Sustainability Science and Resources
Vol. 2 (2022): Sustainability Science and Resources

Partnership for Sustainable Coffee Certification: Linking Up Smallholder Farmers to Global Coffee Market

Bustanul Arifin (University of Lampung)
Michael Reed (University of Kentucky)
Novi Rosanti (University of Lampung)
Hanung Ismono (University of Lampung)
Slamet Budiyuwono (University of Lampung)



Article Info

Publish Date
15 Jul 2022

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.

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Journal Info

Abbrev

ssr

Publisher

Subject

Agriculture, Biological Sciences & Forestry Environmental Science Social Sciences

Description

The journal aims to provide a scholarly forum for the dissemination and exchange of research and developments in biological, physical, and social sciences pertinent to sustainability and Sustainable Development Goals (SDGs). It encourages an interdisciplinary approach to sciences that advances our ...