The impact of fairtrade in producer countries : a meta review on price and income effects in the coffee sector

Sustainability standards and value-adding certifications have become a popular approach to addressing inequalities within the global trade system. Based on the mechanism of the market, certification initiatives provide market access and preferential terms of trade for disadvantaged agents while operating within the persistent market structures. In particular, the market for standard-compliant coffee, but also for a wide range of other commodities, has experienced substantial growth in recent years. This diploma thesis addresses the question whether Fairtrade certification standards have an impact at the local level of small-scale producers in developing countries. The focus lies on implications on economic outcomes such as price and income effects. It will be shown that Fairtrade standards are largely associated with positive effects on outcomes. However, the magnitude of price and income effects varies considerably in accordance to the current situation on the global market as well as within a national context. It will be argued that although certification works well as an interim solution for a limited number of producers, in order to change persistent market structures the intervention at the level of global governance will be inevitable in the long-term.
von Isabella Kopp
Diplomarbeit Universität Innsbruck 2018