Evaluating the decision to participate in a fair-trade model of coffee-producing households in Xuan Truong commune, Da Lat city, Lam Dong province

Abstract

Fair trade in coffee production offers an opportunity to improve farmers’ position in the market. The study used a logit model with the maximum likelihood estimation method to evaluate the famers’ decision to participate in a fair-trade coffee production model. Data were collected by directly interviewing 220 farmers in Xuan Truong commune, Da Lat city, Lam Dong province. This commune has applied the fair-trade model in coffee production with the brand of Cau Dat coffee. The results of this study showed that the probability of households deciding to participate in the fair-trade coffee model was 14.43%. In addition, factors affecting the decision to participate in the fair-trade coffee model were householders, education level, area of agricultural land, profitability, awareness of fair trade, desired price of coffee, and agricultural extension. In particular, the farmer’s awareness of fair trade and the desired price of coffee had positive impacts on the farmers’ participation in a fair-trade coffee model.