Differentiation strategies in coffee farms: opportunities for Costa Rican growers

  1. Valenciano-Salazar, Jorge A. 1
  2. André, Francisco J. 2
  3. Díaz-Porras, Rafael
  1. 1 Universidad de Costa Rica
    info

    Universidad de Costa Rica

    San José, Costa Rica

    ROR https://ror.org/02yzgww51

  2. 2 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

Revista:
Environment and Development Economics

ISSN: 1355-770X 1469-4395

Año de publicación: 2022

Volumen: 28

Número: 1

Páginas: 68-88

Tipo: Artículo

DOI: 10.1017/S1355770X22000134 GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Environment and Development Economics

Resumen

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.

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