The Fair Trade and Fair Trade Organic chains for small honey producers in the Tucuman and Santiago del Estero provinces of Northwest Argentina

Abstract

Argentina plays a major role in the global honey market as the world’s second largest exporter behind China. About 70% of Argentine beekeepers are small to medium-sized. Consumers from affluent markets are increasingly aware of the processes involved in the production of the food they purchase. These consumers are willing to pay premiums for goods that have socially and environmentally sustainable production methods. Certification protocols such as Fair Trade and Organic give consumers confidence that these requirements are met. However, smallholders find it difficult to access these premiums as they produce small volumes and consequently face high unit compliance, transaction and marketing costs. This qualitative study aims to understand how the Fair Trade and Fair Trade Organic honey supply chains operate in the Tucumán and Santiago del Estero provinces of Northwest Argentina. A case study method and semi-structured interviews is utilised to collect data from key respondents. The analysis follows a pattern matching logic in order to compare patterns identified in the data with those predicted by the literature. A within-case analysis is performed for each case, followed by cross-case comparisons in order to recognise the advantages, disadvantages and constraints for increased smallholder participation in the study chains. The analysis suggests that despite benefits brought by collective action and market access, the Fair Trade and Fair Trade Organic chains did not provide substantial premiums to cover small beekeepers’ compliance, transaction and marketing costs. Information and power asymmetry, biophysical risk, geographical dispersion and institutional problems raised transaction and agency costs within organisations and between producers and buyers preventing long-term, sustainable relationships. This research provides solutions to reduce these costs and improve small beekeepers’ welfare.