Who´s Got The Power

Over recent decades, agricultural chains have become more global and tightly coordinated by a small number of leading actors as a result of the growth of supermarkets and the consolidation of manufacturing, processing, logistics and other related industries (seeds and chemicals). Although the chain as a whole is quite profitable, the benefits are skewed in favour of the lead firms in the chain and the gap between producer prices and retail prices has grown. More profoundly, the terms of trade for smaller producers have declined; workers’ conditions have deteriorated; smallerscale farmers are increasingly excluded from modern markets and growing environmental burdens undermine the sustainability of food production in many regions.
In this context, the Fair Trade movement has commissioned this study to explore and analyse the issue of power concentration in agricultural chains: What is the relationship between buyer power and unfair trading practices (UTPs)? What are the impacts on small farmers, workers and the environment? How can legal systems regulate buyer power effectively?