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\hypersetup{pdftitle={Coffee Farmers and Cooperatives Value Chain Coordination: Innovative Model for International Fair Trade Practices},pdfauthor={Lyla Rachmaningtyas},pdfsubject={Tropentag 2016: Abstract},pdfkeywords={Coffee farmers, cooperative, fair trade, value chain coordination},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 18-21, 2016, Vienna, Austria}}\\[1ex] \Large{``Solidarity in a competing world ---\\fair use of resources''\\[2ex]}}
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\Large{\textbf{Coffee Farmers and Cooperatives Value Chain Coordination: Innovative Model for International Fair Trade Practices\footnote{\textbf{Contact Address:} Lyla Rachmaningtyas, Georg-August Universität Göttingen, Agriculture Economics and Rural Development, Hermann Rein Strase 11, 37075~Göttingen, Germany, \mbox{e-mail}: \email{lyla_rachmaningtyas@yahoo.com}}\\[0.8ex]}}
\normalsize{\textsc{Lyla Rachmaningtyas}}
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\begin{itemize*}
\item[]{\small{\textit{Georg-August Universität Göttingen, Agriculture Economics and Rural Development, Germany}}}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
The structural change in agrifood products has developed the need for vertical coordination in value chains. Since agribusiness cooperatives are being dealed with internalisation of agrifood markets, cooperatives has internationalizing their activities. Particularly, in coffee production, international sustainability practices for coffee product has structured value chain in the highly brand oriented specialty sector. 
The impact of sustainability practices have been established the role of farmer cooperatives. Accomplishing organic and fair trade certification, small farmers are required to form cooperatives for facilitate inspection and monitoring and conduct the various corporate code in the coffee sector. In the value chain, cooperatives are superior mode and to be prioritised over the traditional trade structure. However, it seems much tensions has been created in each local organisation. Coffee producers that are dominated by small farmers faced a massive questions whether the fair trade practice will guarantee farmers receive premium price and better production or  pull the farmers into a tangled of certification requirement and additional cost of sustainability practices.
 Considering a theory that cooperatives are pooled interdependent organisations, characterised by horizontal coordination mechanism, particularly by standardisation of product quality. This research will elaborate pooled interdependent organisation model and will view the parallel coordination on three dimension : complementary (among service provider), horizontally (along farmers) and vertically (between farmers, buyers and end consumers) and and directly along 3 different value chain leader, namely : farmer led model, trader"=led model, processor led model and service provider led model.
 This paper will conduct methodology of desk study by reviewing the best practices from literature, working papers and journals using integration matrix method to determine and analysis how is the role coffee farmers and cooperatives in value chain coordination to challenge international sustainability practices, characterise the innovative and factors critical of each coordination model, and explore the advantage and disadvantage of each actors.
 All end all, this paper will give a benchmark of operational framework for farmers and cooperatives to maintain the innovative model for win win strategy to deal with the international fair practice.
}

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\noindent \textbf{Keywords:} Coffee farmers, cooperative, fair trade, value chain coordination
\index[key]{Coffee farmers}
\index[key]{Cooperative}
\index[key]{Fair trade}
\index[key]{Value chain coordination}
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