Impact of Fair Trade Products on the UK Coffee Shop Sector

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ABSTRACT

In recent years there has been growing concerns that traded commodities provide a return to producers that can be considered 'fair' in the context of the characteristics of the particular product and the nature of the supply chain. This research is to analyze the impact of fair trade products on the UK coffee shop sector and analyze the higher spending customer's preferences regarding fair trade coffee. This research also analyzes the impact of recession on the demand for fair trade coffee and analyzes the demand for fair trade products rise in the future. This dissertation primarily adopts the qualitative research method. As the dissertation aims to compare few companies that are using fair trade products and one that is not, the questionnaire will be distributed among the managers, employees and customers of fair trade coffee shops. Conclusion is based on discussion of findings obtain from the interviews and the questionnaire.

Table of Contents

ABSTRACTII

CHAPTER 1: INTRODUCTION5

1.1 Introduction5

1.2 Background of the Study5

1.3 Aims and Objectives of the Study6

1.4 Research Questions6

1.5 Outline of the Study7

CHAPTER 2: LITERATURE REVIEW8

2.1 Introduction8

2.2 Sustainable Agriculture8

2.3 Organic Agriculture9

2.4 Fair Trade Agriculture10

2.5 Coffee Production and Markets12

2.6 Coffee Prices and Crisis13

2.7 Organic and Fair Trade Coffee14

2.8 Organic and Fair Trade Coffee Products, Producers and Markets15

2.9 Organic and Fair Trade Coffee Certifications16

2.10 Economic Benefits17

2.11Production Benefits18

2.12 Benefits and Costs of Fair Trade Coffee18

2.13 Potential for Development in Fair Trade19

2.14 Criticisms on Fair Trade20

2.15 Demand Issues and Consumption Trends22

2.16 Benefits, Logistics, and Inevitability24

CHAPTER 3: RESEARCH METHODOLOGY27

3.1 Introduction27

3.2 Research Methods27

3.3Qualitative Research Methods27

3.4 Quantitative Research Methods28

3.5 Research Design28

3.6 Ethical Consideration29

3.7 Limitations of the Research29

CHAPTER 4: FINDINGS30

4.1 Introduction30

4.2 Fair trade coffee and customers Retention30

4.3 Price of Fair Trade coffees31

4.4 Higher Cost for Fair Trade Coffee31

4.5 Quality of Fair Trade Coffee33

4.6 Fair Trade Coffee and Welfare of Coffee Farmers35

4.7 Increasing Demand of Fair Trade Coffee36

4.8 Impact of Recession on Fair Trade Consumption37

4.9Future of Fair Trade Coffee38

4.10 Analysis of second questionnaire (For Customers)40

CHAPTER 05: CONCLUSION62

5.1 Introduction62

5.2 Conclusion62

5.3 Suggestions for future Research65

BIBLIOGRAPHY67

CHAPTER 1: INTRODUCTION

1.1 Introduction

This chapter provides a very broad but concise introduction and the background of the problem to be addressed for the readers, so that they could have an overview of the topic. The chapter also gives the objectives of the research & the research questions.

1.2 Background of the Study

In recent years there has been growing disquiet at the impact of international trade liberalization on producers in developing countries. In particular, there are concerns that traded commodities provide a return to producers that can be considered 'fair' in the context of the characteristics of the particular product and the nature of the supply chain. Further, participation in international markets exposes small producers to fluctuations and shocks in world market prices. A noteworthy example is coffee, the supply chain for which is dominated by a small number of traders and processors based in industrialised countries. Currently world coffee prices (in real terms) are at a historic low, reflecting cyclical trends in production as well as structural ...