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Perceptions on Fairtrade Certification:

A cross-sectional analysis of perceptions on Fairtrade certification

along the global value chain of South African wine

Max Lawaly Kuipers Student number: 11041587 mlkuipers@outlook.com

Bachelor thesis for Human Geography and Urban Planning Subject: Economic Geography of Outsourcing

Specialization: International Development Studies

Supervisor: dr. Jeroen Merk Second reader: Maarten Bavinck

Date: 18 June 2018 Word count: 21.791

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Table of Contents

Table of Contents 2

List of abbreviations 3

Introduction 4

● What is Fairtrade certification? 5

● A brief historical context of the South African wine industry 5

● Aim of this thesis 7

Theoretical framework 8

● Fair trade and Fairtrade (FT) 8

● World Systems Theory (WST) and the Global Value Chain (GVC) approach 8

Methodology 12

● Methods 12

● Measuring ​perceptions ​on Fairtrade certification 13 ● Implications on findings due to applied research design and sampling methods 15

1. Perceptions on Fairtrade - Max Havelaar and Fairtrade International 17 ● Fairtrade certification as described by Max Havelaar and Fairtrade International 17 ● Max Havelaar- and Fairtrade International’s perceptions on Fairtrade certification 19

2. Consumer perceptions on Fairtrade certification 21

● Employee level 21

● Enterprise level 21

● Regional and/or national level 23

● Consumer level 25

● Consumer perceptions on Fairtrade certification 27

3. General retailers’ perceptions on Fairtrade certification 28

● Employee level 28

● Enterprise level 28

● Regional and/or national level 29

● Consumer level 30

4. FT specialised retailers’ perception on Fairtrade certification 32

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● Enterprise level 33

● Regional and/or national level 34

● Consumer level 34

● Perceptions on Fairtrade certification of general and FT specialised retailers 36

5. Horizontal dimensions of power - the Dutch NGO workers and the Fairtrade authority 37

● Employee level 37

● Enterprise level 38

● Regional and/or national level 41

● Consumer level 42

● Perceptions of horizontal dimensions of power on Fairtrade certification 43

6. Case study: Perceptions on Fairtrade certification in South Africa’s Western Cape 45

● Horizontal dimensions of power - South African NGO workers 45

● Enterprise level - the winery owner 48

7. Comparing perceptions on Fairtrade certification 52

● Perceptions of Fairtrade institutions compared with consumers 52 ● Perceptions on the Dutch side of the GVC compared 54

● Comparing perceptions on both sides of the GVC 56

Conclusion and recommendations 58

Bibliography 60

Appendix 65

● Figure 1 - Simplified representation of the Global Value Chain for wine 66 ● Figure 2 - Visualisation of the main research question and sub-questions 67 ● Figure 3 - Visualisation of operationalisation of perception 68

● Figure 4 - Item lust 69

● Figure 5 - Perception-Comparison tables 70

List of abbreviations

EJN: Economic Justice Network

FT: Fairtrade

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GVC: Global Value Chain MH: Max Havelaar

WST: World Systems Theory

Introduction

Fairtrade certified products and labels have become part of many stores assortments in the Western world. Everyday products like chocolate, coffee and tea, and in some cases even gold now boast a Fairtrade certificate. In the Netherlands, the Max Havelaar Foundation Netherlands in cooperation with Fairtrade International also increasingly advertise their logo and products in the shoppers eye. While glancing through recent news, it becomes clear that not all is straightforward in the world of Fairtrade certification. Headers such as “Fairtrade only really benefits supermarkets. A rethink is needed” (Sylla, 2017) and “Max Havelaar farmers do not receive extra benefits ”(Novum, 2012) are showing that Fairtrade certification 1 and its effects are a contentious subject.

Despite this negative media attention, the share of Fairtrade certified products sold in 2016 grew with 14% with the amount of Fairtrade-premiums, raised through Max Havelaar certification, sent back to farmers cooperatives reaching 7,8 million euros (Max Havelaar 2016). The Max Havelaar Foundation, on its website, also shares many success stories related to the implementation of Fairtrade certified products. In describing the benefits of their certificate for affiliated farmers and producers, Max Havelaar displays several farmers stories which contain utterances such as “Fairtrade has helped me and my family to become more independent” and “2 ​Thanks to the Fairtrade premium, I can produce more and better sugar” 3 (Max Havelaar, 2018c-d). ​However, are these discourses and perspectives on Fairtrade similarly understood by consumers and other actors in the value chain, and do they truly symbolise ‘fairer’ trade for the intended beneficiaries?

This bachelor thesis is geared towards the creation of better insights in discourses and perspectives of different actors involved in the global value chain (GVC) of South African

1 Original text in Dutch: “Max Havelaarboeren ontvangen geen extratje”

2 Freely translated from Dutch: “Fairtrade heeft mij en mijn familie geholpen om onafhankelijker te worden” 3 Freely translated from Dutch: “Dankzij de Fairtrade premie kan ik meer en betere suiker verbouwen”

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Fairtrade (FT) certified wines. This thesis strives to uncover differences and similarities between the aforementioned perceptions of actors involved and compare them to perceptions put forward by the Max Havelaar Foundation Netherlands and Fairtrade International (FTI). The main research question is formulated as follows: ​How do perceptions on and discourses about Max Havelaar and Fairtrade certification, of actors involved in the global value chain of Fairtrade wine compare to each other?

What is Fairtrade certification?

The Max Havelaar Foundation (Fairtrade Netherlands) is an “...independent

non-profit organization that licenses use of the Fairtrade Certification Mark on products in the Netherlands in accordance with internationally agreed Fairtrade standards”, (Max Havelaar, 2018-a). The organization furthermore describes that it assists farmers and labourers in acquiring a better position in the trade-chain to improve their lives and helps them invest into a sustainable future. This is, according to Max Havelaar (2018-b), achieved through, among other things, stimulating cooperation between farmers and labourers, trading under fair and sustainable conditions and guaranteeing a minimum price.

A brief historical context of the South African wine industry

As mentioned, this bachelor thesis deals with perceptions on FT certification of actors involved in the value chain of from South Africa originating wines. For better understanding of the context wherein these wines are produced and the role FT certification plays within it, a brief outline of the history and the present state of South Africa's wine industry and the context wherein MH and FTI operate in relation to FT certified wines is outlined.

Heemstede (2013, p.27), in his thesis concerning empowerment of farm workers in the South African wine industry, divides the historical development of the wine industry in three distinct time periods, namely slavery era, the period from the emancipation of slavery until the ending of Apartheid and the post-apartheid era.

