Differentiation strategies in coffee farms: opportunities for Costa Rican growers



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Valenciano Salazar, Jorge A. and André García, Francisco Javier and Díaz Porras, Rafael (2022) Differentiation strategies in coffee farms: opportunities for Costa Rican growers. Environment and Development Economics, 27 (5). pp. 1-21. ISSN 1355-770X

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Official URL: https://doi.org/10.1017/S1355770X22000134


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.

Item Type:Article
Additional Information:

CRUE-CSIC (Acuerdos Transformativos 2022)

Uncontrolled Keywords:Coffee prices; Costa Rica; Differentiation strategies; Multinational companies; Panel data analysis; Quality
Subjects:Social sciences > Economics > Commerce
Social sciences > Economics > Economic development
Social sciences > Economics > Econometrics
JEL:C23, Q02, Q11, Q13
ID Code:74720
Deposited On:30 Sep 2022 11:17
Last Modified:03 Oct 2022 07:04

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