A new economic report uncovers the significant imbalance in value distribution within the coffee supply chain, highlighting that while the coffee industry is lucrative enough to ensure profitability for all stakeholders, roasters and direct-to-consumer sellers disproportionately benefit at the expense of coffee farmers. Commissioned by the Global Coffee Platform (GCP), IDH, and Solidaridad, and conducted by Le Basic, the report titled "Grounds for Sharing" delves into the financial disparities with a focus on the German market and its green coffee suppliers from Brazil, Colombia, Ethiopia, and Vietnam. It reveals that smallholder farms often fail to account for family labor costs, making coffee farming economically unsustainable. The report also notes that single-serve coffee formats command higher prices, suggesting that coffee companies could use this data to better distribute value. The findings call for industry-wide reforms to promote fairer sourcing practices and equitable value distribution, ensuring long-term sustainability and compliance with due diligence requirements.
Enjoying the read? Subscribe for free to one of the fastest-growing newsletters and get weekly coffee news (TL;DR updates) delivered right to your inbox.