Is sustainable agriculture a viable strategy to improve farm income in Central America? A case study on coffee (original) (raw)
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Renewable Agriculture and Food Systems, 2010
We provide a review of sustainable coffee certifications and results from a quantitative analysis of the effects of Fair Trade, organic and combined Fair Trade/organic certifications on the livelihood strategies of 469 households and 18 cooperatives of Central America and Mexico. Certified households were also compared with a non-certified group in each country. To analyze the differences in coffee price, volume, gross revenue and education between certifications, we used the Kruskal-Wallis (K-W) non-parametric test and the Mann-Whitney U non-parametric test as a post-hoc procedure. Household savings, credit, food security and incidence of migration were analyzed through Pearson's chi-square test. Our study corroborated the conditions of economic poverty among small-scale coffee farmer households in Central America and Mexico. All certifications provided a higher price per pound and higher gross coffee revenue than non-certified coffee. However, the average volumes of coffee sold by individual households were low, and many certified farmers did not sell their entire production at certified prices. Certifications did not have a discernable effect on other livelihood-related variables, such as education, and incidence of migration at the household level, although they had a positive influence on savings and credit. Sales to certified markets offer farmers and cooperatives better prices, but the contribution derived from these premiums has limited effects on household livelihoods. This demonstrates that certifications will not singlehandedly bring significant poverty alleviation to most coffee-farming families. Although certified coffee markets alone will not resolve the livelihood challenges faced by smallholder households, they could still contribute to broad-based sustainable livelihoods, rural development and conservation processes in coffee regions. This can be done by developing more active partnerships between farmers, cooperatives, certifications and environmental and rural development organizations and researchers in coffee regions. Certifications, especially Fair Trade/organic, have proven effective in supporting capacity building and in serving as networks that leverage global development funding for small-scale coffee-producing households.
Environmental and economic costs and benefits from sustainable certification of coffee in Nicaragua
Food Chain, 2012
Sustainable certifications have been promoted as a means of recognizing environmental benefits and generating economic benefits from sustainable coffee production. A case study is presented from one region of Nicaragua where these benefits were evaluated and two producer organizations were supported to improve their access to sustainable certification. Biodiversity and carbon stocks were found to be more associated with smallholder vs. large-scale farms than with certification per se, but reduced use of agrochemicals and good management of water sources was strongly associated with certification. Economic performance of farmers with different certifications varied, C.A.F.E. Practice and Rainforest Alliance certified farmers had higher incomes but also higher levels of investment than conventional farmers, while organic farmers had a similar level of income to conventional producers but achieved this with a lower level of investment. Producer organizations require substantial external financial and technical support to access these certifications, which may place limitations on the spread of the benefits from sustainable certification to a majority of producers.
Revaluing peasant coffee production: Organic and fair trade markets in Mexico
Globalization and Sustainable Development …, 2005
Salazar shared professional insights from their work with small coffee producers and made possible visits into the coffee communities. Policarpo Faustino García Pineda and Tolentino Martínez Pérez contributed their valuable perspectives as coffee producers and as elected board members of CEPCO. Colleagues at Instituto Maya provided invaluable assistance in developing an analytical framework used in this study. The report is made possible by generous grants from the General Service Foundation, Rockefeller Brothers Fund, and the Charles Stewart Mott Foundation. Tufts Institute of the Environment provided invaluable financial and institutional support.
2004
Latin America's coffee market continues in economic crisis. Sustainable coffee production and certification is one option for economic recuperation and social and environmental sustainability for the region's coffee producers. This paper explores four viable certification processes (Organic, Fair Trade, Rainforest Alliance, and Utz Kapeh) by first defining their requirements. Then, an assessment of microeconomic impacts is given, where the production processes of sustainable and conventional coffee are evaluated and compared. Finally, the paper presents their future relevance and entrepreneurial potential by considering long-term market perspectives. Information about sustainable production in Latin America was gathered through primary sources in interviews and markets analyses conducted by the CIMS Foundation.
Fair Trade organic coffee production in Nicaragua — Sustainable development or a poverty trap?
Ecological Economics, 2009
This article assesses the impact of Fair Trade organic coffee production on the well-being of small-scale farmers in Nicaragua. Studying the results of organic management is crucial for evaluating the advantages of Fair Trade because approximately half of all Fair Trade coffee is also organically certified. A wide range of farmers, representatives of cooperatives and export companies in Nicaragua were interviewed during seven months of field work between 2005 and 2008. Fair Trade organic production raises farmer income when lowintensity organic farming is an alternative to low-intensity conventional farming. However, low-intensity farming produces very little coffee in the case of the most marginalized farmers, keeping these farmers in poverty. With higher intensities of management, the economic advantages of Fair Trade organic production largely depend on prices in the mainstream market.
— According to advocates, eco-certification is a win–win solution to the problem of environmental degradation caused by developing country agriculture, improving both the environmental and the economic performance of farmers. However, these notional benefits can be undercut by the tendency of relatively wealthy farmers already meeting eco-certification standards to disproportionately participate. Using original farm-level survey data along with matching and matched difference-indifferences models, we analyze the producer-level effects of organic coffee certification in southeastern Colombia. We find that certification is associated with changes in farm practices linked to improved environmental outcomes. It significantly reduces sewage disposal in the fields and increases the adoption of organic fertilizer. However, we are not able to discern economic benefits.
How standards compete: comparative impact of coffee certification schemes in Northern Nicaragua
Supply Chain Management: An International Journal, 2011
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.
International Journal of Developing Societies, 2012
The promotion and compliance with socio-environmental certifications in the coffee sector worldwide is increasing. On one hand, consumers in industrialized countries have become more aware and educated on social-environmental concerns. There has been an increase in the number of companies and corporations promoting clean production, enforcing the compliance with social and environmental regulations among coffee producers. These certifications have an impact on the price of coffee, usually favouring small-scale producers. Nevertheless, many coffee producers in developing countries consider the process of complying with standards and acquiring certifications as complex and all the requisites and costs involved seem too confusing. This paper focuses on identifying the main causes that limit the participation of coffee producers in Central America in the process of complying with certifications, particularly Organic, Fairtrade, Utz CERTIFIED, Rainforest Alliance and Starbucks C.A.F.E. Practices. Coffee farmers partly lack information, money and external support to be able to accomplish with the upcoming requirements of a certification. Potential benefits for certified small-scale coffee producers are not only better income for being paid premium prices for high quality, but also more stability by ensuring the sale of the yield.