Is Fairtrade in commercial farms justifiable?: its impact on commercial and small-scale producers in South Africa
- Jari, Bridget, Snowball, Jeanette D, Fraser, Gavin C G
- Authors: Jari, Bridget , Snowball, Jeanette D , Fraser, Gavin C G
- Date: 2013
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/69408 , vital:29519 , https://doi.org/10.1080/03031853.2013.847036
- Description: Fairtrade initially was limited to improving the lives of small-scale and peasant farmers, but later on it embraced commercial farmers, which attracted criticism. While there are a number of justifications for the Fairtrade organization's decision, there are authors who feel that meaningful “fair trade” cannot be achieved with the inclusion of commercial farms. This paper investigates the impact of Fairtrade on commercial farms and small-scale farmer cooperatives in South Africa. Fairtrade on South African commercial farms embraces a number of policy concerns related to land reform, BEE and sustainable development. The results of the study show that when commercial farms are included in the Fairtrade model, communities in which these farmers live benefit from developmental projects. In addition, in some instances, farm workers gain shares in the commercial farms, and benefit from the farm owners’ knowledge and capital.
- Full Text:
- Date Issued: 2013
- Authors: Jari, Bridget , Snowball, Jeanette D , Fraser, Gavin C G
- Date: 2013
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/69408 , vital:29519 , https://doi.org/10.1080/03031853.2013.847036
- Description: Fairtrade initially was limited to improving the lives of small-scale and peasant farmers, but later on it embraced commercial farmers, which attracted criticism. While there are a number of justifications for the Fairtrade organization's decision, there are authors who feel that meaningful “fair trade” cannot be achieved with the inclusion of commercial farms. This paper investigates the impact of Fairtrade on commercial farms and small-scale farmer cooperatives in South Africa. Fairtrade on South African commercial farms embraces a number of policy concerns related to land reform, BEE and sustainable development. The results of the study show that when commercial farms are included in the Fairtrade model, communities in which these farmers live benefit from developmental projects. In addition, in some instances, farm workers gain shares in the commercial farms, and benefit from the farm owners’ knowledge and capital.
- Full Text:
- Date Issued: 2013
An investigation into the impact of fairtrade in South Africa
- Authors: Jari, Bridget
- Date: 2012
- Subjects: Competition, Unfair -- Research -- South Africa Price maintenance -- Research -- South Africa Fair trade associations -- South Africa Sustainable development -- Africa, Southern
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:1006 , http://hdl.handle.net/10962/d1002741
- Description: World international trade is moving towards more free trade, through globalization and trade liberalization. These moves are guided by trade theories which state that on an aggregated level, nations involved in free trade should benefit, and further that free trade is fair. However, in practice, contradictory views have been raised, stating that free trade may not necessarily be benefiting all participants equally. Rather, other nations, especially developing nations, have become worse-off after opening up their markets for free trade. On the other hand, many developed nations have benefited substantially from free trade. Among other factors, the difference in benefits is believed to have been influenced by the types of commodities being traded (where developing nations mainly trade in primary goods and developed nations in anufactured goods) and unequal power relations (some nations for example, the EU and the US, still adopt protectionism in their agricultural sector). In order to address market imbalances resulting from free trade, Fairtrade has arisen. Fairtrade aims to improve international trading conditions in order to benefit small-scale farmers and farm workers in the developing nations. The Fairtrade organization further claims that its principles are in line with sustainable development. However, Fairtrade suffers a credibility gap because there is a lack of independent research to support their claims. To date in South Africa, there is little research examining the claims of the Fairtrade organization. In order to contribute to the Fairtrade discussion in South Africa, this study has investigated the validity of Fairtrade‘s claims that it contributes towards sustainable development. The study utilised primary data, which was collected from ten commercial farms and two small-scale farmer cooperatives located in the Eastern Cape and Western Cape provinces that are/were Fairtrade certified. The main reason for including commercial farmers and small-scale farmer cooperatives in the study was for comparing relative impacts in the two Fairtrade structures. The data was then analysed using a sustainable livelihoods framework, which was developed in the study. The study focussed on investigating the impact of Fairtrade tools, which are minimum prices, premiums, pre-financing and support for long-term relationships, on its intended beneficiaries. Minimum prices offered to producers cover production costs and are above market prices, and Fairtrade premiums are to be invested in developmental projects. Therefore, examining the influence of Fairtrade tools on individuals and communities provides an overview of how Fairtrade influences development. The results of the study show that sampled Fairtrade beneficiaries in South Africa have witnessed substantial positive changes as a result of Fairtrade. The Fairtrade initiative has managed to empower small-scale producers and farm workers, as well as leverage development opportunities for their wider communities. It has supported organizational development in the supply chain, facilitated investment in community development projects and in business-related training. Producers, both commercial and small-scale producers, managed to access a market that offers stable prices, and have gained from minimum prices. Furthermore, small-scale farmers have been allowed an opportunity to expand their business into export markets, and enjoyed an increase in incomes. Fairtrade benefits further trickle down to non-Fairtrade community members, in the form of employment creation and community development. Despite positive effects, Fairtrade producers faced challenges, including high Fairtrade administration costs and a small market for Fairtrade commodities. The study concludes that in the face of challenges, Fairtrade brings economic, social and environmental benefits, but as compared to economic and social development, the impact on environmental development is rather limited. Even though that is the case, Fairtrade offers valuable development opportunities to producers in South Africa.
