The Effects of fair trade on marginalised producers: an impact analysis on Kenyan farmers

Abstract

We analyse the impact of affiliation to Fair Trade (FT) on monetary and non monetary measures of well-being in a sample of Kenyan farmers. Our econometric findings document significant differences in terms of price satisfaction, monthly household food consumption, (self declared) income satisfaction, dietary quality and child mortality for Fair Trade and Meru Herbs (first level local producers organisation) affiliated with respect to a control sample. Methodological problems such as the FT vis à vis Meru Herbs relative contribution, control sample bias and local cooperative and fair trade selection biases are carefully discussed and addressed. After reconstructing the dynamics of human capital investment in the observed households we show that affiliation to the younger vintage FT project is associated with a significantly higher schooling investment