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Differentiation strategies in coffee farms

Opportunities for Costa Rican growers

Bibliographic Data

ID21691063
AuthorsJorge A Valenciano-Salazar (0000-0002-8751-2345, Universidad Complutense de Madrid), Francisco J André (0000-0002-6406-3305, Universidad Complutense de Madrid, corresponding author), Rafael Diaz-Porras, Rafael Antonio Díaz-Porras (0000-0002-7637-1874, Universidad Nacional)
Year2023
Volume28
Issue1
Pages68-88
Publication date2023-02-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEnvironment and Development Economics (JOURNAL)
Journal identifiersISSN: 1355-770X • E-ISSN: 1469-4395
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s1355770x22000134
OpenAlexW4290635211
LanguageEN
References cited50

This study investigates the determinants of coffee prices received by growers in Costa Rica, paying attention to the impact of environmental, regional, quality, and international aspects in a panel data set for the period 2008–2016. We identify three groups of variables that affect domestic coffee prices. Some of them are external to the control of the coffee growers, such as the international price of green coffee or the power of multinationals; others, such as the altitude where the coffee is harvested or the berries' yield, are related to coffee quality but difficult to modify by coffee growers. The focus of our study is on the third group, which refers to differentiation strategies related to environmental certifications. More specifically, we consider two particularly relevant certifications, which are Fairtrade mills and organic coffee. We find that organic coffee berries received higher prices, but Fairtrade mills report lower average prices than other, non-certified, buyers

Agricultural economics · Agricultural science · Business · Certification · Economics · Green coffee · International market · International trade · Panel data · Global trade, sustainability, and social impact · Innovation and Socioeconomic Development · Organic Food and Agriculture · Food Science

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