Consumers’ reaction towards involvement of large retailers in selling fair-trade coffee: The case of the United Kingdom

Since 2002, the year the concept of own label on fair trade products was introduced in the United Kingdom, grievances have started to come out. The Fairtrade Labelling Organisation (FLO) has continued to be criticised in the commercialisation movement for giving large retailers (LRs) licences to use Fairtrade mark to produce and sell on their own brands. Earlier, the products were produced by alternative trading organisations (ATOs). To reach mass markets, fair trade products need LRs distribution channels and not the old system of using speciality shops as distribution channels, any more. However, the challenge has always been on the use of own label and the willingness of the large retailers to implement the fair trade guiding principles for the benefit of small producers in the South. The purpose of this study is to explore UK coffee consumers’ reactions to the involvement of large retailers in selling fair trade coffee. The analytical techniques used to analyse the data collected in June 2010 in the high street of Newcastle through face to face interviews include: (1) Factor analysis conducted with a sample of 219 coffee consumersso as to understand factors influencing purchase decision and, (2) Cluster analysis employed to identify customers’ reaction to large retailers’ involvement in selling fair trade coffee. The study indicates that credence processing attributes such as ‘retailers image’, ‘fair deal’, ‘fair trade promotion’, ‘social responsibility’ and ‘against own label’ are the major factors that influence consumers’ intention to purchase fair trade coffee in the United Kingdom. Two clusters have been identified. Cluster one is the male ‘ethical consumers’ group influenced by retailers’ image and social responsibilities activities. This group was found to be in favour of the idea of having large retailers using their own label. Cluster two is female ‘ethical and well being’ consumers group. This group is not in favour of allowing large retailers to use their own label for fair trade coffee. The interesting finding here is that, this group is not against the involvement of large retailers in selling fair trade coffee. Studies have shown that consumers are not in favour of own brand issued to large retailers, but they are willing fair trade products stocked in supermarkets. This alarmed the Fairtrade Labelling Organisation (FLO) to review its policy of allowing the large retailers (LRs) to use own brand. The findings of the study need to be interpreted with caution because of two major reasons. The first reason has to do with the sample size used: The size of coffee consumers in the UK is very small. The second reason is the fact that the study is based on the evaluation of hypothetical attributes of coffee and any additional factors, and this may affect coffee purchase.Key words: Large retailers, fairtrade, fair trade, coffee, north, sout

Integrating of Local Food Suppliers in Modern Food Retail in Africa:The Case of Tanzania

This study addresses three distinct but interrelated issues in the integration of local food suppliers in modern food distribution in Tanzania. These issues are: What are key factors driving the development of modern food retailing in Tanzania? What factors influence the participation of local modern food suppliers in the industry? And, finally: What policies and strategies can be adopted to increase local suppliers‘ participation in the industry? The study used a critical realism case study approach, in which nine local food suppliers and seven modern food retailers participated. Participants from two food regulators and two private sector support organisations were also interviewed. Data were collected in four regions of Tanzania: Dar es Salaam, Arusha, Kilimanjaro and Morogoro. Interviews were conducted in English and Swahili, and voice recorder and field notebooks were used in data collection. Secondary data were also used for the study and were collected from government reports, newspapers and magazines. Data were stored in Nvivo but were primarily analysed manually. A thematic analytical technique was used for qualitative data analysis. Furthermore, both within-case and cross-case study data analyses were employed for data analysis in the study. This study produced three findings: First, the study shows that the evolution of modern food retail distribution in Tanzania was accelerated by both internal and external factors. External factors are the availability of suppliers, the acceptance of trade credit and return policies by local food suppliers, administrative reason, change in lifestyle, the rise of the middle class, and institutional supports. Internal factors are innovation, quality, the availability of products, safety and return policies. Second, the study shows that the participation of local food suppliers is very low, but is increasing. Findings show that the selection of local food suppliers is influenced by satisfying government requirements, food quality, consumer feedback, packaging, reliability, acceptance of return policies and trade credit, price and adherence to Islamic practices. The study shows that a number of factors influence the establishment of the supplier-retailer relationship. These are: the acceptance of trade credit, return policies and premises visitations. Furthermore, the study shows that territory relationship and social embeddedness influence the formation of relationships between retailers and suppliers. In spite of this, the supplier-retailer relationship study shows that there is a lack of trust and commitment among actors. The study shows that payment delays limit supplierretailer relationships. Finally, the study shows that, in order to increase the participation of local food suppliers in modern food distribution in Tanzania, local food suppliers use different strategies. These strategies are the formation of networks, innovation, outsourcing and the recruitment of ix experienced staff. To increase their chances of participation, local food suppliers embarked on innovation, and the study shows that major sources of innovation are distributors, retailers and government agencies. However, the flow of information to stimulate innovation from downstream actors is limited by trade credit, consumer preferences and government requirements. The study contributes to theoretical and empirical knowledge. The study presents a new look at the formation of the supplier-retailer relationship from the perspective of developing economies in four stages. These stages include: (1) retailer evaluation of suppliers‘ reputation, (2) supplying of samples (3) supply commencing after terms are negotiated and agree upon, (4) consumer/institution recommendation and finally (5) a sustained relationship. The study also proposes a framework for understanding the evolution of modern food distribution in developing economies, with a focus on internal and external factors. In general, previous proposed theories marginalised the influence of external factors on the evolution of retail formats, which seem to be very important in Tanzania. One policy implication study suggested the formation of special financial supports for local food suppliers to help them meet their working capital when engaged in trade credit with retailers by commercial banks in Tanzania. These loan could be granted against invoice based on supply to the retailers who buying on credit. In spite of these contributions, the study has some limitations. For example, it does not employ distributors/wholesalers that are main actors in food distribution in developing economies like Tanzania. Furthermore, distributors of imported food were not included in the study, although they play a major role in the development of modern food retail in Tanzania. I would therefore like to suggest that future research include distributors/wholesalers of local and imported food products.DANID

