Sustainability perspectives and long-term consequences of coffee practices on natural ecosystems and social-economic dimensions of the livelihood sector have been widely discussed in the literature. This paper contributes to this literature by examining the links between global sustainability regulation in agricultural trade and coffee supply chains by reviewing the economics of coffee-producing regions in Lampung Province, Indonesia. The case study demonstrates that sustainability regulation of global environmental practices in the coffee industry, which characterize most global initiatives, has somehow restructured the supply chain in producing countries. Recent global sustainability standards require adequate organizational capacity of coffee-farmer groups and rural cooperatives involved in the supply chain. As a result, the author recommends policy integration between bottom-up initiatives at farm level or institutional changes in supply-chain organizations, and top-down sustainability standards set by the private sector and non-government organizations to achieve better environmental governance in the coffee sector.

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