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mR 45 - Sustainable Coffee: Increasing Income of Small-Scale Coffee Farmers in Mexico Through Upgrading and Improved Transparency in the Value Chain

mR 45 - Sustainable Coffee: Increasing Income of Small-Scale Coffee Farmers in Mexico Through Upgrading and Improved Transparency in the Value Chain

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Published by Jason Wolfe
This microREPORT tells a story of how rural poor smallholder coffee farmers in southern Mexico achieved significant increases in their earnings as a result of sales into a higher value market channel established in cooperation between Conservation International and the Starbucks Coffee Company in a project funded by USAID. The report illustrates the importance of market leaders in linking MSEs into higher value markets and in driving firm-level upgrading. It demonstrates that farmers living below the official poverty line will pay fees for services to upgrade in response to economic incentives; and identifies preconditions to private sector market leader investment in the value chain. It also shows that by developing a product with attributes derived from the place and method of production, the dynamics of the power relationship between the smallholder farmers and the buyer were changed in favor of the farmers, with a resultant increase in benefits to the farmers.
This microREPORT tells a story of how rural poor smallholder coffee farmers in southern Mexico achieved significant increases in their earnings as a result of sales into a higher value market channel established in cooperation between Conservation International and the Starbucks Coffee Company in a project funded by USAID. The report illustrates the importance of market leaders in linking MSEs into higher value markets and in driving firm-level upgrading. It demonstrates that farmers living below the official poverty line will pay fees for services to upgrade in response to economic incentives; and identifies preconditions to private sector market leader investment in the value chain. It also shows that by developing a product with attributes derived from the place and method of production, the dynamics of the power relationship between the smallholder farmers and the buyer were changed in favor of the farmers, with a resultant increase in benefits to the farmers.

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Published by: Jason Wolfe on Jul 17, 2009
Copyright:Attribution Non-commercial

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05/11/2014

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SUSTAINABLE COFFEE
INCREASING INCOME OF SMALL-SCALE COFFEEFARMERS IN MEXICO THROUGH UPGRADING ANDIMPROVED TRANSPARENCY IN THE VALUE CHAIN
microREPORT #45
March 2005
 This publication was produced for review by the United States Agency for International Development.It was prepared by Edward Millard of Conservation International, subcontractor to ACDI/VOCA, underthe Accelerated Microenterprise Advancement Project Business Development Services Knowledge andPractice Task Order.
 
SUSTAINABLE COFFEE
INCREASING THE INCOME OF SMALL-SCALE COFFEEFARMERS IN MEXICO THROUGH UPGRADING ANDIMPROVED TRANSPARENCY IN THE VALUE CHAIN
microREPORT #45
Edward MillardMarch 2005
DISCLAIMER
 The author’s views expressed in this publication do not necessarily reflect the view of the UnitedStates Agency for International Development or the United States Government.

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