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The impact of Fair Trade on banana producers in northern Peru

Author

Listed:
  • Fort, Ricardo
  • Ruben, Ruerd

Abstract

This study provides one of the first detailed analyses of the impact of Fair Trade (FT) banana certification at the household level. With a careful selection of treatment and control farmers (through their associations) and the use of a propensity score matching technique, we were able to construct an appropriate counterfactual for the situation of FT farmers prior to their involvement in this supply chain. Due to the fact that all sales of banana FT in the Chira Valley also have an organic certification, and to be able to distinguish the effects of FT involvement from the effects of participating in the organic market, we compared the outcomes of organic farmers which belong to a FT association with the outcomes of two different types of farmers: (a) organic farmers which belong to an association recently FT certified, and (b) conventional farmers in the same area which do not belong to any association. Our results provide clear evidence of an impact of FT involvement on income and overall welfare indicators for banana farmers in the Chira Valley. These improvements are not only achieved via the better price obtained for FT sales but also because of higher productivity levels obtained as a results of the FT premium investment.

Suggested Citation

  • Fort, Ricardo & Ruben, Ruerd, 2009. "The impact of Fair Trade on banana producers in northern Peru," 2009 Conference, August 16-22, 2009, Beijing, China 50964, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:50964
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    File URL: http://ageconsearch.umn.edu/record/50964/files/352%20RFort.pdf
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    References listed on IDEAS

    as
    1. Mark Hayes, 2006. "On the efficiency of fair trade," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 447-468.
    2. Steven Suranovic, 2002. "International Labour and Environmental Standards Agreements: Is This Fair Trade?," The World Economy, Wiley Blackwell, vol. 25(2), pages 231-245, February.
    3. Aimee Shreck, 2005. "Resistance, redistribution, and power in the Fair Trade banana initiative," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 22(1), pages 17-29, March.
    4. Sheila Page & Rachel Slater, 2003. "Small Producer Participation in Global Food Systems: Policy Opportunities and Constraints," Development Policy Review, Overseas Development Institute, vol. 21(5-6), pages 641-654, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Blackman, Allen & Rivera, Jorge, 2010. "The Evidence Base for Environmental and Socioeconomic Impacts of “Sustainable” Certification," Discussion Papers dp-10-10-efd, Resources For the Future.
    2. Blackman, Allen & Naranjo, María Angélica & Robalino, Juan & Alpízar, Francisco & Rivera, Jorge, 2014. "Does Tourism Eco-Certification Pay? Costa Rica’s Blue Flag Program," World Development, Elsevier, vol. 58(C), pages 41-52.
    3. Raluca Dragusanu & Nathan Nunn, 2018. "The Effects of Fair Trade Certification: Evidence from Coffee Producers in Costa Rica," NBER Working Papers 24260, National Bureau of Economic Research, Inc.
    4. Kleemann, Linda & Abdulai, Awudu & Buss, Mareike, 2014. "Certification and Access to Export Markets: Adoption and Return on Investment of Organic-Certified Pineapple Farming in Ghana," World Development, Elsevier, vol. 64(C), pages 79-92.
    5. repec:eee:wdevel:v:102:y:2018:i:c:p:195-212 is not listed on IDEAS
    6. repec:hal:journl:dumas-00933469 is not listed on IDEAS
    7. Krumbiegel, Katharina & Maertens, Miet & Wollni, Meike, 2017. "The role of Fairtrade certification for wages and job satisfaction of plantation workers. Revised version," GlobalFood Discussion Papers 258582, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. Krumbiegel, Katharina & Maertens, Miet & Wollni, Meike, 2018. "The Role of Fairtrade Certification for Wages and Job Satisfaction of Plantation Workers," World Development, Elsevier, vol. 102(C), pages 195-212.
    9. Kleemann, Linda & Abdulai, Awudu & Buss, Mareike, 2013. "Is organic farming worth its investment? The adoption and impact of certified pineapple farming in Ghana," Kiel Working Papers 1856, Kiel Institute for the World Economy (IfW).
    10. repec:eee:wdevel:v:112:y:2018:i:c:p:282-312 is not listed on IDEAS
    11. Ana C. Dammert & Sarah Mohan, 2015. "A Survey Of The Economics Of Fair Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 855-868, December.
    12. repec:rnd:arjebs:v:5:y:2013:i:2:p:69-81 is not listed on IDEAS

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    Keywords

    Community/Rural/Urban Development;

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