Who benefits from the rapidly increasing Voluntary Sustainability Standards ? Evidence from Fairtrade and Organic certified coffee in Ethiopia

Titre Who benefits from the rapidly increasing Voluntary Sustainability Standards ? Evidence from Fairtrade and Organic certified coffee in Ethiopia
Lien hypertexte Site de « http://www.ifpri.org »
Auteur ETHIOPIA STRATEGY SUPPORT PROGRAM
Date 2015
Pagination 28 p.
Notes Working Paper, 71
Résumé Abstract : «Voluntary Sustainability Standards (VSS) are rapidly increasing in global value chains. While consumers, mostly in developed countries, are willing to pay significant premiums for such standards, it is not well understood how effectively these incentives a re transmitted to producing countries. We study VSS in Ethiopia’s coffee sector, the country’s most important export commodity, using a unique census of transaction data at the export level and large scale data at the production level. We find that transmission of the export quality premiums to coffee producers is limited, with only one third of this premium being passed on Moreover, as quality premiums are small and average production levels in these settings are low, these premiums would only lead to an increased income for coffee farmers of 20 USD per year even with a perfect transmission scenario, and therefore would have little effect on the welfare of the average coffee farmer.»

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