Differentiation strategies in coffee farms: opportunities for Costa Rican growers

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 pr...

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Detalles Bibliográficos
Autores: Valenciano Salazar, Jorge A., André García, Francisco Javier, Díaz Porras, Rafael
Tipo de recurso: artículo
Fecha de publicación:2022
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/72035
Acceso en línea:https://hdl.handle.net/20.500.14352/72035
Access Level:acceso abierto
Palabra clave:C23
Q02
Q11
Q13
Coffee prices
Costa Rica
Differentiation strategies
Multinational companies
Panel data analysis
Quality
Comercio
Desarrollo económico
Econometría (Economía)
5304.03 Comercio exterior
5307.03 Modelos y Teorías del desarrollo Económico
5307.04 Estudios del desarrollo Económico
5302 Econometría
Descripción
Sumario: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.