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An Economic Exploration of Smallholder Value Chains: Coffee Transactions in Chiapas, Mexico

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  • Luna, Fátima
  • Wilson, Paul N.

Abstract

Fair trade and vertical integration represent two popular approaches for enhancing the incomes of organized farmers in a volatile coffee market as compared to the uncertain plight of independent, non-affiliated growers. A mixed method approach, utilizing informal interviews and a household survey in Chiapas, Mexico, analyzed three coffee trading regimes: independent, non-affiliated farmers, and growers in cooperatives pursuing a fair trade or vertical integration strategy. Survey and econometric results indicate that concentration on specialty coffee production with a portfolio of foreign contracts is economically preferable to a vertically integrated cooperative, which in turn produces more favorable coffee prices for smallholders than the non-affiliated conventional, coyote-dominated trading system.

Suggested Citation

  • Luna, Fátima & Wilson, Paul N., 2015. "An Economic Exploration of Smallholder Value Chains: Coffee Transactions in Chiapas, Mexico," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(3), pages 1-22, September.
    • Handle: RePEc:ags:ifaamr:208496
    DOI: 10.22004/ag.econ.208496
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    References listed on IDEAS

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    1. Carlos Omar Trejo-Pech & Roselia Servín-Juárez & Álvaro Reyes-Duarte, 2023. "What sets cooperative farmers apart from non-cooperative farmers? A transaction cost economics analysis of coffee farmers in Mexico," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-24, December.
    2. Valencia, Vivian & García-Barrios, Luis & Sterling, Eleanor J. & West, Paige & Meza-Jiménez, Amayrani & Naeem, Shahid, 2018. "Smallholder response to environmental change: Impacts of coffee leaf rust in a forest frontier in Mexico," Land Use Policy, Elsevier, vol. 79(C), pages 463-474.
    3. Giuliani, Elisa & Ciravegna, Luciano & Vezzulli, Andrea & Kilian, Bernard, 2017. "Decoupling Standards from Practice: The Impact of In-House Certifications on Coffee Farms’ Environmental and Social Conduct," World Development, Elsevier, vol. 96(C), pages 294-314.
    4. Abraham, Mathew & Verteramo Chiu, Leslie & Joshi, Ekta & Ali Ilahi, Muhammad & Pingali, Prabhu, 2022. "Aggregation models and small farm commercialization – A scoping review of the global literature," Food Policy, Elsevier, vol. 110(C).
    5. Marije Schaafsma & Ilda Dreoni & Lacour Mody Ayompe & Benis Egoh & Dewa Putu Ekayana & Arilson Favareto & Sonny Mumbunan & Louise Nakagawa & Jonas Ngouhouo‐poufoun & Marieke Sassen & Thiago Kanashiro , 2023. "A framework to understand the social impacts of agricultural trade," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 138-150, February.

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