The traditional coffee supply chain from cherry to cup has several layers that all increase the price of the coffee as it passes hands. This practice has for generations created a win lose situation where the farmer and their communities see no uplift in financial benefit from the contracts agreed with the importer.
The current coffee supply chain has its failings because it places emphasis on paying the farmer a percentage over the coffee commodity price which in most cases when those green coffee beans are sold to the importer does not meet the basic living income needed for a farmer to run their operation cost-effectively.
In recent years the market has been paying around $1.00 for a pound of coffee below the cost of production and way below the Fairtrade Price of $1.40 a pound. This is why “Reverse Trade” is so important and so very necessary for the Farmer. In 2021 the coffee commodity price has been volatile due to a number of factors mainly the frosts that have decimated plantations in Brazil the worlds largest coffee producing country.
The impact of global warming reducing the worlds coffee growing areas, coffee farmers leaving the industry for more profitable commodities and global coffee operators who have company profit and their shareholders interest at heart means the price of coffee must and will go up in which case you the consumer will eventually have to pay more.