THE BOLIVIAN ORGANIC QUINOA IN THE FAIRTRADE MARKET, IMPLICATIONS FOR THE WEAKEST LINK IN THE VALUE CHAIN: SMALL-SCALE FARMERS

Abstract

Background: The fair trade model seeks to redress the imbalance of power in global supply chains. Unlike conventional trade structures, this commercial alternative purport to benefit small farmers and workers in developing countries. In the real world, however, small-scale producers are often excluded from the benefits. Objective: To analyzes organic Bolivian quinoa as a Fairtrade product and the impacts and challenges that Bolivian quinoa farmers face in the marketing chain. Methodology: A documentary analysis of the production system, application of qualitative techniques with local actors involved in the supply chain of Bolivian quinoa, and field work in regional markets were carried out. Results: The economic conditions of smallholder quinoa producers are improving under this certification system. However, global oversupply and increased competition are having a significant impact on retail prices and Bolivian sales to foreign markets. The retail price is more than a third higher than the Fairtrade price, maximizing profits at the expense of fair trade. Implications: Organic and Fairtrade certified Bolivian quinoa may not be a suitable product for the Fairtrade model. Being a landlocked country and commercial competition from Peru are the two main challenges for small quinoa producers. Conclusions: The Bolivian organic Fairtrade quinoa value chain involves several intermediaries, similar to conventional trade. Organic certification is a time-consuming and costly process because farmers cannot cover the costs. The almost non-existent governance structures imply that most decisions are based on the buyer-driven commodity chain, demonstrating the weak bargaining position of farmers. An alternative certification for small quinoa producers could be the Small Producers' Symbol label.