Economic Analysis of Coffee Certification Scheme in Ethiopia: A Case Study from Oromia Coffee Farmers Cooperative Union
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Date
2009-06
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A.A.U
Abstract
This paper looks into the economic analysis of coffee certification scheme in Ethiopia.
The study examines and compares per hectare productivity difference between
farmers growing organic/ fair trade certified coffee and conventional coffee.
Household survey data, conducted in four kebeles at Bullie Horra district targeting
Killenso Mokkonisa coffee farmers' cooperative, are reported and analyzed using
instrumental variables (two-stage least squares) regression and standard linear
difference-in-difference econometric model. In the analysis we find that, controlling
for a range of factors, there likely are positive productivity effects per hectare for the
treatment group but not for the control group owing to the scheme of coffee certification.
This study will have policy implications on how best to design programs to link coffee
farmers with the international markets
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Keywords
Coffee Certification, Oromia Coffee