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

  • Neilson, Jeff
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    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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    File URL: http://www.sciencedirect.com/science/article/B6VC6-4SWP267-2/2/25d6d90924377f1730edbaa387d667a4
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    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
    Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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    1. 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.
    2. 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.
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    4. 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.
    5. 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.
    6. Graham, David & Woods, Ngaire, 2006. "Making corporate self-regulation effective in developing countries," World Development, Elsevier, vol. 34(5), pages 868-883, May.
    7. 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.
    8. 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.
    9. 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.
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