During the slavery era up till 1834, labour relations on wine farms were characterized by white wine farm owners using black slaves for the labour intensive production of

agricultural products, among which wine (Heemstede, 2013, p.28). Slaves, for subsistence, where fully dependent on the farm and its owners whereby farmers were in full control of labour relations and was “...responsible for the behaviour of his slaves who were also seen as

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his infant children” (Heemstede, 2013, p.28-29). After the abolition of slavery in 1834 and the ending of ​apartheid​, farmers had to pay their former slaves for their labour however this was, within a few years, overturned by the introduction and implementation of, among other things, the ‘​dop stelsel​’ or ‘tot system’. The ‘tot system’ “...provided labourers with (daily) rations of wine in lieu of wages creating a docile, alcoholic (and as such less productive) labour force.” and kept employees, through the feeding of addiction, indebtedness as a result of addiction and lack of employment outside of farms, from seeking employment elsewhere (Heemstede, 2013, p.29). Employees and their families lived on their premises. It is described how the plight of farm employees, in the years up to the abolishment of ​apartheid​, as a result of national and international pressure slightly improved with employees enjoying

improvements in employer provided housing and the provision tv rooms and creches (Heemstede, 2013, p.31). The post-apartheid era, running from the ending of​ apartheid ​in 1994 up to the present day, is characterised by high numbers of unemployment and job seekers accompanied by marginalization of non-permanent employees, distrust of employees towards workers unions. Because of the large amounts of surplus employees “...farmers or labour brokers can simply drive their ​bakkie​ (truck) to a street corner and ask who is willing to work that day for a certain amount” which in turn, because of wide availability of labour, presses wages, makes workers un-eligible for benefits such as farm housing and insurance and makes employees vulnerable to exploitation by employers (Heemstede, 2013, p.32).

Heemstede (2013) furthermore describes that, as a result of lifting of an international boycott imposed as a sanction for the maintenance of the apartheid system, the ending of Apartheid served as a significant stimulance for the South African wine industry. According to Wines of South Africa (WOSA) (N.N.), a ‘not-for-profit’ industry organisation concerned with the promotion of exports of South African wine, the contemporary South African wine industry developed itself considerably in size growing to become the seventh largest exporter of wine globally in 2017 “...with exports reaching 228.5 million litres in 2017”. The industry consists of 3029 farmers, directly or indirectly employing about 300.000 people, that

cultivate over 94.545 hectares of South African land.

The increase in demand for SA wine of abroad markets came accompanied by a demand for higher quality wine which simultaneously required better skilled employees (Heemstede, 2013, p.34). However, as described by Herman (2012), “despite South Africa’s democratic transition … and continuing process of national reconciliation, the

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marginalisation of the historically excluded black majority remains highly visible” (Herman, 2012, p.123). In turn, Heemstede (2013), described demand for increased quality led to an increase in employees benefiting from permanent job appointment, training and other benefits that, come forth out of investments made by farmers into their enterprise.

Despite all the above, Heemstede (2013), states that within the South African wine industry “...a growing range of alternative and progressive initiatives have been established to try and address…” the plight of wine farm employees. These initiatives such as, the local, Wine Industry Ethical Trade Association (WIETA) and the, internationally orientated, Fairtrade certification schemes “...while perhaps limited in their effect”, do attempt to better the industry and the livelihoods of those dependent on it.

Aim of this thesis

The aim of this thesis is to generate greater insight in what perceptions and discourses exists with actors along the global value chain of Western Cape wines. The results and conclusions of this thesis can inspire further research concerned with the workings, effects and other dynamics between different actors involved with(in) Fairtrade certification.

Furthermore, it is hoped that since Fairtrade certification functions on buyer-driven goodwill for success, more insight in perceptions of actors on both sides of the global value chain can inform and motivate policymakers, producers, retailers, advocacy groups, institutions and the general public to continue their support and actions towards ‘fairer’ Fairtrade- and general- international trade relations.

This thesis will elaborate on the theoretical concepts that were used to frame the narrative of this research, after which the main research question and the corresponding sub-questions are elaborated and a hypothesis is formulated. This is followed by a description of the used research methods and the implications of the chosen research design and sampling methods on the outcomes of this study. In the results chapters, all perceptions of involved actors will be elaborated and compared. This will be followed with a conclusion and a discussion.

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Theoretical Framework

Fair trade and Fairtrade (FT)

Troulis (2016), in his thesis about the effects of Fairtrade (FT) certification and power relations existing within contemporary trading systems, distinguishes ​fair trade​ and ​Fairtrade in the following manner. The difference between fair trade and Fairtrade lies in the given that the former, fair trade in two words, refers to “…the fair trade movement as a whole and the organisations that are part of it, including both labelled and unlabelled goods”, while the latter, Fairtrade in one word, refers to “...the certification and labelling system governed by Fairtrade International (FTI)”, (Troulis, 2016, p.13), the same umbrella organisation under which the Max Havelaar Foundation resides. Troulis (2016) furthermore adds that, according to him, FT certification, as propounded by Fairtrade International and enterprises that carry and sell the Fairtrade-label, is “​driven by profit, brand reputation, differentiation [and] addressing customers…” where after the author adds that Fairtrade certification is there to “...to entice a segment of ‘ethical’ shoppers to buy certified products”, (Troulis, 2016, p.263).

World Systems Theory (WST) and the Global Value Chain (GVC) approach

International trade, international labour relations and possible development are often intertwined with each other. In order to analyse these relationships in our globalised world, the world systems theory, as developed by Wallerstein (1995), envisages our contemporary

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world as structured along the lines of the ​core-periphery ​model. The world-system came into existence as a result of the global institutionalisation of capitalism and resulted in “...the only world-economy indeed the only world-system, that has ever succeeded in expanding its outer boundaries to encompass the entire globe”, (Wallerstein, 1995, p.629). According to

Wallerstein (1995) ​commodity chains​, which refer to modes of production wherein stages of production are dispersed instead of concentrated within one factory, unit or geographical area, have been the “...integument of capitalist production processes from the outset” and has permitted researchers, scholars and others to “...describe the axial division of labour as a core/periphery phenomenon in which unequal exchange is a major mechanism of surplus transfer and concentration” (Wallerstein, 1995, p.632-633).

The concept of the Global Value Chain (GVC) stems from the previously described concept of ​commodity chains​, as described by Wallerstein (1995), and is a more

contemporary view on core-periphery relationships wherein transnational corporations have replaced, or at least altered, the position of core- countries. Approaching trade relations through a GVC lens entails approaching trade relations as “...being embedded in, and considerably determined by institutional structures…” and considering “...activities such as design, production, marketing, distribution and support to the final consumer.” as part of these relations (Troulis, 2016, p.44).

