Influence of Fair Trade Practices on Export Performance of Coffee Factories in Kiambu County

Abstract

The competitive level in international trade has continued to rise from period to period especially over the last three decades, partly due to globalization and enlightened customer base that has become more demanding in their quest to link what is consumed and the social problem that affects majority of the producer countries. The aim of the study was to determine the influence of fair trade practices on the export performance of the coffee factories in Kiambu County. The study incorporated four major fairtrade practices exercised by firms enrolled with fair-trade organization. These practices comprised of safe working environment, discrimination and child labour, environmental conservation and eradication of poverty. The research used a cross-sectional descriptive survey for this investigation on the population that comprised of 67 coffee factories in Kiambu County. From the descriptive statistics, the study established that majority of coffee factories in Kiambu County have moderately achieved implementation of fair-trade practices considered in the study. Similarly, the study concluded that through implementation of fair trade practices strategies, there has been increase in coffee supply to factories leading to increase in export volume. Based on the findings, the study recommends that coffee factories should educate employees on various fair-trade practices that help gain sustainable supply of coffee to factories as a consequent of good returns to the farmers. The scope of the study was limited to coffee production industry in Kenya. Consequently, it is suggested that a study be undertaken on more than one production sector to compare the results and get a more representative finding.