Co-operative or coyote? Producers' choice between intermediary purchasers and Fairtrade and organic cooperatives in Chiapas

Summary

This study of organic and Fairtrade co-operatives in Mexico aims to find out why many coffee producers prefer not to join the certified co-operatives, despite their higher price offer. A study of costs of production of organic coffee concludes that it implies more work, but not necessarily higher yields. A main conclusion of the investigation is that the compulsory organic production methods deters many producers from entering the co-operatives, and that it is more attractive for producers with more free family labour, and less attractive for producers with very little coffee land. However, the study also shows that it is not only economic factors that influence the decisions of the producers on where to sell their coffee.
Previous studies have shown that Fairtrade and organic certification can bring higher incomes and more security into the lives of marginalized farmers (Bray et al. 2002, Martinez-Torres 2006, Jaffeee 2007) hence it is important to understand more about how these systems can achieve their aims. This study shows that although the smallest farmers are less likely to become a part of these systems, the farmers who do are also very poor and vulnerable. Also, co-operatives need to be economically viable organisations and the organic requirements ensure a market with a higher price for the product, while at the same time keeping the organization at a manageable size. It is therefore recommended to keep the organic production requirements as a criteria for producers entering the co-operatives.