Study On Agricultural Products' Sourcing Strategy In Fair Trade Market Under Sustainable Development

In the process of economic globalization,developed countries have made huge profits through the continuous reduction of primary agricultural products' prices in developing countries through powerful multinational corporations,which has made farmers in developing countries have difficulties in their livelihoods and also lead to a series of social,environmental and economic problems.At the same time,social responsibility,sustainable development,etc.are increasingly attracting the attention of consumers,organizations and enterprises.Fair Trade has emerged in this environment and is increasingly playing an important role in agriculture of developing countries.From the perspective of fair trade,this dissertation studies how organizations,enterprises and consumers influence the income of developing countries' farmers,and then improve agriculture's sustainable development in developing countries.In the study of retailer's single procurement strategy,how fair trade organizations guarantee farmers' price by giving them a fair trade certification label is studied firstly.In this part,the subjective initiative of producers has been fully considered,using the rational expectation to examine farmers' certification and participation decision,and correspondingly examining the pricing decisions of organizations and retailers.The results of the study show that not the higher the wholesale price of the organization is beneficial to farmers and harmful to retailers.Then,the corresponding behavior of the supply chain when the retailer initiate fair trade procurement has also been examined.The same as organization-led fair trade,this part examines the heterogeneity of farmers and the uncertainty of the market,which makes the research more realistic and the results can be applied to the market more closely.The study found that when retailers initiate fair trade,the formulation of product quality standards is first related to farmers' quality improve costs,and secondly to market conditions.In the study of retailer's multiple procurement strategy choices,how retailers choose among different forms of fair trade is studied firstly.Studies have shown that fair trade organizations have a need to exist only when the number of farmers is large enough and the volatility in commodity price is moderate.Second,on the basis of fair trade procurement,another sustainable procurement strategy(organic procurement)has been selected into consideration to examine how retailers choose among different forms of certification mechanisms.The result shows that the retailer participates in fair trade or uses organic cotton only when the non-organic cotton commodity price is sufficiently high.Moreover,increases in the cotton commodity price may not necessarily benefit the farmer.Finally,the manufacturer's participation in fair trade can yield the highest profit for both supply chain parties.Such a win-win outcome always occurs when the fair trade manufacturer also chooses organic cotton but never occurs if the manufacturer does not participate in fair trade.