Potential long-term solutions to the coffee price crisis

Despite the overall growth in the coffee sector, prices have dropped 30% below the average of the last ten years. Coffee producers, predominantly smallholders, are struggling to cover production costs and earn sufficient incomes to provide for the livelihoods of their households. This situation poses a serious risk to the sustainability of the sector and future coffee supply.

The International Coffee Organization (ICO) and the German Corporation for International Cooperation (GIZ) asked Aidenvironment’s Jan Willem Molenaar and David Short to propose the priority solutions to implement, that address the sector’s current price crisis and long-term economic sustainability. Inspired by ICO’s sector-wide dialogue as well as previous research by Aidenvironment, IIED, and Sustainable Food Lab, the case was made for the priority solutions and enabling factors below as well as critical roles for key actors to play in each of the solutions.

Aidenvironment is proud to have contributed Section B of ICO’s first flagship report, the Coffee Development Report 2019. The recommendations are featured in the historic London Declaration that was signed by leading coffee roasters and traders in September 2018 during the first edition of the CEO and Global Leaders Forum organized by ICO.