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Global Private Regulation and Value-Chain Restructuring in Indonesian Smallholder Coffee Systems

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  • Neilson, Jeff
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    Abstract

    Summary Consumer concerns over the environmental and social conditions of coffee production have led to the proliferation of sustainability codes, certification schemes, and labeling claims in the sector. This paper addresses how the global private regulation of ethical and environmental standards is having several implications for value chain structures and institutions in the smallholder coffee systems of Indonesia. Global private regulation is driving structural changes in modes of farmer organization, trader-farmer relationships, and is resulting in the increased upstream penetration of multinational trading companies into coffee-producing areas across Indonesia. An unintended consequence of these changes in the future may be to increase transaction costs along the value chain and to exert an overall downward pressure on farm-gate prices.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 36 (2008)
    Issue (Month): 9 (September)
    Pages: 1607-1622

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    Handle: RePEc:eee:wdevel:v:36:y:2008:i:9:p:1607-1622

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    Web page: http://www.elsevier.com/locate/worlddev

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    Keywords: coffee global private regulation value chains Asia Indonesia;

    References

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    1. Jeffrey Neilson & Bill Pritchard, 2007. "Green Coffee? The Contradictions of Global Sustainability Initiatives from an Indian Perspective," Development Policy Review, Overseas Development Institute, vol. 25(3), pages 311-331, 05.
    2. Ponte, Stefano, 2002. "The 'Latte Revolution'? Regulation, Markets and Consumption in the Global Coffee Chain," World Development, Elsevier, vol. 30(7), pages 1099-1122, July.
    3. David P Angel & Michael T Rock, 2005. "Global standards and the environmental performance of industry," Environment and Planning A, Pion Ltd, London, vol. 37(11), pages 1903-1918, November.
    4. Giovannucci, Daniele & Ponte, Stefano, 2005. "Standards as a new form of social contract? Sustainability initiatives in the coffee industry," Food Policy, Elsevier, vol. 30(3), pages 284-301, June.
    5. Graham, David & Woods, Ngaire, 2006. "Making corporate self-regulation effective in developing countries," World Development, Elsevier, vol. 34(5), pages 868-883, May.
    6. Takamasa Akiyama & Akihiko Nishio, 1997. "Sulawesi's Cocoa Boom: Lessons of Smallholder Dynamism and a Hands-Off Policy," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 33(2), pages 97-121.
    7. Roger Montgomery & Sudarno Sumarto & Sulton Mawardi & Syaikhu Usman & Nina Toyamah & Vita Febriany & John Strain, 2002. "Deregulation Of Indonesia'S Interregional Agricultural Trade," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(1), pages 93-117.
    8. Tad Mutersbaugh, 2005. "Fighting standards with standards: harmonization, rents, and social accountability in certified agrofood networks," Environment and Planning A, Pion Ltd, London, vol. 37(11), pages 2033-2051, 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.
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    Cited by:
    1. Giuliani, Elisa, 2014. "Human Rights and Corporate Social Responsibility in Developing Countries’ Industrial Clusters," CIRCLE Electronic Working Papers 2014/9, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    2. Vincent Terstappen & Lori Hanson & Darrell McLaughlin, 2013. "Gender, health, labor, and inequities: a review of the fair and alternative trade literature," Agriculture and Human Values, Springer, vol. 30(1), pages 21-39, March.
    3. Sarah Bowen & Tad Mutersbaugh, 2014. "Local or localized? Exploring the contributions of Franco-Mediterranean agrifood theory to alternative food research," Agriculture and Human Values, Springer, vol. 31(2), pages 201-213, June.
    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. Miet Maertens & Bart Minten & Jo Swinnen, 2009. "Growth in high-value export markets in Sub-Saharan Africa and its development implications," LICOS Discussion Papers 24509, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    6. 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.

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