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Do farmers benefit from participating in specialty markets and cooperatives? The case of coffee marketing in Costa Rica-super-1

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Author Info

  • Meike Wollni
  • Manfred Zeller

Abstract

Historically low prices in the conventional coffee market have caused financial and social hardship among coffee farmers. In the face of this crisis, specialty markets have attracted the attention of the international donor community. These market segments have shown consistent growth over the last decade and exhibit price premiums in international markets. Therefore, if higher prices are passed on to farmers, access to specialty markets could help to alleviate the crisis brought on by low prices in the conventional sector. The present study attempts to identify the factors that determine farmers' participation in specialized markets and whether participation in these markets leads to higher prices for farmers. A two-stage model is used to analyze farmers' marketing decisions and their effect on the prices received. This procedure allows us to control for the endogeneity bias introduced by the marketing choice. Our results indicate that farmers participating in the specialty coffee segment do in fact receive higher prices than those participating in conventional channels. Additionally, we find that participation in cooperatives has a positive impact on the probability that a farmer chooses to grow specialty coffee and analogously on the prices that they receive. Based on these results, it seems that efforts to increase participation in the specialty coffee segment and in cooperatives would help to lessen some of the hardships brought on by low prices in the conventional coffee sector. Copyright 2007 International Association of Agricultural Economists.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 37 (2007)
Issue (Month): 2-3 (09)
Pages: 243-248

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Handle: RePEc:bla:agecon:v:37:y:2007:i:2-3:p:243-248

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Cited by:
  1. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.
  2. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," Proceedings of the German Development Economics Conference, Berlin 2011 28, Verein für Socialpolitik, Research Committee Development Economics.
  3. Linda Kleemann & Awudu Abdulai & Mareike Buss, 2013. "Is Organic Farming Worth its Investment? The Adoption and Impact of Certified Pineapple Farming in Ghana," Kiel Working Papers 1856, Kiel Institute for the World Economy.
  4. Kiemen, Anna & Beuchelt, Tina, 2010. "Certification as an upgrading strategy for small-scale farmers and their cooperatives : a value chain analysis for Nicaraguan coffee," Research in Development Economics and Policy (Discussion Paper Series) 122652, Universitaet Hohenheim, Department of Agricultural Economics and Social Sciences in the Tropics and Subtropics.
  5. Latynskiy, Evgeny & Berger, Thomas, 2012. "An Agent-Based Network Approach For Understanding, Analyzing And Supporting Rural Producer Organizations In Agriculture," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137383, German Association of Agricultural Economists (GEWISOLA).
  6. Beuchelt, Tina & Zeller, Manfred & Oberthur, Thomas, 2009. "Justified hopes or utopian thinking? The suitability of coffee certification schemes as a business model for small-scale producers," 2009 Conference, August 16-22, 2009, Beijing, China 51717, International Association of Agricultural Economists.
  7. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," Discussion Papers 108551, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
  8. Linda Kleemann, 2012. "Sustainable Agriculture and Food Security in Africa: An Overview," Kiel Working Papers 1812, Kiel Institute for the World Economy.
  9. Barham, Bradford L. & Callenes, Mercedez & Gitter, Seth & Lewis, Jessa & Weber, Jeremy, 2011. "Fair Trade/Organic Coffee, Rural Livelihoods, and the "Agrarian Question": Southern Mexican Coffee Families in Transition," World Development, Elsevier, vol. 39(1), pages 134-145, January.
  10. Mujawamariya, Gaudiose & D’Haese, Marijke & Speelman, Stijn, 2013. "Exploring double side-selling in cooperatives, case study of four coffee cooperatives in Rwanda," Food Policy, Elsevier, vol. 39(C), pages 72-83.
  11. Elizaphan J.O. Rao & Matin Qaim, 2009. "Farmer participation in supermarket channels and technical efficiency: The case of vegetable production in Kenya," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 18, Courant Research Centre PEG.
  12. Meike Wollni & Bernhard Brümmer, 2009. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 13, Courant Research Centre PEG.
  13. Handschuch, Christina & Wollni, Meike & Villalobos, Pablo, 2013. "Adoption of food safety and quality standards among Chilean raspberry producers – Do smallholders benefit?," Food Policy, Elsevier, vol. 40(C), pages 64-73.
  14. Wollni, Meike & Fischer, Elisabeth, 2012. "Commitment in Collective Marketing Relationships: Evidence from Coffee Cooperatives in Costa Rica," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126884, International Association of Agricultural Economists.
  15. Wollni, Meike & Lee, David R. & Thies, Janice E., 2009. "Effects of Participation in Organic Markets and Farmer-based Organizations on the Adoption of Soil Conservation Practices among Small-scale Farmers in Honduras," 2009 Conference, August 16-22, 2009, Beijing, China 51669, International Association of Agricultural Economists.
  16. Rao, Elizaphan J.O. & Qaim, Matin, 2011. "Supermarkets, Farm Household Income, and Poverty: Insights from Kenya," World Development, Elsevier, vol. 39(5), pages 784-796, May.
  17. Wollni, Meike & Brümmer, Bernhard, 2012. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Food Policy, Elsevier, vol. 37(1), pages 67-76.
  18. Rao, Elizaphan J.O. & Qaim, Matin, 2010. "Supermarkets, farm household income and poverty: Insights from Kenya," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95771, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
  19. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
  20. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114354, European Association of Agricultural Economists.

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