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

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  • Neilson, Jeff

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.

Suggested Citation

  • Neilson, Jeff, 2008. "Global Private Regulation and Value-Chain Restructuring in Indonesian Smallholder Coffee Systems," World Development, Elsevier, vol. 36(9), pages 1607-1622, September.
  • Handle: RePEc:eee:wdevel:v:36:y:2008:i:9:p:1607-1622
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    References listed on IDEAS

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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, May.
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    Cited by:

    1. Elisa Giuliani, 2016. "Human Rights and Corporate Social Responsibility in Developing Countries’ Industrial Clusters," Journal of Business Ethics, Springer, vol. 133(1), pages 39-54, January.
    2. Ayu Pratiwi & Aya Suzuki, 2017. "Effects of farmers’ social networks on knowledge acquisition: lessons from agricultural training in rural Indonesia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-23, December.
    3. Antje Wahl & Gary Bull, 2014. "Mapping Research Topics and Theories in Private Regulation for Sustainability in Global Value Chains," Journal of Business Ethics, Springer, vol. 124(4), pages 585-608, November.
    4. repec:kap:jbuset:v:144:y:2017:i:1:d:10.1007_s10551-015-2820-0 is not listed on IDEAS
    5. repec:eee:wdevel:v:96:y:2017:i:c:p:294-314 is not listed on IDEAS
    6. 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;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(1), pages 21-39, March.
    7. Giacomo Pallante & Adam Drucker, 2014. "Niche Markets for Agrobiodiversity Conservation: Preference and Scale Heterogeneity Effects on Nepalese Consumers’ WTP for Finger Millet Products," SEEDS Working Papers 1414, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised May 2014.
    8. 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.
    9. repec:eee:wdevel:v:103:y:2018:i:c:p:162-175 is not listed on IDEAS
    10. 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;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(2), pages 201-213, June.
    11. Bustanul Arifin, 2010. "Global Sustainability Regulation and Coffee Supply Chains in Lampung Province, Indonesia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(2), pages 67-89, December.
    12. repec:eee:wdevel:v:98:y:2017:i:c:p:105-119 is not listed on IDEAS
    13. Vajk Lukacs de Pereny Martens & Ronnie Ramlogan, 2015. "Standardization and Governance Dynamics in the Peruvian Alpaca Fibre Value Chain," Globelics Working Paper Series 2015-10, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
    14. 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.
    15. Fabian Drahmoune, 2013. "Agrarian Transitions, Rural Resistance and Peasant Politics in Southeast Asia," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 32(1), pages 111-139.
    16. Pallante, Giacomo & Drucker, Adam G. & Sthapit, Sajal, 2016. "Assessing the potential for niche market development to contribute to farmers' livelihoods and agrobiodiversity conservation: Insights from the finger millet case study in Nepal," Ecological Economics, Elsevier, vol. 130(C), pages 92-105.
    17. Franck Galtier & Giovanni Belletti & Andrea Marescotti, 2013. "Factors Constraining Building Effective and Fair Geographical Indications for Coffee: Insights from a Dominican Case Study," Development Policy Review, Overseas Development Institute, vol. 31(5), pages 597-615, September.
    18. 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.
    19. repec:eee:wdevel:v:98:y:2017:i:c:p:45-57 is not listed on IDEAS
    20. Kondo, Takumi & Osanami, Fumio & Barmon, Basanta Kumar & Yamaguchi, Junichi, 2. "Rice-prawn Farming System: Impacts on Soil Quality and Land Productivity of Modern Variety Paddy Production in Bangladesh," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(2).
    21. repec:eee:wdevel:v:98:y:2017:i:c:p:93-104 is not listed on IDEAS
    22. van Rijsbergen, Bart & Elbers, Willem & Ruben, Ruerd & Njuguna, Samuel N., 2016. "The Ambivalent Impact of Coffee Certification on Farmers’ Welfare: A Matched Panel Approach for Cooperatives in Central Kenya," World Development, Elsevier, vol. 77(C), pages 277-292.

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