The vast majority of the world’s 12.5 million coffee farms are run by smallholder farmers; in fact, almost three-fourths of the world’s coffee comes from small farms. Yet, if nothing is done to tackle the exacerbating issues faced by these farmers – such as climate change and low and unstable incomes – 50 percent of the regions suitable for coffee farming could disappear by 2050. As a result, farmers may resort to expanding into forested areas in their struggle to sustain and increase agricultural output, leading to further deforestation.

The Rainforest Alliance strongly believes that the European Union Deforestation Regulation (EUDR), due to come into effect on 30 December 2024, is an important step forward in the global fight against deforestation and forest degradation linked to the production of several high-risk commodities, including coffee.

However, as companies race towards EUDR compliance, we are seeing the very real risk of companies only meeting the minimum requirements and neglecting their responsibility to support farmers and address systemic poverty – a major contributor to deforestation. To address this, it is crucial that more value finds its way from companies to smallholders, who are vital to global food supply chains. This is why the role of certification has never been more important for the coffee sector.

Challenges faced by smallholder coffee farmers

In our work over the last 36 years, we’ve seen that smallholder farmers often lack the financial resources and technical expertise needed for better farm management, traceability, and accountability, such as GPS mapping. This further exacerbates the challenges they face, creating a barrier for producers who lack access to such tools.

EUDR compliance requires providing GPS points or polygons, which can overwhelm smallholder farmers operating in remote or rural areas with limited infrastructure. Without the required support, they are at a disadvantage compared to larger, more resourced competitors which also risks marginalising them from lucrative European markets.

The cumulative effect of these challenges underscores the need for support mechanisms, such as financial assistance, training programmes, and infrastructure development, to help smallholder farmers align with EUDR requirements and remain competitive in the global market.

Certifications: bridging regulatory requirements and sustainable agriculture

Certification acts as a bridge between regulatory demands and the transition towards more sustainable and regenerative agricultural practices. It provides a structured framework for coffee grown and harvested in ways that aim to protect forests and support local communities, through:

• Credibility and assurance: Recognised programmes (like Rainforest Alliance certification) provide a credible stamp, assuring brands, regulators and consumers that certified coffee aligns with a strict set of social, economic and environmental sustainability standards.
• Traceability: Certification processes often include robust traceability mechanisms, allowing companies to track their coffee’s journey from farm to cup. This traceability is crucial for EUDR compliance, ensuring products are deforestation-free.
• Sustainable agriculture: At the heart of certification is the promotion of sustainable farming practices beyond addressing deforestation, including climate resilience, improved livelihoods, biodiversity conservation, protection and advancement of human rights, business training, and compliance with local laws. This holistic approach aligns with the broader goals of the EUDR by addressing some of the root causes of deforestation.

For the coffee sector, embracing certification is not just a strategic move – it is an essential step towards ensuring that every cup of coffee contributes to positive change for both farmers and nature.

• Miguel Gamboa is coffee sector lead at the Rainforest Alliance and is based in Guatemala. He trained as an industrial engineer with Masters in Reengineering and International Trade. Gamboa started his professional career working in a coffee exporting company. Twenty years ago, he started working with the UTZ certification programme, learning about the different realities of coffee production throughout Latin America. After the merger of UTZ and the Rainforest Alliance, Gamboa was appointed coffee representative manager for Latin America, and assumed his current position in September 2022. With 37 years of experience in tackling deforestation in global supply chains, the Rainforest Alliance’s systems can help certified coffee supply chain partners take steps towards complying with EUDR requirements. RA is also developing a deforestation risk assessment offering for non-certified supply chains.

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“Those who are born on a farm are many times discouraged from continuing their parents’ activities, which is why it is very important to introduce new perspectives, technologies and experiences through dynamic projects such as Teens. Passing on this knowledge and the feeling of love for the countryside makes all the difference, because making a successor is different from having an heir. We need future generations to continue to produce great Brazilian coffee,” said Raquel Paza Lazzarin, Expocacer’s director of organizational development.

Through directed courses and activities, the project’s participants will learn about all the processes involved in coffee growing, from production, management, and exports to final consumption. The classes are distributed in stages, combining theory with coffee-growing practices, including: cooperative principles; the history of coffee in Brazil; production of specialty grains; classification; cupping and roasting; a visit to the Expocacer warehouses; notions of management, leadership and marketing; as well as visits to the farms of cooperative members.

“I already had a basic knowledge, but taking part in this project was essential in broadening my experience in coffee growing and made a difference on my decision to continue in my family’s business. I was able to learn about the theory and practice of the techniques and thus to identify and specialise in areas that I hadn’t tried before, such as quality production. I take with me what is new, and my father comes in with all his years of knowledge, one complements the other,” says Eduardo Fardin, son of the producer Carlos Fardin.

The project, now in its third edition, also aims to encourage more sustainable and quality cultivation, also to help young people and their families providing new professional prospects and at the same time training them with general notions and practices about their family’s business, therefore improving the family succession scenario.

“It is important to show our children and grandchildren the greatness and importance of coffee growing. Coffee is something that is in the daily lives of thousands of people, and it is one of the fastest growing sectors in Brazil, also an extremely important sector for our economy. We are the largest producers and exporters of this bean in the world, we have something great here that opens countless opportunities,” Raquel concluded.

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The Lunch Box programme by Paddy & Scott’s, which has now been fully rolled out across Macdonald Hotels & Resorts venues, is a pioneering project designed to fund meals for children living in coffee-growing regions around the world.

As part of the partnership, Lunch Box coffee is served in all of Macdonald Hotels & Resorts’ 32 properties throughout the UK, with guests able to support this charitable effort by enjoying breakfast, afternoon tea or a light refreshment in the hotel of their choice. Each bag of coffee funds a meal for a child in Kenya as part of The Muchomba Project, and other coffee-growing regions around the world.

A joint venture between a Kenyan coffee farm and Ipswich, UK-based Paddy & Scott’s, The Muchomba Project helps fund life-changing initiatives in the Kenyan farming community. The project is currently financing improvement works at the local school, ranging from installation of windows and toilets, to running clean drinking water.

Michael Savage, head of energy & sustainability at Macdonald Hotels & Resorts, said, “Paddy & Scott’s work to support communities aligns seamlessly with our values, and we’re proud to now stock Lunch Box coffee in all our properties throughout the UK. By doing this, we can make a real difference and change young people’s lives in the locations where our coffee is sourced.

