Fair Trade/Organic Coffee, Rural Livelihoods, and the “Agrarian Question”: Southern Mexican Coffee Families in Transition

We use a random sample of coffee producing households in southern Mexico to compare opportunities associated with government subsidies and migration to the role of Fair Trade/organic coffee in household livelihoods. Although land and labor returns among Fair Trade/organic coffee growers are higher than for conventional growers, differences in yields are more important than price premiums. Moreover, investment in education and labor opportunities outside coffee dominate those in Fair Trade/organic coffee. The results highlight the value of an integrated approach to the agrarian question that improves productivity and prices and supports other pathways for improving incomes.