LAND REFORM AND THE MEANING OF THE FAIR TRADE IN THE CONTEXT OF THE REPUBLIC OF SOUTH AFRICA

Abstract

Fair Trade is drastically expanding to mainstream in the 2000s. Even in the Republic of South Africa (South Africa) has the Fair Trade Movement appeared in agricultural and food sectors. Management companies and white farms are not marginalized people, who are major target of Fair Trade movement in general. This paper intended to answer the questions why management companies and white farms are involved in Fair Trade movement. The paper argued that major players of Fair Trade in South Africa is a large commercial farm owned by white South Africans who are very sensitive to political pressure. Fair Trade movement in South Africa. South Africa is facing a difficult problem on how to reduce the poor-rich distinction in agriculture. From this context, land reform should be urgently and strongly promoted. Land reform gave impacts by way of two courses. One is the necessity of economic sustainability by introducing a concept of ‘fairness’ as appealing new added value, followed by initiating Fair Trade farms and Strategic Partnership Approach. The other is the politico-psychological pressure to secure good reputation of ‘fairness’, which was caused by social pressure of land reform and domestic policies seeking for reduction of disparities between rural-urban and agriculture-industry relationships. Although the land reform is urgent for economic sustainability, but the land reform farm failed to continue their business due to the lack of know-how and knowledge concerning farm activities and lack of good market access and the market structure to block native Africans to sell in a free way. In this point, Fair Trade is one of possible solutions.