Under standard conditions in the Colombian coffee sector, the benefits of producing better coffee are not passed on to farmers, weakening their incentives to invest in higher-quality production. However, when a large international buyer required intermediaries to pay farmers higher prices for quality, this solved the hold-up problem, induced upgrading, and increased welfare along the supply chain.

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25 February 2026

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VoxDev

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https://voxdev.org/topic/agriculture/quality-upgrading-agriculture-path-poverty-reduction

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