Reading passage
Coffee ranks among the most valuable agricultural commodities traded across international borders, and for hundreds of millions of people it is an essential part of daily life. Although the drink is consumed mainly in wealthy countries, the crop itself grows almost exclusively in a band of tropical regions known as the coffee belt, which stretches between the Tropics of Cancer and Capricorn. More than seventy countries cultivate coffee commercially, yet a small group of producers dominates output. Brazil alone accounts for roughly one third of the global harvest, followed by Vietnam, Colombia and Indonesia.
The journey from farm to cup is long and involves many intermediaries. After harvesting, the cherries are processed to remove the fruit surrounding the beans, which are then dried, milled and graded. Exporters sell the green beans to traders, who ship them to roasters in consuming countries. Because so many stages separate the grower from the final buyer, farmers typically receive only a small fraction of the retail price. Studies cited by development organisations suggest that growers may capture less than ten percent of the value of a cup of coffee sold in a city cafe. In some producing regions, growers report earning barely enough to cover the costs of fertiliser and hired labour.
Price volatility is a constant threat to the twenty five million smallholder farmers who produce most of the world's coffee. The commodity is traded on futures markets in New York and London, where prices can swing sharply in response to weather forecasts, currency movements and speculative trading. A frost in Brazil or a drought in Ethiopia can send prices soaring, while a bumper harvest can push them below the cost of production. When prices collapse, farmers in remote highland areas often have no savings to fall back on and may abandon their plots entirely.
In response to such instability, certification schemes have emerged to guarantee growers a minimum price and a social premium. Fairtrade, founded in the late 1980s, is the best known of these initiatives. By 2019, Fairtrade coffee sales had reached several hundred thousand tonnes annually, and research in Costa Rica found that certified cooperatives provided their members with more stable incomes. Critics, however, point out that certification fees can be burdensome for the smallest producers, and that the minimum price only matters when market prices fall below it.
Climate change now poses an even greater challenge to the industry. Both main commercial species, arabica and robusta, are sensitive to temperature and rainfall patterns. Scientists estimate that by 2050, as much as half of the land currently suitable for arabica could become unproductive, while pests such as the coffee berry borer are already spreading into highland regions that were once too cool for them. In Central America, an outbreak of leaf rust fungus between 2012 and 2014 destroyed a significant share of the harvest and pushed tens of thousands of families into poverty. Farmers are being advised to plant shade trees and switch to more resilient varieties, but such measures require investment that few can afford.
Meanwhile, consumption habits in rich countries are shifting. Demand for specialty coffee, defined by high quality scores and traceable origins, has grown at roughly double the rate of the overall market over the past decade. Large chains and independent roasters alike now advertise single origin beans and publish the prices they pay to farmers. Some analysts argue that this trend could finally channel more money to producers, because consumers of specialty coffee appear willing to pay a premium for a compelling story about where their drink comes from.
Whether these changes will transform the lives of smallholders remains uncertain. The coffee sector employs an estimated one hundred million people worldwide, yet the vast majority of profits are still earned at the roasting and retailing end of the chain. Until growers gain greater bargaining power, or consumers accept prices that reflect the true cost of sustainable production, the gulf between the cafe and the farm is likely to persist.