Fairtrade Foundation skeptical on the benefit of the high coffee prices to farmers in producing countries
December 15 - 2024
Coffee Geography Magazine
Faritrade Foundation stated “The recent rise in coffee prices has sparked much-needed conversations about the realities faced by coffee farmers. While higher prices may appear to benefit farmers, they are often temporary and fail to address the challenges and inequalities faced by those at the start of the supply chain. Price hikes do not necessarily filter down to farmers, the global coffee industry is worth over $200 billion, yet less than 10% of this wealth remains in producing countries. The recent surge in coffee prices has highlighted the volatility of this market. “
But according the study by CGM, many farmers are cashing in higher income in Central America, Africa and South East Asia as the world’s Arabica and Robusta coffee prices surge by 80% due to the vast coffee tree damages in Brazil and the delays in robusta supply from Vietnam.
Fairtrade Foundation added in its statement “This volatility has a huge impact on the livelihoods of coffee producers. Sudden price surges and sudden price drops can be destabilising for coffee farmers, making it difficult for them to plan or invest in their future. The current price hikes, influenced by extreme weather in Brazil and Vietnam and increasing global demand, demonstrate the fragility of the supply chain and the urgent need for long-term solutions. It’s crucial to create systems that provide stability and support for farmers, enabling them to invest in their communities and build resilience against climate change. By promoting fair and equitable trade practices, the coffee industry can help ensure a sustainable and more stable future for both farmers and the wider supply chain.”
For years, Fairtrade Foundation was the leading advocate of the need for higher prices for coffee farmers. Its sudden flip of its concern of the higher prices not benefiting the poor farmers is a surprise that does not portrait its long standing position.