The Effects of Fair Trade on Affiliated Producers: An Impact Analysis on Kenyan Farmers

Abstract

We analyse the impact of fair trade (FT) affiliation on monetary and non-monetary measures of well-being in a sample of Kenyan farmers. Our descriptive and econometric findings document significant differences in terms of varieties of products sold, price satisfaction, monthly household food consumption, (self declared) satisfaction with living conditions, dietary quality, and child mortality for affiliates of fair trade and Meru Herbs (first-level local producer organization) with respect to a control sample. Methodological problems such as FT's vis à vis Meru Herbs' relative contribution, control sample bias, FT and Meru Herbs selection biases are discussed and addressed showing that ex ante (self) selection of Meru Herbs members contributes to explaining some but not all of our results.