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Can coffee certification schemes increase incomes of smallholder farmers? Evidence from Jinotega, Nicaragua

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  • Pradyot Ranjan Jena

    (National Institute of Technology Karnataka)

  • Till Stellmacher

    (Leibniz University Hannover)

  • Ulrike Grote

    (Leibniz University Hannover)

Abstract

This paper investigates the impact of Fairtrade and organic certification on household income of smallholder coffee farmers in the Jinotega Municipality of Nicaragua. Using a sample of 233 coffee farming households and employing endogenous switching regression model and propensity score matching method, the results found that Fairtrade and organic certification standards have different effects on the certified farmers; while Fairtrade farmers had experienced yield gains, organic farmers had the price advantage. However, the overall impact of these certification standards on the total household income is found to be statistically not significant. While some of the Fairtrade-certified cooperatives have used the social premium in creating community-level infrastructure, there is a need for more investment. The major constraint the organic-certified farmers face is lack of availability of adequate organic inputs such as manures and organic herbicides.

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  • Pradyot Ranjan Jena & Till Stellmacher & Ulrike Grote, 2017. "Can coffee certification schemes increase incomes of smallholder farmers? Evidence from Jinotega, Nicaragua," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(1), pages 45-66, February.
    • Handle: RePEc:spr:endesu:v:19:y:2017:i:1:d:10.1007_s10668-015-9732-0
    DOI: 10.1007/s10668-015-9732-0
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    References listed on IDEAS

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    2. Victoria A. Maguire-Rajpaul & Vinesh M. Rajpaul & Constance L. McDermott & Luís Fernando Guedes Pinto, 2020. "Coffee certification in Brazil: compliance with social standards and its implications for social equity," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(3), pages 2015-2044, March.
    3. Jorge Sellare & Eva‐Marie Meemken & Christophe Kouamé & Matin Qaim, 2020. "Do Sustainability Standards Benefit Smallholder Farmers Also When Accounting For Cooperative Effects? Evidence from Côte d'Ivoire," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 681-695, March.
    4. Joseph Rajabu Kangile & Reuben M. J. Kadigi & Charles Peter Mgeni & Bernadetha Pantaleo Munishi & Japhet Kashaigili & Pantaleo K. T. Munishi, 2021. "Dynamics of Coffee Certifications in Producer Countries: Re-Examining the Tanzanian Status, Challenges and Impacts on Livelihoods and Environmental Conservation," Agriculture, MDPI, vol. 11(10), pages 1-18, September.
    5. Ghislain B. D. Aihounton & Arne Henningsen, 2023. "Does Organic Farming Jeopardize Food and Nutrition Security?," IFRO Working Paper 2023/02, University of Copenhagen, Department of Food and Resource Economics.
    6. Marola, Elena & Schöpfner, Judith & Gallemore, Caleb & Jespersen, Kristjan, 2020. "The bandwidth problem in telecoupled systems governance: Certifying sustainable winemaking in Australia and Chile," Ecological Economics, Elsevier, vol. 171(C).
    7. Pradyot Ranjan Jena & Hugo Groote & Bibhu Prasad Nayak & Annina Hittmeyer, 2021. "Evolution of Fertiliser Use and its Impact on Maize Productivity in Kenya: Evidence from Multiple Surveys," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(1), pages 95-111, February.
    8. Sellare, Jorge & Meemken, Eva-Marie & Qaim, Matin, 2020. "Fairtrade, Agrochemical Input Use, and Effects on Human Health and the Environment," Ecological Economics, Elsevier, vol. 176(C).
    9. Liu, Wei & Li, Jie & Xu, Jie, 2020. "Impact of the ecological resettlement program in southern Shaanxi Province, China on households' livelihood strategies," Forest Policy and Economics, Elsevier, vol. 120(C).
    10. Maurice Osewe & Chris Miyinzi Mwungu & Aijun Liu, 2020. "Does Minimum Tillage Improve Smallholder Farmers’ Welfare? Evidence from Southern Tanzania," Land, MDPI, vol. 9(12), pages 1-12, December.
    11. Watts, John D. & Pasaribu, Katryn & Irawan, Silvia & Tacconi, Luca & Martanila, Heni & Wiratama, Cokorda Gde Wisnu & Musthofa, Fauzan Kemal & Sugiarto, Bernadinus Steni & Manvi, Utami Putri, 2021. "Challenges faced by smallholders in achieving sustainable palm oil certification in Indonesia," World Development, Elsevier, vol. 146(C).

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