Coffee 2016

The supply chain for coffee involves multiple steps from cultivation to market. Farmers decide the coffee plant variant and the terroir, influencing the final flavor. After harvesting, the coffee cherry is milled to separate the husk, resulting in green beans, which are primarily exported to consuming countries for roasting. This roasting, blending, and packaging add significant value, mostly retained in consuming countries. Therefore, the supply chain creates challenges for equity, as growers receive minimal returns—typically just one to five percent of the final retail price. Efforts for greater equity face barriers like fluctuating commodity prices, lack of access to consumer markets, and climate change impacts on yields. Additionally, consolidation and trends towards single-portion coffee formats benefit roasters more than farmers, hampering the equitable distribution of profits.  However, the growth of the specialty coffee market presents opportunities for reform, including fostering direct trade relationships, promoting transparency in trading practices, encouraging sustainable farming methods, and developing origin-based branding.  What might be done to encourage these trends toward equity across the supply chain?