Samenvatting

This dissertation examines the competiveness of the fair trade tea value chain through a comparative study of the conventional and fair trade tea value chains in Kabarole district, Uganda. By examining this economically important subject, it clarifies the process by which value chains compete for smallholder farmer’s leaf and the constraints that the chains experience in their functioning. Comparison of the value chains involved the use of four indicators namely; green leaf price, fertilizer pricing, green leaf market share and auction selling prices. Two major research strategies were employed: (1) a quantitative analysis of smallholder data through a survey of 45 respondents and (2) case studies of two tea processors. Additional information was collected from literature and interviews. The data collected was analysed using SPSS 16.0 statistical program. Descriptive statistics were used to compare the responses of farmers in the value chains to a number of issues relevant to the study. Cross tabulation was employed to compare the conventional and fair trade harvest share from farmers selling to both value chains. This thesis examined how farmers decide to which value chain they market their green leaf. The value chain concept was used through out the discussion of the results and the roles of the stakeholders. In conclusion it was revealed that the conventional value chain was more competitive for smallholder leaf compared to the fair trade value chain. The study thereafter generated recommendations to contribute to improving the leaf supply into the fair trade value chain.