“We’re looking forward to growing this partnership further over the coming months, and continuing to support those most in need, in developing countries.”

Joseph Cordy, head of commercial at Paddy & Scott’s, commented, “We are thrilled to partner with Macdonald Hotels & Resorts. When two companies come together with the same values and drive to do more to improve the planet and support communities in coffee-growing regions, incredible things happen. This partnership presents an exhilarating opportunity to feature one of our distinguished coffee blends, Lunch Box, enhancing the luxury experience for customers across more than 32 sites.

“Lunch Box coffee is more than just a bag of coffee; with each purchase, a school meal is provided for a child in need, allowing them to focus on their studies without the worry of where their next meal will come from. We use a blend of our finest beans to produce a premium-quality espresso, creating a beautiful crema and delicious taste for all to enjoy.”

For more information, please visit macdonaldhotels.co.uk.

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The London speciality-coffee roaster was paying a minimum of GBP £1.75 per lb before this point, and this change came at the same time as Fairtrade International’s price increase, which was up from $1.40 to $1.80 per lb. 

Prior to August 2023, the Fairtrade base price didn’t cover Fairtrade’s estimated cost of production for farmers, which was, based on the 2021 harvest, $1.76.  

Now, the Fairtrade minimum price covers the estimated cost of production, and certified farmers can also benefit from Fairtrade Premiums, which are additional sums of money invested in projects to improve productivity, climate adaptation, quality, infrastructure, and community services. 

Will Corby, Pact Coffee’s director of coffee and social impact, said:

“As coffee farmers face even tougher economic conditions due to climate change, increasing production costs and inflation, this is a massive change for good, and this is down to the fantastic work of the brilliant people at Fairtrade International.”

“But it’s not compatible with our sourcing model. Fairtrade requires that farmers join cooperatives to get certified. This doesn’t work for many of the small, independent farmers we’ve forged strong, mutually beneficial relationships with over a decade, and we’re sticking by them.”

“For some of these farmers, becoming Fairtrade certified would be too costly, require leaving their farms, and, ultimately, come at the expense of quality.”

“So we’ve instead raised our minimum price to $2 per pound to cover this increase while recognising the extra $0.20 Fairtrade Premium. As always, all of this will go directly to the farmer.”

“This way, we’re encouraging the pursuit of outstanding speciality coffee, while adhering to the Fairtrade Minimum Price and, in many instances, paying significantly more.”

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After a successful pilot programme in Vietnam, JDE Peet’s has signed Memoranda of Understanding (MOUs) with Ethiopia, Papua New Guinea, Tanzania, and Uganda, and expects to sign MOUs with additional coffee producing countries over the next several months. These agreements aim to ensure that coffee producers export coffee grown on land that was not deforested after 2020. If the coffee does not meet these requirements, JDE Peet’s will support local authorities, NGOs, and farmers to reforest the land.

Fabien Simon, CEO of JDE Peet’s, commented, “At JDE Peet’s, we are committed to delivering sustainable growth that creates both shareholder return and societal value. This means making sure our supply chain is inclusive, regenerative, and authentic, which is exactly what our Common Grounds sustainability programme is designed to do. I am excited that this innovative new programme, which is fully aligned with the EU’s Regulation on Deforestation-free products, will ensure continued access to the EU market for the millions of smallholder farmers we work with around the world.”

David Browning, CEO of Enveritas, commented, “Millions of smallholder farmers around the world rely upon coffee income to pay for their children’s health, education, and nutritional needs. The new EU regulation risked significant new complexities and processes in the coffee supply chain which could mean new costs for vulnerable populations least able to afford it, and also risk market access. We are honoured to be a part of this innovative collaboration with JDE Peet’s which brings together public, private, and philanthropic organisations to address deforestation in a manner which also protects smallholder farmers.”

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“The Hub will open new market doors throughout the country, as it is strategically located in North America. We will be able to offer coffee with immediate delivery, in any quantity. This will be possible because now we will always have available coffee in warehouses, on behalf of Expocacer USA,” said Simão Pedro de Lima, managing director of Expocacer.

With this initiative, Expocacer also aims to boost the economy and consumption of specialty coffee, which is growing more and more in the internal and external markets. According to the Brazilian Agricultural Research Corporation (Embrapa), the global consumption of Brazilian specialty coffee has grown consistently at an annual rate of 12% in recent years.

“The search for a quality bean, that is produced with a concern of preserving the environment and taking care of social aspects, as it is already done in Brazil, is a trend that will remain, and Expocacer having its unit in the United States caters to this. Consumers want to know the origin and story of the coffee they consume, and nothing better than being closer to the consumer, with this new hub,” commented Italo Henrique Pereira Silva, Expocacer’s commercial director.

The logistic hub plays an important role in shortening the chain between producer and consumer. Expocacer, as a coffee growers’ cooperative, represents the effective presence of its members in the North American market, as it is the extension of the producer’s arm, forming the direct farm in its true essence.

“The cooperative’s mission is to take the name of its members directly to those who buy our coffee. Having one of our units in the United States is the result of our dedicated work, that produce coffee with quality and sustainability, generating a positive impact on the market,” said Fernando Beloni, chairman of Expocacer’s Board of Directors.

The cooperative, now present in the United States, will make available its entire quality portfolio and its experience in the production of environmentally friendly coffee, such as regenerative and low-carbon coffee farming.

“We have to be attuned to the global trends, and today, the reality of specialty coffee is of a fractionated market, direct trade, as well as social and environmental respectability. Consumers want to know where the coffee comes from, if it’s made sustainably, and Expocacer’s members do that very well,” concluded the managing director.

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Acknowledging the ambitious sector-level goals of the 2030 Roadmap agreed upon and adopted by the
International Coffee Council (ICC) and Coffee Private Public Task Force (CPPTF), the declaration reaffirms the signatories’ commitment to realising a common vision for the coffee sector. This vision centres on economic resilience, celebrates the diversity of coffee origins, and champions environmental sustainability and climate change mitigation through circularity, regenerative production, trade, and consumption. It also highlights the need to preserve natural ecosystems in coffee-producing countries worldwide, 42 of which are Members of the ICO.

