Details
| Original language | English |
|---|---|
| Pages (from-to) | 87-110 |
| Number of pages | 24 |
| Journal | Applied Economic Perspectives and Policy |
| Volume | 39 |
| Issue number | 1 |
| Early online date | 9 Apr 2016 |
| Publication status | Published - Mar 2017 |
Abstract
Can Fairtrade certification improve farmers' livelihoods in small-scale coffee farming tribal communities in India? Has Fairtrade contributed to capacitybuilding among the farmers? To answer these questions, household data of 256 coffee farmers from a tribal coffee-producing community in southern India was collected in 2010. Using the propensity score matching technique, the empirical findings show that Fairtrade certification has a positive impact on farmers' income. However, the incidence of poverty in the community is very high, with 84% of the certified farmers being extremely poor. Some improvement in the livelihoods of certified farmers has occurred from higher and assured farm gate prices, regular collection of coffee from the village centers that reduces travel costs, and from the social Fairtrade premium. But while the benefits are modest and the process is slow, challenges remain in terms of improving the effectiveness and management of the cooperative system, as well as raising the awareness of farmers about Fairtrade certification. There is a need to strengthen the positive impacts created by Fairtrade certification by collaboration between the cooperative and local government to enhance the technical, financial and human capacities of the coffee cooperative members.
Keywords
- Cooperative, Fairtrade coffee, India, Poverty, Propensity score matching
ASJC Scopus subject areas
- Social Sciences(all)
- Development
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
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In: Applied Economic Perspectives and Policy, Vol. 39, No. 1, 03.2017, p. 87-110.
Research output: Contribution to journal › Article › Research › peer review
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TY - JOUR
T1 - Fairtrade certification and livelihood impacts on small-scale coffee producers in a tribal community of India
AU - Jena, Pradyot Ranjan
AU - Grote, Ulrike
N1 - Publisher Copyright: © 2017. Oxford University Press on behalf of the Agricultural and Applied Economics Association. Copyright: Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2017/3
Y1 - 2017/3
N2 - Can Fairtrade certification improve farmers' livelihoods in small-scale coffee farming tribal communities in India? Has Fairtrade contributed to capacitybuilding among the farmers? To answer these questions, household data of 256 coffee farmers from a tribal coffee-producing community in southern India was collected in 2010. Using the propensity score matching technique, the empirical findings show that Fairtrade certification has a positive impact on farmers' income. However, the incidence of poverty in the community is very high, with 84% of the certified farmers being extremely poor. Some improvement in the livelihoods of certified farmers has occurred from higher and assured farm gate prices, regular collection of coffee from the village centers that reduces travel costs, and from the social Fairtrade premium. But while the benefits are modest and the process is slow, challenges remain in terms of improving the effectiveness and management of the cooperative system, as well as raising the awareness of farmers about Fairtrade certification. There is a need to strengthen the positive impacts created by Fairtrade certification by collaboration between the cooperative and local government to enhance the technical, financial and human capacities of the coffee cooperative members.
AB - Can Fairtrade certification improve farmers' livelihoods in small-scale coffee farming tribal communities in India? Has Fairtrade contributed to capacitybuilding among the farmers? To answer these questions, household data of 256 coffee farmers from a tribal coffee-producing community in southern India was collected in 2010. Using the propensity score matching technique, the empirical findings show that Fairtrade certification has a positive impact on farmers' income. However, the incidence of poverty in the community is very high, with 84% of the certified farmers being extremely poor. Some improvement in the livelihoods of certified farmers has occurred from higher and assured farm gate prices, regular collection of coffee from the village centers that reduces travel costs, and from the social Fairtrade premium. But while the benefits are modest and the process is slow, challenges remain in terms of improving the effectiveness and management of the cooperative system, as well as raising the awareness of farmers about Fairtrade certification. There is a need to strengthen the positive impacts created by Fairtrade certification by collaboration between the cooperative and local government to enhance the technical, financial and human capacities of the coffee cooperative members.
KW - Cooperative
KW - Fairtrade coffee
KW - India
KW - Poverty
KW - Propensity score matching
UR - http://www.scopus.com/inward/record.url?scp=85018985718&partnerID=8YFLogxK
U2 - 10.1093/aepp/ppw006
DO - 10.1093/aepp/ppw006
M3 - Article
AN - SCOPUS:85018985718
VL - 39
SP - 87
EP - 110
JO - Applied Economic Perspectives and Policy
JF - Applied Economic Perspectives and Policy
SN - 2040-5790
IS - 1
ER -