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Global Sustainability Regulation and Coffee Supply Chains in Lampung Province, Indonesia

  • Bustanul Arifin

    ()

    (Department of Agricultural Economics and Social Sciences, University of Lampung)

This paper examines the global sustainability regulation in agricultural trade by conducting an in-depth assessment of the economics of coffee-producing regions in Lampung Province, Indonesia. A negative campaign blaming illegal coffee producers for the loss of tigers in the Bukit Barisan Selatan (BBS) National Park in the province further complicates the issue, as the current coffee supply chain could not guarantee the workability of price transparency and asymmetric structures of coffee markets, to name a few. In this region, community initiatives have been developed to foster forest conservation by adopting coffee multi-strata practices under the agroforestry system and community-based forestry management in the buffer zone outside the BBS National Park. Based on research findings, buyer-driven regulation of environmental practices in the coffee industry, which characterize most global initiatives, have somehow restructured the supply chain in producing regions. Recent global sustainability standards require adequate organizational capacity of coffee-farmer groups and rural cooperatives involved in the supply chain. The paper recommends policy integration between bottom-up initiatives at farm level or institutional changes at supply-chain organizations, and top-down sustainability standards set by the private sector and non-government organizations.

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Article provided by Southeast Asian Regional Center for Graduate Study and Research in Agriculture in its journal Asian Journal of Agriculture and Development.

Volume (Year): 7 (2010)
Issue (Month): 2 (December)
Pages: 67-89

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Handle: RePEc:sag:seajad:v:7:y:2010:i:2:p:67-89
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  1. Arifin, B. & Swallow, B. & Suyanto & Coe, R., 2008. "A conjoint analysis of farmer preferences for community forestry contracts in the Sumber Jaya watershed, Indonesia," Working Papers b15527, World Agroforestry Centre, Library Department.
  2. Verbist, Bruno & Dinata Putra, Andree Eka & Budidarsono, Suseno, 2005. "Factors driving land use change: Effects on watershed functions in a coffee agroforestry system in Lampung, Sumatra," Agricultural Systems, Elsevier, vol. 85(3), pages 254-270, September.
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  5. Angelsen, Arild, 1995. "Shifting cultivation and "deforestation": A study from Indonesia," World Development, Elsevier, vol. 23(10), pages 1713-1729, October.
  6. 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.
  7. 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.
  8. Angelsen, Arild, 1999. "Agricultural expansion and deforestation: modelling the impact of population, market forces and property rights," Journal of Development Economics, Elsevier, vol. 58(1), pages 185-218, February.
  9. Noordwijk, M. van & Leimona, B. & Emerton, L. & Tomich, T.P. & Velarde, S.J. & Kallesoe, M. & Sekher, M & Swallow, B., 2007. "Criteria and indicators for environmental service compensation and reward mechanisms: realistic, voluntary, conditional and pro-poor," Working Papers b14964, World Agroforestry Centre, Library Department.
  10. 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.
  11. 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.
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