Central to this commitment is addressing the root causes of the many social and economic obstacles faced by producers. To overcome these challenges, lift communities out of poverty and nurture a thriving sector for future generations, the signatories have pledged to identify solutions to make coffee the most sustainable, inclusive and resilient agricultural sector and enable compliance with the prevailing regulatory framework. They have also reiterated the importance of harnessing effective multilateral dialogue and expressed their intent to further mobilise and align actors and resources from governments, the private sector and civil society.

“With our distinct and complementary strengths, we are united in our pursuit of a prosperous future for the farmers behind the 2.94 billion cups of coffee we consume every day. Today’s signature highlights the ICO, GCP and the German Government’s dedication to elevating the sector and implementing effective joint initiatives to achieve our common goals” – Vanúsia Nogueira, executive director, ICO.

“Global and local multistakeholder cooperation is essential to meaningful sector transformation. It is only through focused collective action that we can tackle the threats to sustainable coffee production and consumption. GCP has been working with coffee-producing countries, our GCP Membership and partners to address systemic issues hindering the development and prosperity of coffee farming communities. We are buoyed by the commitment shown today and excited with the prospect of more organisations joining for accelerated impact at scale.” – Annette Pensel, executive director, GCP.

“Germany is dedicated in its support to the advancement of the global coffee sector towards a more
sustainable, inclusive and resilient future. This joint declaration with ICO and GCP articulates our shared vision for a sustainable and equitable future, addressing key issues and aligning with the sector-level goals outlined in the 2030 Roadmap of the ICO Taskforce.” – Dr Ariane Hildebrandt, director general, BMZ.

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Last week I visited Indonesia with a group of international journalists, organised by ofi (formerly Olam) to learn about the green coffee supplier’s regenerative practices and decarbonisation strategies in Aceh (12 hours by car from Medan). ofi is one of the top three suppliers of green coffee globally and operates in 18 growing origins across Africa, Asia, Central and South America. ofi has been in Indonesia since 1996, and today buys coffee, cocoa, nutmeg, and black and white pepper from more than 400,000 farmers, collectors and suppliers throughout the archipelago. Presently, ofi exports Arabica and Robusta, and has a combined market share of approximately 15%.

ofi’s Coffee LENS 2022 impact report (published in November) noted that in 2022, the company introduced regenerative land practices to an area equivalent to 47,000 football (soccer) fields, increased the share of renewable energy in its processing facilities to more than 50%, and achieved over 81% traceability to farmer/farmer group/regional level. ofi’s availability of sustainable coffee stands at more than 40% (directly sourced).

On the coffee farms throughout Aceh, we observed farmer training sessions on agroforestry, composting, and other regenerative practices in action (including fertiliser made from fruit that is safe for human consumption). We also participated in a mock polygon mapping, which ofi has been doing as part of its sustainability practices but this also meets EU requirements for traceability and environmental due diligence. We then had the opportunity to learn about post-harvest processing at wet and dry mills, and cup a variety of coffees (some were truly amazing, at least according to my limited palate).

The trip fell amid the peak of the second harvest period, when farm activities, post-harvest practices and processing were in full swing. During this time, ofi hosts its annual Farmers’ Day celebration, which, designed by its Indonesia team, acknowledges and rewards the efforts and engagement of the farmers in ofi’s supply chain in Aceh. Activities will include games, cultural displays, and distribution of premiums to the farmers. One of the more interesting awards was given to farmers in the cooperative who have downloaded – and are using – a banking app, in order to encourage more farmers to do so.

It is always beneficial to be able to interact with the farmers and politely pepper them with questions about being a coffee farmer – the rewards and challenges – what it is like working with new technologies and learning new coffee-growing methods and techniques, and of course, implementing the growing number of sustainability strategies, as well as to see how they operate and often, where and how they live (unlike many coffee-growing regions, in Indonesia, the farmers do not live on their coffee farms). And while speaking with the farmers, their children are most often not far behind, eyes wide open with curiosity. Some of the brave will come up – always in a group, never alone – and ask questions in the English they are learning. Then they giggle and run away, which is adorable.

On the occasion of ofi’s third Farmers’ Day, our group was treated to a special performance by the children, choreographed just for us. It was beautiful, fun and heartwarming.

When we visited Aceh, the prolonged and heavy rains had delayed the bulk of the harvest (some coffee had been picked), and while stressful for the farmers, on this special day celebrating them, the joy on their faces was evident, knowing that they were being appreciated for their efforts.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Coffee farmers continue to face relentless challenges including mounting economic and climate pressures. Available data show that smallholder farmers produce 60 percent of the world’s coffee yet nearly half of them live in poverty and nearly 25 percent of them live in extreme poverty (less than USD $2.15/day). Furthermore, although coffee prices in 2022 were relatively high, profits ultimately failed to trickle down to the farmers themselves. Studies have shown that producers typically retain around one percent of the retail coffee price — for a USD $4 cup of specialty coffee that equals around $0.04 per cup.

The new Fairtrade prices, which were announced in March and implemented 1 August 2023 (for contracts signed by that date), increase the baseline price by 29 percent and 19 percent for Fairtrade-certified Arabica and Robusta, respectively. The new prices come after a cost-of-production study and consultation – including outreach to more than 600 producer organisations and 745 commercial partners – confirmed that farmers need to be paid more or they cannot continue to grow coffee.

“Paying farmers a fair price for their crops is the bare minimum to keep them farming,” Benjamin Kouame, chair of Fairtrade Africa shared of the new price model.

The Bonn, Germany-based social justice organisation said the increase will provide farmers with significant price risk management support in times of wild market fluctuation and adapt to their needs as they face inflation in their home countries and substantial additional costs due to climate change adaption. The new Fairtrade Minimum Price for washed Arabica beans – which represent more than 80 percent of all Fairtrade coffee sold – is USD $1.80 per pound, an increase of 40 cents over the previous price of $1.40 per pound. For natural Robusta, the price increases by 19 cents to $1.20 per pound. The additional value for organic Fairtrade coffee has been increased by a third, from 30 cents to 40 cents per pound. According to the non-profit organisation, more than half of Fairtrade coffee beans sold in 2021 were also organic certified.

