16 Chapters
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5: Methodological Toolbox

Parvathi, P.; Grote, U.; Waibel, H. CABI PDF

5 

Methodological Toolbox

Hermann Waibel and Priyanka Parvathi*

Institute of Development and Agricultural Economics, Leibniz University

Hannover, Germany

5.1 Introduction

Rigorous scientific studies on organic and Fair

Trade agriculture can be undertaken with standard economic methodologies such as adoption studies, impact assessment, cost–benefit analysis and environmental economic analysis. However, organic and Fair Trade agriculture is expected to have effects that cannot be fully captured by standard economic analysis that is focused on economic efficiency criteria. Organic products address the health and environmental concerns of consumers and therefore environmental sustainability and health economics should be

­incorporated in the analysis. Fair Trade incorporates a pro-poor social premium in the price of their products and so distributional aspects with regards to wealth and access to resources should be included in the study. Methods that go beyond neoclassic welfare analysis, like assessment of indicators for ecological and social sustainability, poverty reduction and long-term wealth effects, are necessary tools that complement

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6: Consumer Behaviour in the Organic and Fair Trade Food Market in Europe

Parvathi, P.; Grote, U.; Waibel, H. CABI PDF

6 

Consumer Behaviour in the Organic and Fair Trade Food Market in Europe

Katrin Zander1*, Rosa Schleenbecker2 and Ulrich Hamm2

Thünen Institute of Market Analysis, Federal Research Institute for Rural Areas,

Forestry and Fisheries, Braunschweig, Germany; 2Department of Agricultural and

Food Marketing, University of Kassel, Germany

1

6.1 Introduction

The production of organic and Fair Trade products is usually aligned with higher production costs, which have to be covered somewhere in the supply chain. From earlier research it is well known that in Western markets consumer segments exist that are willing to ask for organic and Fair Trade products even if they are more expensive (Krystallis et al., 2006; Urena et al.,

2008; Corsi and Novelli, 2011; Liljenstolpe, 2011;

­Zander et al., 2013; Rödiger and Hamm, 2015).

Organic production and Fair Trade are process qualities that are not verifiable by consumers, either before or after purchase and consumption.

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4: Evolution of Producer Organizations in Fair Trade Coffee Certification

Parvathi, P.; Grote, U.; Waibel, H. CABI PDF

4 

Evolution of Producer Organizations in Fair Trade Coffee Certification

Rene T. Capote-Fuentes1*, Ulrike Grote2, Lee Byers3 and Till Stellmacher4

Coffee, Global Product Management, Fairtrade International, Bonn, Germany;

2

Institute for Environmental Economics and World Trade, Leibniz University

Hannover, Germany; 3Coffee and Tea, Global Product Management,

Fairtrade International, Bonn, Germany; 4Center for Development Research (ZEF),

University of Bonn, Germany

1

4.1 Introduction

Fair Trade is well known as an international certification system in the context of the global

Fair Trade movement. Fairtrade International has the vision of a world in which all small producers and workers can enjoy secure and sustainable livelihoods (Raynolds and Bennett, 2015;

Fairtrade International, 2016a). One of its best-­ known features in product categories such as coffee has to do with providing stable prices to producer organizations of small-scale farmers in developing countries by guaranteeing a minimum price in case the world market price falls below a certain sustainable level. In addition, it provides a price premium that aims to support investments in producers’ businesses, livelihoods and communities. The international Fair Trade certification system established its global office in Bonn,

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1: An Overview of Organic Agriculture and Fair Trade Systems

Parvathi, P.; Grote, U.; Waibel, H. CABI PDF

1 

An Overview of Organic Agriculture and Fair Trade Systems

Priyanka Parvathi* and Hermann Waibel

Institute of Development and Agricultural Economics,

Leibniz University Hannover, Germany

1.1 Introduction

Since the Brundtland Commission coined the term

‘sustainable development’ in its report Our Common Future (Brundtland Commission, 1987), this approach has increasingly gained global prominence. The concept relating to agriculture and rural development has been at the heart of many discussions among supporters and sceptics of sustainability. In this context, eco-friendly and ethical aspects of production like organic agriculture and fair trade have been discussed. Also global awareness concerning economic development, social equity and environmental protection has grown considerably.

In international agricultural debates, certification systems like Fair Trade and organic farming are considered as serving niche markets.

Fair Trade certification is used as a unique selling proposition in markets like coffee, banana, cocoa, mango and traditional handicrafts. Organic certification is more centred on high-value markets like cotton, tea, coffee and spices. In recent years, organic fruit and vegetables have also captured consumer interest in the developed nations. Though extensive agricultural debates on these subjects are lacking, both these certification systems provide a possibility for agriculture

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8: Consumers’ Information Search and Preferences for Fair Trade Coffee: a Case Study from Germany

Parvathi, P.; Grote, U.; Waibel, H. CABI PDF

8 

Consumers’ Information Search and Preferences for Fair Trade Coffee: a Case Study from Germany

Rosa Schleenbecker1*, Katrin Zander2 and Ulrich Hamm1

Department of Agricultural and Food Marketing, University of Kassel, Germany;

2

Thünen Institute of Market Analysis, Federal Research Institute for Rural Areas,

Forestry and Fisheries, Braunschweig, Germany

1

8.1 Introduction

The aim of this case study is to analyse

­consumers’ preferences as reflected in their information search when shopping for Fair Trade products. Information and its credibility play a crucial role since Fair Trade and organic products are, as described in Chapter 6, so-called credence goods (e.g. Padel and Foster, 2005; Janssen and Hamm, 2012). Information provided by food suppliers has to match consumers’ information needs in order to reduce the feeling of an information overload (Hwang and Lin, 1999; Verbeke,

2005). Knowing about consumers’ knowledge, motives and information search behaviour gives marketers the basis for designing effective communication measures.

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