This study uses data from 1,024 coffee producing households to address two critical questions regarding the role of cooperatives in Rwanda's coffee sector: Does cooperative membership increase adoption of best practices and coffee productivity? and do cooperatives improve farm household welfare? Using a propensity score matching technique to account for selection bias, we find that cooperatives are a critical institution for building farmer capacity, promoting adoption of improved technologies and inputs, and increasing productivity. We discuss the role that cooperatives can play in increasing farmer welfare and reestablishing the coffee sector as a pillar of growth in the country.
Purpose
The purpose of this paper is to examine the early stages of the transition to specialty coffee in Burundi and the role of an agribusiness support program as a catalyst for this transition.
Design/methodology/approach
This study uses two years of panel data (2007 and 2012) to analyze changes in technology adoption among coffee washing stations (CWSs) and how the adoption of improved technologies affects coffee quality.
Findings
Programmatic investment in Burundi’s coffee value chain resulted in a significant shift in adoption of processing technologies by CWSs. Producers who processed at these stations saw a significant increase in the quality of their coffee and forged sustainable trade relationships with international buyers.
Research limitations/implications
Future research should investigate the incentives and barriers of producers to invest in production boosting practices.
Originality/value
This is one of the first empirical papers that analyzes Burundi’s transition from ordinary to specialty coffee and how programmatic investments in improved technologies has helped to make the change possible.
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