Troulis (2016) and Gereffi (1994b), make a distinction between ‘producer-’ and ‘consumer-’ driven chains. A ‘producer-driven’ chain is a value chain wherein a transnational corporation or producer of a certain good, such as large car- or electronics- manufacturers, has a central role in controlling the production system (Troulis, 2016, p.47-48). In

buyer-driven​ chains “...large retailers, brand-named merchandisers, and trading

companies…” have the greatest influence on the management of the GVC and are responsible for setting up “...decentralised production networks in a variety of exporting countries,

typically located in the Third World”, (Gereffi, 1994b, p.98). Generally, products emanating from these chains are produced and ‘finished’ within these countries, after which they are exported, whereby, for example, design-, production- and quality- specifications are dictated by the ‘buying’ parties (Gereffi, 1994b, p.98-99).

However, are we, in the context of South African wine exported to the Netherlands, dealing with a ​producer- ​or ​buyer-driven​ GVC? Who benefits from the international value chain and who does not? As described by (Ponte, 2007), in his paper concerned with

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governance in and of the South African wine value chain, identifying South African wine exports as ​producer- ​or​ buyer-driven​ is not straight forward and, among other things, also depends on towards what country, with its respective rules, culture, preferences and consumers- and buyer-preferences, the wine is exported. In the context of the Netherlands, the research by Ponte (2007) emphasises that, Dutch “...consumers buy wine mostly on the basis of price, in combination with image/packaging style and the reputation of the country as a whole”, (Ponte, 2007, p.28). The actors in this research are active on two sides of the GVC, in this thesis mentioned as “both sides”, namely the importing country (in this research the Dutch/consumption side of the GVC) and South Africa (in this research the South

African/production side of the GVC). For a simplified representation of the GVC, see figure 1 in the appendix. Other actors involved in the ​producer- ​or ​buyer- ‘drivenness’ ​of GVC’s are also of influence on the procedures and proceedings within a GVC. As described by Troulis (2016) “...external actors (those not directly supplying a product or service)...” such as governments, civil society organisations, NGOs and institutions such as FT International and Max Havelaar can influence aspects related to the functioning of a GVC (Troulis, 2016, p.15). These actors are termed Troulis (2016) termed, ​horizontal dimension of power (Troulis, 2016; Raynolds, 2012).

Raynolds (2012), in her article discussing social dimensions affecting ​Fair Trade​, posits that ​Fair Trade​ initiatives should be seen as forms of “social regulations” since they are influenced not only by corporate and state initiated regulations but are also subject to perceptions, preferences and ethical considerations of individual and collective actors”. According to the author, institutional arrangements such as FT “... operate beyond the traditional bounds of private (ie. corporate) and public (ie. state) domains and are animated by individual and collective (ie. private and public) actors and actions”, (Raynolds, 2012, p.276). From a Polanyian perspective, which emphasises that social dimensions are of influence on consumption and production patterns, the author posits that consumers of-, as well as advocacy groups for-, Fair trade and FT-certified products have a strong influence on how Fair Trade arrangements, certification and other related phenomena take shape.

According to Raynolds (2012), FT-consumers in some cases may imagine themselves as part of an ‘imagined community’ of ‘global citizens’ and or ‘citizen consumers’. The ‘imagined community’ of ‘global citizens’ stems from FT-consumers aligning themselves, in perception and discourse, with producers while the identity of ‘citizen consumers’ comes forth from

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FT/ethical consumers aligning their views with other ethical consumers (Raynolds, 2012, p.281). Furthermore, Raynolds (2012), describes how Fair Trade groups, such as FT International and the Max Havelaar Foundation, “...deploy information on ethical

consumption to both mobilise supporters and justify their cause…” (Raynolds, 2012, p.281), which points towards the influential power of such institutions on public perceptions.

Herman (2012), in her article analysing discourses of actors involved in the GVC of FT certified wine imported from South Africa to the United Kingdom, shows how discourses about FT certification and its effects are flexible and adaptable to seem appealing to

producers, retailers and consumers across the consumption-production network. Herman (2012) shows that these discourses are altered and adapted in a tactical manner to not only fit international views on Fairtrade but also the local ones. “Ethical discourses emerged as tactical, ‘knowing’ and highly dependent on context with their network sustainability dependent on a relational (im)mutability of meaning”, (Herman, 2012, p.1129).

Although the effects of Fairtrade certification are diverse and deserve broad academic attention, this thesis is focused on differences in perceptions and discourse about FT- and Max Havelaar certification, its effects on the formulation of FT-objectives by involved institutions and how these perceptions and discourses compare to one another. Partially in line with the discourses of Troulis (2016) and Herman (2012) and by partially challenging the perceptions by Raynolds (2012), with regard to the influence of FT wine consumers and advocacy groups, the following overarching research question was formulated:

RQ: ​How do perceptions on Fairtrade certification, of actors involved in the global value chain of Fairtrade wine, relate to- and compare to each other?

To answer this overarching research question the following sub-questions where formulated: - What does the Max Havelaar Foundation Netherlands/FTI certificate entail

according to the organisations promotional materials such as websites and online videos?

- How do perceptions and discourses on Fairtrade certification, and more specifically Max Havelaar certification, take shape among actors involved with Western Cape wine on the Dutch side of the global value chain, namely Fairtrade wine consumers and retailers?

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- How do perceptions and discourses on Fairtrade certification, take shape among actors involved with Western Cape wine on the South African side of the GVC, namely winery owners?

- How do perceptions with actors in the horizontal dimensions of power, namely NGOs and advocacy groups, take shape on both sides of the GVC?

A visualization of the research questions if visible in figure 2, residing in the appendix. In relation to the formulated research question and sub-questions, the following hypothesis is formulated. It is hypothesised that there exists a ‘mismatch’ between perceptions surrounding FT-certified products residing with FT institutions, general consumers and retailers, owners of wineries and involved NGOs.

Methodology

Methods

The methodology used for this thesis research, data collection and analyses is of qualitative nature utilising a ​cross-sectional​ research design with ​case study​ elements (Bryman, 2012, p.69). The conducted research consisted of desk research combined with semi-structured interviews. The majority of the research, the desk research and the majority of the interviews, took place in the Netherlands. A smaller, but not less significant, portion of the research took place in South Africa’s Western Cape region from May 6-17, 2018.

The desk research consisted of a ​narrative ​literary review (Bryman, 2012, p.102), of promotional materials and policy documents derived from the Max Havelaar Foundation Netherlands and Fairtrade International, as well as the for the subject relevant literature acquired from the University of Amsterdam library, Google Scholar, news-websites and other media of relevant actors and institutions. Through the described desk research the sub

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consumers and the comparison between different perceptions and discourses, will be answered.

The conducted interviews were of ​semi-structured​ (Bryman, 2012, p.471) nature and were conducted with relevant actors, namely consumers of Fairtrade products and or

Fairtrade Western Cape wines, retailers of Fairtrade products and or Fairtrade Western Cape wines, producers of Fairtrade products and or Fairtrade Western Cape wines and NGOs involved with the Max Havelaar Foundation Netherlands, Fairtrade International and Western Cape wine production. Interviews were audio recorded with consent and followed the

structure of a pre-assembled item list which will be discussed later in this chapter. The audio recordings were transcribed and anonymised.

