Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia
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 are transmitted to producing countries. We st...
| Autores principales: | , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2014
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/150576 |
| _version_ | 1855534966878765056 |
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| author | Minten, Bart Dereje, Mekdim Engeda, Ermias Tamru, Seneshaw |
| author_browse | Dereje, Mekdim Engeda, Ermias Minten, Bart Tamru, Seneshaw |
| author_facet | Minten, Bart Dereje, Mekdim Engeda, Ermias Tamru, Seneshaw |
| author_sort | Minten, Bart |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | 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 are 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 pro-ducers 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. |
| format | Artículo preliminar |
| id | CGSpace150576 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1505762025-11-06T07:13:36Z Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia Minten, Bart Dereje, Mekdim Engeda, Ermias Tamru, Seneshaw value chains exports high-value agricultural products commodities sustainability quality coffee 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 are 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 pro-ducers 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. 2014 2024-08-01T02:52:24Z 2024-08-01T02:52:24Z Working Paper https://hdl.handle.net/10568/150576 en https://hdl.handle.net/10568/150270 Open Access application/pdf International Food Policy Research Institute Ethiopian Development Research Institute Minten, Bart; Dereje, Mekdim; Engeda, Ermias and Tamru, Seneshaw. 2014. Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia. ESSP II Working Paper 71. Washington, DC and Addis Ababa, Ethiopia: International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI). https://hdl.handle.net/10568/150576 |
| spellingShingle | value chains exports high-value agricultural products commodities sustainability quality coffee Minten, Bart Dereje, Mekdim Engeda, Ermias Tamru, Seneshaw Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia |
| title | Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia |
| title_full | Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia |
| title_fullStr | Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia |
| title_full_unstemmed | Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia |
| title_short | Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia |
| title_sort | who benefits from the rapidly increasing voluntary sustainability standards evidence from fairtrade and organic certified coffee in ethiopia |
| topic | value chains exports high-value agricultural products commodities sustainability quality coffee |
| url | https://hdl.handle.net/10568/150576 |
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