The Fairtrade Foundation has put out a statement explaing why the recently reported surge in coffee bean prices won’t solve the industry’s problems.
Speaking in response to recent news stories, Max Milward, sustainable sourcing manager at the Fairtrade Foundation, said: ”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 them, they’re 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.”
Sudden price surges and 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.
Max conitnues: “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, including fair prices and long-term contracts, the coffee industry can help ensure a sustainable and more stable future for both farmers and the wider supply chain.”
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