The selection of relevant actors with whom the ​semi-structured​ interviews would be conducted, the method of ​purposive sampling​ was applied. The ​purposive sampling ​consisted of ​sampling of context ​(Bryman, 2012, p. 416-417), which relates to the selection and

demarcation of a specific research-area based on certain characteristics such as the presence of FT-wine producers. Moreover, ​sampling of participants​ relates to who, within a chosen context, will be selected to participate in the research (Bryman, 2012, p.417), such as

FT-wine producers that boast FT certification, was applied. Besides the previously described methods, a method of ​snowballing ​(Bryman, 2012, p.424) was applied to increase the

likelihood that relevant actors would be found and would be willing to participate in the research and to possibly get in contact with actors that might have been overlooked during the selection of possibly relevant actors. The ‘relevance’ of the different actors was based upon their connection with or involvement in the GVC of FT certified wines, and more specifically wines originating from the Western Cape region in South Africa. Although the above described, and applied, methods of sampling and acquisition of relevant actors for the conduction of interviews was similar across the contexts of the Netherlands and the Western Cape, the acquisition of relevant interviewees in South Africa relied more heavily on the snowballing​ method because of the limited time frame wherein the research in South Africa was conducted.

The earlier mentioned context wherein the research took place was partially in the Netherlands and partially in South Africa. The Dutch context was not place-bound, besides that it took place within the Netherlands, but took form in desk research and the conduction of semi-structured interviews. The South African context chosen for this research is located

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in the South African province of the Western Cape since the Western Cape harbours the majority of wine-related activities across the country and many FT certified wines that are sold in the Netherlands originate from there.

Measuring ​perceptions ​on Fairtrade certification

As mentioned earlier, the conducted thesis research was aimed at the comparison of

perceptions​ of different actors along the GVC of FT certified wines originating from South Africa. However, what are perceptions and how can these perceptions be measured and compared?

Hofhuis, van der Zee and Otten (2015), in their article concerning the measurement of employee perceptions on the effect of cultural diversity in the workplace, describe the

emergence and development of the ​Benefits and Threats of Diversity Scale​ (BTDS). BTDS is “an instrument which measures how employees perceive the effects of cultural diversity in the workplace, and is structured on the basis of the dimension ‘benefits’ and the dimension ‘threats’, with their respective subcategories, as perceived by the subjects of the respective research” (Hofhuis, van der Zee & Otten, 2015, p.177). The researchers, during data collection via semi-structured interviews, queried respondents on their views on-, experienced or expected benefits and threats resulting from -and concrete examples of positive and negative related to- cultural diversity in the workplace (Hofhuis, van der Zee & Otten, 2015, p.183). Hofhuis, van der Zee and Otten (2015) operationalised ​perception​ as consisting of the two main dimensions, ‘benefits’ and ‘threats’, with their respective sub-dimensions.

This thesis research applies a similar, although adapted, manner of operationalisation and measurement of ​perception ​on the basis of dimensions​. ​For the purpose of this thesis research, ​perception ​was operationalised as consisting of the main dimensions ‘advantages’ and ‘disadvantages’. Both dimensions, in turn, consist of the sub-dimensions

advantages/disadvantages- for South African employees, for South African as well as Dutch enterprises (e.g. producers, importers, retailers), for regions and or nations (e.g. economies) and for consumers of FT certified products. A visualisation of the above described

operationalisation of ​perception​ is visible in figure 3 in the appendix. On the basis of the previously described operationalisation of ​perception, ​item lists for the conducted

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semi-structured interviews were constructed. An example of a used item list can be found in the appendix, figure 4.

After the data, in the form of audio recordings of conducted interviews, was acquired it was analysed using a similar approach as described by Burnard (1991). ​Following the methods described by Burnard (1991), the transcribed​ interviews were categorised, refined and analysed through a method of ​open ​coding and recoding. Using the software program Atlas.ti, which allows researchers to easily categorise, code, re-code and compile excerpts, the acquired examples of advantages and disadvantages felt affecting actors on different scales, were categorised and compiled. During this process it was attempted to avoid the negative effects caused by research bias (Burnard, 1991, p.463) by, on multiple occasions, reviewing and discussing the categorised excerpts with peers. Finally, the coded interview excerpts where compiled, analysed and compared among each other.

This thesis has made comparisons between the perceptions on FT certification of the following actors. Firstly, a comparison was made between perceptions residing with FT institutions, namely The Max Havelaar Foundation Netherlands and Fairtrade International, and those residing with consumers of FT certified products and specifically FT certified wine. Secondly, a comparison was made between perceptions residing with the aforementioned FT institutions and perceptions residing with other actors on the Dutch side of the GVC, namely retailers and the so called ​horizontal dimensions of power​. Lastly, a comparison was made between perceptions of actors on the Dutch side of the GVC and those residing on the South African side of the GVC, namely the perceptions of the South African winery owner and the perceptions of the South African ​horizontal dimensions of power.

Implications for findings due to applied research-design and sampling-methods

The decisions made concerning the application of the previously described research design has, as described by Bryman (2012), implications for how findings and conclusions generated by the conducted research should be understood and evaluated. Since this thesis research is of qualitative nature the concept of ​trustworthiness​, consisting of the criteria credibility​,​ transferability​, ​dependability ​and ​confirmability​ (Bryman, 2012, p.49) was applied for evaluation of the trustworthiness of the research data.

In relation to the ​credibility,​ concerning the causal relationship between dependent and independent variables (Bryman, 2012, p.49), in this case the effects of public perceptions

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on FT certification and vice versa, of results coming out of the thesis research it can beforehand be concluded that the degree of ​credibility​ will be weak. This is not seen as problematic since the research, from the outset, focused on investigating “associations”, between perceptions on- and the realities of FT certification, “...rather than findings from which causal inferences can be unambiguously made” (Bryman, 2012, p.60-61).

Regarding the ​transferability, ​concerning the generalisability beyond the specific context, in this case perceptions of actors involved in and with FT certified South African wine, of the findings produced by this research, (Bryman, 2012, p.47) it was also beforehand concluded that the degree of this measure would be low. Although the findings might not be generalisable to other FT certified wine GVC’s or FT certified products it is hoped that the conclusions and insights from this research will invite other researchers to proceed in further research in other FT GVC’s.

To improve the degree of ​dependability, ​which relates to ​reliability ​or ​replicability ​of a study and its results (Bryman, 2012, p.), the following actions will be undertaken. In relation to improving the ​reliability​, which relates to​ ​the measures used to compare

perceptions and discourses of different actors, this research will meticulously describe and substantiate in which way measures are devised, applied, analysed and written up.To

enhance ​replicability​ of the intended research, all the steps undertaken, such as the way actors were contacted, addressed and informed, the way new interviewees were found, and item-lists used therein, will be documented and added in the appendix to enable and facilitate peer review.

