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1 – 10 of over 3000
Book part
Publication date: 14 December 2018

Sarah Lyon

This article examines how smallholders in Oaxaca, Mexico, experienced and responded to the recent coffee rust disaster, asking whether fair trade coffee producer organizations…

Abstract

This article examines how smallholders in Oaxaca, Mexico, experienced and responded to the recent coffee rust disaster, asking whether fair trade coffee producer organizations helped smallholders develop coping mechanisms to offset their vulnerability. It demonstrates how Oaxacan coffee producers were especially vulnerable during the recent rust outbreak due to long-term trends including a decline in governmental support for the sector dating back to the 1990s which resulted in a decline in producer incomes and a concomitant rise in the number of aging and poorly managed coffee plots that were more susceptible to coffee rust. The ongoing price volatility within coffee commodity markets and the continued restructuring of the specialty coffee market also increases the uncertainty producers face when determining how to best respond to the rust disaster. The article details the concrete ways in which fair trade coffee producer organizations help bolster the adaptive capacity of their members, while also noting areas for improvement.

Details

Individual and Social Adaptations to Human Vulnerability
Type: Book
ISBN: 978-1-78769-175-9

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Article
Publication date: 7 November 2016

Sushil Mohan, Firdu Gemech, Alan Reeves and John Struthers

This paper aims to estimate the welfare effects for Ethiopian coffee producers from eliminating coffee price volatility.

Abstract

Purpose

This paper aims to estimate the welfare effects for Ethiopian coffee producers from eliminating coffee price volatility.

Design/methodology/approach

To estimate volatility, the generalised autoregressive conditional heteroskedasticity technique is applied to monthly coffee prices in Ethiopia for the period 1976-2012. To distinguish between the unpredictable and predictable components of volatility, we obtain separate estimates of the conditional and unconditional variance of the residual. This is combined with estimates of the coefficient of relative risk aversion to measure the welfare effects from eliminating the unpredictable component of price volatility.

Findings

A key finding is that the welfare gain from eliminating coffee price volatility is small; the gain per producer comes to a meagre US$0.76 in a year.

Originality/value

This has important policy implications for the efficacy of price stabilisation mechanisms for coffee producers, i.e. any attempt to eliminate coffee price volatility at a cost may not be a preferred outcome for Ethiopian producers. The contribution of the paper lies in using the unconditional variance, as it more truly reflects price risk faced by coffee producers without overestimating it.

Details

Qualitative Research in Financial Markets, vol. 8 no. 4
Type: Research Article
ISSN: 1755-4179

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Book part
Publication date: 19 May 2009

Julia Smith

Developing new markets for small producers has been a major focus of research and development in many parts of the world. Too frequently, the ways in which existing production and…

Abstract

Developing new markets for small producers has been a major focus of research and development in many parts of the world. Too frequently, the ways in which existing production and market systems constrain producer possibilities has been ignored. This study examines how existing systems have affected coffee farmers in Costa Rica and Panama as they attempt to enter the elite coffee market, which promises higher prices for premium production. In the past 50 years, Costa Rica had created a system quite favorable to small producers in the world coffee market, while Panama had done little. Yet today, the Costa Rican system has proven to be a barrier to entering the highest levels of the coffee market, while the Panamanian system has produced coffees that are currently among the best in the world. The shifting ways in which production and marketing systems connect with world markets and elite taste suggest the necessity of greater sensitivity to how existing systems affect what farmers can and will decide to do.

Details

Economic Development, Integration, and Morality in Asia and the Americas
Type: Book
ISBN: 978-1-84855-542-6

Content available
Book part
Publication date: 13 December 2021

Sarah Lyon

Since the introduction of product certification in the 1980s, fair trade has grown apart from its social justice roots and the focus has steadily shifted away from calls for…

Abstract

Since the introduction of product certification in the 1980s, fair trade has grown apart from its social justice roots and the focus has steadily shifted away from calls for institutional market reform, corporate accountability, and fair prices, and toward a celebratory embrace of poverty alleviation and income growth through market integration and business partnerships. This paper examines fair trade's narratives of poverty and partnerships, focusing on the brand communication strategies employed by influential fair trade organizations and businesses. These are compared with how fair trade coffee producers in southern Mexico understand and practice partnership, demonstrating some of the ways in which the latter resist narrative framings which position them as entrepreneurial businesspeople first and cooperativistas second. The business partnerships between coffee buyers and producers are highly asymmetrical, and the partnerships that matter most for the Oaxacan coffee farmers are not with global businesses and certifiers, but instead with each other and their producer organizations. These relationships did not originate with fair trade, although, they are, in part, sustained by this system which supports democratically organized producer groups, the sharing of technical and market information, and communal management of the fair trade premium. In contrast to the organizations that certify and market their products, the paper demonstrates how farmers regard their precarious economic circumstances as an issue of social justice to be addressed through increased state support rather than market empowerment. The analytical juxtaposition of farmers' attitudes with fair trade organizational priorities contributes to the expanding literature examining how fair trade policies are experienced on the ground.

