The Economic Sustainability of Certified Coffee: Recent Evidence from Mexico and Peru

SummaryConsumers increasingly act on preferences for a more just and sustainable world by purchasing certified agricultural products. Using survey data from coffee growers in Mexico and Peru, we explore the economic sustainability of certified coffee, looking at conventional, Fair Trade/organic, and Rainforest Alliance certified growers. The analysis reveals that yields rather than price premiums are most important for increasing net cash returns for coffee growing households. Given the link between net returns and producer participation in certified coffee schemes, the findings suggest that certification norms that permit improving yields are essential for improving grower welfare and attracting and maintaining growers.