Collective marketing is an avenue through which farmers could receive higher returns from their produce. Bukonzo Joint Co-operative Union exemplifies this: it has obtained both Fairtrade and organic certifications and, by following the Fairtrade ethos and offering farmers a guaranteed (and often) higher price, potentially has a strong role in livelihood improvement, poverty reduction, social inclusion and rural development. In this study, we showcase the role of collective marketing, explore the challenges and analyse the relevance of finance institutions in the development of co-operatives. Our qualitative study shows that collective marketing mixed with the Fairtrade ethos could strongly encourage social enterprise development and could lead to livelihood improvement in marginalised areas. However, one of the most important barriers is limited finances for the production of high-quality coffee, purchasing members’ coffee under the Fairtrade label and investment in infrastructure: availability of ethically appropriate, affordable funding options is critical in the development of social enterprises.
Allsopp, M. S. & Tallontire, A. (2014). Pathways to empowerment: Dynamics of women participation in global value chains. Journal of Cleaner Production, 107, 114–121.
Arnot, C., Boxall, P. C. & Cash, S. B. (2006). Do ethical consumers care about price? A revealed preference analysis of fairtrade coffee purchases. Canadian Journal of Agricultural Economics, 54, 555–565.
Barham, J. & Chitemi, C. (2009). Collective action initiatives to improve marketing performance: Lessons from farmer groups in Tanzania. Food Policy, 34, 53–59.
Basu, A. K. & Hicks, R. I. (2008). Label performance and the willingness to pay for fairtrade coffee: A cross national perspective. International Journal of Consumer Studies, 32, 470–478.
Beuchelt, D. T. & Zeller, M. (2012). The role of co-operative business models for the success of smallholder coffee certification in Nicaragua: A comparison of conventional, organic and Organic Fairtrade certified co-operatives. Renewable Agriculture and Food Systems, 28, 195–211.
Blowfield, M. E. & Dolan, C. (2010). Fairtrade facts and fancies: What Kenyan fairtrade tea tells us about business’ role as development agent. Journal of Business Ethics, 93, 143–162.
Borsky, S. & Spata, M. (2017). The impact of Fair Trade on smallholders’ capacity to adapt to climate change. Sustainable Development. Advance online publication. doi:10.1002/sd.1712
British Council (2015). A review of social enterprise activity in the Philippines. Institute for Social Entrepreneurship in Asia.
Chiputwa, B., Spielman, D. J. & Qaim, M. (2015). Food standards, certifications, and poverty among coffee farmers in Uganda. World Development, 66, 400–412.
Cornelli, E. M. (2012). A critical analysis of Nyerere's Ujamaa: An investigation of its foundations and values. Birmingham, UK: Centre for the Study of Global Ethics, Department of Philosophy, University of Birmingham.
Cramer, C., Johnston, D., Oya, C. & Sender, J. (2014). Fairtrade co-operatives in Ethiopia and Uganda: Uncensored. Review of African Political Economy, 41, S115–S127.
Daviron, B. & Ponte, S. (2005). The coffee paradox: Global markets, commodity trade and the elusive promise of development. London, England: Zed Books.
Dragusanu, R. & Nunn, N. (2018). The effects of Fairtrade certification: Evidence from coffee producers in Costa Rica. Cambridge, MA: National Bureau of Economic Research.
Elder, S. D., Zerriffi, H. & Billion, P. L. (2012). Effects of Fairtrade certification on social capital: The case of Rwandan coffee producers. World Development, 40, 2355–2367.
Elliott, K. A. (2012). Is my Fairtrade coffee really fair? Trends and challenges in Fairtrade certification (Centre for Global Development, Policy Paper 017). Retrieved from http://www.cgdev.org/content/publications/detail/1426831
Fisher, E. (2017). Solidarities at a distance: Extending Fairtrade gold to east Africa. The Extractive Industries and Society, 5, 81–90.
Ibhawoh, B. & Dibua, J. I. (2003). Deconstructing Ujamaa: The legacy of Julius Nyerere in the quest for social and economic development in Africa. African Journal of Political Science, 8, 59–83.
Jassogne, L., van Asten, P. J. A., Wanyama, I. & Baret, P. V. (2013). Perceptions and outlook on intercropping coffee with banana as an opportunity for smallholder coffee farmers in Uganda. International Journal of Agricultural Sustainability, 11, 144–158.
Kabuga, C. & Kitandwe, J. W. (1995). Historical background of the cooperative movement. In C. Kabuga & P. Batarinyebwa (Eds.), Cooperatives: Past, present and future. Kampala: Uganda Cooperative Alliance. Retrieved from https://books.google.co.ug/books?isbn=178360347X
Kariuki, G. & Place, F. (2005). Initiatives for rural development through collective action: The case of household participation in group activities in the highlands of central Kenya (CAPRi Working Paper No. 43). Washington, DC: International Food Policy Research Institute.
Kolk, A. (2005). Corporate social responsibility in the coffee sector: The dynamics of MNC responses and code development. European Management Journal, 23, 228–236.
Kwapong, A. N. & Korugyendo, L. P. (2010). Revival of agricultural co-operatives in Uganda (Uganda Strategy Support Program, Policy Note No. 10). Washington, DC: International Food Policy Research Institute.
Lecoutere, E. (2017). The impact of agricultural co-operatives on women's empowerment: Evidence from Uganda. Journal of Co-operative Organization and Management, 5, 14–27.
