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Café de Marcala - Honduras' GI Approach to Achieving Reputation in the Coffee Market

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  • Teuber, Ramona

Abstract

The objective of the present article is to investigate the importance of geographical indications (GIs) in the coffee market, particularly for Honduran coffees. Geographical indications for coffee have emerged only recently, and only a few scientific studies have been carried out on this topic so far. The present article addresses this lack of research by highlighting recent developments in the coffee market and by presenting the results of a hedonic price analysis that used internet auction data for specialty coffees. The aim of this analysis is to investigate the influence of the region of origin on the achieved auction price of Honduran specialty coffee, controlling for other coffee attributes. The results indicate that coffees from the region Marcala, for which a denomination of origin was established in 2005, possess on average a higher quality than coffees grown in other Honduran regions. Consequently, since quality is the most important price determinant in the internet auctions, coffees from Marcala achieve on average a higher price than coffees from other Honduran coffee-growing regions. However, the hypothesis that Marcala coffees can also achieve a higher price due to an already established reputation could not be confirmed.

Suggested Citation

  • Teuber, Ramona, 2009. "Café de Marcala - Honduras' GI Approach to Achieving Reputation in the Coffee Market," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(01), pages 1-18.
    • Handle: RePEc:ags:ecjilt:48798
    DOI: 10.22004/ag.econ.48798
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    References listed on IDEAS

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    1. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    2. Brown, Jeff E. & Ethridge, Don E., 1995. "Functional Form Model Specification: An Application to Hedonic Pricing," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(2), pages 166-173, October.
    3. Brown, Jeff E. & Ethridge, Don E., 1995. "Functional Form Model Specification: An Application To Hedonic Pricing," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(2), pages 1-8, October.
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    Cited by:

    1. Teuber, Ramona, 2010. "Estimating the Demand for Sensory Quality – Theoretical Considerations and an Empirical Application to Specialty Coffee," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(03), pages 1-14, September.
    2. Teuber, Ramona & Herrmann, Roland, 2012. "Towards a differentiated modeling of origin effects in hedonic analysis: An application to auction prices of specialty coffee," Food Policy, Elsevier, vol. 37(6), pages 732-740.
    3. Adam P. Wilson & Norbert L.W. Wilson, 2014. "The economics of quality in the specialty coffee industry: insights from the Cup of Excellence auction programs," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 91-105, November.
    4. Herrmann, Roland & Marauhn, Thilo & Teuber, Ramona, 2008. "Der Schutz geographischer Herkunftsangaben: Herausforderungen für agrarökonomische, rechtswissenschaftliche und interdisziplinäre Forschung," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 57(07), pages 1-4.
    5. Matthew J. Zinsli, 2023. "Authorizing the ‘taste of place’ for Galápagos Islands coffee: scientific knowledge, development politics, and power in geographical indication implementation," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(2), pages 581-597, June.
    6. Teuber, Ramona, 2010. "Estimating the Demand for Sensory Quality – Theoretical Considerations and an Empirical Application to Specialty Coffee," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(3).

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