“Despite the recent spikes in global coffee prices, coffee farmers are struggling with inflation, skyrocketing production costs, and crop loss due to the effects of climate change. Many coffee farmers are abandoning their farms in search of opportunities elsewhere and young people today in coffee-growing communities struggle to see a future in coffee,” Monika Firl, senior manager for coffee at Fairtrade International, said in a statement when the new minimum price was first announced. “The fact that farmers cannot make a living in coffee is a tragic commentary for the industry and a huge risk for the future of the global coffee sector as a whole.”

With its new minimum price, Firl said that Fairtrade is offering coffee farmers and their cooperatives a pricing safety net, “better adapted to the uncertain times we are living in, while leaving the door open for them to earn more when market prices are above the Fairtrade Minimum Price.” She added, “This is an essential tool that coffee farmers must be allowed to leverage in order to find renewed stability in their profession.”

Fairtrade’s global coffee network comprises nearly 900,000 certified coffee farmers in over 650 producer organisations spanning 31 countries. In addition to the Fairtrade Minimum Price, Fairtrade-certified farmers also receive a Premium – an additional sum of money that is collectively invested in projects to improve productivity, climate adaptation, quality, infrastructure, and basic community services identified as priorities by the farmers themselves and their organisations.

“The future of coffee is one where fair pricing is the norm. It is not acceptable for coffee farmers to continue to subsidise the multi-billion dollar coffee industry, while also taking on the hard work of sustainable transition,” emphasised Firl.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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“This targeted co-funding by our membership kick-starts our work, catalysing transformational change around living income, climate adaptation and sustainability for over one million coffee farmers around the world,” announced GCP executive director, Annette Pensel. “Today, we celebrate the commitment of JDE Peet’s, Melitta Group, Mother Parkers’ Coffee & Tea, Nescafé, Nespresso, ofi (olam food ingredients), Rabobank and Westrock Coffee Company. These companies are taking collective action to the next level to propel coffee sustainability.”

GCP 2.0’s farmer-centric approach entails focused local collective actions in coffee producing countries together with local stakeholders, complemented with a global drive to increase sustainable sourcing.

Sharing responsibility

Despite many years of efforts and certain sustainability advancements, the sector is still facing profound challenges to sustainability. More than half of coffee farmers around the globe are challenged by poverty, and coffee supply is threatened by climate change and increasing regulatory requirements.

“To unlock coffee’s potential as both an engine of socio-economic growth and nature-based solution to climate change, we urgently need transformational change with strategic action and bold investments within supply chains and, importantly, beyond it. Durable change comes only with focused solutions that are owned by coffee growers themselves, supported by public, private and NGO partners.”

Collective action locally and globally

“GCP has demonstrated that change beyond supply chains is possible when GCP Member companies work with our NGO and government partners through collective action,” says GCP board chair, Carlos Brando. “This pre-competitive collaboration is crucial to generating adequate level of investment and change. No one company can be effective by itself. Collective action is essential to not just ensuring compliance but also accelerating measurable sustainability at scale.

“We are grateful that these GCP Members have stepped forward with this initial round of co-funding. This will lay the groundwork to bring ambitious solutions to over one million coffee smallholders.”

The combined $1.5 million investment enables GCP to grow, attracting new talent and further revenue, including public co-funding that is key to accelerate the first six entrepreneurial country programmes to investment-ready levels and support the development of aligned measurement in the form of GCP Country Reports.

“While achieving transformational change on farmers prosperity for one million coffee farmers seems like an ambitious goal, today marks an exciting first milestone for GCP and an indication that we can transform the industry together,” said Pensel.

For more information click here.

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Responsible coffee sourcing is critical in effectively addressing widespread poverty among smallholder coffee producers and farm workers with coffee companies expected to pursue favourable practices such as pricing as well as technical and financial support to the producers.

A July 2021 report by Columbia Center on Sustainable Investment, a joint center of Columbia Law School and Columbia Climate School at Columbia University in New York, says the low coffee prices for the 2017-2019 period brought to the fore ”how the coffee sector has failed at lifting producer incomes and set in motion new efforts to achieve a living income for all producers.”

“Despite the many responsible sourcing efforts in the coffee industry, trends illustrate the continued disconnect between procurement priorities and sustainability commitments within many companies and within the sector at large,” the report says. It defines responsible sourcing as “decisions and actions related to procurement of coffee beans that enables economically, socially, and environmentally sustainable production, including producer and farmworker well-being.”

The report, titled “Responsible Coffee Sourcing: Towards a Living Income for Producers”, shows that in a sample of ten coffee producers, only in two, Brazil and Vietnam, do farmers earn income that is above poverty line. The international poverty line has been put at USD $2.15, $3.65 and $6.85 for low income, low-middle-income and upper-middle-income countries respectively.

In the other eight countries the average income is below the poverty line. The ten countries analysed in the Columbia report have an estimated 89 percent of global coffee exports and 62 percent of producers globally.

Brazil, which is projected to report a 2.4 million bags decline in coffee exports to 36.65 million bags in the 2022/23, is the only country among the ten analyzed in the report where the average coffee farmer earns a net coffee income that is above some living income estimates.

East Africa’s leading coffee producer Uganda was listed among countries with the largest gap to living income, with the report estimating average earnings from coffee by farmers at $88 annually relative to living income reference values that range from over $2,000 to nearly $6,000.

The report attributes the huge gaps in achieving living income for coffee producers to two emerging trends including the transfer of risk to coffee producers away from other supply chain actors as well as removing roasters and retailers from the sphere of sustainable production by confining it to the farm level. The report identifies company sourcing practices as being “a critical part of closing the living income gap for producers and ensuring living wages for farmworkers.”

Coffee companies either active or that source their coffee from the 12.5 million coffee producers in the more than 30 producing countries, are at different levels of achieving full responsible sourcing practices with the International Coffee Organization (ICO) saying the firms and other actors have an opportunity to “develop more direct, transparent and stable commercial relationships with suppliers that reward good performance (such as quality and sustainability) with price incentives and responsible sourcing practices (such as contract and payment terms).”

However, the ICO says despite “existing sustainability claims and initiatives, suppliers (coffee farmers) often cannot meet their cost of production or living.”

Interest vs practice

Dublin, Ireland-based multinational taste and nutrition company Kerry Group, said the concept of responsible coffee sourcing “is not yet very widespread.” However, Kerry’s own previous research findings “continuously show an overwhelming consumer interest in supporting sustainability initiatives” according to Coralie Garcia-Perrin, global marketing director for taste at Kerry Group.

