Fairtrade coffee and the path to prosperity: a study of smallholder farmers in Bener Meriah Regency

Abstract

Abstract This study delves into the causal effect of Fairtrade affiliation on coffee productivity. It employs treatment effect and propensity score matching models, utilizing data gathered from 128 randomly selected smallholder coffee farmers in Bener Meriah Regency. This study significantly expands our understanding of the role Fairtrade affiliation plays in boosting the productivity of smallholder coffee farms, all the while ensuring it has no adverse effects on the environment and its underlying factors. The findings unequivocally demonstrate that Fairtrade affiliation leads to a substantial increase in coffee productivity. Expanding Fairtrade’s reach emerges as a crucial strategy to bolster the positive impact on coffee farmers.