Journal of Rural Problems
Online ISSN : 2185-9973
Print ISSN : 0388-8525
ISSN-L : 0388-8525
Short Papers
The Economic Impact of Arabica Coffee Farmers’ Participation in Geographical Indication in Northern Highland of Thailand
Apichaya Lilavanichakul
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2020 Volume 56 Issue 3 Pages 124-131

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Abstract

The use of geographical indication (GI) has been applied to many coffee farms aiming to link to origin and provide benefits and costs to the farmers and local community. This study examines the economic impact of GI for small-scale coffee farmers in Northern highland of Thailand. Propensity score matching (PSM) is used to estimate the comparison between GI and non-GI farmers on economic indicators: total cost, profit, and land productivity. Empirical result reveals that the number of off-farm family member and the distance from farm to a selling point increase the likelihood of GI participation. Another finding suggests that GI coffee farmers gain economic benefits from increasing profit and reducing the total cost, but lowering the land productivity. Thus, encouraging coffee farmers participating in GI scheme would improve economic benefits and boost farmer livelihoods in the specific geographical area.

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© 2020 The Association for Regional Agricultural and Forestry Economics
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