- Full Text:
- Date Issued: 2012
- Authors: Jari, Bridget
- Date: 2012
- Subjects: Competition, Unfair -- Research -- South Africa Price maintenance -- Research -- South Africa Fair trade associations -- South Africa Sustainable development -- Africa, Southern
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:1006 , http://hdl.handle.net/10962/d1002741
- Description: World international trade is moving towards more free trade, through globalization and trade liberalization. These moves are guided by trade theories which state that on an aggregated level, nations involved in free trade should benefit, and further that free trade is fair. However, in practice, contradictory views have been raised, stating that free trade may not necessarily be benefiting all participants equally. Rather, other nations, especially developing nations, have become worse-off after opening up their markets for free trade. On the other hand, many developed nations have benefited substantially from free trade. Among other factors, the difference in benefits is believed to have been influenced by the types of commodities being traded (where developing nations mainly trade in primary goods and developed nations in anufactured goods) and unequal power relations (some nations for example, the EU and the US, still adopt protectionism in their agricultural sector). In order to address market imbalances resulting from free trade, Fairtrade has arisen. Fairtrade aims to improve international trading conditions in order to benefit small-scale farmers and farm workers in the developing nations. The Fairtrade organization further claims that its principles are in line with sustainable development. However, Fairtrade suffers a credibility gap because there is a lack of independent research to support their claims. To date in South Africa, there is little research examining the claims of the Fairtrade organization. In order to contribute to the Fairtrade discussion in South Africa, this study has investigated the validity of Fairtrade‘s claims that it contributes towards sustainable development. The study utilised primary data, which was collected from ten commercial farms and two small-scale farmer cooperatives located in the Eastern Cape and Western Cape provinces that are/were Fairtrade certified. The main reason for including commercial farmers and small-scale farmer cooperatives in the study was for comparing relative impacts in the two Fairtrade structures. The data was then analysed using a sustainable livelihoods framework, which was developed in the study. The study focussed on investigating the impact of Fairtrade tools, which are minimum prices, premiums, pre-financing and support for long-term relationships, on its intended beneficiaries. Minimum prices offered to producers cover production costs and are above market prices, and Fairtrade premiums are to be invested in developmental projects. Therefore, examining the influence of Fairtrade tools on individuals and communities provides an overview of how Fairtrade influences development. The results of the study show that sampled Fairtrade beneficiaries in South Africa have witnessed substantial positive changes as a result of Fairtrade. The Fairtrade initiative has managed to empower small-scale producers and farm workers, as well as leverage development opportunities for their wider communities. It has supported organizational development in the supply chain, facilitated investment in community development projects and in business-related training. Producers, both commercial and small-scale producers, managed to access a market that offers stable prices, and have gained from minimum prices. Furthermore, small-scale farmers have been allowed an opportunity to expand their business into export markets, and enjoyed an increase in incomes. Fairtrade benefits further trickle down to non-Fairtrade community members, in the form of employment creation and community development. Despite positive effects, Fairtrade producers faced challenges, including high Fairtrade administration costs and a small market for Fairtrade commodities. The study concludes that in the face of challenges, Fairtrade brings economic, social and environmental benefits, but as compared to economic and social development, the impact on environmental development is rather limited. Even though that is the case, Fairtrade offers valuable development opportunities to producers in South Africa.
- Full Text:
- Date Issued: 2012
Influence of institutional and technical factors on market choices of smallholder farmers in the Kat River Valley
- Jari, Bridget, Fraser, Gavin C G
- Authors: Jari, Bridget , Fraser, Gavin C G
- Date: 2012
- Subjects: To be catalogued
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/472999 , vital:77597 , ISBN 9789086861682 , 10.3920/978-90-8686-168-2
- Description: In the age of trade liberalisation and globalisation, the world markets are increasingly being integrated. This implies that farmers in the developing world are ever more linked to consumers and corporations of the rich nations. Consequently, local farmers are facing increasing market competition, not only in international markets but in local markets as well. In an effort to withstand the market pressures, agricultural markets are now transforming to a vertically coordinated structure (Reardon and Barrett, 2000). In addition, both the private and the public sectors have made some adjustments in agricultural markets, in order to survive competition resulting from market changes.
