Abstract:
Abstract:
Increased awareness among coffee consumers of the impact of their consumption habits
on the people and environment in coffee producing countries has resulted in implementation of certification programs in the coffee sector as an assurance of good
practices in production and marketing of coffee. The UTZ certificate was the first to be
introduced in the Kenyan coffee industry and this study provides the first quantitative
assessment of its impact on smallholder farmers. The propensity score matching
technique was used because it solves the ‘selection bias’ problem in assessment of the
impact of development programs. The impact of the certification program differed
between the two regions where it is being implemented probably due to the differences in
bio-economic characteristics. Overall, the impact of the program ranges from higher
coffee prices and coffee incomes, increased access to greater amounts of credit for
agricultural purposes, increased incomes from other crop enterprises or off-farm
activities, greater savings by households and increased investments on land. UTZ
certification also resulted in better service provision by the cooperative societies. The
perception by certified households that their economic situation has not changed may be
attributed to the short period that the certification program has been in existence and
also to the reference period (2008) which was a difficult year in Kenya due to the post
election and economic crises.
Key Words: impact, certification, PSM, coffee cooperative, Kenya
