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Fair Trade, Producer Empowerment and Contract Production

2016, Library of Studies, SECO All Topics, Fair Trade, Private Sector

In view of the upcoming review on Fairtrade Standards by Max Havelaar Switzerland, this paper aims to (1) conceptualize the notion of empowerment; (2) describe different Fairtrade models, analyse them using the outlined concept of empowerment, and compare the models with each other; and (3) propose solutions to the challenge of promoting Small Producer Organisations (SPO) in a Fairtrade (FT) Contract Production (CP) context. The analysis is based on in-depth literature research as well as three interviews with experts from Max Havelaar Switzerland, bioRe Foundation, and Fairtrade International. The authors will argue in favour of a multifaceted assessment of empowerment, including economic and social aspects. The finding is made that SPOs represent, however with room for further improvement, a valuable way to foster producer empowerment. In this regard, the authors develop three solutions to enhance the promotion of SPOs in FT CP, improve producer empowerment and create a win-win situation between the producers and the buyer: (1) A third party is made responsible for the introduction of an SPO and the measures to be implemented, including productivity and efficiency enhancing strategies by means of a forum; (2) the transition to an SPO through trust building between the producers and the Promoting Body (PB); (3) expanding small farmer activities to sub-crops with the options of marketing carried out by the PB or the SPO itself. Based on the findings, the authors elaborate a multidimensional model of transition, bringing together insights from the proposed approaches. It is argued that the introduction of an SPO should be included in the FT CP Standard as a core and thus mandatory criterion, compared to the current state as a developmental goal. In this respect, the authors further suggest, among others: to enshrine a positive and trustful relation between buyer and small producers as a major success factor; to include the notion of sustainable intensification, entailing productivity and efficiency enhancing strategies by establishing a forum; to integrate the expansion to sub-crops; to include dispute settlement mechanisms into the Fairtrade system to ensure binding rights and clear procedures.

Fair Trade, Producer Empowerment and Contract Production FULL PDF

2016, Library of Studies, SECO All Topics, Fair Trade, Private Sector

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