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Quality as a Driver of Sustainable Agricultural Value Chains: The Case of the Relationship Coffee Model

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  • J Nicolas Hernandez‐Aguilera
  • Miguel I Gómez
  • Amanda D Rodewald
  • Ximena Rueda
  • Colleen Anunu
  • Ruth Bennett
  • Harold M van Es

Abstract

Specialty coffee markets that recognize coffee‐quality price premiums can improve business conditions for smallholders and promote agro‐ecological practices. We studied the Relationship Coffee Model (RCM), a business model that supports long‐term partnerships between coffee buyers and smallholders based on product quality. We examined how biophysical conditions and production practices affect smallholders’ ability to participate in this model. Furthermore, we considered common unobservable variables driving growers’ participation such as farm soil quality and connection to social networks. In turn, we evaluated key environmental, socio‐economic and technological outcomes, including tree and bird population diversity. Our estimations indicated that RCM participants employed more sustainable resource management practices, had better access to credit and were more informed and optimistic about the coffee business. However, we did not find significant farm‐gate price differences. Increased adoption of organic farming and shade‐grown systems to elevate coffee quality can stimulate sustainable business strategies. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • J Nicolas Hernandez‐Aguilera & Miguel I Gómez & Amanda D Rodewald & Ximena Rueda & Colleen Anunu & Ruth Bennett & Harold M van Es, 2018. "Quality as a Driver of Sustainable Agricultural Value Chains: The Case of the Relationship Coffee Model," Business Strategy and the Environment, Wiley Blackwell, vol. 27(2), pages 179-198, February.
    • Handle: RePEc:bla:bstrat:v:27:y:2018:i:2:p:179-198
    DOI: 10.1002/bse.2009
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    4. Katherine Fuller & Carola Grebitus, 2023. "Consumers' preferences and willingness to pay for coffee sustainability labels," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1007-1025, October.
    5. Vicol, Mark & Neilson, Jeffrey & Hartatri, Diany Faila Sophia & Cooper, Peter, 2018. "Upgrading for whom? Relationship coffee, value chain interventions and rural development in Indonesia," World Development, Elsevier, vol. 110(C), pages 26-37.
    6. Valerie Nelson & Ximena Rueda & Walter J.V. Vermeulen, 2018. "Challenges and Opportunities for the Sustainability Transition in Global Trade (Introduction)," Business Strategy and the Environment, Wiley Blackwell, vol. 27(2), pages 173-178, February.
    7. Simon L. Bager & Eric F. Lambin, 2020. "Sustainability strategies by companies in the global coffee sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3555-3570, December.
    8. Hernandez-Aguilera, J. Nicolas & Conrad, Jon M. & Gómez, Miguel I. & Rodewald, Amanda D., 2019. "The Economics and Ecology of Shade-grown Coffee: A Model to Incentivize Shade and Bird Conservation," Ecological Economics, Elsevier, vol. 159(C), pages 110-121.
    9. Luai Jraisat & Mohannad Jreissat & Arvind Upadhyay & Farhana Sajjad & Krishna Chandra Balodi, 2022. "Paradox of strategic partnerships for sustainable value chains: Perspectives of not‐for‐profit actors," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3491-3508, November.
    10. Theodora MV Nainggolan & Ulina Catarina Jenni Simatupang & Mei Linda Sipayung & Tiurmaida Nainggolan, 2024. "Economic Analysis And Marketing Strategy In Agricultural Supply Chain: A Case Study On W2k Organic Fertilizer," International Journal of Agriculture and Environmental Research, Malwa International Journals Publication, vol. 10(1), February.
    11. Paul Hong & Balasudarsun N. L. & Vivek N. & Sathish M., 2022. "Sustainable Agricultural Business Model: Case Studies of Innovative Indian Farmers," Sustainability, MDPI, vol. 14(16), pages 1-16, August.
    12. Evie Smith & Lisa Antoshak & Patrick H. Brown, 2022. "Grounds for Collaboration: A Model for Improving Coffee Sustainability Initiatives," Sustainability, MDPI, vol. 14(11), pages 1-22, May.
    13. Jia Xu & Jiuchang Wei & Liangdong Lu, 2019. "Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1027-1044, September.
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