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Honduran Coffee Trade: Economic Effects of Fair Trade Certification On Individual Producers

Author

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  • Herrell, Kevin M.
  • Tewari, Rachna
  • Mehlhorn, Joey

Abstract

Global demand for coffee has increased significantly due to emphasis placed on value creation throughout the coffee supply chain, increased consumption in emerging economies, and changes in consumer preference. The specialty coffee industry, in particular, has highlighted the economic effects on individual participants from producers to consumers. In an attempt to encourage a more equitable income distribution along the supply chain, organizations such as Fair Trade Coffee have emerged to address the welfare of producers. A simple regression analysis can be used to determine the impact of Fair Trade Certification on producer premiums obtained through these non-traditional distribution channels. The Fair Trade Model will also be evaluated based on historical market data related to the evolution of the specialty coffee industry, including similar trade models that have emerged due to increased awareness brought about by Fair Trade Coffee. This preliminary study will serve as a platform for future studies that will determine the overall impact of Honduran Fair Trade Coffee Certification on producer welfare.

Suggested Citation

  • Herrell, Kevin M. & Tewari, Rachna & Mehlhorn, Joey, 2017. "Honduran Coffee Trade: Economic Effects of Fair Trade Certification On Individual Producers," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252729, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252729
    DOI: 10.22004/ag.econ.252729
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    References listed on IDEAS

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    1. Raluca Dragusanu & Daniele Giovannucci & Nathan Nunn, 2014. "The Economics of Fair Trade," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 217-236, Summer.
    2. Dragusanu, Raluca & Giovannucci, Daniele & Nunn, Nathan, 2014. "The Economics of Fair Trade," Scholarly Articles 33077828, Harvard University Department of Economics.
    3. Weber, Jeremy G., 2011. "How much more do growers receive for Fair Trade-organic coffee?," Food Policy, Elsevier, vol. 36(5), pages 677-684, October.
    4. Joni Valkila & Anja Nygren, 2010. "Impacts of Fair Trade certification on coffee farmers, cooperatives, and laborers in Nicaragua," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 27(3), pages 321-333, September.
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    Keywords

    Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development; Crop Production/Industries; International Relations/Trade; Marketing; Risk and Uncertainty;
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