The company, which celebrated its 50^th anniversary last year along with a 19.3 percent increase in revenues to €8.8 billion ($11.058 billion), has committed to have its coffee suppliers “farm for a long time, receive a good return for their coffee and that their farming local community is maintained and thrives with their coffee sales and exports,” according to Garcia-Perrin.

“Kerry is focused on developing high-value extracts from coffee sourced from our suppliers under the Café Femenino programme,” she said. “Since 2003, the Café Femenino coffee program has been an ethical sourcing model committed to ending the cycle of poverty affecting women coffee farmers around the world.”

The Café Femenino programme is operational in Peru, Indonesia, Brazil, Guatemala, Nicaragua, Bolivia, Mexico, Colombia and Rwanda. Under the programme, which was co-founded by Peruvian women farmers alongside Organic Products Trading Company, more than 4000 women coffee farmers are reaping the benefits of ethical sourcing practices.

“Café Femenino provides direct compensation to women farmers for their coffee beans, along with the opportunity and resources to enact positive change in their communities and on their own terms,” Garcia-Perrin said. Through Café Femenino’s efforts, subscribed women coffee farmers “receive payments and payment premiums directly, and assume leadership roles, such as in co-op voting and on boards.” The members also secure rights to the land they farm to produce Fair Trade Certified and organic-certified coffees.

Finding gaps in the approach

The Columbia Institute Centre report analyses several other coffee companies’ approach to responsible sourcing including Nestlé, JDE Peet’s, Smucker, Starbucks, Lavazza, Tchibo, Keurig, Costco, Tata, and Unilever. The evaluation exposed huge disparities in their programmes especially when it comes to pricing, traceability and support for coffee producers.

“While all of the companies have established sustainability commitments or projects relevant to producers, none are able to guarantee that all viable producers in their supply chains earn a living income,” the report says. Some of the areas the companies need to do more include committing to have long-term contracts with coffee producers and ensuring the price coffee farmers receive “commensurate with the Living Income Reference Price or even better.”

Moreover, gaps emerged when it came to tracking of prices or premium offers to ensure coffee producers received them especially for coffee that has been certified or verified as responsibly sourced according to the report. When it came to cost-plus margins, the report says there is lack of transparency by coffee companies that have specialised programmes.

However, Starbucks, the Seattle, Washington-based multinational chain of coffeehouses and Reserve Roasteries that has been ranked the world’s largest coffeehouse chain, says on its website it takes “a holistic approach to ethically sourcing coffee through responsible purchasing practices, farmer loans and forest conservation programs.”

“When we buy coffee this way, it helps foster a better future for farmers and a more stable climate for the planet, and it helps create a long-term supply of the high-quality beans we’ve been carefully blending, roasting and packing fresh for more than forty years,” it says.

Starbucks, which by 2021 had 33,833 stores in 80 countries, credits Conservation International, a nonprofit environmental organisation based in Virginia, for the buying guidelines, dubbed Coffee and Farmer Equity (C.A.F.E.) Practices, which the company uses to address ethical coffee sourcing.

Most coffee producers, says Rainforest Alliance (RA) in a February 2023 statement, have “little to no power in negotiating prices, terms of trade, and the additional resources required for sustainable production.” RA says coffee producers bear most of the risks, burden of compliance, and impacts of climate change, yet only a small part of the value of certification reaches them.

RA, an international non-profit organisation working at the intersection of business, agriculture, and forests to promote responsible business practices, had previously included ‘shared responsibility’ in its 2020 Sustainable Agriculture Standard for the purpose of “addressing inequity in global supply chains.” Through the shared responsbility concept, RA has pledged its support in addressing existing constraints facing farmers by ensuring they are rewarded for their sustainability efforts and that the “costs of investments in more sustainable farms and production are shared between farmers and companies.”

Although RAs uses Rainforest Alliance Certification Program “to drive more economic transparency and steer more resources to farmers,” the Columbia Centre report identifies shortcomings on the contribution of the voluntary sustainability standards (VSS) used in coffee towards achieving living income and wages. Living income has been described as the net earnings necessary for a coffee producer to afford a decent living depending on where one lives while living wage is payment needed to enable employed farm workers afford a decent living standard and is usually higher compared to the minimum wage in a specified place.

“VSS are not sufficient to significantly improve producer income or to enable them to achieve a living income,” the report says. It argues that the VSS does “not benefit the poorest producers, and that much of the additional retail costs of certified products are captured by roasters and retailers, rather than producers.”

Apart from the Rainforest Alliance other leading external third-party VSS in the global coffee industry include Fairtrade and 4C. There are also verifications that offer second party assurance in the industry including SMS Verified, Enveritas Gold, NKG Bloom, and AtSource.

Ensuring commitments

Responsible coffee sourcing would require the commitment of all actors in the coffee value chain with coffee companies taking a lead role.

“It implies building partnerships across supply chains in which the terms of trade and price match the objective of increasing the profitability and sustainability of coffee production,” says the ICO in another report, further noting, “this match could mean less dependence on the commodity markets (de-commoditisation) and that the prices and premiums paid are informed by cost of production, living income or living wage benchmarks.”

Kerry Group’s Garcia-Perrin said coffee companies can drive responsible sourcing by “committing to fair pricing and making commitments to support the environment around coffee farms and helping [farmers develop] a sustainable living community.” A key aspect, she added, “is committing contractually to compensate farmers over an extended period of time hence providing a measure of stability to allow the farmers and their communities to plan for the future.”

The discussion around responsible coffee sourcing comes at a time when the performance of global coffee market is improving despite a slight dip in production. Although world coffee production declined by 1.4 percent to 168.5 million bags in coffee year 2021/22, consumption rose 4.2 percent to 175.6 million bags for the same period. Consumption is expected to reach 178.5 million bags in  coffee year 2022/23.

How increased export sales and consumption volumes translates into a better living income for coffee producers and living wage for farm workers continues to ignite debate among coffee industry actors in nearly all the 30 coffee producing countries.

• Shem Oirere is a freelance business journalist based in Nairobi, Kenya. He has spent more than 25 years covering various sectors of Africa’s economy including the region’s agribusiness. He holds BA in International Relations and Diplomacy from the University of South Africa and earned a higher degree in journalism from the London School of Journalism and is also a member of the Association of Business Executives (ABE).

