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Journal of Agricultural & Food Industrial Organization

Ed. by Azzam, Azzeddine


CiteScore 2018: 0.57

SCImago Journal Rank (SJR) 2018: 0.324
Source Normalized Impact per Paper (SNIP) 2018: 0.398

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1542-0485
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The Pro-Competitive Effect of Coffee Cooperatives in Chiapas, Mexico

Anna B. Milford
Published Online: 2012-03-27 | DOI: https://doi.org/10.1515/1542-0485.1362

Imperfect competition among purchasers of coffee is a common problem for small scale producers. Producer-owned marketing cooperatives can reduce the market power of private purchasers and restore competition. Non-members as well as members of the cooperatives will then receive higher prices. In the present paper I carry out a theoretical and an empirical investigation into the effect of Fairtrade and organically certified cooperatives on local competition and coffee prices in Chiapas, Mexico. A theoretical model is presented which explains how the competitive effect may work in this particular setting, where cooperative membership implies certain costs that are perceived differently by different producers. Also, using both qualitative and quantitative methods, I present evidence that is consistent with the hypothesis of a pro-competitive effect of cooperatives.

Keywords: agricultural cooperatives; market failure; coffee; Fairtrade; Latin America

About the article

Published Online: 2012-03-27


Citation Information: Journal of Agricultural & Food Industrial Organization, Volume 10, Issue 1, ISSN (Online) 1542-0485, DOI: https://doi.org/10.1515/1542-0485.1362.

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