- Full Text:
- Date Issued: 2012
- Authors: Jari, Bridget , Fraser, Gavin C G
- Date: 2012
- Subjects: To be catalogued
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/472999 , vital:77597 , ISBN 9789086861682 , 10.3920/978-90-8686-168-2
- Description: In the age of trade liberalisation and globalisation, the world markets are increasingly being integrated. This implies that farmers in the developing world are ever more linked to consumers and corporations of the rich nations. Consequently, local farmers are facing increasing market competition, not only in international markets but in local markets as well. In an effort to withstand the market pressures, agricultural markets are now transforming to a vertically coordinated structure (Reardon and Barrett, 2000). In addition, both the private and the public sectors have made some adjustments in agricultural markets, in order to survive competition resulting from market changes.
- Full Text:
- Date Issued: 2012
Influence of institutional factors on smallholder farmers’ marketing channel choices
- Jari, Bridget, Fraser, Gavin C G, Obi, A
- Authors: Jari, Bridget , Fraser, Gavin C G , Obi, A
- Date: 2010
- Subjects: To be catalogued
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/473010 , vital:77598 , ISBN 978-90-8686-132-3 , https://brill.com/edcollbook/title/68924
- Description: Smallholder farmers are faced with a range of institutional challenges in produce marketing. In turn, these challenges influence their selection of marketing channels. In this chapter, a multinomial logistic regression model was used to test the significance of institutional factors in marketing. The results are based on a case study for smallholder farmers in the Kat River Valley, in South Africa. It is shown that the statistically significant variables are access to market information, expertise on grades and standards, availability of contractual agreements, existence of extensive social capital, group participation and reliance on traditions.
- Full Text:
- Date Issued: 2010
- Authors: Jari, Bridget , Fraser, Gavin C G , Obi, A
- Date: 2010
- Subjects: To be catalogued
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/473010 , vital:77598 , ISBN 978-90-8686-132-3 , https://brill.com/edcollbook/title/68924
- Description: Smallholder farmers are faced with a range of institutional challenges in produce marketing. In turn, these challenges influence their selection of marketing channels. In this chapter, a multinomial logistic regression model was used to test the significance of institutional factors in marketing. The results are based on a case study for smallholder farmers in the Kat River Valley, in South Africa. It is shown that the statistically significant variables are access to market information, expertise on grades and standards, availability of contractual agreements, existence of extensive social capital, group participation and reliance on traditions.
- Full Text:
- Date Issued: 2010
An analysis of institutional and technical factors influencing agricultural marketing amongst smallholder farmers in the Kat River Valley, Eastern Cape Province, South Africa
- Jari, Bridget, Fraser, Gavin C G
- Authors: Jari, Bridget , Fraser, Gavin C G
- Date: 2009
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470978 , vital:77405 , https://academicjournals.org/journal/AJAR
- Description: Smallholder farmers in the Kat River Valley do not use output markets effectively due to a number of factors. The technical and institutional factors that demoralise them from marketing are identified in this paper. It is asserted that an explicit analysis in the relationship between technology, institutions and markets may be useful in developing livelihood improving programs. Therefore, by identifying such factors, the paper seeks to find out ways of improving market participation among the smallholders, hence, livelihood development. The multinomial regression model was used to investigate the factors that influence marketing choices among smallholder and emerging farmers in the area under study. Empirical results show that market information, expertise on grades and standards, contractual agreements, social capital, market infrastructure, group participation and tradition significantly influence household marketing behaviour.
- Full Text:
- Date Issued: 2009
- Authors: Jari, Bridget , Fraser, Gavin C G
- Date: 2009
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470978 , vital:77405 , https://academicjournals.org/journal/AJAR
- Description: Smallholder farmers in the Kat River Valley do not use output markets effectively due to a number of factors. The technical and institutional factors that demoralise them from marketing are identified in this paper. It is asserted that an explicit analysis in the relationship between technology, institutions and markets may be useful in developing livelihood improving programs. Therefore, by identifying such factors, the paper seeks to find out ways of improving market participation among the smallholders, hence, livelihood development. The multinomial regression model was used to investigate the factors that influence marketing choices among smallholder and emerging farmers in the area under study. Empirical results show that market information, expertise on grades and standards, contractual agreements, social capital, market infrastructure, group participation and tradition significantly influence household marketing behaviour.
- Full Text:
- Date Issued: 2009
- «
- ‹
- 1
- ›
- »