Finally, in relation to the ​confirmability​, concerned with the degree of objectivity with which the research was carried out, it was at all times attempted to refrain from

contaminating obtained data with personal presumptions, interpretations or views. Furthermore, in contacting relevant actors for interviews, in the formulation of possible letters and emails, the researcher strived to come across as neutral as possible in order to prevent that interviews were influenced beforehand and would possibly prepare their narrative before the interviews were conducted. Besides the aforementioned, the researcher also refrained from sharing his views upon topic related to the subject matter of the interview until after the interviews were completed.

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1. Perceptions on Fairtrade certification - Max Havelaar and

Fairtrade International

The following chapter discusses perceptions on FT certification as put forward by the Max Havelaar Foundation Netherlands and Fairtrade International. The perceptions where drawn up using the earlier described method for operationalising perceptions, and is based on

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websites and promotional materials, such as videos. The sources contained many examples of advantages, for a range of actors, as a consequence of FT certification. Disadvantages, on the other hand, were more difficult to identify with just a few explicitly mentioned. However, several disadvantages could be deduced from the manner wherein the promotional materials and websites, gave context to the workings and advantages of participation in FT.

Fairtrade certification as described by Max Havelaar and Fairtrade International

On the official website of the Max Havelaar Foundation Netherlands, Fairtrade certification, why it's needed, its inner workings and additional advantages are described under the header ‘What is Fairtrade’. Firstly, the page describes the necessity of FT, stating that FT “...aids farmers and labourers in developing countries to acquire a better position within the trade chain, so that they can live of their work and can invest in a sustainable future”, (Max Havelaar, N.N.-a). Furthermore, it is stated that the need for the

aforementioned aid stems from inaccessibility for small scale farmers to a steady income, leading to inability to provide for one's family and to invest in the future of one’s enterprise, children and community in Asia, Africa and South America (Max Havelaar, N.N.-a).

According to Max Havelaar (N.N.-a), FT is needed for plantation workers because plantation work is characterized by low salaries, bad working conditions and impaired collective

bargaining circumstances.​ ​As solutions for the above stated needs, the website presents ‘collaboration in cooperatives’ of farmers and ‘honest and sustainable conditions’ for farmers and employees alike, which refers to ‘the minimum price’, ‘the FT premium’ and the ‘social- and environmental criteria’.

The advantages of ‘collaboration in cooperatives’ lie in the ability of cooperatives to more easily amass financing for technical and logistical investments which in turn improves ones bargaining position, received price for produces and access to the world markets. Other advantages of collaboration are, as stated on the website, that farmers, because of the

collaboration, cannot be played against each other and that cooperative members have access to trainings for, among other things, enhancement of productivity (Max Havelaar, N.N.-b).

Max Havelaar (N.N.-b), furthermore, states that “farmers form the backbone of the

countryside…” and that their communal influence can positively benefit their region, which signals an advantage on the regional and or national scale. Out of the description of the significance of cooperatives for FT, a disadvantage as a result of FT certification was also

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deduced. Collaboration in cooperatives by farmers is, as stated by Max Havelaar (N.N.-a), the most important condition for Fairtrade. Hence, if one is not able or, for any reason, willing to collaborate with others, participation in FT certification is out of the question.

The described advantages of ‘honest and sustainable conditions’, consist of minimum price paid by the buying party, FT premiums paid by the buying party on top of the minimum price and the social- and environmental criteria. The guaranteed minimum price “...should enable farmers to cover the costs of sustainable production.” which in turn protects farmers from decreases in global market prices of agricultural products (Max Havelaar, N.N.-a). The FT premium, paid by the buying party to the providing cooperative(s), benefits employees through “community projects such as education and healthcare” while on a cooperative level farmers benefit from being able to invest premiums in democratically chosen objectives (Max Havelaar, N.N.-b). Next to the aforementioned premiums, FTI (N.N.-a), describes how buyers of FT certified products are also required to, if need be, provide pre-financing to enable producers to invest in their enterprises which not only benefits the producing parties but “...can assist the economic development of entire rural communities” (FTI, N.N.-a).

The social- and environmental criteria revolve around requirements that have to be met by farmers and cooperatives regarding “environmentally friendly cultivation, abiding by labour rights and a transparent and democratic mode of conduct within the cooperatives” and have several advantages (FTI, N.N.-a). For one, employees on plantations must be united under Fairtrade Premium Committees responsible for, in a democratically and in a transparent fashion, deciding wherein received FT premiums ought to be invested (​Max Havelaar, N.N.-b​). Furthermore, employees are stimulated to join a trade union or otherwise, “...if that is not possible…”, rights and interests will be represented by Workers Committees on the plantations (Max Havelaar, N.N.-b). Instead of dictating how high wages for

employees should be, FT is aimed at bettering the position of employees in labour negotiations and collective bargaining through education and trainings (Max Havelaar, N.N-c). In the context of ‘social development’, FTI, (N.N.-a) describes how, training opportunities should be available to employees and that discriminatory employment practices, child- and forced labour are prohibited under FT certification (FTI, N.N.-a). Additionally, FTI (N.N.-a) further specifies that, in hired labour situations, working

conditions should be equitable to all workers, health and safety measures must be in place to avoid work related injuries and that “salaries must be equal or higher than the regional

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average or than the minimum wage”. A disadvantage for employees, sketched by Max Havelaar (N.N-c), lies in the ease with which employers can rollback instilled FT rules and requirements when competitive positions are threatened, if FT policies are not firmly ingrained in company policies.

In relation to FT buying and selling parties, it is stated that FT only works if there is enough demand for FT certified products (Max Havelaar, N.N-a). Although this is followed by a reassuring note, stating that the yearly demand in the Netherlands is significant and growing, it can be deduced that a decrease in demand, for any reason, can negatively affect all involved with FT. The disadvantage in this case was formulated as, in the case producing parties, dependence on external demand and/or vulnerability to decrease or drop in demand. In relation to consumers, advantages of FT certification are that, through buying FT certified products, one can “contribute to better work and living conditions for farmers and their families in developing countries” (Max Havelaar, N.N-d). The advantages for

consumers of FT certified products are framed in terms of ‘doing something good’ and the ease and convenience by which this can be achieved through the purchase of ‘good quality’ FT certified products, epitomized in slogans such as “That's how easy doing good can be!” and “Fairtrade, enjoy with a good feeling!” (Max Havelaar, N.N-d). A second advantage for consumers lies in the reliability of adherence to FT requirements, guaranteed by FT

certification (FTI, N.N.-b). FTI (N.N.-b), states that “consumers have high confidence in Fairtrade and the integrity of its system” after which this level of confidence is legitimized as a consequence of FT’s independent and consistent evaluation methods.

