11th Jun 2012 - 00:00
Abstract
The global coffee market faces serious challenges to supply in the next decade, the Fairtrade Foundation warns in its latest briefing document.
Barbara Crowther, director of communications and policy at the Fairtrade Foundation said: "Unless the coffee industry actively invests in sustainable supply chains to help ensure decent incomes for coffee farmers and facilitate climate adaptation, there is a very real risk of coffee shortages on the horizon." Global consumption has doubled over the last 40 years to 8 million tonnes and consumers now drink 1.6 billion cups of coffee a day. While the continued global economic crisis has put the breaks on growth in Europe and the US, demand for coffee is still rising in emerging economies such as Brazil, India and Eastern Europe. But the effects of climate change on coffee production together with the economic crisis, rising production costs and volatile prices could to lead to a worldwide shortage of coffee. Despite higher global market prices, the benefits of coffee growing are failing to trickle down to the poorest farmers who are unable to invest in improving quality and productivity and who receive just 7%-10% of the retail value of their coffee. The spread of pests and disease, higher temperatures, erratic rains or periods of drought are disrupting production, while some areas may become unsuitable for growing coffee altogether. "Steady growth in demand for coffee should mean better times ahead for farmers," said Crowther. "But decades of low and unstable coffee prices have left a legacy of indebted farmers who lack the technical support and finance to invest in improving productivity and quality. "With climate change now also threatening shortfalls in production and higher prices, it is more important than ever that manufacturers, retailers and consumers support coffee growers in ensuring a sustainable supply of a commodity enjoyed by millions of people around the world." The briefing document says many companies recognise that Fairtrade can be part of the solution by providing additional income for farmers to invest in more sustainable farming practices, improving quality, planting varieties that are drought and pest resistant, improving the efficiency of their businesses and implementing projects that benefit the wider community. It says that by helping to ensure decent incomes for farmers, companies can also help ensure their businesses will have a long-term supply of quality coffee.