IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v59y2013i1id41-2012-agricecon.html
   My bibliography  Save this article

How effective is Fair Trade as a tool for the stabilization of agricultural commodity markets? Case of coffee in the Czech Republic

Author

Listed:
  • Jiří HEJKRLÍK

    (Faculty of Tropical AgriSciences, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • Jana MAZANCOVÁ

    (Faculty of Tropical AgriSciences, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • Karolína FOREJTOVÁ

    (Faculty of Tropical AgriSciences, Czech University of Life Sciences Prague, Prague, Czech Republic)

Abstract

Fair Trade is one of the leading systems of the Corporate Social Responsibility and a price stabilization mechanism for producers in developing countries. It is being practiced by more and more Czech importers and manufactures of the tropical agricultural commodities. Coffee represents the highest market share. However, a higher final retail price functions as a strong inhibitor of the dynamic market growth. The article uses the linear static model applied to various consumer-perceived factors influencing the retail price of the conventional, organic and Fair Trade coffee available in the Czech Republic. The quantitative research is supported by the questionnaire for the analysis of the attitude of regular Fair Trade buyers towards the perceived quality and price expectations of the Fair Trade coffee. Even after the stratification of the coffee market into low and high market products and brands, the Fair Trade quality shows a very strong influence on the final retail price. The efficiency of Fair Trade expressed in terms of the ratio of the price premium paid by the consumer and the price premium received by the producer is in the current stage of the Fair Trade market questionable.

Suggested Citation

  • Jiří HEJKRLÍK & Jana MAZANCOVÁ & Karolína FOREJTOVÁ, 2013. "How effective is Fair Trade as a tool for the stabilization of agricultural commodity markets? Case of coffee in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(1), pages 8-18.
    • Handle: RePEc:caa:jnlage:v:59:y:2013:i:1:id:41-2012-agricecon
    DOI: 10.17221/41/2012-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/41/2012-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/41/2012-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/41/2012-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Jonathan Murdoch & Terry Marsden & Jo Banks, 2000. "Quality, Nature, and Embeddedness: Some Theoretical Considerations in the Context of the Food Sector," Economic Geography, Taylor & Francis Journals, vol. 76(2), pages 107-125, April.
    2. Karla Utting, 2009. "Assessing the Impact of Fair Trade Coffee: Towards an Integrative Framework," Journal of Business Ethics, Springer, vol. 86(1), pages 127-149, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierpaolo Andriani & Carsten Herrmann-Pillath, 2015. "Transactional innovation as performative action: transforming comparative advantage in the global coffee business," Journal of Evolutionary Economics, Springer, vol. 25(2), pages 371-400, April.
    2. Corsi, Alessandro & Novelli, Silvia & Pettenati, Giacomo, 2014. "Alternative Food Networks in Piedmont: determinants of on-farm and off-farm direct sales by farmers," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201439, University of Turin.
    3. Clarisse Cazals & Marie Lemariè, 2011. "Land-use conflicts and quality on the coastal area "Bassin d'Arcachon": a regional newspapers analysis," ERSA conference papers ersa10p1331, European Regional Science Association.
    4. Sarah Bowen & Tad Mutersbaugh, 2014. "Local or localized? Exploring the contributions of Franco-Mediterranean agrifood theory to alternative food research," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(2), pages 201-213, June.
    5. E. DuPuis & Sean Gillon, 2009. "Alternative modes of governance: organic as civic engagement," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 26(1), pages 43-56, March.
    6. Gallardo, R. Karina & Olanie, Aaron & Ordóñez, Rita & Ostrom, Ostrom, 2015. "The Use of Electronic Payment Machines at Farmers Markets: Results from a Choice Experiment Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(01), pages 1-26, February.
    7. Blackman, Allen & Naranjo, Maria A., 2012. "Does eco-certification have environmental benefits? Organic coffee in Costa Rica," Ecological Economics, Elsevier, vol. 83(C), pages 58-66.
    8. Gallardo, Rosa Karina & Olanie, Aaron, 2012. "The Use of Wireless Capability at Farmers Markets: Results from a Choice Experiment Study," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124891, Agricultural and Applied Economics Association.
    9. McKeever, Edward & Jack, Sarah & Anderson, Alistair, 2015. "Embedded entrepreneurship in the creative re-construction of place," Journal of Business Venturing, Elsevier, vol. 30(1), pages 50-65.
    10. Gerhard Rainer, 2021. "Geographies of qualification in the global fine wine market," Environment and Planning A, , vol. 53(1), pages 95-112, February.
    11. Laura Silva-Castañeda, 2012. "A forest of evidence: third-party certification and multiple forms of proof—a case study of oil palm plantations in Indonesia," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(3), pages 361-370, September.
    12. Coley, David & Howard, Mark & Winter, Michael, 2009. "Local food, food miles and carbon emissions: A comparison of farm shop and mass distribution approaches," Food Policy, Elsevier, vol. 34(2), pages 150-155, April.
    13. Brian Ilbery & Damian Maye, 2005. "Alternative (Shorter) Food Supply Chains and Specialist Livestock Products in the Scottish–English Borders," Environment and Planning A, , vol. 37(5), pages 823-844, May.
    14. Aliye Ahu Akgün & Peter Nijkamp & Tüzin Baycan & Martijn Brons, 2010. "Embeddedness Of Entrepreneurs In Rural Areas: A Comparative Rough Set Data Analysis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(5), pages 538-553, December.
    15. Baptista, Alberto & Tiberio, Luis & Cristovao, Artur, 2010. "Sustainability of Local Agri-food Products in the Border Area of Northern Portugal and Castilla-Léon," 116th Seminar, October 27-30, 2010, Parma, Italy 94925, European Association of Agricultural Economists.
    16. Hidayat, Kurniawati Nia & Glasbergen, Pieter & Offermans, Astrid, 2015. "Sustainability Certification and Palm Oil Smallholders’ Livelihood: A Comparison between Scheme Smallholders and Independent Smallholders in Indonesia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(3), pages 1-24, September.
    17. Lobley, Matt & Reed, Matthew J. & Butler, Allan J., 2005. "The Impact of Organic Farming on the Rural Economy in England," Research Reports 31747, University of Exeter, Centre for Rural Policy Research.
    18. Anna Krzywoszynska, 2015. "Wine is not Coca-Cola: marketization and taste in alternative food networks," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(3), pages 491-503, September.
    19. Elizabeth Barham, 2002. "Towards a theory of values-based labeling," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 19(4), pages 349-360, December.
    20. Marilyn Sitaker & Jane Kolodinsky & Weiwei Wang & Lisa C. Chase & Julia Van Soelen Kim & Diane Smith & Hans Estrin & Zoe Van Vlaanderen & Lauren Greco, 2020. "Evaluation of Farm Fresh Food Boxes: A Hybrid Alternative Food Network Market Innovation," Sustainability, MDPI, vol. 12(24), pages 1-25, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:59:y:2013:i:1:id:41-2012-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.