@article{AKOYI:235004,
      recid = {235004},
      author = {AKOYI, Kevin Teopista and MAERTENS, Miet},
      title = {Private Sustainability Standards in the Ugandan Coffee  Sector: Empty Promises or Catalysts for Development?},
      address = {2016-05},
      number = {1067-2016-86808},
      series = {Bioeconomics Working Paper Series},
      pages = {28},
      year = {2016},
      note = {An updated version of this working paper is published as:   Akoyi, K.T., Maertens, M. (2017) Walk the Talk: Private  Sustainability Standards in the Ugandan Coffee Sector, The  Journal of Development Studies, DOI:   10.1080/00220388.2017.1327663},
      abstract = {In this paper we investigate whether private  sustainability standards in the coffee sector in Uganda  live up to the promises they make to consumers to improve  the welfare and productivity of smallholder farmers. We use  cross-sectional household survey data from Eastern Uganda  and instrumental variable methods to reveal how  participation in two different coffee certification schemes  affects smallholders. We find that smallholder  participation in a double Fairtrade - Organic certification  scheme neither increases producer income, nor reduces  poverty. While certified producers do receive higher coffee  prices, the certificate results in lower land and labour  productivity and the price premium does not compensate for  that. For participation in a triple Utz - Rainforest  Alliance - 4C certification scheme, we find increases in  coffee income, in land and labour productivity but no  significant impact on poverty reduction. The results imply  that almost a decade after their introduction, the  certification schemes have failed to contribute to poverty  reduction in a region that is faced with a high incidence  of poverty. The results indicate that a price premium to  producers is neither necessary, nor sufficient, for private  sustainability standards to contribute to rural incomes,  and that yields are more important than prices in  increasing net returns to coffee farmers. In areas with  degraded soils and low average yields, FT certification  focusing on fair producer prices, might be better for  smallholder coffee farmers when combined with standards  that focus on good agricultural practices and productivity  growth, such as Utz, than when combined with Organic  standards. The results put doubt on the sincerity of  private sustainability standards and the justification of  the price premium consumers pay for certified products, as  standards may not always live up to the expectations they  create.},
      url = {http://ageconsearch.umn.edu/record/235004},
      doi = {https://doi.org/10.22004/ag.econ.235004},
}