Abstract
This article presents a systematic comparison between conventional and ‘differentiated’ coffee value chains, paying attention to (micro and macro) economic performance and environmental outcomes at different midstream segments of the Honduran coffee value chains. Growth has been strong in the Honduran coffee sector, especially among coffee cooperatives and commercial enterprises devoted to the production of ‘differentiated’ coffees at premium prices. We rely on a systematic data inventory of input use, costs, and benefits of all agents involved at different midstream stages of the coffee value chains to compare their performance. We find that midstream integration is critical for yield and quality improvement of Honduran coffee. This can be reinforced through voluntary certification (mainly for organic produce) and branding. Moreover, upgrading of conventional coffee for sales at local and regional markets offers some promising prospects for inclusion and sustainability.
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