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Abstract
Geographical Indication is a type of collective intellectual property that producers may use to capture the place-related value expressed in their product which involve the physical and anthropic characteristics of the production area. There is GI’s Code of Practice (CoP) that should be adopted by farmers as reference standard to maintain GIs product consistency and definition requirements. Understanding farmer preferences and incorporating them into the development of improvement of GIs’ certification schemes is thought to result in more internalized, and thus more efficient standards. This study aims to 1) investigate the small-scale farmers’ preferences and the influence of socio-economics characteristics rejecting GIs’ scheme; and 2) develop strategies to increase farmers participation on GIs’ scheme. Choice Experiment method and Conditional Logit Model (CLM) were used to estimate preferences of 157 small-scale coffee farmers for accepting GIs’ scheme. The findings suggest that premium price, coffee processing, technical assistance, and selling agreement are all GIs’ attributes that could increase small-scale farmers’ utility. More incentives are required to compensate farmers due to the loss of utility caused by pesticide bans and farm inspection. Based on CLM, the study found that farmers have clear preferences for and against certain aspects of GIs’ CoP scheme.
Highlights
IntroductionThe implementation of Geographical Indication in the coffee sector is expected could assist small farmers to produce coffee with better quality standards, more consistent qualities and be able to demonstrate that there is a link between production characteristics and product quality produced in a GI area [2]
The findings in this study are in line with the results of previous studies which stated that a negative preference for prohibiting the use of pesticides is plausible and is an obstacle for farmers to participate in contract schemes [10,33,36]
GI Certification emphasizes the importance of consensus in developing a code of practice for the Geographical Indication scheme by involving all stakeholders, including farmers, processors, traders, MPIG, and the government, in contrast to private certification schemes whose schemes are prepared by certification applicants
Summary
The implementation of Geographical Indication in the coffee sector is expected could assist small farmers to produce coffee with better quality standards, more consistent qualities and be able to demonstrate that there is a link between production characteristics and product quality produced in a GI area [2]. One of the challenges in establishing GI certification in the coffee industry in Indonesia is a lack of control over the application of GI standards or codes of practices [1]. The MPIG (Masyarakat Perlindungan Indikasi Geografis, or Community of GI Protection), a community-based organization comprising coffee producers, processors, traders, and roasters, is the applicant organization for all registered coffee GIs. MPIG is in charge of implementing GI-based coffee production standards. Farmers must follow the rules or Code of Practice for geographically indicated coffee cultivation as outlined in Buku Persyaratan Indikasi Geografis (Book of Specifications). The quality standard for coffee goods specified in the Geographical Indication Requirements book is the Indonesian National Standard [4]
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