Bustanul, Arifin and Novi, Rosanti and Hanung, Ismono (2020) Partnership for Sustainability between Smallholders in Asia and Corporations in Europe. In: Asia-Europe Sustainable Connectivity Scientific Conference, SEPTEMBER 22-25, 2020, Online. (Unpublished)

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Abstract

Sustainability certifications in global agricultural value chains require smallholders in producing countries to form and strengthen their farmers’ organizations in order to increase the market access, where large-scale global corporations facilitate and monitor such access through an internal control system (ICS) established in the field. Sustainability certification schemes emerge in conjunction with growing concerns of environmental governance, especially among consumers in the coffee-buying countries. On one hand, efforts to democratize markets by increasing the role of civil society in regulating production and trade-related activities have grown rapidly. On the other hand, these sustainability certifications and standards could serve as new vehicles of corporate control over global food production, trade and consumption. Efforts to improve community-cooperative governance structures in the producing regions also help with integration, as standards generally require establishment of farmers’ organizations and locally adopted codes of conduct. Global buyers are interested in improving the control mechanisms that ensure product quality to meet both technical and non-economic requirements of coffee beans for the global market. Smallholder coffee farmers need to establish partnerships with global coffee corporations, not only to ensure market access and product quality to meet global requirements, but also to increase access for information, technical assistance, empowerment and other capacity building programs. The study analyzes the institutional dimensions of partnership for sustainability certifications between smallholder farmers in Asia and large-scale corporations in Europe and examines the impacts of partnerships on farm income Lampung Province, Sumatra- Indonesia. We conducted a farm-household survey by employing face-to-face interviews with a sample of 78 farm households in West Lampung District; 35 farmers were in a partnership and 43 were not; and of 93 farm households in Tanggamus District; 63 farmers were in a partnership and 30 were not. These households were selected using a cluster sampling method. The Nestle corporation’s 4C certification scheme is dominant in Tanggamus and Ecom corporation’s Rainforest Alliance (RFA) certification scheme is dominant in West Lampung. The field surveys were conducted in July and August of 2018. The semi-structured interviews for coffee traders, local leaders, and government officials were conducted in the period of August-October of 2018. By then, Nestle also started buying coffee from farmers in West Lampung. The partnership farmers were selected randomly within the cluster, using the lists provided by the ICS agents of these two companies. Non-partnership farmers were selected randomly using lists provided by the head of villages and the extension and ICS agents.

Item Type:	Conference or Workshop Item (Paper)
Subjects:	S Agriculture > S Agriculture (General)
Depositing User:	NOVI ROSAN
Date Deposited:	16 Nov 2020 01:55
Last Modified:	16 Nov 2020 01:55
URI:	http://repository.lppm.unila.ac.id/id/eprint/25388

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