Assessment on Economic Support and Value of Hygiene of Butcher shops among Beef Consumers in Tanzania.

The study was conducted to reveal consumer support to hygiene of butcher shop using a linear restriction approach to beef retailers’ sales income; and direct evaluation through choice based experiment. The average retailer’s sales income as an aggregate consumer expense on beef was realized to be affected by hygienic appearance for building, serving-storage equipment and attendants (p=005). Consumer choice preference to hygiene was positive (p<0.001) and they were willing to pay more for hygiene than the beef intrinsic attributes (p=0.05). It was concluded therefore that consumer expenses and choices for beef is motivated by hygiene. Retailers should be encouraged to improve the hygienic standard of butcher shops as a consumer requests besides abiding to rules and regulations. Key words: conjoint analysis, consumer, hygiene, income, linear restriction, retailin

Red meat production in the Tanzanian livestock master plan

Bill & Melinda Gates Foundatio

Relationship Establishment in SCM in a Market with Enforcement and Regulation Challenges:Case of Tanzania

In absence of effective state institutions, informal and private sector operations tend to govern the market. This problem is evident in the petroleum industry in Tanzania. However, little is known about how players in petroleum industry operate in those business environments. The purpose of this chapter is to explore establishment of a relationship between supplier-logistic firms in a post planned economy. The study employed case study interview with two petroleum products distributors in Tanzania to achieve its objective. Data were analyzed by thematic analytical techniques. Three major findings regarding buyer-suppliers relationships in developing economies are presented: actors do not prefer to enforce contract that they sign, discretional relationships exist in petroleum business among actors and ‘undugunization’ is the strongest criteria in selection of actors. Study implies that for a supplier-logistic relationship to exist government has a great role to play in enforcement of laws

Predictors of foeto-maternal outcome of patients with abruptio placenta at Bugando Medical Centre, Tanzania

Background: Abruptio placenta (AP) is one of the life-threatening obstetric complications for both the foetus and mother. We conducted this study to determine the incidence and predictors of adverse outcomes of abruptio placenta at Bugando Medical Centre (BMC) in northwest Tanzania.Methods: This descriptive cross-sectional study was conducted from October 2012 to April 2013. Women with clinical features of abruptio placenta attending BMC were recruited. Data were collected using a structured checklist and analysed with STATA 11.Results: A total of 3,800 deliveries occurred during study period. The incidence of AP was 2.5% (95/3800). Among patients with AP, 49 (51.6%) delivered by Caesarean section. Three (3.2%) maternal deaths occurred. These deaths were strongly associated with the presence of maternal anaemia (p<0.05), and postpartum haemorrhage (p<0.05). The foetal adverse outcomes were prematurity 78 (82.1%), foetal distress 65 (68.4%), low birth weight 46 (48.4%) and intrauterine foetal deaths 30 (31.6%). Perinatal deaths occurred in 52 (54.7 %) of the cases, and were predicted by low birth weight (p<0.001), vaginal delivery (p=0.001), birth asphyxia (p<0.001), and retroplacental clot (>700ml) (p<0.001).Conclusion: The incidence of AP at BMC is high and characterised by poor maternal and foetal outcomes. Patients with AP should be delivered promptly to improve their survival

Assessment of animal feed resources in Tanzania

Bill & Melinda Gates Foundatio