This study analyzed the value chain structure of certified fairtrade tea from the perspective of governance using global value chain analysis. At the stages of tea leaf cultivation, manufacturing, and shipping, “Captive” and “Hierarchical” types of governance are prevalent, with exporters taking the lead. To comply with fairtrade standards, the versatility and bargaining power of exporters are indispensable for the tea plantations.
At the tea leaf procurement and product sales stages, a “Modular” type of governance is common, with Japan’s certified fairtrade operators acting as the controlling body. In addition, transactions are somewhat more complicated due to the inclusion of fairtrade standards. However, certified fairtrade operators conduct procurement, product processing, and sales based on actual needs.
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