Summary
Researchers surveyed 327 members of conventional, organic, and organic-fairtrade certified coffee cooperatives in northern Nicaragua to assess the economic costs and benefits of certification. They found that certified coffee generally sold for a higher price than conventional but the profitability of coffee production and its effect on poverty were less clear. Coffee income was not high enough to meet smallholders' daily needs and certified coffee producers were living below the poverty line more often than conventional producers. The researchers concluded that yields, profitability, and efficiency need to increase because prices cannot compensate for low productivity and other constraints.