The aim of this study is to understand the Fair Trade Coffee Business Model by determining how the Fair Trade Coffee Business Model affects the livelihoods of the small scale producers in developing countries. The Fair Trade Coffee Business Model is driven by the mission to improve the well-being of the small scale producers located in developing countries through the lens of the Triple Bottom Line (economic, social and environment). What is the significance of fair trade coffee to the economies of developing countries that produce coffee? The economies are considerably impacted by coffee production as coffee ranks as the second foremost exported commodity from developing countries (European Coffee Federation, 2006). Ensuring the small scale producers receive a fair price for the coffee they grow is only one of the initiatives of the model. Other key initiatives include pre-harvest financing, increased healthcare services, working together for a higher quality coffee, fairer business conduct, improvements in education, and technical assistance. The findings of this study provide some insights into the Fair Trade Coffee Business Model’s effect on the livelihoods of the small scale producers in developing countries through the lens of the Triple Bottom Line. The Fair Trade Coffee Business Model has increased the quality of the coffee bean produced by the small scale producers along with developing long term business relationships throughout the Fair Trade Coffee Business Model supply chain. In sum, the small scale producers reported that the Fair Trade Coffee Business Model has a positive effect on their livelihood and well-being. More specifically, they also indicated that the motivations for them to participate in the Fair Trade Coffee Business Model are receiving a better price for coffee, democratic decision making and farm training. An additional finding affirms that the Fair Trade Coffee Business Model is a sound contributor to the socio-economic stability of the small scale producers, offering a sustainable income-generating alternative market strategy.

The aim of this study is to understand the Fair Trade Coffee Business Model by determining how the Fair Trade Coffee Business Model affects the livelihoods of the small scale producers in developing countries. The Fair Trade Coffee Business Model is driven by the mission to improve the well-being of the small scale producers located in developing countries through the lens of the Triple Bottom Line (economic, social and environment). What is the significance of fair trade coffee to the economies of developing countries that produce coffee? The economies are considerably impacted by coffee production as coffee ranks as the second foremost exported commodity from developing countries (European Coffee Federation, 2006). Ensuring the small scale producers receive a fair price for the coffee they grow is only one of the initiatives of the model. Other key initiatives include pre-harvest financing, increased healthcare services, working together for a higher quality coffee, fairer business conduct, improvements in education, and technical assistance. The findings of this study provide some insights into the Fair Trade Coffee Business Model’s effect on the livelihoods of the small scale producers in developing countries through the lens of the Triple Bottom Line. The Fair Trade Coffee Business Model has increased the quality of the coffee bean produced by the small scale producers along with developing long term business relationships throughout the Fair Trade Coffee Business Model supply chain. In sum, the small scale producers reported that the Fair Trade Coffee Business Model has a positive effect on their livelihood and well-being. More specifically, they also indicated that the motivations for them to participate in the Fair Trade Coffee Business Model are receiving a better price for coffee, democratic decision making and farm training. An additional finding affirms that the Fair Trade Coffee Business Model is a sound contributor to the socio-economic stability of the small scale producers, offering a sustainable income-generating alternative market strategy.

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Global food supply chains have drastically changed over the last decades. Whereas some international firms embedded in the international markets are on the cutting edge of food production processes and technology, small-scale producers do not always experience the same opportunity in accessing such global value chains. According to FAO, those small-scale producers worldwide are in charge of providing about one-third of the world’s food demand, yet they find an immense challenge in just keeping their production marketable. This way, one of the most likely consequences of poorly designed policies to support those producers is rural poverty. However, not only physical dimensions such as food security and nutrition, education, living standards, rural livelihoods and resources, and risks as presented by FAO impose pressure on small-scale producers, but also the inability to experience a better quality of life also seems to play a key role in how producers plan and manages their crops. This research explores the role and preferences of small-scale farmers in São Paulo, Brazil, through the lens of the Amartya Sen’s capabilities approach. To operationalize this research, a case study was conducted based on semi-structured interviews in addition to a desk study. The findings suggests that although those farmers have no clear idea regarding the academic concept of capabilities, they do acknowledge a lack of freedom to make decisions according to their preferences. In addition, they seems to be squeezed in the middle of the government policies directed for the agribusiness and the most vulnerable rural households who lives under the poverty line, when it comes specifically to the Brazilian case.