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The USD $225 billion US coffee sector and more than 1.6 million US jobs rely on coffee supplies from around the world. Coffee growers in Hawaii and Puerto Rico that supply the lucrative specialty coffee market in the US, as well as growers in low-income countries, are particularly vulnerable to pests and disease. The CPHIAA will accelerate agricultural research to help overcome these challenges while maintaining flavour and quality.

“More Americans (66 per cent of adults) drink coffee each day more than any other beverage,” said William “Bill” Murray, president and CEO of the NCA. “As agricultural research and development plays a key role in the future of America’s favourite beverage, the NCA urges Congress to advance legislation that prioritises coffee as a key contributor to Americans’ daily lives, farmers’ livelihoods, and the US economy.”

“From Kona to Maui to Mayaguez, coffee is woven into our island cultures and drives over $500 million in benefits to our communities,” said Suzanne Shriner, administrator of SHAC. “Hawaiian growers have been devastated by diseases such as leaf rust, which arrived in 2020 and cut crop yields in half after causing $1 billion in damages globally and forcing farm workers, particularly in Central America, to abandon farms and even migrate. This bill focuses needed research attention on our biggest problems, while helping our small farmers stay in business.”

Legislators are seeking to include the CPHIAA in the 2023 Farm Bill to amend a programme established in the 1990 Farm Bill that focused exclusively on the coffee berry borer pest. The bill authorises the USDA to fund research on coffee diseases and pests broadly. “The existing Coffee Plant Health Initiative Act does two things: first, it says ‘coffee plant health’ is a priority of the industry, therefore ‘should’ receive support, but it limits that directive to supporting research on coffee berry borer,” said Hanna Neuschwander, strategy and communications director, World Coffee Research told T&CTJ. “The amendment, which is what we’re talking about here, maintains the coffee plant health priority, but broadens the mandate to cover all coffee diseases/pests, not only coffee berry borer.” In effect, she said, “the bill authorises Congress to fund this work, but it doesn’t allocate money to it, that is a separate process.”

Chris Manfredi, executive director of the HCA explained that “this important legislation will help Hawaii target resources toward the most immediate threats to our coffee. By also anticipating

future threats, it will enable researchers to quickly pivot as they emerge and ensure the survival of one of Hawaii’s most important crops.”

“CPHIAA will enable much-needed research at a time when coffee is under severe strain. Public research aligned with industry needs is critical to securing the future of coffee,” said Vern Long, CEO of World Coffee Research.

The USDA focuses on programs/projects that impact US farmers, so projects typically either involve Hawaii and Puerto Rico coffee farmers and/or US university researchers. However, Neuschwander shared that there is the potential for any funding of research to benefit farmers globally. “For example, a current research program funded by USDA’s FFAR program is working on sequencing the coffee rust genome. This is US public funding helping deliver a critical global public good that will advance other countries’ ability to tackle rust.”

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In 2020, Starbucks provided the FNC with a US$3 million investment to support a new coffee crop renovation programme, with the goal of distributing 23 million coffee seedlings by 2023.

Within the first year of the programme, more than seven million coffee seedlings were distributed to Colombian farmers. Following this success, the 2022 project expansion includes an additional US$4.2 million grant for an extra 22 million trees and will also support farmers with fertilisers during the early growth stage for every tree.

This programme builds on a ten-year partnership between Starbucks and the FNC and aims to help more than 12,000 farmers who participate in the C.A.F.E. Practices programme under which Starbucks sources its coffee globally.

“In service of Starbucks’ aspiration to ensure a sustainable future of coffee for all, we are pleased to strengthen our partnership with Colombian Coffee Growers Federation and increase our support of local coffee farmers through the expansion of this important tree renovation program,” said Tim Scharrer, managing director and vice president of Starbucks coffee and cocoa.

“Supplying farmers with healthy coffee seedlings and replacing old trees is a critical first step in the long-term success of our farmers and, ultimately, the Colombian coffee industry,” he added.

Working hand-in-hand with farmers in the field, the local Starbucks Farmer Support Center (located in Manizales) and the FNC, through its technical division and its office in Europe, will continue to oversee the project, which includes technical assistance, such as virtual training and field visits to farmers for planting of the seedlings, as well as recommendations for renovation of coffee plantations and verification of the trees established for the fertilisation incentive.

“These programmes confirm the great commitment of Starbucks to Colombian coffee growers’ well-being, coffee farming quality and sustainability, and environmental protection. Starbucks is a strategic partner of Colombian coffee and the FNC,” Roberto Vélez, the FNC CEO, acknowledged.

Additionally, Starbucks is partnering with the FNC to further implement sustainable farming practices in support of Starbucks coffee sustainability goals to reduce carbon emissions on coffee farms and save water in green coffee processing.

Through a separate US$1.5 million sustainability grant, Starbucks is funding the purchase and installation of 200 ecological wet mills (across seven C.A.F.E. Practices-verified coffee supply chains), which use up to 80% less water compared to traditional technologies. The grant will also fund the collection of 2,400 soil samples to inform custom fertilisation plans to support better soil health and rational fertiliser use.

Building on over five decades of sourcing, roasting and serving Colombian coffee worldwide, Starbucks is dedicated to working alongside Colombian coffee growers to support their well-being, their families, and their communities while ensuring a sustainable supply of high-quality coffee. As part of this effort, The Starbucks Foundation has provided funding to nonprofit organisations that support Colombian women and girls in coffee-, tea- and cocoa-growing communities, including Cauca, Nariño and Tolima.

In 2012, Starbucks opened its fifth Farmer Support Center worldwide, located in Manizales, Colombia. To date, more than 110,000 Colombian coffee growers have benefited from its work through shared training, tools, and information to help them increase productivity and quality of coffee on their farms.

Starbucks opened its first retail store in Colombia in 2014. Currently there are 40 stores in four cities that feature high-quality, arabica coffee grown in Colombia.

“As we expand our footprint across Colombia and continue to bring the Starbucks Experience to more customers, we are tremendously proud of the Colombian arabica coffee served in our cafés,” said Francisco Tosso, director of Starbucks Colombia. “Starbucks recognises the importance of investing in Colombian farmers who make this all possible – and this ongoing work to support farmers also creates great pride for our partners and customers.”

