Coordination and quality in the Fairtrade system: the case of coffee market

Abstract

The oversupply in the Fairtrade coffee market prevents the commercialization of all certified production by the minimum price established by the Fairtrade Labelling Organizations (FLO). It is necessary to understand the factors that determine the full insertion of cooperatives of coffee farmers in the Fairtrade system. This work argues that the quality of coffee, an attribute which is not directly measured by the Fairtrade label, is a critical factor for ensuring the success in the Fairtrade market. So, coffee farmers and buyers are able to reorganize the certified market without influencing the transformation of its formal rules. To explain this fact, this work presents specific hypotheses for the study of certification systems. Therefore, it presents not only an alternative interpretation to the working of the Fairtrade system, but also provides tools for the analysis of further certification systems.