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Journal : Sustainability Science and Resources

Partnership for Sustainable Coffee Certification: Linking Up Smallholder Farmers to Global Coffee Market Bustanul Arifin; Michael Reed; Novi Rosanti; Hanung Ismono; Slamet Budiyuwono
Sustainability Science and Resources Vol. 2 (2022): Sustainability Science and Resources
Publisher : The Indonesian Forestry Certification Cooperation

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (77.285 KB) | DOI: 10.55168/ssr2809-6029.2022.2003

Abstract

This study examines the impacts of partnerships for sustainability certifications in coffee value chains on farm income in Lampung Province, Sumatra-Indonesia. We conducted farm-household surveys, interviewing 171 samples in West Lampung and Tanggamus Districts, consisting of 98 farmers joining partnership and 73 farmers not joining. A probit model is used to determine decisions to join the partnership; ordinary least square (OLS) is used to analyze the determinants of farm income; and Heckman selection-correction model is used to reduce the selection bias in partnership participation. We find some selection in partnerships for sustainability certifications, driven by the age and education of household head, land holding size of coffee farm and the proximity to rural cooperatives-KUBE. The partnership farmers earn higher farm income than those not joining, due to a higher proportion of productive family members. After employing the treatment-effect model, we find that the partnership for sustainability certifications raises farm income, mostly due to higher coffee yield and farm-gate prices. These results reveal the need for policies to support the establishment and encouragement of partnerships for sustainability certifications. The internal control system (ICS) initiated by coffee corporations in implementing the sustainability certifications have improved the trust level between smallholders and global corporations.
Partnership for Sustainable Coffee Certification: Linking Up Smallholder Farmers to Global Coffee Market Arifin, Bustanul; Reed, Michael; Rosanti, Novi; Ismono, Hanung; Budiyuwono, Slamet
Sustainability Science and Resources Vol. 2 (2022): Sustainability Science and Resources
Publisher : The Indonesian Forestry Certification Cooperation

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55168/ssr2809-6029.2022.2003

Abstract

This study examines the impacts of partnerships for sustainability certifications in coffee value chains on farm income in Lampung Province, Sumatra-Indonesia. We conducted farm-household surveys, interviewing 171 samples in West Lampung and Tanggamus Districts, consisting of 98 farmers joining partnership and 73 farmers not joining. A probit model is used to determine decisions to join the partnership; ordinary least square (OLS) is used to analyze the determinants of farm income; and Heckman selection-correction model is used to reduce the selection bias in partnership participation. We find some selection in partnerships for sustainability certifications, driven by the age and education of household head, land holding size of coffee farm and the proximity to rural cooperatives-KUBE. The partnership farmers earn higher farm income than those not joining, due to a higher proportion of productive family members. After employing the treatment-effect model, we find that the partnership for sustainability certifications raises farm income, mostly due to higher coffee yield and farm-gate prices. These results reveal the need for policies to support the establishment and encouragement of partnerships for sustainability certifications. The internal control system (ICS) initiated by coffee corporations in implementing the sustainability certifications have improved the trust level between smallholders and global corporations.
Co-Authors Adia Nugraha Adilla, Ummu Ahmad Baihaqi Aldilla, Siti Hafsyoh Ali Ibrahim Hasyim Amalia Huda Ani Suryani Arief Daryanto Arief Daryanto Aviati S., Yuniar Ayu Sang Putri Bonar M Sinaga BONAR M. SINAGA Budiyuwono, Slamet Bustanul Arifin Bustanul Arifin Cicelia, Natasha Anandhiepa Dede Putri Dhia Hasna Adilah Irham Dian Komala Sari Dwi Apriliansyah Astanu Dwi Haryono Dwi Haryono Dwi Haryono Dwika Mutiara Abriani Dyah Lestari Ebenezer Sinambela Erlina Rufaidah Fembriarti Erry Prasmatiwi Ferani, Lathifa Marsya Nathania Fitriani Fitriani Hanung Ismono I. Rani Mellya Sari I.Rani Mellya Sari Juniarti, Rani Kenamon, Arif Adha Ketut Kariyasa KETUT KARIYASA Khairunnisa Noviantari Khister Praja Putra Ktut Murniati Lestari, Dyah Aring Hepiana Lina Marlina lina marlina, lina Lona, Nia Jessica Made Indra Murdani Mariyana Mariyana Mellya Sari, I Rani Meri Fatmalasari Michael Reed Muhamad Riyan Saputra Muhamad Soleh Muhammad Al Giffari Muhammad Ibnu Muhammad Iqbal Kasogi Nia Okta Sari Nita Oktami novindra . Nur Syavira Rahmalia Putri Nurfaizah, Trya Lulu Otik Nawansih Permata, Adistia Cahya Putra, Lucky Perdana Putri, Ayu Sang R Hanung Ismono Rahayu, Sari Rahmalia, Dian Reed, Michael Riri Wulandari Rizky Augia Rofi Al Akbar Rommy Qurniati Rusdi Evizal Saleh, Yuliana Sanjaya, Purba sapanli, kastana Sari, Dewi Mulia Sari, I. Rani Mellya Sari, I.Rani Mellya Saut M Togarotop Silvya Dara Mitha Slamet Budiyuwono Sudarma Widjaya Syamsiar, Syamsiar Tambunan, Varingan Prianando Taufik, Harun Teguh Endaryanto Tomi Ramadona Tyas Sekartiara Syafani, Tyas Sekartiara Vania Azalia Anabel Wan Abbas Zakaria Wulandari, Riri Wuryaningsih Dwi Sayekti Yuliana Saleh Yuliana Saleh Yunica Safitri Zainal Abidin Zainal Abidin