The Livelihoods Impacts of Fair Trade and Organic Certification on Coffee Farmers: A case of Mana Woreda , Jimma Zone, Oromia Region, Ethiopia

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Date

2008-06

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Addis Ababa University

Abstract

The study examines the impacts of fair-trade and organic coffee certifications on the livelihoods of small coffee farm ers in Oromia Region, taking the case of Mana Woreda. Members of the Cooperative Societies in the selected woreda are the unit of analysis to find out the extent of the impact of coffee certifications. OCFSU is also one source of infonnation during the investigation. The study focuses on certified and non-certified cooperative members to unravel the impacts. A mixed methods approach (quantitative and qualitative) is employed to generate the required data. Coffee certification is based on social justice and environmental well being where establishing new channels of trade and marketing of coffee is initiated. Based on the purpose of the study, impacts of coffee certifications was investigated bur found out that the benefits from the fair-trade and organic coffee did not reach the farmers for the reasons beyond the control of the fanners. According to the investigation the possible barriers include: institutional problems inherent in cooperatives in Ethiopia; blanket FLO standards which does not consider specific conditions of countries; the heavy debt burden on the cooperative societies which is being repaid to the creditor, the Development Bank of Ethiopia. After analyzing the problems, the study concludes with recommendations for remedies in the institutions, resolving the debt burden and informing the FLO to reconsider the currem standards which becomes one of the barriers to participate in coffee certifications. In addition to the policy recommendation, the study directs to some of the key issues that need the allention of researchers so that problems and opportunities related with coffee certifications are explored at length increasing the understanding of the scheme to the larger populations of the countl)' and policy makers. Key words: Coffee Certifications, Cooperatives, Fair-trade and organic, small coffee farmers

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Keywords

Coffee Certifications, Cooperatives, Fair-trade and organic, small coffee farmers

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