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Trading off nutrition and education? A panel data analysis of the dissimilar welfare effects of Organic and Fairtrade standards

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  • Meemken, Eva-Marie
  • Spielman, David J.
  • Qaim, Matin

Abstract

Millions of smallholder farmers in developing countries participate in different types of sustainability standards. A growing body of literature has analyzed the welfare effects, with mixed results. Yet, there are important knowledge gaps. First, most existing studies have looked at the effects of one standard in one country. When comparing between studies it is unclear whether dissimilar outcomes are the result of different standards or different local conditions. Second, most studies have used cross-section data, so that selectivity issues remain a challenge. Third, existing work has primarily analyzed effects in terms of purely economic indicators, such as prices and income, ignoring other dimensions of household welfare. We address these shortcomings using panel data from small-scale coffee producers in Uganda and comparing the effects of two of the most popular sustainability standards, namely Organic and Fairtrade. Welfare effects are analyzed in terms of household expenditures, child education, and nutrition. Results show that Organic and Fairtrade both have positive effects on total consumption expenditures. However, notable differences are observed in terms of the other outcomes. Organic contributes to improved nutrition but has no effect on education. For Fairtrade it is exactly the other way around. We explore the mechanisms behind these differences.

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  • Meemken, Eva-Marie & Spielman, David J. & Qaim, Matin, 2017. "Trading off nutrition and education? A panel data analysis of the dissimilar welfare effects of Organic and Fairtrade standards," Food Policy, Elsevier, vol. 71(C), pages 74-85.
    • Handle: RePEc:eee:jfpoli:v:71:y:2017:i:c:p:74-85
    DOI: 10.1016/j.foodpol.2017.07.010
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    Cited by:

    1. Sirdey, Ninon & Lemeilleur, Sylvaine, 2021. "Can fair trade resolve the “hungry farmer paradox”?," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 102(1), March.
    2. Meemken, Eva-Marie, 2021. "Large farms, large benefits? Sustainability certification among family farms and agro-industrial producers in Peru," World Development, Elsevier, vol. 145(C).
    3. Aihounton, Ghislain & Henningsen, Arne, 2021. "Organic Farming and Food and Nutrition Security," 2021 Conference, August 17-31, 2021, Virtual 315413, International Association of Agricultural Economists.
    4. 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.
    5. Sellare, Jorge, 2020. "New insights on the use of the Fairtrade social premium," GlobalFood Discussion Papers 304709, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    6. Sekabira, Haruna & Qaim, Matin, 2017. "Can mobile phones improve gender equality and nutrition? Panel data evidence from farm households in Uganda," Food Policy, Elsevier, vol. 73(C), pages 95-103.
    7. Hörner, Denise & Wollni, Meike, 2021. "Integrated soil fertility management and household welfare in Ethiopia," Food Policy, Elsevier, vol. 100(C).
    8. Ogutu, Sylvester Ochieng & Qaim, Matin, 2019. "Commercialization of the small farm sector and multidimensional poverty," World Development, Elsevier, vol. 114(C), pages 281-293.
    9. Sterie Cristina Maria & Ion Raluca Andreea, 2022. "Approaches to implementing fair trade practices for smallholder farmers," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 446-455, August.
    10. 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.
    11. Kaiyatsa, Stevier & Matita, Mirriam & Chirwa, Ephraim & Mazalale, Jacob, 2020. "The groundnuts Fairtrade arrangement and its spillover effects on agricultural commercialization and household welfare outcomes: Empirical evidence from central Malawi," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304221, Agricultural and Applied Economics Association.
    12. Sellare, Jorge, 2021. "The Fairtrade Social Premium and Its Implications for Rural Development," 2021 Conference, August 17-31, 2021, Virtual 315006, International Association of Agricultural Economists.
    13. Zhang, Tong & Hu, Wuyang & Zhu, Zhanguo & Penn, Jerrod, 2023. "Consumer preference for food products addressing multiple dimensions of poverty: Evidence from China," Food Policy, Elsevier, vol. 115(C).
    14. Karla Rubio‐Jovel, 2023. "The voluntary sustainability standards and their contribution towards the achievement of the Sustainable Development Goals: A systematic review on the coffee sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1013-1052, August.
    15. Knößlsdorfer, Isabel & Sellare, Jorge & Qaim, Matin, 2021. "Effects of Fairtrade on Farm Household Food Security and Living Standards," 2021 Conference, August 17-31, 2021, Virtual 315073, International Association of Agricultural Economists.
    16. 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).
    17. Hendrik Feyaerts & Goedele Van den Broeck & Miet Maertens, 2020. "Global and local food value chains in Africa: A review," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 143-157, January.
    18. Iddrisu, Mubarak & Aidoo, Robert & Abawiera Wongnaa, Camillus, 2020. "Participation in UTZ-RA voluntary cocoa certification scheme and its impact on smallholder welfare: Evidence from Ghana," World Development Perspectives, Elsevier, vol. 20(C).
    19. Marije Schaafsma & Ilda Dreoni & Lacour Mody Ayompe & Benis Egoh & Dewa Putu Ekayana & Arilson Favareto & Sonny Mumbunan & Louise Nakagawa & Jonas Ngouhouo‐poufoun & Marieke Sassen & Thiago Kanashiro , 2023. "A framework to understand the social impacts of agricultural trade," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 138-150, February.
    20. Sylvester O. Ogutu & Matin Qaim, 2018. "Commercialization of the small farm sector and multidimensional poverty," GlobalFood Discussion Papers 269561, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.

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    More about this item

    Keywords

    Certification; Education; Food standards; Nutrition; Panel data; Welfare;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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