
... Missing information on some items was complemented from an earlier Fair Trade report (Martinelli, 1995). Additional information, especially on the founding year of the Fair Trade movement and the labels are taken from later Fair Trade reports, that provide more information on the history of the movement (Krier, 2001(Krier, , 2005(Krier, , 2007. The information was validated by comparing the different reports over time, but also by looking at national sources, were available (like websites of labels and import organizations). ...
In this paper, I argue that the historical change in the organizational logic of the Fair Trade movement, embodied by Fair Trade labeling, has had an important effect on the emergence of ethical consumption in Europe. By establishing Fair Trade labels, the initial movement logic of political influence through education was supplemented and partly abandoned in favor of a market logic. Fair Trade movements in Western Europe differ in the way they organize and market fair traded goods. Drawing on organizational institutionalism and social movement theories of economic opportunity structures, it is elaborated how the emergence of a new organizational form and its underlying logic shape consumption patterns. Hypotheses are empirically tested using a quantitative multilevel design. Organizational data on national Fair Trade movements compiled from an organizational survey of the European Fair Trade Association are combined with individual-level survey data of the 1997 Eurobarometer for 12 European countries. Logistic hierarchical regression models reveal the crucial importance of the Fair Trade labels once diffused into consumer markets, controlling for organizational communication efforts as well as the number of distribution channels for individual Fair Trade consumption. Thus, adopting a market logic has been a powerful force in rendering Fair Trade successful.
... There are dozens of fair trade certified products offered to consumers [79]. Studies suggest that European consumers may be willing to pay a premium for products that help to reallocate benefits for producers or farmers [80,81]. This willingness appears to vary across product categories [82,83]. ...
... A number of studies have indicated that farmers normally shared a smaller proportion of the net value added as compared to other actors in the value chain (processors, exporting companies, and other middlemen) [9,10]. Fair trade consumers in developed countries such as the USA and UK are concerned with the allocation of benefits to producers, or fair trade [80]. ...
Vietnam plays an important role in bearing global food security. However, Vietnamese rice farmers face several challenges, including pressures to develop sustainable livelihoods while reducing the environmental impacts of their production activities. Various Vietnamese agricultural restructuring policies were promulgated to promote the adoption of environmentally friendly practices to generate high value added for rice farmers, but the farmers are reluctant to adopt them because of perceived lack of demand. Decreasing consumption of rice in Asia and increasing demands in Europe shaped Vietnamese rice exporting policies. New trade agreements, such as the UK–Vietnam Free Trade Agreement, offer new target markets for Vietnamese rice farmers. This research provides empirical evidence related to the preferences of UK consumers for ethical attributes for floating rice imported from Vietnam. Floating rice represents a traditional method of rice cultivation that relies on the natural flooding cycle. Its cultivation uses very few agrochemical inputs and provides several other environmental, economic, and social benefits. In an online survey, the study used a choice experiment that asked 306 UK consumers to report their preferences for one kilo of floating rice with three non-market attributes: reduction in carbon dioxide emissions, allocation of profits to the farmers, and restitution of biodiversity. Overall, study participants favored the attributes of floating rice, but reported utility for only the “fair trade” attribute and for a marginal willingness to pay premiums for profit allocations to farmers. Consumers did not find value in either CO2 emission reduction or biodiversity improvement. Results from the study provide recommendations to develop agricultural programs, distribution strategies, and informational methods to encourage floating rice consumption in the UK.
... Együttműködésük eredményeként számos ismeretterjesztő kiadványt fordítottak le, saját portfóliót készítettek a témáról. Rendszeresen vettek részt érzékenyítő és figyelemfelkeltő eseményeken főiskolák, egyetemek, gimnáziumok meghívására, és szerveztek szélesebb társadalmi rétegeket érintő programokat (Krier 2007). A kezdeti sikerek után a csoport munkája a gazdasági válság éveiben elsikkadt, majd 2010 után gyakorlatilag megszűnt. ...
... További kezdeményezésként említhetjük a 2006-ban megnyílt fővárosi Treehugger Dan's nevű könyvesbolt és kávézó esetét (Krier 2007), amely kizárólag bio és fair trade minősített teákat és kávét kínált vendégei számára, és az értékesítésen túl az ismeretátadás, szemléletformálás feladatát is magára vállalta 3 . A szolgáltató egység több éves működés után szintén a pécsi világbolt sorsára jutott. ...
A fair trade egy olyan civil kezdeményezés, amelynek célja, hogy méltányos kereskedelmi feltételeket teremtsen a Harmadik Világ szegény termelői számára,ezáltal esélyt nyújtva számukra egy fenntartható fejlődési modellre kialakítására. A rendhagyó kereskedelmi partnerség a déli országok termelői és az északi félteke vásárlói között a hagyományos nemzetközi kereskedelem szabályait igyekszik megváltoztatni, és egy újszerű alternatívát ajánl helyette. A termékminősítéssel és nemzetközi intézményrendszerrel rendelkező méltányos kereskedelem célja az eddigi domináns gazdasági modell játékszabályainak megváltoztatása, ebben legfőbb eszköze a tudatos és felelősségvállalásra kész fogyasztói réteg elkötelezése. Az irodalomáttekintő cikk a mozgalom eddigi magyarországi eredményeit és a témában végzett kutatásokat igyekszik bemutatni. Journal of Economic Literature (JEL) kódok: F13, F18, J81, P45
... There are tens of thousands of fair trade certified products offered to consumers around the world (Fairtrade International, 2023; Krier, 2008). These programs are intended to reposition and empower small farmers by offering higher economic returns (Gibbon et al., 2008) and by creating more tangible links between the farmers and their ultimate consumers (Riisgaard et al., 2010). ...
