Growing for prosperity: economic viability as the catalyst for a sustainable coffee sector | Coffee Development Report 2019

Descriptive information
Research report

Published June 2019 by International Coffee Organisation (ICO). Authored by International Coffee Organisation (ICO)

Summary

Coffee is one of the most important tropical commodities and provides economic benefits at each step of the global value chain that links growers to consumers. The coffee industry contributes to the economies of both exporting and importing countries. At origin, production of coffee provides a livelihood for up to 25 million farmers and their families. Additional economic benefits are accrued by actors along the global value chain, be they traders, roasters, retailers and their workforce or other stakeholders. Since 1990, the global coffee sector has expanded significantly as production has increased by more than 65%. Despite the overall growth in the sector, coffee prices have experienced a continued downward trend since 2016, dropping 30% below the average of the last ten years (Figure 1). Coffee growers worldwide are struggling to cover their operating costs as input, compliance and transaction costs continue to rise (ICO, 2019b, 2019c). Consequently, farm incomes decline and the livelihoods of coffee-producing households, the majority of which are led by smallholders in low- and middle-income countries, are increasingly at risk. This report provides an in-depth analysis of the root causes and impact of the current coffee price crisis. It contains an independent assessment of possible actions to address the economic challenges and foster long-term sustainability of the coffee sector. In addition, the report introduces the concept of living income as reference framework for the identification of priority solutions.
Research detail

Growing for prosperity: economic viability as the catalyst for a sustainable coffee sector | Coffee Development Report 2019

Descriptive information
Research report

Published June 2019 by International Coffee Organisation (ICO). Authored by International Coffee Organisation (ICO)

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