Value adding through certification? Insights from the coffee sector in Nicaragua

Tina Beuchelt; Anna Kiemen; Manfred Zeller

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Value adding through certification? Insights from the coffee sector in Nicaragua

In: Markets, marketing and developing countries

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Tina Beuchelt

Tina Beuchelt
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Anna Kiemen

Anna Kiemen
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Manfred Zeller

Manfred Zeller
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Type:: Chapter

Pages:: 115–120

DOI:: https://doi.org/10.3920/9789086866991_016

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Although certification schemes are widely applied and promoted in coffee value chains, research seldomly addresses the added value of certification by different chain actors and the relative benefits of producers. Based on the value chain concept, we selected several conventional and Organic-Fair Trade value chains and investigated prices, income shares, information flows and governance structures. Quantitative and qualitative data was collected from small-scale coffee producers in Nicaragua as well as from their cooperatives, exporters, importers and roasters. Results show that the structure of the value chain and conventional coffee prices have a major influence on the benefits for certified farmers. The share of producers’ price on the final retail price is substantially lower in certified than in conventional chains. Differences in final farm income, transparency and information flows also depend on the cooperative’s structure and management. Using certification to add value is not benefiting producers as expected due to information asymmetry, governance issues in cooperatives and long chain structures in consuming countries causing high transaction costs. In order to improve farmer’s livelihoods in Nicaragua, policy measures should rather address business knowledge of producers and cooperatives as well as access to credits and extension in order to increase productivity of the coffee production.

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Markets, marketing and developing countries

Where we stand and where we are heading

E-Book ISBN:: 9789086866991

Publisher:: Wageningen Academic

Print Publication Date:: 15 Nov 2010

Subjects
- Life Sciences
  - General
  - Agribusiness & Rural Studies

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Value adding through certification? Insights from the coffee sector in Nicaragua

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Markets, marketing and developing countries

Where we stand and where we are heading

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