FTIS 2008 (Fair Trade International Symposium)

Impacts of Fair Trade-certification on Coffee Farmers, Cooperatives, and Laborers in Nicaragua

VALKILA J., et NYGREN A., University of Helsinki, Finland

Abstract

This paper analyzes the possibilities and challenges involved in the Fair Trade certification as a movement that seeks to improve the living conditions of small-scale coffee growers and coffee laborers in the global South. Six months of fieldwork was conducted in 2005–2006 to study a wide range of farmers, laborers, cooperative administrators, and export companies involved in Fair Trade coffee production and trade in Nicaragua. The results indicate that the Fair Trade’s opportunities to provide a significant price premium for participating farmers largely depend on the world coffee prices in the mainstream markets. While Fair Trade has encouraged the social networks of participating farmers and strengthened the institutional capacities of the involved cooperatives, the ability of the Fair Trade to significantly enhance the working conditions of hired coffee laborers remain limited.