Abstract:
Fair trade is a social movement that intends to empower and enhance the livelihood of smallscale producers in developing countries through higher prices for their goods; favourable market access to consumers in developed countries and; financial resources for social and environmental projects to benefit their communities. Fair trade initially supported handcraft producers and has now expanded to commodities, of which coffee has become the most traded good. Currently, fair trade is extremely popular among consumers in developed countries and its products are distributed through major supermarket chains. Yet, over the past ten years, the legitimacy of the movement has been questioned due to the involvement of multinational corporations, which have undermined small-scale farmers’ value chains governance power and upgrading opportunities (Jaffee, 2007; Jaffee, 2010a). This research analyses the effectiveness of fair trade through a global value chain approach. Fieldwork was undertaken in El Salvador from June to July 2012 on two fairtade certified coffee cooperatives. Their compliance with fair trade was assessed in relation to the Small Producers’ Symbol standards. The analysis shows that the effectiveness of fair trade is relative and greatly varies from one cooperative to another. Small-scale farmers and cooperatives perceive different economic, social and environmental benefits and limitations of being connected to fair trade.