Details

Infrastructure, Morality, Food and Clothing, and New Developments in Latin America
Type: Book
ISBN: 978-1-80117-434-3

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Book part
Publication date: 15 April 2019

Stephen Pitts S. J.

Coffee producers typically sell raw coffee beans as the first step in a global value chain. Recently, groups of producers have formed coffee cooperatives that attempt to regain…

Abstract

Coffee producers typically sell raw coffee beans as the first step in a global value chain. Recently, groups of producers have formed coffee cooperatives that attempt to regain market power by integrating the other steps of the value chain. This study uses matching to estimate the effect of membership in one such cooperative on the household economy of indigenous coffee producers in the state of Chiapas, Mexico. It contributes to the literature by considering new determinants of participation and outcomes of interest. First, social capital at the individual and village level is correlated with cooperative membership more than other demographic factors. Second, cooperative members report an increase in the share of coffee sold and income from coffee sales but not in per-kilo price or total income. These two results reflect particular features of the Chiapas reality and the desires of the indigenous people the cooperative serves. Thus, they reiterate the importance for economic development projects to consider the context of their interventions.

Details

Entrepreneurship and Development in the 21st Century
Type: Book
ISBN: 978-1-78973-233-7

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Article
Publication date: 20 January 2022

Benjamin Marcus, Elif Sisli-Ciamarra and Lee Phillip McGinnis

The paper aims to understand the role of sensory quality scoring used at the competition auctions on pricing outcomes and how the auction process could be improved to increase…

Abstract

Purpose

The paper aims to understand the role of sensory quality scoring used at the competition auctions on pricing outcomes and how the auction process could be improved to increase sustainability in the specialty coffee market.

Design/methodology/approach

The authors build a conceptual model explaining the potential role of sensory quality scoring in generating inequitable outcomes in specialty coffee auctions. The authors' research is exploratory. The authors base the propositions on the findings of the extant literature and our analysis of data from 24 Best of Panama (BOP) Auctions that took place between 2017 and 2021.

Findings

A striking feature in recent BOP Auctions is a winner-takes-all (WTA) outcome. The authors also document the presence of significant price inversion. The authors attribute these outcomes to the interactions of information-poor producers, information-rich intermediaries and conspicuous consumers in competition auctions, where the product quality measurement is highly unreliable.

Research limitations/implications

Data need to be gathered more broadly to enable the operationalization of the current propositions into testable hypotheses.

Social implications

These strategies intend to provide guidelines for producers, consumers and other value chain participants on creating equitable solutions to a thriving industry where a WTA phenomenon occurs.

Originality/value

The current study is the first to argue that existing quality scoring practices, as well as conspicuous consumption, contribute to the inequities. Finally, the study proposes novel interventions to standardize the quality grading protocols and communicate them transparently to both producers and consumers.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 3
Type: Research Article
ISSN: 2044-0839

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Article
Publication date: 15 March 2011

Ruerd Ruben and Guillermo Zuniga

Smallholder farmers are increasingly subject to different types of standards that offer specific conditions for their market incorporation. The proliferation of private and…

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Abstract

Purpose

Smallholder farmers are increasingly subject to different types of standards that offer specific conditions for their market incorporation. The proliferation of private and voluntary (civic) standards raises questions regarding their impact on farmers' welfare and their role in the upgrading of value chains. This paper aims to address this issue.

Design/methodology/approach

Based on extensive fieldwork and careful matching of 315 farmers in Northern Nicaragua who produce coffee under Fair Trade, Rainforest Alliance and Café Practices labels or deliver to independent traders, the effects on income, production and investments are compared. Moreover, the implications of different contract conditions for risk behaviour, organizational force, loyalty and gender attitudes are assessed.

Findings

The paper finds that Fair Trade provides better prices compared with independent producers, but private labels out‐compete Fair Trade in terms of yield and quality performance. While Fair Trade can be helpful to support initial market incorporation, private labels offer more suitable incentives for quality upgrading.

Research limitations/implications

Civic standards exhibit major effects on local institutions' and farmers' behaviour, while B2B standards are more effective for improving production and management practices. Dynamic improvement standards may bridge the gap between both.

Practical implications

Fair Trade standards are useful to provide initial market access to small‐holders, but private standards offer better prospects for subsequent quality upgrading.

Originality/value

This is the first large‐scale comparative impact assessment of coffee standards that delivers unbiased empirical results.

