Fair trade in the Eastern Cape: an examination of its socio-economic impact and challenges among emerging Black farmers

• Main Author: Mugabe, T C
• Format: Others
• Language: English
• Published: University of Fort Hare 2011
• Subjects: Reciprocity (Commerce) > South Africa > Eastern Cape; Citrus fruit industry > South Africa > Eastern Cape; Citrus fruit industry > Cooperative marketing > South Africa > Eastern Cape; Farmers > Economic conditions; Rural development > South Africa > Eastern Cape
• Online Access: http://hdl.handle.net/10353/441

This study examines the socio-economic impact of fair trade on black emerging citrus fruit farmers in the Eastern Cape Province of South Africa. It is a comparative analysis of farmers involved in fair trade and those who are not. Farmers from Riverside Enterprise and Sundays River Citrus Cooperative were examined to evaluate the impact of fair trade. Such impact was analyzed through looking at access farmers have to foreign markets and their ability to receive high income returns from these markets. The study also discusses the influence fair trade has on the social and economic development of the farmers’ communities. The findings of the study indicate how most fair trade communities have benefited financially and through public infrastructure such as crèches, learning centers and access to computers for both farmers and workers. Such public developments are funded through the fair trade social dividend which is a premium farmers receive for selling their fruit under fair trade. However, the study findings also indicate the limitations of fair trade; farmers have to incur high costs to become fair trade accredited. The study also examines the commodity value chains (hereinafter referred to as CVC) for citrus fair trade farmers and non fair trade farmers. This analysis reveals the procedure of value chains, their benefits and constraints.