Max Havelaar and Fairtrade International’s perceptions on Fairtrade certification

Summing up, the following advantages and disadvantages as a result of FT certification and schemes were identified out of promotional materials and documents derived from the Max Havelaar Foundation and Fairtrade International. A schematic

visualization of the described advantages and disadvantages of FT certification are portrayed in figure 5.

For farmers, participation in cooperatives is advantageous because it makes

investment easier, improves bargaining positions, leads to better prices received for produce, improves market access, prevents internal struggle and creates opportunities for training and education. Other advantages are that the provided minimum price allows for investment in

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one’s enterprise and protects from price drops on the world market, while received premiums and pre-financing enable even further investments. Disadvantages for farmers stem in

possible inability or unwillingness to participate in cooperatives, making participation in FT certification impossible, and dependence on- and vulnerability to decreases in external demand for FT certified products.

For employees, received premiums are invested in, by employees democratically chosen, community projects, whereby employees are stimulated to join workers unions and participate, get training and education in collective bargaining processes. Another advantage relates to working conditions because child- and forced labour are prohibited, equitable and nondiscriminatory working conditions have to be available for all, health and safety measures have to be in place and employees are paid, at least, the minimum wage. A disadvantage lies in the inability of FT certification, and or institutions, to prevent employers from abolishing FT principles from mode of conduct when competitive position or profitability are at stake.

Advantages on communal and regional levels are that farmers participating in FT certification and abiding by its principles can positively influence their respective regions, while pre-financing, provided by buyers of FT produce, can expedite economic development of rural communities. Finally, advantages for consumers lie in the ease and convenience by which consumers, and also FT consuming companies, can ‘do something good’. A second advantage for consumers is that the FT certification, in itself, is independently controlled and gives an assurance that the product was produced following FT requirements.

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2. Consumer perceptions on Fairtrade certification

The following chapter discusses the data and findings derived from the qualitative interviews conducted with consumers of FT certified products and FT certified wine. 32 interviews were conducted with respondents residing in the Randstad region in the Netherlands between April and May 2018. The interviews took between 10 and 20 minutes, were of ​semi-structured nature and followed the item list described in the methodological section and visible in figure 4 of the appendix. The chapter is will discuss the perceptions on FT certification put forth by consumers whereby the named advantages and disadvantages on the different levels will be reviewed. The chapter concludes by summing up the overall perceptions.

Employee level

The main advantages of FT certification on employee level described by almost all interviewees concerns paid wages, profit distributions, working hours, working conditions and social benefits such as pensions. Statements such as “honest profit distribution, but, also working for a company where they can be ensured, are sure of their wage”, “good working conditions, pension, and some kind of insurance for when they are sick, or their kids…” and “...livelihood. Because it, it goes further then income alone, it's about being able to properly organise your life without constant insecurity…” show the diversity of the examples given of advantages given on the employee level.

Two thirds of the consumers questioned was unable to think of a disadvantage originating from FT certification on employee level. Those that did, named possible conflict between employees working under FT certification and those not under these schemes. “It might create competition, jealousy even maybe, through which they might end up in conflict”, where an interviewee points out that conflict might occur as a result of inequity between employees within and outside of FT certification systems. Others described how conflict might occur over unfair appointment of jobs, “...that one group gets all the good jobs, so to say”, which in turn might cause or aggravate pre-existing tensions and conflicts. Others stated that employees might be worse of under FT regulations because rigid regulation and did not permit for “underhand deals”, “flexible accounting” and “earning black”.

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Enterprise level

On the enterprise level, the advantages named by the interviewees mainly concerned benefits felt by enterprises involved with or selling FT produce/products on the purchasing and consuming side of the GVC.

The primary advantage of FT certification put forward by the interviewees concerns an advantage for FT produce importing and retailing actors, namely, a good marketable image which creates access to a new and growing niche market. According to the

interviewees FT has “...a very big marketing aspect to it, so the name Fairtrade already does something to the consumer” and FT importing and retailing enterprises “...advertise that they engage in fair trade. There is a group of people who specifically wants that”. The respondents furthermore added that “...ethical consuming is also becoming more fashionable...” whereby all the respondents described the consumption of FT products and, to a lesser extent, ethical consumerism as a growing trend.

The primary advantage named on enterprise level on the producing side of the GVC concerned the minimum price for produce guaranteed by FT institutions. Respondents all mentioned a “higher” or “more stable price” paid for certified goods when questioned upon benefits of FT certification on enterprise level. Statements such as “honest profit

distribution…being sure of your income or something” and “...an advantage is that you will be guaranteed a higher price for your products and, I think, also a more stable price”,

summarise this argument. A second advantage relating to producers of FT products, concerns the image and marketing aspect of enterprises under FT certification and or selling FT

certified products. Interviewees described that the positive image attached to FT benefits producers adhering to these standards in granting them access to a growing niche market. Statements such as “...it [consuming and purchasing FT certified products] is getting more and more into fashion…” and “...it [consuming and purchasing FT certified products] is hip, more people want it…” signal that, in the perception of consumers, producing FT certified products grants enterprises access to an expanding niche market. The FT certificate, in this case, was seen as the only legitimation or proof of ethical treatment of workers on the

producing end, and simultaneously seen as the only reason why consumers would spend more on such products. Interviewees made clear that “...without certification there is no proof” and pointed out that the persuasive power of FT certification is in their opinion, a great

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Another benefit, mentioned by about half of the respondents, stems from additional services and support, received from FT affiliated institutions, for participation in FT

certification. The interviewees described how, in their perception, FT certification schemes not only support farmers and corporations by guaranteeing more income and a guaranteed price for their produce but also provide support and guidance, in the form of training and educational schemes towards a more sustainable, efficient and profitable business operation. Interviewees spoke of farmers not only being able to profit more from their activities as a result of participation in FT certification, but that farmers are also “guided towards

strengthening their capacities”, which entails the continued achievement of a higher level of production. “It's an improvement process”.

The first disadvantage named by the majority of the respondents concerns the uncertainty of adherence to FT certification on the producing end, which could cause

reputational damage for retailing companies. “A disadvantage for an enterprise... Maybe that it doesn't work out?” and “...they might get cheated…” with which they meant that

enterprises on the consumption side of the GVC might import or purchase produces that are branded as FT while in reality they are not produced under the set requirements needed to carry such a certificate. Furthermore, the interviewees made clear that if this is the case and consumers or the media get a hold of such information that “...then you [as a FT retailing and/or importing party] really loose face…”, “...yeah then we won't buy it anymore…” and “in that case you might lose your clientele”.

