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Walk the Talk: Private Sustainability Standards in the Ugandan Coffee Sector

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  • Kevin Teopista Akoyi
  • Miet Maertens

Abstract

We investigate the welfare and productivity implications of private sustainability standards in the coffee sector in Uganda. We use cross-sectional household survey data and an instrumental variable method with instruments that pass weak identification and over-identification restrictions. We find that triple Utz-Rainforest Alliance-4C certification increases income, and land and labour productivity, and reduces poverty. Double Fairtrade-Organic certification is found to be associated with higher producer prices but results in lower land and labour productivity, and thereby fails to increase producer income and contribute to poverty reduction. We conclude that private sustainability standards do not always live up the expectations they create towards consumers.

Suggested Citation

  • Kevin Teopista Akoyi & Miet Maertens, 2018. "Walk the Talk: Private Sustainability Standards in the Ugandan Coffee Sector," Journal of Development Studies, Taylor & Francis Journals, vol. 54(10), pages 1792-1818, October.
    • Handle: RePEc:taf:jdevst:v:54:y:2018:i:10:p:1792-1818
    DOI: 10.1080/00220388.2017.1327663
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    Cited by:

    1. Wannes Slosse & Jeroen Buysse & Koen Schoors & Ivan Godfroid & Michaela Boyen & Marijke D'Haese, 2023. "The socio‐economic impact of certification schemes in conflict‐affected regions: The case of arabica coffee in the Eastern DRC," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1111-1131, December.
    2. Katharine Jones & Ezekiel Mugendi Njeru & Kenisha Garnett & Nicholas Girkin, 2024. "Assessing the Impact of Voluntary Certification Schemes on Future Sustainable Coffee Production," Sustainability, MDPI, vol. 16(13), pages 1-21, July.
    3. Thomas Dietz & Janina Grabs & Andrea Estrella Chong, 2021. "Mainstreamed voluntary sustainability standards and their effectiveness: Evidence from the Honduran coffee sector," Regulation & Governance, John Wiley & Sons, vol. 15(2), pages 333-355, April.
    4. Bohn, Sophia & Wollni, Meike & Paz, Bruno, 2024. "Cultivating Change: Exploring the Link between Certification, Dietary Quality and Women’s Empowerment among Coffee Farmers in Rwanda," Sustainable Food Systems Discussion Papers 344225, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development.
    5. Boonaert, Eva & Maertens, Miet, 2023. "Voluntary sustainability standards and farmer welfare: The pathways to success?," Food Policy, Elsevier, vol. 121(C).
    6. Edward Martey & Edward Ebo Onumah & Justina Adwoa Onumah & Dela‐Dem Doe Fiankor, 2024. "Non‐tariff measures and household welfare: Evidence from Ghana," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1150-1169, March.
    7. Solfanelli, Francesco & Ozturk, Emel & Pugliese, Patrizia & Zanoli, Raffaele, 2021. "Potential outcomes and impacts of organic group certification in Italy: An evaluative case study," Ecological Economics, Elsevier, vol. 187(C).
    8. Vincent Canwat, 2023. "Value chains and sustainable development: A perspective of sustainable coffee value chains in East Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 668-679, April.
    9. 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.
    10. 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.
    11. 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.
    12. 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).
    13. Estrella, Andrea & Navichoc, David & Kilian, Bernard & Dietz, Thomas, 2022. "Impact pathways of voluntary sustainability standards on smallholder coffee producers in Honduras: Price premiums, farm productivity, production costs, access to credit," World Development Perspectives, Elsevier, vol. 27(C).
    14. 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).
    15. Purna Chandra Tanti & Pradyot Ranjan Jena & Raja Rajendra Timilsina & Dil Bahadur Rahut, 2024. "Enhancing crop yields and farm income through climate-smart agricultural practices in Eastern India," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 29(5), pages 1-28, June.

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