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The company is a UN Climate Neutral Now Participant and Certified Carbon Neutral organisation, that has been sourcing coffee from the Galapagos since 2016. Since then, the company says they have been committed to the conservation of the islands as they stand as a biodiversity sanctuary and a world Heritage Natural Site listed by UNESCO.

Caravela has been working with coffee growers in the Galapagos Islands, to bring technical expertise, training and support on best coffee growing practices through their Coffee Grower Education Program (PECA). During this time, Caravela has shared experience with partner farmers on how to improve the quality of their coffee through best harvesting and post-harvesting practices, as well as offering guidance on protecting the islands’ environment through agroforestry systems, optimal fertiliser usage, coffee pulp management, soil conservation and water treatment processes, among others, thus building-up on the traditional coffee production methodologies done in the islands.

The engagement with the coffee growers in the Galapagos Islands, plus the financial support of an international coffee roaster, in addition to the partnership with One Carbon World, enabled a carbon footprint assessment and third-party verification to be carried out at farm-level for 26 farmers with coffee farms in the Santa Cruz Island of the Galapagos Archipelago, covering the emissions and sequestration of on-farm activities related to the coffee-growing phase of the Caravela Coffee supply chain.

By measuring the company’s carbon footprint and carbon sequestration and following the third party verification, One Carbon World certifies that coffee growing conditions, practices and protocols used by these local farmers in the Galapagos Islands are climate positive, and result in an average net positive carbon sequestration agricultural activity of two tons of CO2e/Ha per year. Meaning that coffee growing practices of farmers associated with Caravela in Galapagos Islands are removing more carbon dioxide from the atmosphere than is being emitted.

Image: Caravela Coffee

Marina Caimiñagua, from Finca La Fortuna, one of the 26 coffee producers who are part of Caravela’s Galapagos supply chain, commented, “Here in the Galapagos, we don’t use herbicides and we only use the amount of fertilisation that the plant needs. We protect the environment by not using chemicals for the land, planting endemic plants, we have lots of them in the coffee fields, and they also protect the coffee trees. We also have timber trees, and they generate organic material that helps for the fertilisation of coffee trees and keeps them healthy. With these practices, this land has been exceptionally good to produce coffee”.

In such a biodiverse-sensitive archipelago, traditionally endangered by tourism and agriculture practices, the results of this assessment provide assurance of local farmers’ sustainable coffee growing practices and strengthens their commitment towards the protection of biodiversity and natural systems. This is one of the first verified coffee projects of this type in South America, setting the milestone for coffee production in environmentally vulnerable areas not only in Ecuador, but the rest of the planet.

The Galápagos Islands have been particularly affected by COVID-19 and its impact on local tourism. Therefore, this innovative project not only brings much-valued revenue (jobs, economic value to the island) but also unifies the commitment towards sustainability, the protection of biodiversity and the environment, and mitigation of the effects of climate change, says the company.

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Aldea Global will use the joint eight-year loan to construct and equip its new dry coffee mill with cutting edge technology, resulting in better coffee quality and productivity and an increase in incomes for 6,200 of Aldea’s farmers. The first phase of the project will focus on installation of the new dry mill, which will enable the association to increase its processing capacity while storing coffee in temperature controlled silos. In the second phase, a new wet mill technology will be installed to reduce water consumption, increase processing capacity and integrate management of the coffee processing chain from cherries to green coffee beans for export. This represents a paradigm shift for smallholder producers in Nicaragua, who traditionally undertake wet milling on their farms.

Founded in 1992, Aldea Global supports its coffee farmer members with access to markets, affordable finance, technical assistance in areas such as agroforestry for coffee through its mobile app Aldea Tech. Using technology and modern approaches to coffee production and processing, Aldea Global continues to support small producers to be more competitive in the market and to increase their earnings. The association also has a strong gender focus.

Warren Armstrong, chief executive officer of Aldea Global, said: “This joint investment from Oikocredit and IDH is truly welcome. The new state-of-the-art specialty coffee dry mill will increase milling yields and cupping quality and result in higher premiums for our fair trade members. The second stage wet mill will reduce environmental contamination from more than 4,000 small farmers’ wet mills located near streams by bringing their coffee cherries to process at Aldea Global. And process automation will highlight Nicaraguan coffee’s premium quality flavours: floral, citrus and dark chocolate.”

Miguel Tamayo Maertens, IDH Farmfit Fund’s investment director, said: “We are very pleased with the partnership with Oikocredit. With this co-investment project, we aim to strengthen Aldea Global’s positioning in the specialty coffee sector and support the association in providing additional value to its smallholder coffee farmer members. This will lead to improved coffee quality, increase farmer incomes and positively impact their lives.”

Jose Augusto Cordón, Oikocredit’s senior investment officer, said: “We are very glad to strengthen our support for Aldea Global, an Oikocredit partner since 2007, with this new long-term investment. The benefits for the smallholders are clear, with improvements in efficiency and quality translated into better incomes and higher environmental standards. In addition, our first collaboration in Latin America with IDH Farmfit Fund has been an excellent experience, and we hope to continue strengthening our cooperation with them.”

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The Gorilla Coffee Alliance was launched on 19 October 2021 by the United States Agency for International Development (USAID); Nespresso; Olam Food Ingredients (OFI); international nonprofits, TechnoServe and the Wildlife Conservation Society; and Congolese social enterprise, Asili. Over five years, this initiative will partner with 8,500 farming households to improve their coffee production and sales and reduce poaching and deforestation around Kahuzi-Biega National Park in DRC’s South Kivu province.

“USAID’s launch of the Gorilla Coffee Alliance is a critical milestone for the US Government’s partnership with the Congolese people and the product of over a decade of USAID’s investment in working alongside Congolese farmers to replant coffee trees in a conflict-ravaged region,” noted USAID DRC mission director Paul Sabatine. “Revitalising DRC’s coffee sector makes me proud to coinvest alongside Nespresso and OFI, particularly given our common desire to promote sustainable livelihoods by protecting Congo’s wildlife and natural resources.”

Kahuzi-Biega National Park is a UNESCO World Heritage Site and one of the few remaining habitats of the world’s 6,800 estimated remaining eastern lowland or Grauer’s gorillas. But, political unrest, population growth, and the absence of sustainable economic opportunities in the area have put the national park and the wildlife it protects at risk from illegal logging, poaching, and mining.