Another disadvantage named by the respondents concerns the entrepreneurial position of enterprises dealing in FT. Several pointed out that, although FT certification grants access to a new market, it can also act as a limiting factor for enterprises. Companies catering to ethical ​consumers are at the mercy of inconsistency and sensitivity to consumer ‘hypes’. “You also notice it with biological or ecological products; the media influences our choices daily”, whereby an interviewee pointed out the fickle nature of consumer preferences.

The most prominent disadvantage described for enterprises on the producing side of the value chain, revolves around FT certification possibly being a risky investment. Many respondents said that aiming to participate in FT certification could turn out to be unfavorable because increased costs of production simultaneously increase the minimum price needed per unit produced which in turn can restrict market access if there are not enough potential

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buyers. FT certification could actually make affiliated producers more vulnerable to the forces of the market and “subordinate to external demands”.

Regional and/or national level

On a regional and/or national scale, about one third of the interviewees stated that they could not think of an example. The interviewees described that, in their views, it was questionable if adherence to FT requirements could create any significant benefits on regional and/or national scales because, “...the demands and goals are not rigorous enough…”,

pointing towards the little effect that FT might have on regional and or national scales. The advantages and disadvantages described by the remaining interviewees mainly revolved around benefits of economical and structural development, ethics and image, and

disadvantages such as dependence on external markets and loss of autonomy and control. The most prominently named example of an advantage of FT certification on national and or regional scale, concerned regional and national economic development on the long term, as a result of more economic capital being available for participating producers and their surroundings. This dynamic can be epitomised by the following quote: “...the people who make it [FT certified raw materials or products], they get more money, and then they can also spend more as a result of which the economy in that country also becomes stronger…”, while, to a lesser extent, interviewees also spoke in terms of “human capital” and “capacity building” in pointing out that, on the long term, an improvement of the livelihoods of farmers and workers at the lowest tiers of a region or nation could also benefit the regions and nations wherein they reside. Other advantages concerned an overall improvement of labour relations and reductions in labour exploitation and corruption among government- and other

controlling officials because of adherence to FT requirements and control by independent FT institutions. This overall improvement of labour relations and adherence and independent control of FT requirements, in turn, could, as described by the respondents, lead to a bettering of the image of FT produce producing countries leading to an increase in demand and export of produce out of these countries.

A second advantage named, concerns the positive effects that FT certification can have on the image of producing and importing regions and nations. The respondents, in using terms such as ‘ethical, ‘image’ and ‘country image’, described how participation in FT schemes or adherence to FT requirements could have positive effects on the image of

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producing regions and or countries, where FT production takes place, and the corresponding (political) elite alike. This improvement of image positively benefits regions, nations and elites because, according to the interviewees, this shows their goodwill and strivings towards a “more just world” and “sustainable development, which, in turn, can help them make better deals and increase trade in FT produce”. In relation to the image of purchasing and or

consuming regions or nations, some described a similar dynamic although with a larger emphasis on ethics. “Well with our history… it's not that weird that we set the right

example”, an interviewee, in reference to Dutch colonial- and trade history, stated. Herewith, the interviewee meant that in respect to the views of other nations, the Netherlands as a trade country should set the right example for other countries. Other interviewees, in the same line of thought, added that an improved image of importing countries might alsof positively influence political- and bargaining positions.

The most commonly named disadvantage of FT certification on a regional and or national level, is that in FT participating regions or nations possibly become (or are) dependent on external demands. Many pointed out that in their views, although not by all perceived as a negative development, authorities in FT producing countries under FT certification could lose much of their influence and authority. Statements such as “I can imagine that meeting the demands [set by FT institutions] can be against their [as in local power holders] interests” and “meddling of Western countries in their country. Thus they [FT institutions and the nations they are based in] are coming closer, they are going to pay more attention and give more critiques and opinions, causing them [governments of FT producing countries] to be less autonomous with all their corruption…”.

To a lesser extent, interviewees also pointed out that FT producing regions and nations might be vulnerable to decreases in demand, in absolute quantities, of FT produce. “I don't think that Fairtrade products are popular on their local markets, so if we don’t want it anymore…”, one interviewee stated, after which it was explained that decrease in demand for FT products from external markets might leave regions and nations who abide to FT rules and requirements with a surplus of unsellable produce.

About a third of the interviewed declared that on a national scale FT certification could also lead to disadvantages on the consumption side of the GVC. These interviewees described how the strivings of FT institutions combined with a growing number of consumers purchasing FT certified products could weaken the economies of FT importing countries.

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Statements such as “...we are kind of giving up our advantage” and “the more they progress [in economic development terms] the more we [as in FT importing countries] lose strength as an economy…”, were followed by the explanation that economic development of countries where FT certified produce originates from is not necessarily beneficial or could even weaken the economic position of countries importing and consuming FT certified produce.

Consumer level

In relation to advantages for consumers, all interviewees mentioned that “...it is emotional”, that “it is really about the good feeling”. Where they all spoke in terms such as, “peace of mind” and “good conscience”. Interviewees described how these feelings stem from the idea that by purchasing FT certified goods one can be “... a little more sure of the chance that your product is not produced to someone’s disadvantage” and “....that you know that there is something available that is slave free”. To a lesser extent, they added that the aforementioned feelings also stem from the idea that by supporting FT, one is contributing to a long term vision, “...a slightly more just world…”.

About half of the interviewees described how with their purchases they felt like they were setting an example for a narrative around and the presentation of FT products to friends, guests or others, in some way. This becomes clear from statements such as “...it sounds weird, but when I use… [FT certified products]... and my friends come over to eat, I also send across the message ‘guys you should also do this’, so it is also about setting an example”. “When I have people over, I always tell them why they should also get into Fairtrade”. A large proportion of this group also declared that sharing the narrative of FT across their personal surroundings was also rather self-centred, namely, the creation and/or maintenance of image towards others. Statements such as “...whereby I show that I am conscious…”, “...it sometimes feels nice to lecture my guests about Fairtrade”, “...it's also hip, it fits the zeitgeist” and “...generally when I have a girl over I buy Fairtrade wine…”, show that respondents use the purchasing and consuming of FT certified products and repeating its narrative to an advantage in their social relations.

Concerning the disadvantages of FT certification for consumers, all interviewees primarily named a higher price as the most important disadvantage experienced by consumers of FT products. “Price”, just the one word, was the general first response they gave upon questioning them on possible disadvantages for consumers of FT certified products.

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A second disadvantage, put forward by almost all interviewees, is uncertainty felt about the degree of truthfulness of the claims made by FT institutions, enterprises and retailers. Statements such as “...you always think to yourself ‘would it really be like that? Would it really?’” and “well, how can we know that it all checks out? Let's hope it's not all nonsense”, signal that, although all interviewees said to believe in the narrative and the importance of FT, there exists a certain mistrust and uncertainty about if the claims made by the Max Havelaar Foundation, and associated organisations are fully genuine. Furthermore, over half of the interviewees described that their distrust was partially a result of an

overemphasis on all the ‘goods’ coming forth out of the efforts of the Max Havelaar Foundation. “...By looking at a nice website it becomes really hard for me to see how it is actually implemented”, with some respondents even describing it as “propaganda”; “it is always nice weather according to them, how can we believe that?”

