Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia

dc.creatorMinten, Bart
dc.creatorDereje, Mekdim
dc.creatorEngeda, Ermias
dc.creatorTamru, Seneshaw
dc.date2014
dc.date2024-08-01T02:52:24Z
dc.date2024-08-01T02:52:24Z
dc.date.accessioned2026-06-27T15:32:45Z
dc.descriptionVoluntary 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.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/150576
dc.identifier.urihttp://hdl.handle.net/123456789/107422
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.publisherEthiopian Development Research Institute
dc.relationhttps://hdl.handle.net/10568/150270
dc.rightsOpen Access
dc.sourceMinten, 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
dc.subjectvalue chains
dc.subjectexports
dc.subjecthigh-value agricultural products
dc.subjectcommodities
dc.subjectsustainability
dc.subjectquality
dc.subjectcoffee
dc.titleWho benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia
dc.typeWorking Paper

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