Lundy, M. Ostertag, C. & Best, R. (2002). Value adding, agro-enterprise and poverty reduction: A territorial approach for rural business development (Rural Agro-Enterprise Development Project paper). Cali, Colombia: CIAT.
Markelova, H., Dick, R. M., Hellin, J. & Dohrn, S. (2008). Collective action for smallholder market access. Food Policy, 34, 1–7.
Mauthofer, T., Schneider, E., Väth, S. J. & Cölln, F. V. (2018). Follow up study – assessing the impact of Fairtrade on poverty reduction through rural development. Commissioned by Fairtrade Germany, Max Havelaar Foundation, FAIRTRADE Austria and SECO, Switzerland.
McEwan, C. & Bek, D. (2006). Repoliticizing empowerment: Lessons from the South African wine industry. Geoforum, 37, 1021–1034.
Meier zu Selhausen, F. & Stam, E. (2013). Husbands and wives. The powers and perils of participation in a micro-finance cooperative for female entrepreneurs (Working Papers 13–10). Utrecht School of Economics. Retrieved from https://ideas.repec.org/p/use/tkiwps/1310.html
Milford, A. (2004, March 4). Coffee, co-operatives and competition: The impact of Fairtrade. Retrieved from https://www.cmi.no/publications/2004/rep/r2004-6.pdf.
Mojo, D., Fischer, C. & Degefa, T. (2017). The determinants and economic impacts of membership in coffee co-operatives: Recent evidence from rural Ethiopia. Journal of Rural Studies, 50, 84–94.
Mugisha, J., Kiiza, B., Hyuha, T., Lwasa, S. & Katongole, C. (2005). Governance and business performance of rural producer organizations in Uganda (Report prepared for NORAD). Retrieved from https://edoc.hu-berlin.de/bitstream/handle/18452/17235/kwapong.pdf?sequence=1
Muradian, R. & Pelupessy, W. (2005). Governing the coffee chain: The role of voluntary regulatory systems. World Development, 33, 2029–2044.
National Planning Authority (2018). Strengthening of co-operatives for social economic transformation in Uganda (Policy Paper for Presidential Economic Council). Retrieved from http://npa.ug/wp-content/uploads/2018/07/Strengthening-Cooperatives-for-Increased-Productivity-in-Uganda.pdf
Otunnu, O. (2015). Mwalimu Julius Kambarage Nyerere's philosophy, contribution, and legacies. African Identities, 13, 18–33.
Rice, P. (2002). Fair trade: A more accurate assessment. The Chazen Web Journal of International Business. Retrieved from www.gsb.colombia.edu
Rice, R. A. (2015). In the pursuit of sustainability: Lessons from the coffee sector. International Journal of Environmental Protection and Policy, 3, 14–19.
Rijsbergen, B. V., Elbers, W., Ruben, R. & Njuguna, S. N. (2015). The ambivalent impact of coffee certification on farmers’ welfare: A matched panel approach for co-operatives in Central Kenya. World Development, 77, 277–292.
Robbins, P., Bikande, F., Ferris, S., Hodges, R., Kleih, U., Okoboi, G. & Wandschneider, T. (2004). Advice manual for the organisation of collective marketing activities by small-scale farmers. Chatham, UK: The Natural Resources Institute, University of Greenwich.
Sick, D. (2008). Coffee, farming families, and Fairtrade in Costa Rica: New markets, same old problems? Latin American Research Review, 43, 193–208.
Snider, A., Gutierrez, I., Sibelet, N. & Faure, G. (2016). Small farmer co-operatives and voluntary coffee certifications: Rewarding progressive farmers of engendering widespread change in Costa Rica? Food Policy, 69, 231–242.
Solidaridad (2014). The impact of coffee certification on smallholder farmers in Kenya, Uganda and Ethiopia. Centre for International Development Issues Nijmegen (CIDIN), Rad Boud University, The Netherlands.
Ssebunya B. R., Morawetz, U. B., Schader, C., Stolze, M. & Schmid, E. (2018). Group membership and certification effects on incomes of coffee farmers in Uganda. European Review of Agricultural Economics, 1–24.
Ton, G. (2010). Resolving the challenges of collective marketing: Incentive structures that reduce the tensions between members and their group (ESFIM Policy Brief 4). Retrieved from http://www.esfim.org/wp-content/uploads/policy-brief4-english.pdf
Wang, N., Jassogne, L., van Asten, P. J. A., Mukasa, D., Wanyama, I., Kagezi, G. & Giller, K. E. (2015). Evaluating coffee yield gaps and important biotic, abiotic, and management factors limiting coffee production in Uganda. European Journal of Agronomy, 63, 1–11.
Wanyama, F., Markelova, H., Poulton, C. & Dutilly, C. (2015). Collective action among African smallholder farmers; trends and lessons for future development strategies (WCAO Thematic Research Note No. 5). Washington, DC: International Food Policy Research Institute.
Weber, J. G. (2011). How much more do growers receive for Fair Trade-organic coffee? Food Policy, 36, 678–685.
Wedig, K. & Wiegratz, J. (2017). Neoliberalism and the revival of agricultural co-operatives: The case of the coffee sector in Uganda. Journal of Agrarian Change, 18, 348–369.
Young, G. (2003). The influential past and the future challenges of fair trade. Conference Report, King Baudouin Foundation, Brussels.