Summary
This report investigates how Nestlé and Starbucks, through their sourcing models and private sustainability certifications, affect small-scale coffee producers in Mexico, focusing on power imbalances and the role of major commodity traders like ECOM, NKG, and LDC. Using qualitative fieldwork, interviews, and policy analysis, the study draws on data collected in collaboration with Mexican NGOs and producer networks, examining relationships between corporations, government institutions, and farmers. The research design centres on tracing supply chain dynamics, certification practices, and the structural barriers faced by smallholders. Findings indicate that both companies’ sustainability schemes often marginalise smaller producers who cannot meet their standards, while powerful intermediaries maintain control over market access and pricing. As a result, farmers are left in precarious economic conditions, with limited autonomy or alternatives.
The 4C has issued a formal statement addressing the findings and outlining its perspective on the issues raised: https://www.4c-services.org/wp-content/uploads/2025/02/4C-Statement.pdf