This thesis investigates the impact of fair trade on tea producers in the Central Province of Sri
Lanka. A comparison study is undertaken between fair and conventional trade farmers to
investigate the monetary and non-monetary benefits of fair trade involvement.
The study of 7 villages in the Central Province, incorporates 40 fair trade tea producers, who
are members of a cooperative, and 40 conventional trade tea producers selling to a local buyer.
Undertaken in July 2009, the research analyses quantitative and qualitative data gathered by
means of questionnaires and interviews, to examine the different experiences of the two types
of producers in terms of monetary and non-monetary benefits. Monetary benefits examined
include factors such as improved income, income sufficiency, secondary income activities, pre
finance measures and excess money. Non-monetary benefits examined include education
gains, household development and labour hours on tea production. The results are compared
with other impact studies with similarities and differences analysed.
The empirical results presented suggest that there are no significant differences in tea income
between the two groups. However, fair trade producers work fewer hours in tea production
and are more likely to report both an improved and excess income. Furthermore, the fair trade
producers report improved spending on food and savings and have a more diversified crop.
The results are due to the increased productivity, the provision of loans and saving schemes
and the increased time available to work on secondary income generating activities either on
or off the farm resulting in an overall improvement in living standards