This archive report was first published on 12 July 2019.
As the global coffee market grapples with decade-low prices, small farmers in Africa are facing an uncertain future. With increased global output and higher productivity in countries using machinery and irrigation, coffee prices have plummeted, making it difficult for small-scale producers to make a profit.
At the 2nd World Coffee Producers Forum in Brazil, discussions centered around the economic sustainability of small farmers. Disagreements arose over the idea of increasing yields as a way to help these farmers survive. Samuel Kamau, executive director of the African Fine Coffees Association, emphasized that 'one shoe will not fit all,' highlighting the need for the industry to recognize the unique growing systems, topographies, and coffees of African producers.
Colombian Nelson Camilo Melo Maya, head of SPP Global, an international organization representing small-scale farmers, argued that small producers can be efficient in their own way and have a future in coffee. To address the issue, farmers are exploring options such as direct sales, new web-based marketplaces, and higher interaction with end-users to grab a larger part of the sales proceeds.
Aman Adinew, chief executive of Ethiopia's coffee grower Metad, suggested setting minimum prices, a move similar to what African cocoa producers are trying to do with the chocolate industry. 'A minimum price is necessary,' he said. 'Exporters compete with each other, bringing prices down. We need to avoid that.'
Published on July 12, 2019, at 08:15:46 GMT +0300 by Reuters.
