Producer Predictors for Maintaining Fairtrade Certification and Overall Satisfaction with the Scheme: A SEM Path Analysis

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Abstract

In this paper, I use a SEM path analysis to evaluate which factors predict that producers in developing countries maintain long-term commitment to Fairtrade certification and remain satisfied with the scheme. I surveyed 287 FLO-Cert certified producers and compared which geographical, market, and capacity attributes are more likely to be found among established and satisfied producers. The study reveals that the percentage of the product sold on Fairtrade terms, demand for Fairtrade, and quality are highly correlated. Certified producers that sell a high percentage of their crop on Fairtrade terms and improved product quality maintain certification over an extended period of time. These producers also tend to be most satisfied with their overall experience with the scheme. Unexpectedly, size of the organization and geographical region does not significantly affect maintaining certification or satisfaction. We explore the implications of these findings for sustainable development labels.

Author

• Anne Mook, University of Florida