Effects of Fair-Trade Certification Standards on Performance of Coffee Cooperatives in Rwanda

Coffee farming in Rwanda is the major contributing crop to foreign exchange in agriculture sector. Its production has declined constantly, and it has not recovered since 1992 because of existing production are inefficient. Therefore, this study was designed to assess effects of fair-trade certification standards on performance of coffee cooperatives in Rwanda. Specifically, the study analyzed the effect of fair labor conditions on performance of coffee cooperatives in Rwanda. The study adopted descriptive study design. The target population included the staff of coffee cooperatives in Rwanda, which are producing and selling coffee. A sample of 152 staff members was computed from a population of 296 using Yamane�s formula. Proportionate, stratified random sampling techniques were applied in this study in selecting the sampling size. The study adopted multiple regression model to explain the relationship between certification standards and cooperative performance. Data were presented in form of tables and charts and then, findings showed that all coffee cooperatives in Rwanda are certified and largely comply with FLO certification standards. The findings further showed that fair labor conditions have positive significant effect on cooperative performance. The study recommends that cooperatives should give certification standards highest priority in a bid to improve their performance. For example, fair treatment of laborers should be embraced through offering competitive remunerations, conducting continuous training and abiding labor laws.