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The Pro-Competitive Effect of Coffee Cooperatives in Chiapas, Mexico

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  • Milford Anna B.

    (Norwegian Agricultural Economics Research Institute)

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    Abstract

    Imperfect competition among purchasers of coffee is a common problem for small scale producers. Producer-owned marketing cooperatives can reduce the market power of private purchasers and restore competition. Non-members as well as members of the cooperatives will then receive higher prices. In the present paper I carry out a theoretical and an empirical investigation into the effect of Fairtrade and organically certified cooperatives on local competition and coffee prices in Chiapas, Mexico. A theoretical model is presented which explains how the competitive effect may work in this particular setting, where cooperative membership implies certain costs that are perceived differently by different producers. Also, using both qualitative and quantitative methods, I present evidence that is consistent with the hypothesis of a pro-competitive effect of cooperatives.

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    Bibliographic Info

    Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

    Volume (Year): 10 (2012)
    Issue (Month): 1 (March)
    Pages: 1-29

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    Handle: RePEc:bpj:bjafio:v:10:y:2012:i:1:n:2

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    Cited by:
    1. Hanisch, Markus & Rommel, Jens & Mueller, Malte, 2012. "Variation In Farm Gate Milk Prices And The Cooperative Yardstick Revisited – Panel Evidence From The European Dairy Sectors," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137138, German Association of Agricultural Economists (GEWISOLA).

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