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Do Fair Trade Pricing Policies Reduce Inequalities in Coffee Production and Trade?

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  • Joni Valkila

Abstract

type="main"> This article assesses the Fair Trade pricing model for coffee, investigating the ability of minimum prices and a social premium to reduce price risk and remedy inequalities. It highlights some of the challenges involved in controlling prices. Inequalities exist among Fair Trade-certified farmers; some are poorer than others, and the poorer ones typically produce less coffee. If Fair Trade succeeds in its aim of raising the prices received by farmers, this will benefit more those farmers producing greater volumes of coffee and who are typically less vulnerable. In addressing inequalities, the Fair Trade social premium is superior to minimum prices.

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  • Joni Valkila, 2014. "Do Fair Trade Pricing Policies Reduce Inequalities in Coffee Production and Trade?," Development Policy Review, Overseas Development Institute, vol. 32(4), pages 475-493, July.
    • Handle: RePEc:bla:devpol:v:32:y:2014:i:4:p:475-493
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    References listed on IDEAS

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    1. Bacon, Christopher M., 2010. "Who decides what is fair in fair trade? The agri-environmental governance of standards, access, and price," Center for Global, International and Regional Studies, Working Paper Series qt8px4f62v, Center for Global, International and Regional Studies, UC Santa Cruz.
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    Cited by:

    1. Victor V. Claar & Colleen E. Haight, 2015. "Fair Trade Coffee: Correspondence," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 215-216, Winter.
    2. Ignaciuk, Ada & Ilicic, Joanna & Asprooth, Lauren & Sitko, Nicholas J. & Bernard, Angela & Maggio, Giuseppe & Tubiello, Francesco N. & Mueller, Marc, 2021. "Progress towards sustainable agriculture – Drivers of change," FAO Agricultural Development Economics Technical Study 319833, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    3. Juan M. C. Larrosa & Leandro Meller & Juan I. Uriarte & Gonzalo R. Ramírez Muñoz de Toro, 2023. "Retail coffee pricing dynamics in Argentina," SN Business & Economics, Springer, vol. 3(8), pages 1-21, August.
    4. Wang, Xiaojin, 2016. "Is Fair Trade Fair for Consumers? A Hedonic Analysis of U.S. Retail Fair Trade Coffee Prices," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236344, Agricultural and Applied Economics Association.

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