From the Fragrant Highlands to the Netherlands: A Case Study on the Evolution of the Adoption of Ethical Value Chains for Kerinci Cinnamon

The concept of ethical value chains emerged as a response to conventional trade that has put a strain on small producers in the resource periphery. The alternative chains are said to allow trade to be carried out in fairer terms and for the benefits to be distributed to all actors in the value chains. This concept however, has not been widely used in the global spice industry.  This research aims to investigate the nature and evolution of ethical value chains of an Indonesian cinnamon commodity. As part of the resource periphery, Indonesia is the leading producer of cinnamon, with 66% of the world’s cinnamon supply coming from this country. The cinnamon industry itself has long been an important source of income for the people of Kerinci, the largest cinnamon producing area in Indonesia. Using a qualitative case study, this research examined TAKTIK, a farmers’ group in Kerinci, which is known to have been implementing some form of ethical practices in their value chains.  The study found that ethical practices occurred as a result of a value chains intervention programme conducted by an International NGO and a local NGO. Ethical value chains were adopted through the establishment of a farmers’ organisation, adoption of organic farming and certification, and Geographical Indications registration. This study finds that the factors that prompted the adoption of the ethical practices varied among value chain actors. However, there was a common goal of improving the livelihood of farmers and realising more equitable commodity trade. This research enriches the global literature on ethical value chains, particularly on spice commodity and the benefits of adoption for value chain actors.