The impact of Fair Trade on banana producers in northern Peru

Ricardo Fort () and Ruerd Ruben

No 50964, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists

Abstract: This study provides one of the first detailed analyses of the impact of Fair Trade (FT) banana certification at the household level. With a careful selection of treatment and control farmers (through their associations) and the use of a propensity score matching technique, we were able to construct an appropriate counterfactual for the situation of FT farmers prior to their involvement in this supply chain. Due to the fact that all sales of banana FT in the Chira Valley also have an organic certification, and to be able to distinguish the effects of FT involvement from the effects of participating in the organic market, we compared the outcomes of organic farmers which belong to a FT association with the outcomes of two different types of farmers: (a) organic farmers which belong to an association recently FT certified, and (b) conventional farmers in the same area which do not belong to any association. Our results provide clear evidence of an impact of FT involvement on income and overall welfare indicators for banana farmers in the Chira Valley. These improvements are not only achieved via the better price obtained for FT sales but also because of higher productivity levels obtained as a results of the FT premium investment.

Keywords: Community/Rural/Urban; Development (search for similar items in EconPapers)
Pages: 21
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://ageconsearch.umn.edu/record/50964/files/352%20RFort.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae09:50964

DOI: 10.22004/ag.econ.50964

Access Statistics for this paper

More papers in 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().