Article
Fair Trade

Why do Wine Producers seek a Fairtrade Certification?

Date: 07/2016
Author: Mirjam Fusenig
Contributor: eb™ Research Team

Fairtrades engagement in South Africa is unique as it emerged from an initiative of local producers seeking the certification in 2003. Since then, the number of Fairtrade wine farms has steadily increased. The inclusion of hired labour plantations has resulted in a vivid discussion amongst scholars. However, research on the perspectives of management on hired labour plantations about Fairtrade remains limited. Therefore, the purpose of this study is to understand the motivation behind South African wine producers pursuit of a Fairtrade certification. Having constructed a conceptual framework incorporating isomorphic drivers and legitimation strategies, the study draws on theoretical concepts mainly used to assess companies motivation for social and environmental reporting. The overarching finding of this study supports scholars who claim that Fairtrade rests on the same market forces as conventional trade. The tide in South Africa's wine industry has turned; initiated by local producers, but gradually being taken over by international retailers. It remains questionable whether such enforced standards can lead to a sustainable change within the industry.