The Gorilla Coffee Alliance aims to address this challenge by helping local families to establish environmentally sustainable ways to earn income, improving access to essential health services, and working with community institutions to become advocates for conserving the national park. The Alliance will improve total farm productivity to support farmer revenues and protect long-term soil health, biodiversity, and the vital ecological function of one of the world’s largest forests.

“The greatest force for conservation is a local community that is invested in protecting its natural resources,” said TechnoServe CEO and president William Warshauer. “We are excited to join these extraordinary partners and apply TechnoServe’s long experience supporting coffee-growing communities to help the people of the Kahuzi-Biega National Park area create healthy communities, sustainable economies, and a flourishing ecosystem.”

The environmentally sustainable production of coffee is central to this vision. South Kivu’s climate is well suited for growing high-quality coffee, and its sales in specialty coffee markets have increased in recent years. Around Kahuzi-Biega National Park, however, farmers struggle to access the training, high-quality coffee seedlings, and shade trees needed to improve their production; and many local coffee washing stations do not have enough capacity or technical ability to adequately process locally grown coffee.

Guillaume Le Cunff, CEO of Nespresso, said: “We’re incredibly proud to be joining this partnership to breathe new life into the region’s coffee industries and communities, which will foster vital economic growth while preserving local ecosystems in Kivu. Through our Reviving Origins program, we have been working to successfully revitalise production in several challenged coffee producing regions around the world since 2019, and we’re excited about the important projects underway in the Democratic Republic of the Congo. We strongly believe that coffee can be a force for good, because it can help to shape communities and preserve landscapes, leaving a positive impact on the lives of people and nature.”

Vivek Verma, managing director and CEO of the OFI coffee business, said: “This ambitious alliance will be a real game changer for a region that has faced conflict, poverty, and natural disaster. Building on years of close collaboration with local farmers, we will help Kivu to build its reputation for exceptional coffee and make a real difference to long-term farmer revenues. But our vision goes far beyond coffee. With the help of our partners, we will bring innovation to local farming systems, helping to improve lives and livelihoods, regenerate soils, and protect precious biodiversity in the world’s second-largest tropical forest. And using the sustainability insights platform, AtSource, we will be able to monitor the progress we are making towards the desired social and environmental impact.”

The Gorilla Coffee Alliance, which is made possible due to the support of the American people through USAID in partnership with Nespresso’s Reviving Origins program and OFI, aims to revitalise coffee production in regions impacted by adversities ranging from climate change to conflict. The Alliance will train farmers in regenerative agriculture and help local entrepreneurs and farmers set up nurseries that provide high-quality coffee and shade-tree seedlings. It will also work with coffee washing stations to enable them to access finance and technical assistance that will improve their capacity to process coffee at quality levels demanded by Nespresso and other specialty markets. Participating washing stations are expected to double their output by 2026.

Taking a holistic approach, the Alliance will also work with local families to improve community resilience, health, and engagement. The initiative will build the entrepreneurial skills of young and Indigenous people, particularly in non-farming households, so they can start environmentally sustainable businesses. It will also train families in communities surrounding the forest to enable them to improve their nutritional status and financial literacy and plant kitchen gardens. Through the Asili platform, the Alliance will improve access to health clinics and clean water points. Lastly, it will help to mobilize existing community governance structures to support conservation and combat poaching, logging, and mining.

Deo Kujirakwinja, WCS DRC technical director, said: “Engaging the community surrounding Kahuzi-Biega National Park is critical to protecting Grauer’s gorillas. The Gorilla Coffee Alliance will help ensure a future for these great apes, which are a key part of the Democratic Republic of Congo’s natural heritage.”

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In 2007, the International Center for Tropical Agriculture (CIAT) was commissioned by Green Mountain Coffee Roasters to research the challenges faced by small-scale coffee farmers. The team included Food 4 Farmers co-founder Rick Peyser. Hundreds of interviews with farming families exposed ongoing seasonal hunger confronting coffee farmers, who suffered three to eight months of food insecurity every year — “los meses flacos”– when coffee income ran out, and they couldn’t afford to put food on the table.

“When we started out, we knew the problem of seasonal hunger was bigger than Food 4 Farmers, or any one organisation, could solve on its own. So we focused on collaboration with coffee-producing organisations and farming families to develop long-term strategies that reflect the aims of the farmers, using an agroecological approach that promotes farming in harmony with nature,” explains co-founder Janice Nadworny. “At the heart of our work is investing in the people who grow coffee, to make sure they have the ability to thrive independently.”

In July 2011, Food 4 Farmers launched its first food security partnership with the SOPPEXCCA coffee cooperative in Nicaragua, and has continued to add new coffee-growing organisations as partners. Currently, the organisation works with six coffee cooperatives and producer organisations in four countries, representing 8,700 small-scale farming families.

Ed Canty, Food 4 Farmers board chair and general manager of Cooperative Coffees, notes: “Food security remains an issue for even the most successful coffee producing organization. The effects of climate change and the pandemic have only intensified the need for programs that support locally-led solutions empowering coffee producers. Long-term, sustainable partnerships, coupled with local knowledge, have made it possible for coffee farmers to grow healthy food and feed their families and communities all year long.”

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“We see this award as recognition for all of our sustainability efforts with suppliers and partners in different parts of the world,” said Angela Pelaez, sustainability manager for RGC Americas, RGC Coffee’s subsidiary based in Bogota, Colombia. “For over a decade, we have built sustainability initiatives into our business. Our commitment is to preserve communities and ecosystems that make coffee flourish. For everyone at RGC, this prestigious award is the culmination of the last 15 years of hard work and persistence building sustainability programs at origin.”

RGC’s “Las Manos del Café” project is the first of its kind in Colombia. It aims to implement new ways to improve the well-being and socio-economic livelihood of farmworkers, who represent a valuable part of the coffee supply chain. Since the project launched, it has been successfully employed in three farming cooperatives in the department of Caldas with 9,099 direct beneficiaries – 6,574 of which are farmworkers and 2,525 are family members.

The selection process for the 2020 Sustainability Awards was led by a committee of staff and volunteers in the SCA Sustainability Department, and the winners were chosen by individual votes from the committee’s members.

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