Details

Supply Chain Management: An International Journal, vol. 16 no. 2
Type: Research Article
ISSN: 1359-8546

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Open Access
Article
Publication date: 6 September 2021

Asnake Adane and Woldeamlak Bewket

The purpose of this paper was to assess the effects of quality coffee production on climate change adaptation using household surveys and interview data gathered from coffee

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Abstract

Purpose

The purpose of this paper was to assess the effects of quality coffee production on climate change adaptation using household surveys and interview data gathered from coffee farmers in Yirgacheffe, southern Ethiopia.

Design/methodology/approach

A sample of 352 households, stratified into conventional coffee farmers 232 (66%) and specialty coffee producers 120(34%), was used. The propensity score model for participating in quality coffee production was estimated using 14 covariates, and the impact of quality coffee production on adaptation to climate change adaptation was examined. The results are augmented with qualitative data collected through focus group discussions and key informant interviews held with randomly selected smallholder farmers. A telecoupling theoretical perspective was used to understand the link between coffee farmers’ adaptation practices and the demand for quality coffee, as coffee is a global commodity.

Findings

The PSM analysis reveals that quality coffee production positively influences climate change adaptation. This implies that conventional coffee producers would have performed better in adaptation to climate change if they had participated in quality coffee production. The results of group discussions also confirm the positive effects of quality coffee production on adaptation to climate change, which also suggests a positive spillover effects for sustainable coffee farm management.

Practical implications

This study suggests enhancing quality coffee production is essential if a more sustainable and climate change resilient coffee livelihood is envisioned.

Originality/value

Though many studies are available on adaptation to climate change in general, this study is one of the few studies focusing on the effects of quality coffee production on climate change adaptation by smallholders in one of the least developed countries, Ethiopia. This study provides a better understanding of the importance of adaptation strategies specific to coffee production, which in turn help develop a more resilient coffee sector, as coffee production is one of the most sensitive activity to climate change.

Details

International Journal of Climate Change Strategies and Management, vol. 13 no. 4/5
Type: Research Article
ISSN: 1756-8692

Keywords

Book part
Publication date: 1 September 2008

Peter Luetchford

Fair trade commonly focuses on the figure of the smallholding peasant producer. The effectiveness of this as a strategy lies in the widespread appeal of an economy based upon…

Abstract

Fair trade commonly focuses on the figure of the smallholding peasant producer. The effectiveness of this as a strategy lies in the widespread appeal of an economy based upon independent family producers trying to secure livelihoods in impersonal and exploitative global commodity markets. But the attempt by fair trade to personalise economic relationships between coffee producers and consumers diverts attention away from aspects of the political economy of production for the market. This chapter examines a rural Costa Rican coffee economy that has supplied fair trade markets since the 1980s. Documenting differences in landholdings, the range of activities farmers engage in, and the relationship between landowners and landless labourers, women, and migrant harvesters from Nicaragua reveals differentiation and tensions that are obscured in the “smallholder” model invoked by fair trade.

Details

Hidden Hands in the Market: Ethnographies of Fair Trade, Ethical Consumption, and Corporate Social Responsibility
Type: Book
ISBN: 978-1-84855-059-9

Article
Publication date: 29 February 2024

Rodrigo Natal Duarte, Elisa Reis Guimarães, Maurício Ribeiro do Valle and Simone Vasconcelos Ribeiro Galina

This study aimed to understand coopetition in the context of Brazilian specialty coffee grower Small and medium enterprises (SMEs), based on the need to differentiate the beans in…

Abstract

Purpose

This study aimed to understand coopetition in the context of Brazilian specialty coffee grower Small and medium enterprises (SMEs), based on the need to differentiate the beans in and outside the farm level, taking into account the stakeholders’ influence.

Design/methodology/approach

In this study twenty semistructured interviews were carried out with coffee growers and managers of cooperatives, associations and supporting institutions involving two Brazilian coffee geographical indications. Data were analyzed using a mixed grid composed of qualitative, semantic and categorical factors.

Findings

Strategic moves undertaken by coffee growers and stakeholders have shaped the pathway of coopetition among coffee growers, as determinants to frame it as a deliberate or emergent pattern (intentional or unplanned, respectively). Our findings provide evidence that coopetition development among firms is deliberate when influenced by firms’ or stakeholders’ cooperative moves and emergent when influenced by firms’ or stakeholders’ competitive moves.

Originality/value

Although the firm/stakeholder relationship is often approached as a joint wealth creation effort, stakes are not always fairly distributed, so one of the parties may be negatively affected, with consequences for the development of coopetition. Underpinned by a stakeholder-oriented resource-based theoretical lens, this investigation of the development patterns of coopetition linked to the strategic actions undertaken by firms and stakeholders has resonance on competitive advantages.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

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1 – 10 of over 3000