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The Ambivalent Impact of Coffee Certification on Farmers’ Welfare: A Matched Panel Approach for Cooperatives in Central Kenya

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  • van Rijsbergen, Bart
  • Elbers, Willem
  • Ruben, Ruerd
  • Njuguna, Samuel N.

Abstract

Certification is promoted to improve rural welfare through better market access and improved agricultural practices. We compare net effects of Fairtrade- and Utz-Certified coffee production in Central Kenya, using a matched panel from 218 farm-households that belong to three cooperatives and were visited twice in 2009 and 2013. We distinguish between effects at field, farm, household, cooperative, community, and market levels. Both certification regimes improved coffee returns, but Fairtrade was more effective in coffee processing, whereas Utz contributed to productivity. Under stagnating coffee prices, Fairtrade farmers increased their coffee specialization, while Utz farmers reduced coffee areas but increased yield.

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  • 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.
    • Handle: RePEc:eee:wdevel:v:77:y:2016:i:c:p:277-292
    DOI: 10.1016/j.worlddev.2015.08.021
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    Cited by:

    1. Glasbergen, Pieter, 2018. "Smallholders do not Eat Certificates," Ecological Economics, Elsevier, vol. 147(C), pages 243-252.
    2. Akoyi, K.T. & Mitiku, F. & Maertens, M., 2018. "Is prohibiting child labour enough? Coffee certification and child schooling in Ethiopia and Uganda," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275958, International Association of Agricultural Economists.
    3. Ninon Sirdey & Sylvaine Lemeilleur, 2021. "Can fair trade resolve the “hungry farmer paradox”?," Review of Agricultural, Food and Environmental Studies, Springer, vol. 102(1), pages 81-106, March.
    4. Chengappa, P.G. & Devika, C.M. & Manjunatha, A.V., 2018. "Coffee Value Chains in India: Exploring Sustainability Oriented Markets," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277025, International Association of Agricultural Economists.
    5. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "Remittances and Value Added across Economic sub-sectors in Sub-Saharan Africa," Working Papers 21/002, European Xtramile Centre of African Studies (EXCAS).
    6. Meemken, Eva-Marie & Veettil, Prakashan Chellattan & Qaim, Matin, 2016. "Small farmers’ preferences for the design of certification schemes: Does gender matter?," GlobalFood Discussion Papers 235484, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    7. 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.
    8. Asongu, Simplice A. & Rahman, Mushfiqur & Nnanna, Joseph & Haffar, Mohamed, 2020. "Enhancing information technology for value added across economic sectors in Sub-Saharan Africa✰," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    9. AKOYI, Kevin Teopista & MAERTENS, Miet, 2016. "Private Sustainability Standards in the Ugandan Coffee Sector: Empty Promises or Catalysts for Development?," Working Papers 235004, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    10. Wijaya, Atika & Glasbergen, Pieter & Mawardi, Surip, 2017. "The mediated partnership model for sustainable coffee production: experiences from Indonesia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(5).
    11. Oya, Carlos & Schaefer, Florian & Skalidou, Dafni, 2018. "The effectiveness of agricultural certification in developing countries: A systematic review," World Development, Elsevier, vol. 112(C), pages 282-312.
    12. Giuliani, Elisa & Ciravegna, Luciano & Vezzulli, Andrea & Kilian, Bernard, 2017. "Decoupling Standards from Practice: The Impact of In-House Certifications on Coffee Farms’ Environmental and Social Conduct," World Development, Elsevier, vol. 96(C), pages 294-314.
    13. 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.
    14. Liu, Y., 2018. "Determinants and impacts of marketing channel choice among cooperatives members: Evidence from agricultural cooperative in China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275898, International Association of Agricultural Economists.
    15. Dietz, Thomas & Auffenberg, Jennie & Estrella Chong, Andrea & Grabs, Janina & Kilian, Bernard, 2018. "The Voluntary Coffee Standard Index (VOCSI). Developing a Composite Index to Assess and Compare the Strength of Mainstream Voluntary Sustainability Standards in the Global Coffee Industry," Ecological Economics, Elsevier, vol. 150(C), pages 72-87.
    16. Meemken, Eva-Marie & Qaim, Matin, 2017. "Can Private Food Standards Promote Gender Equality in the Small Farm Sector?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258088, Agricultural and Applied Economics Association.
    17. Simon L. Bager & Eric F. Lambin, 2020. "Sustainability strategies by companies in the global coffee sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3555-3570, December.
    18. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-38, December.
    19. 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.
    20. Ruifeng Liu & Zhifeng Gao & Rodolfo M. Nayga & Lijia Shi & Les Oxley & Hengyun Ma, 2020. "Can “green food” certification achieve both sustainable practices and economic benefits in a transitional economy? The case of kiwifruit growers in Henan Province, China," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 675-692, October.
    21. Tran, Duc & Goto, Daisaku, 2019. "Impacts of sustainability certification on farm income: Evidence from small-scale specialty green tea farmers in Vietnam," Food Policy, Elsevier, vol. 83(C), pages 70-82.
    22. Sekabira, Haruna & Qaim, Matin, 2016. "Mobile Money, Agricultural Marketing, and Off-Farm Income in Uganda," GlobalFood Discussion Papers 234998, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    23. Fikadu Mitiku & Yann De Mey & Jan Nyssen & Miet Maertens, 2017. "Do Private Sustainability Standards Contribute to Income Growth and Poverty Alleviation? A Comparison of Different Coffee Certification Schemes in Ethiopia," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-21, February.
    24. 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).
    25. Helene Naegele, 2019. "Where Does the Fairtrade Money Go? How Much Consumers Pay Extra for Fairtrade Coffee and How This Value Is Split along the Value Chain," Discussion Papers of DIW Berlin 1783, DIW Berlin, German Institute for Economic Research.

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