Explanation of fair and sustainable coffee
When is coffee fair trade?
How does the coffee supply chain work?
Before you can determine whether coffee is fair, you need to understand what the chain looks like.
1. Farmer
The coffee farmer grows and harvests the coffee beans. This is the hardest work in the chain, while the yield is often the lowest. Income depends on the harvest, market price, and access to buyers.
2. Local merchant
The trader buys coffee from multiple farmers and bundles volumes. While this enables transport and sales, it also means farmers have less direct influence on the price.
3. Exporter
The exporter arranges sales abroad, including logistics, certification, and quality control. Contracts are concluded here with international buyers.
4. Importer
The importer brings the coffee to Europe or other sales markets. They purchase large volumes and sell them on to roasters.
5. Burner
The roaster processes the green coffee beans into the product we know. This is where much of the flavour is created, and a significant portion of the margin is also added.
6. Retailer
The retailer sells the coffee to the end-user. This can be a supermarket, webshop, or hospitality establishment. This is where the price the consumer pays is determined.
7. Consumer
Consumers buy and drink coffee. With this choice, consumers indirectly determine how the supply chain develops.
Where do things often go wrong in the coffee chain?
The greatest inequality is usually at the beginning of the supply chain.
Coffee farmers often receive only a small portion of the final sales price. This is partly because the global price of coffee is determined on the stock market. This world market price fluctuates greatly and is often below the level needed to produce coffee sustainably.
In theory, there are multiple parties that add value in the supply chain. In practice, this often means that the margin further down the chain increases, while the farmer remains dependent on a low and uncertain price.
Consequences of unfair coffee in the supply chain
The price of coffee has increased in recent years. However, a higher price in the store does not automatically mean the farmer earns more. Without transparency, the difference between what you pay and what the farmer receives often remains significant.
Low income security
Farmers often don't know what their harvest will yield until late in the season. Fluctuations in the world market price make it difficult to plan ahead. This creates uncertainty and makes investing risky.
Limited room for improvement
When yields are low, there is little left to invest in better farming methods, quality, or sustainability. This inhibits growth.
Reliance on intermediaries
Many farmers sell through local traders. As a result, they have little direct influence on the price and are dependent on the structure of the supply chain.
Lack of transparency
For parties further down the chain, it is often unclear what the farmer actually receives. Without insight, it remains difficult to make fair choices.
Fair coffee is not a label, but a combination of factors.
What determines if coffee is fair?
Fair price for coffee farmers
The farmer must receive a price that is higher than the cost price and allows for investment in quality and the future.
Transparency in the coffee chain
You should be able to see where the coffee comes from and how the price is determined. Without insight, fairness is difficult to verify.
Shorter coffee chain with fewer links
The shorter the chain, the greater the chance that more value remains with the farmer.
Long-term relationships in coffee trade
Structural cooperation ensures stability, better quality, and mutual trust.
Origin and traceability of coffee
Traceability to the farmer or region makes it possible to take responsibility.
Why Transparency is Important
Without transparency, honesty is difficult to assess.
Many coffee brands communicate about sustainability but share few concrete figures. Such as:
- what the farmer actually receives
- how the price is structured
- what steps are being taken in the supply chain
Transparency means also showing what is not yet perfect. That is precisely where trust begins.
Is fair trade coffee always fair?
Certifications help, but they are not a complete solution.
Fairtrade and other certifications often provide a minimum price and certain standards. That is a step in the right direction.
However:
- the minimum price is not always above a living wage
- the system remains dependent on intermediaries
- transparency remains limited
Fair coffee therefore goes further than just a certification.
Do you want to taste that fair chain for yourself? Buy coffee at Bunafide.
