Non-profit calls for the creation of systems that “provide stability and support” to end damaging price volatility for coffee farmers as extreme weather pushes C price to record high
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Poor coffee harvests in Brazil and Vietnam driven by extreme weather have pushed prices to a 47-year high | Photo credit: Diego Catto
Fairtrade Foundation has pushed back at claims that record coffee prices are benefitting coffee farmers.
In a press release, the ethical trade group said coffee farmers continue to face damaging market volatility despite the record C price, which has risen 80% in 2024 to breach the $3.39 per pound (0.45kg) high set in 1977.
“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,” said Max Milward, Sustainable Sourcing Manager, Fairtrade Foundation.
Fairtrade’s global coffee network comprises nearly 900,000 certified coffee farmers across 31 countries. According to data cited by the organisation, smallholder farmers are responsible for 60% of global coffee production. However, approximately half are living in poverty and nearly a quarter live in extreme poverty.
The recent price surge has largely been driven by extreme weather, including drought and flooding in the world’s largest coffee producers, Brazil and Vietnam.
“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,” Milward said. “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,” he added.
In August 2023, the non-profit
increased the baseline price for arabica coffee, which represents more than 80% of all Fairtrade coffee sold 29% to $1.80 per pound. For robusta, the minimum price rose 19% to $1.20 per pound.
Despite coffee futures reaching a new high of $3.44 a pound (0.45kg) in December 2024, adjusted for inflation, the previous record of $3.39 set 47 years ago would be worth around $17.68 today.