This paper addresses the issue of unfair trade practices, investigating the drivers of the differences between farm-gate and free-on-board (FOB) prices in the most important Arabica coffee producing countries worldwide: Brazil, Guatemala, Colombia, Honduras, Peru, and Ethiopia. Our study looks at those differences taking into account the literature on governance in agri-food chains, with a focus on each country’s domestic market. We performed panel-corrected standard error (PCSE) estimates in ICO and World Bank data, covering the period from 2007 to 2016. In the paper we analyze (i) property rights as a proxy of transaction costs, once it brings more transparency and support to negotiations; (ii) access to electricity as a proxy of supporting infrastructure in communication and information activities, and (iii) quality of roads and quality of ports as proxies of transportation infrastructure. Our results show that heterogeneity in institutions and infrastructure are key in explaining the differences between farm-gate and FOB prices. The transaction costs derived from institutional failures and infrastructure gaps, lead to the use of intermediaries in the coffee supply chain, and this reduces the margin for coffee farmers. Actions that aim to reduce these inefficiencies bring more transparency and lower transaction costs, thereby directly contributing to the United Nations (UN) Sustainable Development Goals (SDGs).

Purpose: This paper investigates the incentives to coffee farmers to participate in certification schemes that require improved agricultural practices.Design/methodology/approach: The authors ran a choice experiment among 250 Brazilian coffee farmers in the state of Minas Gerais, Brazil.Findings: The authors’ findings show that both cash and non-cash payments are likely to incentive farmers' participation in a certification scheme. Besides price premium, incentives as long-term contracts and provision of technical would encourage producers to adopt eco-certification schemes. Our results also suggest that non-cash payments may be appropriate substitutes to a price premium to some extent.Research limitations/implications: The large coffee producers are over-represented in our sample compared to the population of Brazilian coffee farms. However, it seems reasonable to focus on these producers, as they are usually the ones who individually adopt strategies, since small farmers are induced by collective strategies (e.g. cooperatives).Social implications: The result regarding technical assistance makes sense given that Brazilian farmers generally have poor access to rural extension services.Originality/value: We contributed in the literature about adoption of sustainable agriculture practices analyzing the requirements and motivations for farmer participation in certification schemes. We also contribute private and public strategies to encourage the adoption of sustainable practices.

The bioeconomy has gained traction among the broader discourses on sustainable development, ecological transition, and the circular economy. Governments in the Global North and international institutions maintain that the bioeconomy can gradually replace fossil-based raw materials and nonrenewable resources with biomass and biological renewables. The Global South has increasingly adopted the approach, but with important variations across mega-biodiverse regions. In these regions, the bioeconomy must encourage economic activities that preserve biodiversity and strengthen local communities, promoting their well-being and cultural diversity. This paper argues that conventional research methods and indicators are not fit for this purpose. We therefore propose an alternative method and indicators and present an initial validation of the approach with an application to the pirarucu (Arapaima gigas) value chain in the Brazilian Amazon. By applying a bottom-up approach to evaluation that considers the perspective of the individuals and communities involved, the proposed methodology captures relevant dimensions of the value chain—including trade-offs—while identifying bottlenecks and the role of institutions. It also allows for verification of the achievement of the objectives of the socio-biodiversity bioeconomy in this model. The application to the case study finds that the managed pirarucu fisheries are a viable value chain associated with improved fish stocks and lower than average forest loss. Socio-economic benefits include the generation of reasonable income and greater participation by women. Income remains a complement to other sources of livelihood, however, and attractiveness to local communities is an issue. Positive outcomes are owed largely to local knowledge, collective action, and the role played by meta-organizations, while negative ones such as overfishing have resulted from institutional failures. Conventional analysis would likely not have considered these factors and missed these policy lessons. This corroborates the view that alternative methods and indicators are needed for the socio-biodiversity bioeconomy. While the application to the case study suggests the method and the indicators are conceptually suitable, we identify a number of shortcomings regarding the identification of interventions, attribution, and monitoring of the sustainability of the model.