US: Why it’s easier for wealthier producers to grow specialty coffee

Published Jan 30, 2024

Tridge summary

The coffee farming industry is marked by a significant wealth disparity, particularly affecting the 12.5 million smallholder families, many of whom live below the poverty line. This is due to factors such as access to capital, market knowledge, and farm location. The current market structure, lack of strict regulation, and the role of intermediaries in the supply chain often result in these smallholders receiving less for their produce. While co-operatives offer a potential solution, the industry needs to do more to support smallholders, streamline the supply chain, and bridge the wealth gap for a sustainable future.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

It takes money – and sometimes a lot – to grow specialty coffee. Producers not only need to continuously maintain and improve quality and yields, but they also have to invest back into their farms. Whether it’s replacing equipment and machinery or planting more resilient varieties, producers need to turn a profit to operate their farms as successfully as possible. For many of the 12.5 million smallholder coffee farming families in the world, this can be challenging to say the least. Despite being responsible for up to 80% of the world’s coffee supply, it’s estimated that up to 80% of these families live below the poverty line. Resultantly, investing back into their farms to grow higher-quality coffee can be impossible, which puts them at a clear disadvantage. So it’s then a fair statement to make that it’s much easier for more economically advantaged producers to grow specialty coffee. But what impact does this have on the industry and how can we improve market access for ...

Source: Perfectdailygrind