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How much more do growers receive for Fair Trade-organic coffee?

Permanent URL:
http://handle.nal.usda.gov/10113/50262
File:
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Abstract:
I use a representative sample of coffee growing households in southern Mexico to estimate the price premium and gross income gain from participating in Fair Trade-organic markets through grower cooperatives. For the 2004–2005 season, FT-organic growers received an average premium of 12.8 cents per pound, yielding a gross income gain of 5% of total household income or about 26 dollars per household member. The gain is net of the costs of cooperative participation but not of other costs incurred to become certified and suggests that price premiums alone have a limited potential to increase household returns from growing coffee. More broadly speaking, the finding raises questions about the persistence of substantial price premiums associated with social or environmental labeling initiatives.
Author(s):
Jeremy G. Weber
Note:
Batch:235 annotated on 2013-06-04T08:48:38Z
Source:
Food policy 2011 October v.36 no.5
Language:
English
Publisher:
Elsevier Ltd
Year:
2011
Collection:
Journal Articles, USDA Authors, Peer-Reviewed