Contribution of fair trade labeled coffee to better living standard for certified coffee farmers in Ethiopia

Rebecca Regassa Ashame, BA

Master's thesis

Abstract:

Coffee is one of the world’s most traded commodity but as the commodity price has fluctuated in recent years it is increasingly hard for coffee farmers to survive on their crops. Fair Trade labeled products have become increasingly popular worldwide in recent years. Fairtrade Labeling Organization International (FLO) claims to contribute to development by increasing profits to farmers and empowering producer communities. This thesis evaluates the economic impact of fairtrade to improve the living condition of small scale farmers in southern Ethiopia. A field study in the Gedeo zone Ethiopia has been done for the purpose. A qualitative research approach has been used in a survey with coffee farmers and cooperative managers. Findings show that fairtrade certification of cooperatives has benefited and has a moderate impact on small-scale coffee farmers and it brings economic benefits to farmers. The average price of coffee offered by the cooperatives is 17.68ETB/kg approximately 0.56$/kg which is relatively high. In addition to that farmers receive the dividend from surplus and premium that is to be invested in the community, and the cooperatives offer training which would enhance their production capacity. But issues like political unrest (ethnic violence) in the region, inadequate capital and non-transparency of management restricts economic development.

Keywords

Coffee cooperatives, Ethiopia, Small scale farmers, Fairtrade

Language used: English

Date on which the thesis was submitted / produced: 6. 4. 2020

Thesis defence

• Supervisor: Ing. Pavel Kotyza, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management