One Commune One Product” (OCOP) is a national target program intended to develop the rural economy of Vietnam. The goal of the OCOP program is to identify and promote competitive, marketable products that originate from local and indigenous resources. Since its nationwide implementation in 2018, nearly 5000 OCOP products have been evaluated and certified for OCOP status. The present study interviewed 600 Vietnamese consumers and employed the latent class choice model to investigate the consumers' willingness to pay for OCOP attributes, including the ethical attributes of traceability information, local production, and fair trade, along with the government “star rating” for the product and the OCOP certification label. Through a choice experiment, we identified two distinct consumer segments, one of which (about 74% of the sample) expressed preference and willingness to pay price premiums for the product attributes and the other which (about 26%) was unwilling to pay for any of the attributes. We also found that the consumers in the “Optimist” segment were willing to pay a price premium for “private” product attributes compared to “public” attributes. Consumers in the “Opponent” segment were characterized as highly price sensitive; they expressed lower levels of concern for the environment and lower preferences for local products. Based on these results, we propose some policy implications for continued development of the OCOP program and local livelihoods.
... Indeed, Andorfer & Liebe assert that "social features of products-such as decent living and working conditions for producers in developing countries-are important ethical criteria in their (consumers') shopping strategies" [12]. These concerns have led FT sales to almost triple in just three years [13]. ...
The chapter presents what has been labeled Fair Trade certification and how it can aid in the economic growth of communities. The aim of this chapter is twofold: On the one hand, to assess the impact of Fair Trade on developing countries and its relationship with the Sustainable Development Goals. This shall be done through a review of the literature, using as a representative example the NGO Fairtrade L.O. International. On the other hand, to try to understand the perception of this certification among consumers, since trust in the effectiveness of Fair-Trade Standards is key to the purchase of its products. The conclusion presents evidence arguing that Fair Trade dynamics can indeed foster sustainable and fairer production, more consistent with the dignity of every human being. Thus, it has the potential to impact positively developing countries, firms seeking to fulfill CSR standards and -given the necessary trust in these organizations-address the niche for consumers in developed economies seeking sustainable and humane production.KeywordsFair TradeSDGsSustainable production
... According to the Law of the Republic of Indonesia Number 7 of 2014 Article 1 Paragraph 14 concerning Trade, Export is defined as "the activity of removing goods from the Customs Area. The customs area in question is the territory of the Republic of Indonesia which includes land, water and air space above it, as well as certain places in the Exclusive Economic Zone and Continental Shelf as stated in Law No. 17 of 2006 concerning Amendments to Law No. 10 of 1995 concerning Customs" (Trade, 2007(Krier, 2008). ...
Export is one of the international trades that can increase the country's economy and foreign exchange. This study aims to determine the effect of foreign investment and international prices on the export volume of apparel (convection) from Indonesian textiles with the Export VAT Restitution Policy as a Dummy Variable for 2005-2019. This research is quantitative research. The method used in this study is a simple regression method with the OLS model. The results of the study highlight that the foreign investment variable and international prices had a significant effect on the export volume of Indonesian apparel, but the export VAT restitution policy had no effect on the export volume of Indonesian apparel because other policies were needed to support these policies in order to increase exports.
The Fair Trade movement is an alternative way to conduct international and domestic business by trying to improve trading conditions of disadvantaged producers around the world through consumer actions. Consumers can support the movement by purchasing FT certified products, which confirm that products meet ethical principles and environmental standards that are set in accordance with the requirements. However, FT product sales in the US have been lagging in comparison to the FT product sales in Europe. For instance, per capita consumption of the value of FT products was approximately €3 in the US in comparison to €34 in the UK (Fairtrade International, 2016). This study investigates several variables that can influence Fair Trade consumption, and, specifically, the effects of consumers’ knowledge, beliefs and past experiences on their purchase intentions of Fair Trade products among urban youth consumers in the US. Using the Theory of Reasoned Action as the conceptual framework, data were collected from 154 subjects using an online survey. The results indicate that consumer knowledge about FT has significant positive influence on their purchase intentions, but this relationship is mediated and strengthened by their beliefs and past behaviour. We offer various implications of these findings to FT businesses and organisations.
Fairtrade labeling has the potential to increase market efficiency by connecting farmers to altruistic consumers who are willing to pay a premium for sustainability-certified products. A requirement for increased efficiency, though, is that the farmers’ benefits are larger than the Fairtrade processing costs and the excess payment by consumers that does not accrue to farmers; otherwise direct transfers to farmers would be more efficient. This paper analyzes how excess payment for Fairtrade-labeled coffee is distributed in the Swedish market, using information on production costs and scanner data on almost all roasted and ground coffee products sold by retailers. A key finding is that roasters and retailers get 61–70%, while producer countries, in this paper comprising coffee farmers, cooperatives, middlemen, exporters, and Fairtrade International, get 24–31%; Fairtrade Sweden gets 6–8%. These values are the upper and lower bounds that reflect assumptions made about the additional costs of producing roasted and ground Fairtrade coffee, given the cost of beans and the Fairtrade license. The Fairtrade label thus seems to create a coffee product that roasters and retailers can use to exploit their market power.
Hammer (Fairtrade Max Havelaar • Norway), Per Persson (Friends Fair Trade)
- Norway -Ragnhild
Norway -Ragnhild Hammer (Fairtrade Max Havelaar
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Norway), Per Persson (Friends Fair Trade)
Humanitas) • Spain -Carola Reintjes (IDEAS) • Sweden -AnnCathrine Carlsson (The House of Fair • Trade)
- Slovenia -Eva Marn
Slovenia -Eva Marn (Humanitas)
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Spain -Carola Reintjes (IDEAS)
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Sweden -AnnCathrine Carlsson (The House of Fair
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Trade)