The impact of fairtrade standard on smallholder coffee farmers and their organisations in selected areas in Tanzania .
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Date
2008
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Publisher
Sokoine University of Agriculture
Abstract
Fairtrade has become an alternative approach to convectional trade practices over the past decade. In Tanzania, Fairtrade organisations started doing transactions with Tanzanian coffee producers since early 1990s. Participation in Fairtrade initiatives has brought range of benefits and constraints to the producers and their respective communities. There have been several structural changes since 1999 when the last
Fairtrade impact study was done in Tanzanian coffee industry. Up to 2008, Fairtrade standard is yet to be recognized by Tanzania Coffee Board in auction system, though direct export regulations allow the fine washed Fairtrade Arabica coffee of top grades. There is no significant statistical difference in coffee yield and net coffee income (P<0.05) among sampled FT fanners compared to non FT farmers. Harvesting of old coffee trees and high management and operation costs facing FT farmers are among the reasons for insignificant difference in coffee yield and net income. FT premium at KNCU is retained for investment in crop quality and infrastructure improvements or community projects, while at AKSCG it is distributed to the farmers groups for infrastructure construction and/or improvement. FT farmers organisations are guaranteed coffee market, accessibility of imperative market information and organizational capacity building training by Fairtrade organizations (ATOs). Inability to sell all FT coffee stock through FT channel, low level of awareness on FT market, networks, premiums or price floors among FT producers were observed to be some of the constraints related to Fairtrade compliance. FLO should appraise its generic standard concerning value addition to raw coffee to provide smallholder farmers organisations with an opportunity to earn more. FT processors and millers can pursue TCB to recognize Fairtrade standard in auction
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system, this would be further step in creating FT market’ awareness among stakeholders in the coffee industry. FT farmers organisations should improve awareness on Fairtrade standard through educational training so that farmers can make informed decision concerning compliance.
Description
Dessertation
Keywords
Fairtrade Standard, Smallholder Coffee, Farmers, Organisations, Tanzania