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The Impact of Socio-Economic Characteristics on Coffee Farmers’ Marketing Channel Choice: Evidence from Villa Rica, Peru

Author

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  • Higuchi, Angie
  • Moritaka, Masahiro
  • Fukuda, Susumu

Abstract

Villa Rica is one of the most important coffee-producing districts in Peru. In Villa Rica there are several marketing channels: intermediaries, private companies, cooperatives and associations. The intermediaries focus solely on higher prices while marketing organizations offer benefits to their members. The main aim of this paper is to analyze the socio-economic characteristics that influence coffee farmers to join a formal organization vs. those who distribute their product through intermediaries. A survey of 60 producers was carried out in June 2011 in Villa Rica. A binary logistic model was used in order to show how these characteristics affect farmers’ choice of which marketing channel to use to distribute their product. The results demonstrated that farmers who are keen to receive technical assistance participate in the marketing organizations. These coffee marketing organizations should look for ways to improve the extension component through training and knowledge transfers to smallholder farmers.

Suggested Citation

  • Higuchi, Angie & Moritaka, Masahiro & Fukuda, Susumu, 2012. "The Impact of Socio-Economic Characteristics on Coffee Farmers’ Marketing Channel Choice: Evidence from Villa Rica, Peru," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 1(1).
    • Handle: RePEc:ags:ccsesa:231402
    DOI: 10.22004/ag.econ.231402
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    References listed on IDEAS

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    1. Dammert, Ana C., 2008. "Child labor and schooling response to changes in coca production in rural Peru," Journal of Development Economics, Elsevier, vol. 86(1), pages 164-180, April.
    2. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, vol. 33(3), pages 497-511, March.
    3. Arnould, Eric & Plastina, Alejandro & Ball, Dwayne, 2009. "Does Fair Trade Deliver on Its Core Value Proposition? Effects on Income, Educational Attainment, and Health in Three Countries," Staff General Research Papers Archive 39169, Iowa State University, Department of Economics.
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    Cited by:

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    2. Pham Quoc Hung & Huynh Viet Khai, 2020. "Transaction cost, price risk perspective and marketing channel decision of small-scale chili farmers in Tra Vinh Province, Vietnam," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 10(1), pages 68-80, June.

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