Access to high quality coffee Markets: Possible for all?

Abstract

Access to high-value markets can improve farmers¿ well-being, provided that these markets remunerate quality. However, in practice, producers or buyers cannot readily evaluate a product's quality. In this case study, we explore the effect of an intervention that provides information about coffee quality of smallholder on access to high-value markets. Specifically, we consider the effect of quantifying and certifying coffee-quality on the price received by small coffee growers in eight municipalities of Colombia¿s Nariño department, between 2012 and 2016. Using an econometric methodology of difference-in-difference, we find that providing small coffee-growers with technical and commercial advice, alongside a "coffee cup test", increases their sale price of coffee, in comparison with coffee farmers who did not receive this support. Additionally, we demonstrate that this effect is heterogeneous for the coffee farmerswho received the treatment, due to the altitude of the different farms.