Fair Trade and Organic Agriculture A Winning Combination? Fair Trade and Organic Agriculture A Winning Combination? Edited by Priyanka Parvathi Ulrike Grote Hermann Waibel CABI is a trading name of CAB International CABI CABI Nosworthy Way 745 Atlantic Avenue Wallingford 8th Floor Oxfordshire OX10 8DE Boston, MA 02111 UK USA Tel: +44 (0)1491 832111 Tel: +1 (617)682-9015 Fax: +44 (0)1491 833508 E-mail: [email protected] E-mail: [email protected] Website: www.cabi.org © CAB International 2018. All rights reserved. No part of this publication may be reproduced in any form or by any means, electronically, mechanically, by photocopying, recording or otherwise, without the prior permission of the copyright owners. A catalogue record for this book is available from the British Library, London, UK. Library of Congress Cataloging-in-Publication Data Names: Parvathi, Priyanka, editor. Title: Fair trade and organic agriculture : a winning combination? / edited by Priyanka Parvathi, Ulrike Grote & Hermann Waibel. Description: Boston, MA : CABI, 2017. | Includes bibliographical references and index. Identifiers: LCCN 2017029487 (print) | LCCN 2017031465 (ebook) | ISBN 9781786394316 (pdf) | ISBN 9781786393074 (ePub) | ISBN 9781786393050 (hardback : alk. paper) Subjects: LCSH: Organic farming. | Anti-globalization movement. Classification: LCC S605.5 (ebook) | LCC S605.5 .F35 2017 (print) | DDC 631.5/84--dc23 LC record available at https://lccn.loc.gov/2017029487 ISBN-13: 9781786393050 (hbk) 9781786394316 (ePDF) 9781786393074 (ePub) Commissioning editor: David Hemming Associate editor: Alexandra Lainsbury Production editor: Tim Kapp Typeset by SPi, Pondicherry, India Printed and bound in the UK by Bell & Bain Ltd, Glasgow, G46 7UQ Contents Contributors vii Acknowledgements ix 1. An Overview of Organic Agriculture and Fair Trade Systems 1 Priyanka Parvathi and Hermann Waibel 2. Organic and Fairtrade Markets at a Glance 8 Julia Lernoud and Helga Willer 3. Organic and Fairtrade Production Worldwide 15 Julia Lernoud and Helga Willer 4. Evolution of Producer Organizations in Fair Trade Coffee Certification 30 Rene T. Capote-Fuentes, Ulrike Grote, Lee Byers and Till Stellmacher 5. Methodological Toolbox 43 Hermann Waibel and Priyanka Parvathi 6. Consumer Behaviour in the Organic and Fair Trade Food Market in Europe 51 Katrin Zander, Rosa Schleenbecker and Ulrich Hamm 7. Multiple Certifications and Consumer Purchase Decisions: a Case Study of Willingness to Pay for Coffee in Germany 61 Arnab K. Basu, Ulrike Grote, Robert Hicks and Till Stellmacher 8. Consumers’ Information Search and Preferences for Fair Trade Coffee: a Case Study from Germany 76 Rosa Schleenbecker, Katrin Zander and Ulrich Hamm 9. Gender-equality Chocolate: a Missing Market? 88 Casey Goldvale and Romane Viennet v vi Contents 10. Fair Trade Certification on Plantations: Household Wealth and Welfare Implications for Hired Labour 103 Katharina Krumbiegel and Meike Wollni 11. Assessing the Benefits of Organic and Fair Trade Production for Small-scale Farmers in Asia 118 Yuhui Qiao 12. The Impact of Certification on Material Input Costs in India 130 Priyanka Parvathi and Hermann Waibel 13. Dovetailing Fair Trade and Organic Agro-certifications in Latin America: How the Twins Can Meet? 141 Ricardo Fort and Ruerd Ruben 14. Certifying Coffee Cooperatives in Ethiopia, India and Nicaragua: How Far Do Small-scale Coffee Producers Benefit? 157 Pradyot Ranjan Jena, Ulrike Grote and Till Stellmacher 15. The Relevance of Reliability, Reputation and Respect for Producer-level Benefits of Organic and Fair Trade Certification for Smallholders 173 Linda Kleemann 16. The Way Forward 184 Priyanka Parvathi, Ulrike Grote and Hermann Waibel Index 187 Contributors Arnab K. Basu, Charles H. Dyson School of Applied Economics and Management, Cornell Univer- sity, Ithaca, New York, USA Lee Byers, Coffee and Tea, Global Product Management, Fairtrade International, Bonn, Germany Rene T. Capote-Fuentes, Coffee, Global Product Management, Fairtrade International, Bonn, Germany Ricardo Fort, GRADE Group for the Analysis of Development, Lima, Peru Ulrike Grote, Institute for Environmental Economics and World Trade, Leibniz University Hannover, Germany Casey Goldvale, Georgetown University, Washington, DC, USA Ulrich Hamm, Department of Agricultural and Food Marketing, University of Kassel, Germany Robert Hicks, Department of Economics, College of William and Mary, Williamsburg, Virginia, USA Pradyot Ranjan Jena, School of Management, National Institute of Technology, Karnataka, India Linda Kleemann, Research Area Poverty Reduction, Equity and Development, Kiel Institute for the World Economy. Katharina Krumbiegel, University of Goettingen, Department of Agricultural Economics and Rural Development, Germany Julia Lernoud, Department of Extension, Training and Communication, Research Institute of Organic Agriculture (FiBL), Frick, Switzerland Priyanka Parvathi, Institute of Development and Agricultural Economics, L eibniz University Hannover, Germany Yuhui Qiao, College of Resources and Environmental Sciences, China Agricultural University, Beijing, China Ruerd Ruben, Wageningen Economic Research, Wageningen University and Research Centre, The Netherlands Rosa Schleenbecker, Department of Agricultural and Food Marketing, University of Kassel, Germany Till Stellmacher, Center for Development Research (ZEF), University of Bonn, Germany Romane Viennet, Cornell University, Ithaca, New York, USA and Sciences Po Paris, France Hermann Waibel, Institute of Development and Agricultural Economics, Leibniz University Hannover, Germany Helga Willer, Department of Extension, Training and Communication, Research Institute of Organic Agriculture (FiBL), Frick, Switzerland vii viii Contributors Meike Wollni, University of Goettingen, Department of Agricultural Economics and Rural Development, Germany Katrin Zander, Thünen Institute of Market Analysis, Federal Research Institute for Rural Areas, Forestry and Fisheries, Braunschweig, Germany Acknowledgements We acknowledge the financial support of Wege in die Forschung II (Project funding for young scientists, Leibniz University Hannover) that enabled us to conduct and organize an international workshop in connection with this book. We thank all the contributors, authors and co-authors of the book for submitting their ideas and chapters as well as for playing a major role in the shaping of this book. In addition to submitting their own chapters; many authors and co-authors also thoroughly reviewed other chapters and we gratefully acknowledge this input. We tremendously appreciate their time and effort invested in the preparation of this book. As many of the case studies presented in this book are based on extensive field research, we would like to acknowledge all inputs from consumers and producers who participated in the data collection survey and made these studies possible. At CABI we would like to thank Rachel Cutts for her vital role in the inception of this book and to Dr David Hemming for his continued support and patience in the making of this book. His inputs are valued, appreciated and acknowledged. We also express our thanks to Emma McCann and Alexandra Lainsbury for their support from the administrative side in the development of this book. ix