Beans with Benefits: A Price and Cost Analysis of Certified Coffee in the Dutch Retail Market

Abstract

This thesis investigates the extent to which sustainability certifications in the Dutch coffee retail market reflect actual compliance costs. Drawing on a hand-collected dataset of 182 whole-bean coffee products, it focuses on three major labels: EU Organic, Fairtrade, and Rainforest Alliance. Using OLS and fixed-effects regression models, the analysis reveals that EU Organic is associated with a 10.6% price premium, Fairtrade shows no significant effect, and Rainforest Alliance is linked to a 16.9% discount. Additionally, each extra certification label corresponds to an average 8.4% price decrease, suggesting diminishing signaling returns. These results are interpreted through signaling theory and institutional governance, showing that certification effects depend not only on cost structures but also on consumer perception and market positioning. A comparison between observed retail premiums and benchmarked compliance costs reveals a persistent transparency gap, particularly for organic products. The findings indicate that labels often serve as strategic pricing tools rather than direct reflections of certification costs. To ensure credibility and equitable value distribution, policymakers.