A third of the interviewees described how although FT certification promises improvements along the value chain on many facets, it does not imply that the purchased products are organically produced, or to a lesser extent, healthy. On the same line of thought, some stated that the existence of FT certification, because of its narrow focus and the

existence of several other types of certifications for products, also led to confusion and, in some cases, annoyance. “There [different certification schemes] are already so many, now I also have to pay attention to this one” and “sometimes it is one or the other...why can't it be all in one?”

Consumer perceptions on Fairtrade certification

Summing up, the following perceptions were retrieved from the interviewed consumers. On the employee level the main advantages revolved around improvements in labour relations and access to support such as training and education, while the disadvantages concerned possibilities of conflict and loss of flexibility in business management as a result of FT control.

On the enterprise level, the main advantages concerned improved image and

marketing possibilities for enterprises on the consumption side of the GVC, better pricing and access to a growing niche market, and access to training and support for bettering one’s business on the production side of the GVC. The disadvantages involved possible

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with participation in FT certification being a risky investment and creating a dependence on external demand for FT certified produce on the production side of the GVC.

On the regional/national level, the advantages concerned a bettering of economic strength, improvement of labour relations on a regional and national level on the production side of the GVC while on both sides an advantage lies in an improvement of image and bargaining positions. The disadvantages concerned a loss of autonomy to external actor(s) and a dependence on external demand on the production side of the GVC, while on the consumption side of the GVC it concerned a loss of economic strength.

Finally, on a consumer level the advantages concerned a feeling of ‘peace of mind’, being able to set the right example or in some cases show off while the disadvantages mainly concerned a higher price paid for FT certified products and uncertainty about the truthfulness of claims made by FT certification.

3. General retailers’ perception on Fairtrade certification

Three interviews were conducted with retailers where FT certified wine is sold. The length of the interviews varied between 25 and 40 minute and were conducted in person or via Skype. The general narrative about FT certification from the retailers in comparison to that of the FT specialised retailers is different in several ways. Firstly, the non FT specialised retailers had a more sceptical and negative stance towards FT certification and its workings. Although none of the interviewees described FT certification as solely negative, statements such as “it is all a hoax” and “they are purposefully misleading the people” were brought up multiple times. The narratives of both the wholesale retail manager and the wine salesman where rather critical of FT, with the wholesale retail manager mainly pointing out disadvantages of FT certification for small(er) independent enterprises and the wine salesman mentioning the trustworthiness of claims made by FT wine producing enterprises. The online wine wholesaler was more neutral and pointed out that for him, having FT certified wines available was a result of consumer demand rather than a positive convictions about FT and its workings.

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The main advantage for employees named by all interviewees, although often stated with a suspicious or sceptic tone, concerned better pay and working conditions. “They

probably get paid more” and “...if everything checks out they should be better off, in terms of working conditions and such”, summarise these rather sceptic perceptions.

Only the wine salesman described a disadvantages on employee level. “I can imagine that if [FT wine producers] meet the conditions [set by FT institutions], then they won't have a reason to do their best any longer”. The interviewee furthermore explained that, in his views, the set requirements in relation to wages in many cases where not adequate to really make an impact. “It's just a guarantee of minimum wage”, the interviewee explained after which he added that FT requirements should motivate their certified members to continuously strive for the betterment of their employee’s income.

Enterprise level

The primary, by all cited, advantage on enterprise level revolved around marketing benefits and improvement of company image mainly for enterprises active on the retail and consumption side of the GVC. All respondents referred to a FT chocolate bar producer who, in a relative short period of time, managed to appropriate a significant part of the Dutch retail chocolate market and has become a large enterprise. Doubtfully, the wholesale retail manager added, “...they [the FT chocolate producer] are growing with such speed, can it all still be in order?” after which he explained that, in his opinion, such a rapid increase in scale makes control of adherence of sold products to FT requirements difficult. This scepticism about sincerity of claims made by FT certified enterprises was also shared by the other

interviewees. Statements such as “it’s a nice marketing trick…” and “...it’s mainly a good story, but that is what people want to hear, that’s what they want”, shows the sceptical stance of the interviewees towards the effects of FT certification.

A primary disadvantage, described by all interviewees, was that although for different reasons, FT certification schemes could lead to barriers to participate in FT for farmers, companies and enterprises on both sides of the GVC. “That sticker is really expensive…” the wholesale retail manager stated. He furthermore stated that the “high costs of acquiring certification makes it impossible for farmers, who possibly on the basis of the set

requirements are eligible for certification, are incapable of acquiring it”. A second barrier as a result of FT certification concerned the by FT institutions set rules and requirements for

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participation. The wholesale retail manager, in an anecdote, described how farmers who use alternative, possibly traditional, modes of production with respect to FT requirements, but simultaneously meet the majority of FT requirements, could be restricted from access to FT certification because of high costs of adapting to modes of FT production. .

A disadvantage sketched by two of the interviewees concerns the loss of

independence and possibility for creativity or “the possibility of doing things differently”. The wholesale retail manager expressed: “The cooperative decides, you have to play along or get shut out”.

Regional and/or national level

Regarding the perceptions on a regional and national level the answers of the interviewees were more diverse. While the wholesale retail manager did not name an advantage, the online wine wholesaler and the wine salesman did. The online wine retailer described how, in his perception, FT certification increases trade flows between “...poor countries and rich countries making both our economies stronger”. The interviewee went on in stating that “if all is right…”, whereby he referred to the claims made by FT institution in relation to premiums and other FT requirements, “... the extra money spent here, remains in their economy which improves them”. The online wholesaler furthermore added that an advantage of contributing to the economic development of FT producing regions and or countries is that “if they [FT producing countries/regions] have stronger economies it is also good for us…” after which he put forth that strong economies reinforce each other and that on the long run “...it is better for us all”. The wine salesman described how, “if I understood it correctly, they [FT producing actors] receive more money, also through premiums…” This extra capital could be used to better the lives of communities involved in FT.

Both the wholesale retail manager and the wine salesman described that a possible disadvantage of FT certification on a regional or national level could stem from in an

increased amount of control derived from certifying and controlling institutions which in turn affects the independence of regions and communities on the producing end of the GVC. The interviewees described that, since some countries are very dependent on their agricultural exports, if a large volume of the agricultural export of a country is FT certified that FT institutions, with their certifying and controlling power, can make or break the economy of a region or nation. “It is just like in colonial times”, the wine salesmen stated while the

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