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putting learning first
THE IMPACT OF FAIR TRADE ON
PRODUCERS AND THEIR ORGANISATIONS:
A CASE STUDY WITH COOCAFÉ IN COSTA RICA.

LORAINE RONCHI

PRUS WORKING PAPER NO. 11
June 2002

Poverty Research Unit at Sussex
University of Sussex
Falmer, Brighton
BN1 9SJ
Tel: 01273 678739
Email:pru@sussex.ac.uk
Website: http://www.sussex.ac.uk/Users/PRU

Abstract
Fair Trade attempts to address the poverty issues of small Southern producers through the payment of a ‘fair price’ for their goods and the provision of support services for producer organisations. Although Fair Trade is overwhelmingly identified with the ‘fair price’ paid by participating importers and buyers, sketching the possible avenues of impact reveal that many of the effects of Fair Trade on the quality of life of producers are felt through the organisational development supported by Fair Trade organisations. This study examines the impact of 10 years of Fair Trade in coffee in Costa Rica and reveals the importance of organisational development support for the stakeholders of the nine
Costa Rican coffee co-operatives.

ii

Table of Contents
Preface
1. Introduction ....................................................................................................................1
1.1 Fair Trade.......................................................................................................................1
1.2 Fair Trade, Producer Organisations and Quality of Life ................................................1
1.3 Outline of the Study........................................................................................................3
2. The Case Study..............................................................................................................4
2.1 Coffee in Costa Rica......................................................................................................4
2.2 Fair Trade in Costa



Bibliography: CooCafé (1992, 1993, 1994, 1995, 1996, 1997, 1998a, 1999a) Actas de Asamblea General de Delegados de CooCafé .(1999b) Perfil Institucional. Alajuela: Cooafé. COOPELDOS R.L. (1996) “En COOPELDOS R.L. Sembramos Progreso” in COOPELDOS R.L COOPE SARAPIQUI R.L. (1995, 1996, 1998) Actas de Asamblea. San Miguel de Sarapiquí: SARAPIQUI. EFTA (European Fair Trade Association) (1998) Fair Trade Yearbook: Towards 2000.Maastricht: EFTA. EMA (Energia, Medio Ambiente y Desarollo) (1999) La Gestión Socio-Ambiental de CooCafé R.L FAO. (2000) Coffee, Green, Area Harv (Ha): Costa Rica. http://apps1.fao.org/servlet. FEDECOOP (Federación de Co-operativas de Caficultores R.L) (1990) Indices financieros de Co-operativas Afiliadas Periodo 89-90 FCF (Fundación Café Forestal) (1996) Annual Report. Cañas: FCF. Castro, Ramón Gonzalez (1999) Informe de Programas 1999: FUNDACION HIJOS DEL CAMPO Haller, L.E. (1993) “Branded product marketing strategies in the cottage cheese market: Co-operative versus proprietary firms”, in R.W International Coffee Organisation (ICO) (1996) ICO Coffee Profile: Costa Rica. London ICO. International Co-Operative Alliance (1995) “Co-operatives and sustainable human development: the global perspective”, Review of international co-operation 88, No.3, Icafé (Instituto del Café de Costa Rica) (1999) Costa Rica Coffee Exports to All Destination in Bags of 69 Kg during October 1st to September 30th Mynt (1954) An interpretation of economic backwardness. Oxford Economist Paper June 1954 cited in Hunt, D Neilsen, O. (1998) Travel Report: Costa Rica. Bonn: FLO. Office of Rural Health (1997) Study. Los Angeles: Costa Rica. Ronchi, Loraine. (1998)The Economics of Fair Trade. MPhil Thesis. Oxford: University of Oxford. Schuurman, F and F. van Driel. (1999) Evaluation of the Impact of the FLO Model: An analysis of the significance for coffee farmers and coffee co-operatives Wills, R.L. (1985) “Evaluating price enhancement by processing co-operatives”, American Journal of Agricultural Economics 67: 183-192.

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