Certifying coffee cooperatives in Ethiopia, India and Nicaragua: how far do small-scale coffee producers benefit?

Abstract

Abstract This chapter investigates and compares the livelihood impacts of Fair Trade and/or organic certification for smallholder coffee farmers in primary cooperatives in Ethiopia, India and Nicaragua. The quantitative findings of this chapter show that certification on average has a differential impact in the three countries and this impact is highly case- and context-specific. The findings in Ethiopia show that Fair Trade certified cooperatives have done far less to improve farmers' incomes and livelihoods. In the Indian case study, however, Fair Trade certification has positively affected farmers' income. The findings in Nicaragua show that farmers in organic and organic-Fair Trade certified cooperatives receive comparatively higher farm-gate prices but also that these price advantages are mostly nullified by lower yields. Overall, it is concluded that certification schemes, especially the double certified ones, can contribute to poverty reduction if complemented by efficient and frictionless local frameworks and by other effective development strategies.