Commodity chains, institutions, and domestic policies of organic and fair trade coffee in Bolivia

Abstract

ABSTRACTFair trade and organic coffee are alternative production and trade systems designed to promote the equitable and environmentally sustainable production of coffee. The purpose of this study is to analyze the functioning of different coffee supply chains in Bolivia and find policy changes necessary to sustain specialty coffee production in that country. Based on the primary and secondary data collected from various market functionaries, we find that the Bolivian coffee growers and other intermediaries have benefited financially from participating in fair trade and organic markets. However, the producers continue to face challenges, including increasing costs of production, stagnant premium, price floors, and declining yield. Institutional reforms within the supply chain and greater support from the government are necessary to ensure a better functioning Bolivian market. The government should also prioritize certified coffee as a part of its national food sovereignty agenda since Bolivians consume increasing amounts of high-quality coffees.