Recipient Organization
UNIVERSITY OF VERMONT
(N/A)
BURLINGTON,VT 05405
Performing Department
COMMUNITY DEVELOPMENT AND APPLIED ECONOMICS
Non Technical Summary
Consumers' purchases of alternative coffees (organic and fair trade), which generate jobs and promote environmental restoration, are limited by lack of information and their availability. This research project aims to develop and systematize our knowledge of the market for alternative coffees in Vermont. It will provide information for consumers to make better choices, and to support local companies in their marketing plans and product development.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Goals / Objectives
This project lays the groundwork for an assessment of the potential for stable growth of the alternative coffee industry in Vermont. It will accomplish this by looking at the potential of value adding activities in this industry, by describing and analyzing the characteristics of consumers and their reasons for purchasing alternative and conventional coffee. The project will also analyze the responsiveness of consumers to marketing efforts, price differentials, as well as to information on environmental and socioeconomic linkages of their purchases. First, the Alternative Coffees Project will describe and analyze the pre retail coffee business in Vermont, and its impact on the state's economy, with special attention to fair trade, organic, and environmentally friendly coffee. We will look at the importing, roasting, cupping, and distributing operations. We will use sensitivity analysis to project this impact under different scenarios, e.g., higher growth rates in the
alternative markets. Second, the project will identify, and analyze a sample of the coffee retail operations in Vermont, to assess its impact on the state's economy, establish the spatial availability of alternative coffees, and assess the amount of information that sellers have on the socio economic and environmental impact coffee production, and asses the relative exclusivity of distribution of alternative coffees on their demand. Third, the project will shed light on the kinds of valuable market and cultural knowledge that is being transferred between small producers abroad and local companies and cafes. It looks at the commercial, social, and environmental projects and relationships created by Vermont coffee roasters, traders, consumers, and producers abroad. One question is whether those economic and cultural channels be used to create bilateral agreements or relationships to promote Vermont products and expand cooperation in social and environmental projects abroad. Fourth, the
project will analyze the spatial distribution and behavior of consumers of alternative coffee in terms of their demographic characteristics. Here the purpose is to assess extents the extent to which consumers willing to go out of their way (i.e. the supermarket or neighborhood store) and into specialty stores to support alternative coffees, and to what extent are they willing to pay higher prices. Additionally, the project will also list and analyze consumer's justifications for purchasing alternative coffees. These might include quality assessments and health reasons, as well as ideological and political reasons. Fifth, the project will assess the likelihood that consumers will respond to information and marketing efforts aimed at promoting alternative coffees. It will look at consumers' responses to information regarding the positive socioeconomic impacts of alternative coffee (higher incomes, higher market stability), cooperation between producers, and independence from middlemen.
It will also consider consumer responses to information regarding the positive environmental impacts of alternative coffees and their certification associated labels.
Project Methods
First, this project will identify all Vermont companies that are importing green and roasted coffees. I will create a list by looking at Yellow Pages, business registries, government reports, and business printed and electronic media. I will conduct in depth interviews with companies and government officials regarding their coffee related activities. The interviews will help me describe and analyze the array of coffee related, market and non market activities carried out by company representatives. Second, I will conduct a statewide survey of retail stores, including supermarket, specialty food stores, and cafes. I will construct a sample of retail operations based on a proportional representation of the population distribution in the state. The survey includes closed questions about the kinds and amounts of coffees sold, the distributors that supply them, and the prices of bulk coffee to consumers and of coffee drinks (i.e. at cafes). I will use Arc Info software to
construct Geographical Information Systems (GIS) multi-layered maps to represent spatial correlations, e.g. between the spatial availability of alternative versus conventional coffee and education or income levels or age groups. Third, I will conduct in depth interviews with consumers, retailers, and with farmers abroad. I will ask questions aimed at establishing actors' knowledge of socioeconomic and environmental conditions abroad. Vermonters have shared cultural and technological knowledge, e.g. regarding farming practices that may affect migratory birds. I will identify and analyze the ways in which actors have cooperated, and the economic, and cultural knowledge transferred betwwen them, as well as technological transfers (e.g. organic farming techniques). I will assess the potential for further cooperation in social and environmental projects, and I will use the data to promote the use of this knowledge and the state's environmentalist and socially conscious bent to promote
Vermont companies and products abroad. Fourth, I will carry out a statewide survey of consumers, by asking ten questions in the Vermonter poll. Our questions will seek to correlate demographic and geographic data with data on consumption of alternative and conventional. This will allow us to estimate the proportion of coffee buyers that purchase alternative coffees, and the frequency of purchase, and allow us to estimate statistical correlations between these and a set of demographic characteristics of consumers. This survey will also allow us to identify the place of purchase and supplier. In addition, this survey will allow us to ascertain the reasons why consumers choose alternative or conventional coffees, and their willingness to buy alternative coffees in response to more convenient availability. Fifth, the survey will include questions regarding consumers' attitudes towards product certifications (i.e. organic or fair trade labels), and to information about the health,
environmental, and socioeconomic impact of the consumption of coffee.