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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. [ABSTRACT FROM AUTHOR]

Apparel and the attributes they portray have an opportunity to influence the willingness to pay (WTP) of those who purchase them. While there have been a number of studies examining WTP, few examine purchases in a festival setting. The goal of this study was to explore participants’ WTP for apparel based on a more external motivation (visible environmental message) and/or an internal motivation (environmentally sustainable certification) at a festival. A total of 427 structured surveys were administered at a folk music festival in Canada. The study examined two differing approaches to product design for environmentally linked apparel: a message visible on the outside of the garment vs. an environmental certification inside the garment. A contingent valuation methodology was used to measure WTP and analysis conducted with Repeated Measures ANOVA. Results indicate that both product designs significantly increased WTP for the t-shirt as described. Implications of this study suggest that an enhanced understanding of the factors influencing attendee’s WTP for apparel attributes can lead to better meeting the wants of attendees, more sales and higher margins on sales. [ABSTRACT FROM AUTHOR]

Abstract: Participation in Global Value Chains or International Value Chains dominated by industries and retailers from the developed world may allow the enterprises of developing countries access to the international market, but at the same time may give rise to difficulties for them. For lower income players, standing up to dominant players may involve developing strategies based on product certification driven, for instance, by growing consumer demand for organic products, Fair Trade products or products bearing a link with the culture and the history of the place of production. Geographical Indications (GIs) may thus represent an opportunity for developing countries to move into lucrative niche markets. Nevertheless, I argue that GI schemes embedded in Global or International Value Chains and implemented as a product differentiation strategy in developing countries may support the technical and economic development of some rural areas but at the same time they can contribute to the exclusion of farmers in more marginalised areas from the benefits of the initiative. There are two parts in the study. The first provides the theoretical framework on GIs and other certification schemes run in Latin American countries involved in Global Value Chains. The second part is a case study on cheese-dairy Value Chains in Nicaragua and a GI initiative for a Nicaraguan cheese, Queso Chontaleño (QC), embedded in an International Value Chain. The findings of the research constitute a warning to policy makers dealing with GIs in Latin American countries: when traditional Value Chains tend to be isolated and lacking independent governance mechanisms, GIs, like other types of certification, can become factors of increased marginalization, unless they are supported by adequate rural policies and legislation as well as a concerted transfer of knowledge. [Copyright &y& Elsevier]

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Consumers are paying more and more attention to ethical and social criteria during grocery shopping. As a result, Fair Trade products which are certified to address global supply chain issues (e.g., forced labor, working conditions, fair pay), are gaining popularity. However, it is unclear to which extent Fair Trade labels might influence how consumers perceive such labelled food products. The aim of this research was to examine the potential effect of Fair Trade labels on several measurements (overall liking, sensory profiling, emotions, willingness-to-pay and kCal estimations). Furthermore, tests were carried out at a sensory lab and at home to examine if the evaluation context might impact the label effect. In total, 179 consumers participated in this study of which 90 carried out the test in the sensory test facilities (central location test—CLT) and 89 at home (home-use-test—HUT). Participants evaluated three pairs of food products (nuts, juice and chocolate) of which one was labelled as conventional and the other one as Fair Trade. However, participants were each time evaluating the same Fair Trade product. Results showed that the Fair Trade label increased the overall liking. For the juice and chocolate, a higher willingness-to-pay was found when the product was labelled as 'Fair Trade' while no effect of the label was established for the nuts. The Fair Trade label did not affect the kcal estimation of the samples. The Fair Trade label had a rather limited influence on the sensory and emotional profiling of the food products. Furthermore, the results of the CLT and HUT were highly similar indicating that the evaluation context has little impact on the labelling effect. [ABSTRACT FROM AUTHOR]