Fairtrade And Market Failures In Agricultural Commodity Markets:
This paper concerns an NGO intervention in agricultural commodity markets known as Fairtrade. Fairtrade pays producers a minimum unit price and provides capacity building support to member cooperative organizations. Fairtrade's organizational capacity support targets those factors believed to r...
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| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
Washington, D.C
The World Bank
2006
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| Schlagworte: | |
| Online-Zugang: | BSB01 EUV01 HTW01 FHI01 IOS01 Volltext |
| Zusammenfassung: | This paper concerns an NGO intervention in agricultural commodity markets known as Fairtrade. Fairtrade pays producers a minimum unit price and provides capacity building support to member cooperative organizations. Fairtrade's organizational capacity support targets those factors believed to reduce the commodity producer's share of returns. Specifically, Fairtrade justifies its intervention in markets like coffee by claiming that market power and a lack of capacity in producer organizations 'marks down' the prices producers receive. As the market share of Fairtrade coffee grows in importance, its intervention in commodity markets is of increasing interest. Using an original data set collected from fieldwork in Costa Rica, this paper assesses the role of Fairtrade in overcoming the market factors it claims limits producer returns. Features of the Costa Rican input market for coffee permit a generalization of the results. The empirical results find that market power is a limiting factor in the Costa Rican market and that Fairtrade does improve the efficiency of cooperatives, thereby increasing the returns to producers. These results do not depend on the minimum price policy of Fairtrade and therefore can inform on its organizational support activities. Finally, the results also suggest that producers selling to vertically integrated, multinational coffee mills face lower producer price 'mark-downs' compared with domestically owned non-cooperative mills. This result contradicts the popular view that the increasing concentration of vertically integrated multinational firms accounts for a decline in producers' share of coffee returns |
| Beschreibung: | 1 Online-Ressource (63 Seiten)) |
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| 520 | 3 | |a This paper concerns an NGO intervention in agricultural commodity markets known as Fairtrade. Fairtrade pays producers a minimum unit price and provides capacity building support to member cooperative organizations. Fairtrade's organizational capacity support targets those factors believed to reduce the commodity producer's share of returns. Specifically, Fairtrade justifies its intervention in markets like coffee by claiming that market power and a lack of capacity in producer organizations 'marks down' the prices producers receive. As the market share of Fairtrade coffee grows in importance, its intervention in commodity markets is of increasing interest. Using an original data set collected from fieldwork in Costa Rica, this paper assesses the role of Fairtrade in overcoming the market factors it claims limits producer returns. Features of the Costa Rican input market for coffee permit a generalization of the results. The empirical results find that market power is a limiting factor in the Costa Rican market and that Fairtrade does improve the efficiency of cooperatives, thereby increasing the returns to producers. These results do not depend on the minimum price policy of Fairtrade and therefore can inform on its organizational support activities. Finally, the results also suggest that producers selling to vertically integrated, multinational coffee mills face lower producer price 'mark-downs' compared with domestically owned non-cooperative mills. This result contradicts the popular view that the increasing concentration of vertically integrated multinational firms accounts for a decline in producers' share of coffee returns | |
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| spelling | Ronchi, Loraine Verfasser aut Fairtrade And Market Failures In Agricultural Commodity Markets Ronchi, Loraine Washington, D.C The World Bank 2006 1 Online-Ressource (63 Seiten)) txt rdacontent c rdamedia cr rdacarrier This paper concerns an NGO intervention in agricultural commodity markets known as Fairtrade. Fairtrade pays producers a minimum unit price and provides capacity building support to member cooperative organizations. Fairtrade's organizational capacity support targets those factors believed to reduce the commodity producer's share of returns. Specifically, Fairtrade justifies its intervention in markets like coffee by claiming that market power and a lack of capacity in producer organizations 'marks down' the prices producers receive. As the market share of Fairtrade coffee grows in importance, its intervention in commodity markets is of increasing interest. Using an original data set collected from fieldwork in Costa Rica, this paper assesses the role of Fairtrade in overcoming the market factors it claims limits producer returns. Features of the Costa Rican input market for coffee permit a generalization of the results. The empirical results find that market power is a limiting factor in the Costa Rican market and that Fairtrade does improve the efficiency of cooperatives, thereby increasing the returns to producers. These results do not depend on the minimum price policy of Fairtrade and therefore can inform on its organizational support activities. Finally, the results also suggest that producers selling to vertically integrated, multinational coffee mills face lower producer price 'mark-downs' compared with domestically owned non-cooperative mills. This result contradicts the popular view that the increasing concentration of vertically integrated multinational firms accounts for a decline in producers' share of coffee returns Online-Ausg Access to Markets Agriculture Crops and Crop Management Systems Demand Export Markets International Economics & Trade Macroeconomics and Economic Growth Market Market Failures Market Power Market Share Marketing Markets Markets and Market Access Price Price Policy Price Risk Prices Producer Price Ronchi, Loraine Sonstige oth Ronchi, Loraine Fairtrade And Market Failures In Agricultural Commodity Markets http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-4011 Verlag URL des Erstveröffentlichers Volltext |
| spellingShingle | Ronchi, Loraine Fairtrade And Market Failures In Agricultural Commodity Markets Access to Markets Agriculture Crops and Crop Management Systems Demand Export Markets International Economics & Trade Macroeconomics and Economic Growth Market Market Failures Market Power Market Share Marketing Markets Markets and Market Access Price Price Policy Price Risk Prices Producer Price |
| title | Fairtrade And Market Failures In Agricultural Commodity Markets |
| title_auth | Fairtrade And Market Failures In Agricultural Commodity Markets |
| title_exact_search | Fairtrade And Market Failures In Agricultural Commodity Markets |
| title_exact_search_txtP | Fairtrade And Market Failures In Agricultural Commodity Markets |
| title_full | Fairtrade And Market Failures In Agricultural Commodity Markets Ronchi, Loraine |
| title_fullStr | Fairtrade And Market Failures In Agricultural Commodity Markets Ronchi, Loraine |
| title_full_unstemmed | Fairtrade And Market Failures In Agricultural Commodity Markets Ronchi, Loraine |
| title_short | Fairtrade And Market Failures In Agricultural Commodity Markets |
| title_sort | fairtrade and market failures in agricultural commodity markets |
| topic | Access to Markets Agriculture Crops and Crop Management Systems Demand Export Markets International Economics & Trade Macroeconomics and Economic Growth Market Market Failures Market Power Market Share Marketing Markets Markets and Market Access Price Price Policy Price Risk Prices Producer Price |
| topic_facet | Access to Markets Agriculture Crops and Crop Management Systems Demand Export Markets International Economics & Trade Macroeconomics and Economic Growth Market Market Failures Market Power Market Share Marketing Markets Markets and Market Access Price Price Policy Price Risk Prices Producer Price |
| url | http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-4011 |
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