More than 12.5 million households worldwide, mostly small farms under 5 hectares, cultivate coffee. Although coffee prices in global markets have been rising for several months, this has not translated into higher profits for farmers. Their challenges include marginalization in supply chains, rapidly increasing production costs, and climate change, such as prolonged droughts, according to experts from the Fairtrade Foundation Poland, on the occasion of International Coffee Day, which falls on September 29.
“In fact, only in two countries worldwide do coffee farmers earn above the international poverty line, which is $2.15 per household. This applies only to farmers in Brazil and Vietnam; in other coffee-growing countries, farmers truly live on the edge of poverty. The situation is even tougher for farm workers, who are often employed temporarily only during harvests, meaning that the earnings do not reach those who are actually involved in coffee production,” says Michał Bryda-Przybyszewski from the Fairtrade Foundation Poland to Newseria Biznes.
Small farms, as the foundation points out, account for up to 70% of global coffee production. Although coffee prices are currently on the rise, farmers in the Global South are struggling financially and often cannot meet basic needs. The effects of the drop in coffee prices between 2016 and 2019 are still being felt, having pushed many farms into poverty.
“Currently, the high prices are related to a severe drought that occurred in Vietnam for an extended period. This country is primarily responsible for robusta production, while Brazil, which accounts for about 30% of global coffee production, mainly produces arabica. Prices have practically doubled compared to 2023, when a kilogram of robusta coffee cost about $2-$2.50; now these prices on international markets reach $5,” emphasizes Michał Bryda-Przybyszewski.
This also demonstrates how significantly climate change affects the market. The impacts are felt throughout the so-called coffee belt, located between the Tropic of Cancer and the Tropic of Capricorn—across Latin America, Africa, and Asia. Farmers are experiencing these effects acutely.
“Recently, we witnessed drought in Brazil and Vietnam. While Brazil’s harvest for this season was relatively decent compared to last year, the actual size of the beans and coffee fruits has decreased due to drought. Farmers in Brazil, particularly from Minas Gerais, one of the largest coffee-growing regions in the world, report that typically the largest beans, for which companies pay the most, constituted about 25% of the harvest. In the last season, this was only 10%. Drought, therefore, not only reduces yields but also lowers farmers’ income,” explains the Fairtrade Foundation expert. “Just a week ago, we had a serious situation as super typhoon Yagi hit the region in Vietnam. Now losses are being calculated, and we will see in the future how this will impact coffee harvests, as the season starts soon.”
He stresses that, in the current situation, farmers have no choice but to adapt to changing weather conditions. Without adaptation, coffee may soon become a luxury commodity. Fairtrade research indicates that climate change could reduce coffee yields in Ethiopia by up to half or completely prevent cultivation by 2050. Data from the Stockholm Environment Institute estimates that climate change could potentially reduce global arabica coffee production by 45.2% and robusta by 23.5%.
“As a Fairtrade organization, we promote sustainable farming practices and, in recent years, we have been advocating agroforestry. This involves planting other crops and trees among coffee shrubs. Coffee generally thrives in the shade of trees, which provide greater stability, appropriate sunlight, and moisture, as coffee, especially arabica, requires the right humidity. However, it’s essential to know which plants to plant alongside coffee trees, such as fruit bushes and banana plants, which can additionally provide income for farmers,” says Michał Bryda-Przybyszewski. “In our producer networks, we work directly with farmers, organizing training for them. So far, 10,000 farmers from Kenya and 1,200 from Ethiopia have participated in the Climate Academy program.”
Fairtrade is a certification system for products aimed at improving the situation of farming communities in the Global South. Nearly 850,000 farmers work in cooperatives associated with the system in the coffee belt. Companies that partner with Fairtrade have access to coffee supply chains verified for compliance with human rights and environmental protection standards. Agricultural cooperatives must operate according to specific standards (including prohibitions on child labor, forced labor, and the use of sustainable farming practices); in return, they receive a minimum price for their products, independent of market price drops, as well as a Fairtrade premium.
“The minimum price applies when market prices fall below production costs, below the threshold set by the Fairtrade system. If coffee is to be sold under Fairtrade conditions, meaning it has a Fairtrade-certified package on store shelves, the farmer must receive this minimum price and additional funds in the form of a Fairtrade premium. This premium must be allocated for specific developmental purposes, either benefiting the farmers themselves or entire local communities, such as investments in healthcare, education funding, or even school construction,” explains the expert.
He emphasizes that in Poland, certified coffee still constitutes a small percentage of Fairtrade product sales, especially compared to the leader—cocoa-based products. Other certified products include tea, textiles, and cosmetics. The value of the Fairtrade market in Poland reached a record nearly 1 billion PLN in 2023.
“10% of the coffee produced worldwide is Fairtrade certified. However, the share of sales of this coffee is much smaller,” says Michał Bryda-Przybyszewski.
