The hidden costs of coffee production in the Eastern African value chains

dc.coverageeastern Africa
dc.creatorAdong, A.; Kornher, L.; Chichaibelu, B.B.; Arslan, A.;
dc.date2024-11-20T10:40:53Z
dc.date2024-11-20T10:40:53Z
dc.date2024
dc.date2024-11-20T10:34:57Z
dc.date.accessioned2026-06-27T22:44:17Z
dc.descriptionThere is growing recognition that significant costs associated with food systems remain unaccounted for in market prices. Coffee is the second most traded commodity in the world and the most traded agricultural commodity. More than 30 million smallholder households rely directly on coffee income. This background paper includes a study that attempts to quantify the environmental and social externalities of coffee value chains in three countries in Eastern Africa: Ethiopia, Uganda and the United Republic of Tanzania. Using a refined and simplified methodologies to quantify social and environmental externalities associated with climate, water, child labour, gender inequality and the living income gap, the paper applies the marginal damage cost approach to monetize the hidden costs. Both social and environmental externalities contribute significantly to the hidden costs of Eastern African coffee value chains, with Robusta coffee boasting considerably higher social hidden costs from the living income gap than Arabica due to its lower farm gate prices and profit margins. Hidden costs associated with the living income gap constitute the largest share, particularly in Ethiopia. Large variations in hidden costs in different production systems and regions are identified. The paper provides four important recommendations for policymakers in producing and importing countries.
dc.format50 p.
dc.formatapplication/pdf
dc.identifier2521-1838
dc.identifier978-92-5-139299-7
dc.identifier2664-5785
dc.identifierhttps://openknowledge.fao.org/handle/20.500.14283/cd3021en
dc.identifier.urihttp://hdl.handle.net/123456789/261467
dc.languageEnglish
dc.publisherFAO ;
dc.relationFAO Agricultural Development Economics Working Paper
dc.relationNo. 24-06
dc.rightsFAO
dc.rightsCC BY NC SA 3.0 IGO
dc.titleThe hidden costs of coffee production in the Eastern African value chains
dc.titleBackground paper for The State of Food and Agriculture 2024
dc.typeBook (series)

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