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Eco-certified contract choice among coffee farmersin Brazil

  • Sylvaine Lemeilleur
  • Julie Subervie
  • Anderson Edilson Presoto
  • Roberta de Castro Souza
  • Maria Sylvia Macchione Saes

We survey Brazilian coffee farmers’ preferences for attributes of voluntary sustainability standards using a choice experiment. We collected original data from 250 coffee farmers who live in the state of Minas Gerais who were asked to choose from several hypothetical buying contracts for eco-certified coffee. Our results suggest that both cash and non-cash payments may motivate farmers to participate in sustainability standard certification schemes that require improved agricultural practices. Preferences for non-cash rewards such as long-term formal contracts or technical assistance, however, appear highly heterogeneous. Results moreover show that the minimum willingness-to-accept for the adoption of composting is twice as high as the average price premium for certified coffee in the current context, which may partly explain why most coffee farmers continue to be reluctant to enter the most stringent eco-certification schemes such as the organic standard

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File URL: http://www.lameta.univ-montp1.fr/Documents/DR2016-09.pdf
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Paper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 09-16.

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Length: 35 pages
Date of creation: Sep 2016
Date of revision:
Handle: RePEc:lam:wpaper:09-16
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  1. D. McFadden & J. Hausman, 1981. "Specification Tests for the Multinominal Logit Model," Working papers 292, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. P. Dupraz & D. Vermersch & B. De Frahan & L. Delvaux, 2003. "The Environmental Supply of Farm Households: A Flexible Willingness to Accept Model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(2), pages 171-189, June.
  3. Ben B. Davies & Ian D. Hodge, 2006. "Farmers' Preferences for New Environmental Policy Instruments: Determining the Acceptability of Cross Compliance for Biodiversity Benefits," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 393-414.
  4. Birol, Ekin & Villalba, Eric Rayn & Smale, Melinda, 2009. "Farmer preferences for milpa diversity and genetically modified maize in Mexico: a latent class approach," Environment and Development Economics, Cambridge University Press, vol. 14(04), pages 521-540, August.
  5. Batz, Franz-J. & Janssen, Willem & Peters, Kurt J., 2003. "Predicting technology adoption to improve research priority--setting," Agricultural Economics, Blackwell, vol. 28(2), pages 151-164, March.
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  7. Dalton, Timothy J., 2004. "A household hedonic model of rice traits: economic values from farmers in West Africa," Agricultural Economics, Blackwell, vol. 31(2-3), pages 149-159, December.
  8. Roessler, Regina & Drucker, Adam G. & Scarpa, Riccardo & Markemann, André & Lemke, Ute & Thuy, Le T. & Valle Zárate, Anne, 2008. "Using choice experiments to assess smallholder farmers' preferences for pig breeding traits in different production systems in North-West Vietnam," Ecological Economics, Elsevier, vol. 66(1), pages 184-192, May.
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