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Can the Private Sector be Competitive and Contribute to Development through Sustainable Agricultural Business? A Case Study of Coffee in Latin America

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  • Kilian, Bernard
  • Pratt, Lawrence
  • Jones, Connie
  • Villalobos, Andres

Abstract

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.

Suggested Citation

  • Kilian, Bernard & Pratt, Lawrence & Jones, Connie & Villalobos, Andres, 2004. "Can the Private Sector be Competitive and Contribute to Development through Sustainable Agricultural Business? A Case Study of Coffee in Latin America," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 7(3), pages 1-25.
    • Handle: RePEc:ags:ifaamr:8149
    DOI: 10.22004/ag.econ.8149
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    Cited by:

    1. Wim Pelupessy & Rafael Díaz, 2008. "Upgrading of Lowland coffee in Central America," Agribusiness, John Wiley & Sons, Ltd., vol. 24(1), pages 119-140.
    2. Kitti, Mitri & Heikkila, Jaakko & Huhtala, Anni, 2006. "Fair policies for the coffee trade - protecting people or biodiversity?," Discussion Papers 11858, MTT Agrifood Research Finland.
    3. Blackman, Allen & Rivera, Jorge, 2010. "The Evidence Base for Environmental and Socioeconomic Impacts of “Sustainable†Certification," RFF Working Paper Series dp-10-10-efd, Resources for the Future.
    4. Kilian, Bernard & Jones, Connie & Pratt, Lawrence & Villalobos, Andres, 2006. "Is sustainable agriculture a viable strategy to improve farm income in Central America? A case study on coffee," Journal of Business Research, Elsevier, vol. 59(3), pages 322-330, March.
    5. Evgeny Latynskiy & Thomas Berger, 2017. "Assessing the Income Effects of Group Certification for Smallholder Coffee Farmers: Agent-based Simulation in Uganda," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 727-748, September.
    6. Blackman, Allen & Rivera, Jorge, 2010. "The Evidence Base for Environmental and Socioeconomic Impacts of “Sustainable” Certification," RFF Working Paper Series dp-10-17, Resources for the Future.
    7. Carlos Oya & Florian Schaefer & Dafni Skalidou & Catherine McCosker & Laurenz Langer, 2017. "Effects of certification schemes for agricultural production on socio‐economic outcomes in low‐ and middle‐income countries: a systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 13(1), pages 1-346.
    8. Detre, Joshua D. & Gunderson, Michael A., 2011. "The Triple Bottom Line: What is the Impact on the Returns to Agribusiness?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(4), pages 1-14, November.
    9. Muradian, Roldan & Pelupessy, Wim, 2005. "Governing the coffee chain: The role of voluntary regulatory Systems," World Development, Elsevier, vol. 33(12), pages 2029-2044, December.
    10. Walter J. V. Vermeulen & Stefan Seuring, 2009. "Sustainability through the market - the impacts of sustainable supply chain management: introduction," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(5), pages 269-273.
    11. Estrella, Andrea & Navichoc, David & Kilian, Bernard & Dietz, Thomas, 2022. "Impact pathways of voluntary sustainability standards on smallholder coffee producers in Honduras: Price premiums, farm productivity, production costs, access to credit," World Development Perspectives, Elsevier, vol. 27(C).
    12. Latynskiy, Evgeny & Berger, Thomas, 2015. "UTZ certification for groups of smallholder coffee farmers: Hype of hope?," 2015 Conference, August 9-14, 2015, Milan, Italy 229069, International Association of Agricultural Economists.

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    Keywords

    Agribusiness;

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