Value Chain Study Explores How to Make Coffee Work for Smallholder FarmersDaily Coffee News by Roast Magazine

Recently published research reinforces the idea that participation in the specialty coffee market has greater potential to improve the incomes and livelihoods of small family farmers.

The problem is that participation in the specialty coffee market requires significant economic and social capital to begin with, the study notes.

The study, published online in December and coming to the Elsivier newspaper World development prospects in March, begins by presenting evidence that small farmers continue to assume the greatest risk in the coffee chain in relation to threats such as climate changediseases like leaf rust and price volatility.

The research focused on groups of farmers and related market actors in Colombiathe fourth coffee producing country in the world with a solid institutional framework, and boliviawhich contributes less than 1% of world coffee exports.

While outlining many differences in value chain dynamics between the study groups within the two countries, the research identified common pathways to increasing incomes and improving livelihoods, in particular the sale of roasted coffee directly in the domestic market and the sale of green coffee of recognized special quality.

“Our results from Bolivia and Colombia clearly show positive effects on the incomes of farmers participating in specialty coffee value chains, particularly those involved in direct trade schemes or who roast and sell their coffee in domestic markets,” they wrote. the researchers.

However, the research team also noted that many farmers may face barriers to participating in specialty coffee markets.

“Specialty coffee value chains tend to be exclusive and require significant subsistence capital to begin with,” they wrote. “As a result, these value chains do not automatically benefit marginalized coffee farmers and poor families.”

The research employed methods known as participatory market chain approach (PMCA), typically designed to engage smallholder farmers along with related market actors, as well as action research, a strategy in which interventions are measured and interpreted within of the study. The research team said the study, and in particular the “socio-ecological outcomes from production to consumption”, should be considered by governments or NGOs involved in the development of the coffee sector.

The research team provides ample evidence of coffee farmers elsewhere who abandoned their plantations or switched to illicit crops such as coca due to sustained low prices in the commodity market combined with environmental threats. Therefore, a central focus of the study is potential “value chain improvements” in the coffee sector, which can keep farmers involved in coffee through livelihood improvements.

“Overall, smallholder farmers’ participation in specialty markets remains niche,” the study states. “Producer organizations, which represent the majority of production, are more focused on certified markets established for export. Private companies (both domestic and international) represent the majority of specialty markets, although most source at least some of their coffee from small farmers.”

The researchers repeatedly introduce a warning that participation in the specialized market does not guarantee better livelihoods for smallholder farmers or better environmental outcomes.

“Developing specialty coffee value chains does not automatically translate into more sustainable production methods or less deforestation; In contrast, most of the community and private enterprises we studied used conventional production methods on coffee plantations in full sun, which extends to the producers. delivering coffee to these companies,” the study states. “This applies particularly to domestically traded specialty coffee, where demand for sustainable coffee and sustainable certification systems remains weak.”

In particular, the study also suggests definitions of cup quality, such as those created by Protocols of the Specialty Coffee Association — play a role in value chain development, particularly as it relates to smallholder farmers.

The researchers wrote: “For specialty coffee value chains to work for family farmers, definitions of cup quality must consider social and ecological impacts from production to consumption.”

The researcher and writing team behind the study included:

• johanna Jacobi from the Federal Institute of Technology (ETH) (Switzerland);
• Derly Lara, Daniel Castro and Nelson Gutiérrez from the Universidad Surcolombiana (USCO) (Colombia);
• Sebastian Opitz, Sabine of Castelberg and Chahan Yeretzian of the Zurich University of Applied Sciences (ZHAW) (Switzerland);
• Sergio Urioste and Alvaro Irazoque from Slow Food (Bolivia);
• and elio Wildisen from the University of Bern (Switzerland).

Find the full study here.

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