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European Association of Agricultural Economists >
2008 International Congress, August 26-29, 2008, Ghent, Belgium >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/44134
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| Title: | Guaranteed Minimum Price Contracts for Some, an Insurance for Others? |
| Authors: | Chambolle, Claire
Poret, Sylvaine |
| Keywords: | Guaranteed Minimum Price Contracts
Fair Trade
Vertical Chain. |
| Issue Date: | 2008 |
| Abstract: | This paper analyzes the impact of guaranteed minimum price contracts between sub-groups of farmers and a fair trade manufacturer on the spot market price. We focus on the fair trade concept in the coffee supply chain as an example. We analyze a three level vertical chain gathering perfectly competitive farmers upstream who offer their raw product to manufacturers who then sell finished products to a downstream retailer. Without fair trade, all the raw product is sold on the spot market. When a sub-group of farmers benefit from a guaranteed minimum price contract offered by a fair trade certifier, we show that farmers outside of this fair trade agreement may also benefit from a higher spot market price in cases of a limited overproduction. |
| URI: | http://purl.umn.edu/44134 |
| Institution/Association: | European Association of Agricultural Economists>2008 International Congress, August 26-29, 2008, Ghent, Belgium |
| Total Pages: | 11 |
| Collections: | 2008 International Congress, August 26-29, 2008, Ghent, Belgium
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