A recent study commissioned by the Global Coffee Platform (GCP), IDH, and Solidaridad, and conducted by BASIC, investigates the disparity in value distribution within the coffee supply chain, focusing on the German coffee market. The findings highlight a significant disconnect between what coffee farmers earn and the retail prices paid by consumers. The study's model, which examines costs, taxes, and net profit margins from coffee farmers in Brazil, Colombia, Ethiopia, and Vietnam to German retail customers, reveals that value is predominantly concentrated among importers and retailers, leaving farmers with minimal returns. This unequal distribution challenges the sustainability of coffee production, making it economically unfeasible for many farming families. The report urges the coffee industry to rethink its value system and adopt common trading principles to enhance farmer incomes. It emphasizes the need for sector commitments on sourcing practices and supply chain partnerships to create and transfer value more equitably. The Global Coffee Platform (GCP), IDH, and Solidaridad plan to engage with industry leaders to establish fair value distribution principles, ensuring a sustainable future for coffee farmers and the industry.
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