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

Joni Valkila

Development Policy Review, 2014, vol. 32, issue 4, 475-493

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.

Date: 2014
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