Abstract:
Private sustainability standards are increasingly important in food trade with developing
countries, but the implications for smallholder farmers are still poorly understood. We analyze the
implications of different coffee certification schemes in Ethiopia using cross-sectional survey data,
and regression and propensity-score-matching techniques. We find that: Rainforest Alliance (RA)
and double Fairtrade-Organic (FT-Org) certifications are associated with higher incomes and reduced
poverty, mainly because of higher prices; Fairtrade (FT) certification hardly affects welfare; and
Organic (Org) certification reduces incomes, chiefly due to lower yields. Cooperative heterogeneity
importantly shapes these results. Results imply that private standards may not always deliver what
they promise to consumers
