Certification and Farmer Organisation: Indonesian Smallholder Perceptions of Benefits

Abstract

Certification and participation in farmer organisations are associated with economic and social benefits for farmers. However, knowledge about the differences in the perceived benefits of participation in different organisations and certification schemes is limited. In this paper, we distinguish between three types of farmer organisations in the Indonesian coffee sector: farmer groups, cooperatives, and KUBEs. We compare the benefits farmers perceive from participating in these forms of organisations, including the benefits for unorganised farmers and farmers in different certification schemes (Fair Trade, UTZ, the Rainforest Alliance, and 4C). We find that certified farmers perceive higher benefits than uncertified farmers, and that organised farmers perceive higher benefits than unorganised smallholders. Farmers who hold dual membership (in a farmer group and a KUBE or cooperative) perceive greater benefits than farmers who participate in farmer groups. Although farmers in different certification schemes significantly differ in the benefits they perceive, we could not identify clear patterns based on the schemes. We conclude that integration of the different organisational forms, as well as a more concentrated collaboration between the ministries underlying each organisational form, may improve the benefits perceived by farmers in the Indonesian coffee sector.