The study highlights that initial entry into coffee business necessitates a substantial amount of social and economic capital.
The study, which was first published online in December and will be published in the Elsivier journal World Development Perspectives in March, starts out by providing evidence that smallholder farmers in the chain continue to be the most vulnerable to threats like price volatility, diseases like leaf rust, and climate change.
With Bolivia contributing less than 1% of global coffee exports, and Colombia, the fourth-largest coffee-producing nation in the world with a strong institutional framework, the research was primarily focused on farmer groups and associated market participants.
The research found common pathways to higher incomes and improved livelihoods, noting that selling roasted products directly within the domestic market and selling green ones of recognized specialty grade are two examples of the differences in value chain dynamics between study groups within the two countries that the study highlighted.
For farmers taking part in this type of value chains, especially those engaged in direct-trading programs or who roast and sell their products on domestic marketplaces, “our results from Bolivia and Colombia clearly show positive income effects,” the researchers said.
The research team did highlight several potential obstacles that many producers would encounter when trying to participate in this type of markets.
According to their writing, “specialty coffee value chains tend to be exclusive and require significant livelihood capitals to begin with.” Thus, impoverished people and marginalized coffee growers are not always benefited by these value chains.
The study utilized action research, a technique in which interventions are monitored and evaluated inside the study, as well as the participatory market chain approach (PMCA), which is often intended to involve smallholder farmers alongside associated market actors. Governments or non-governmental organizations participating in the growth of the coffee sector should take into consideration the study, according to the research team, and in particular the “social-ecological outcomes from production to consumption.”
The research team presents a wealth of data that coffee growers in other regions have abandoned their coffee fields or shifted to growing illegal crops like coca as a result of persistently poor commodity prices and environmental risks. The study therefore focuses heavily on possible “value chain improvements” in the coffee industry, which might sustain farmers’ involvement in the crop by improving their standard of living.
“Small farmers’ involvement in specialty markets is still relatively limited overall,” the report says. Since they account for the majority of production, the producers’ groups are primarily concentrated on exporting to approved markets. While most private businesses, both domestic and foreign, dominate the specialized markets, most of them get at least some of their products from small farmers.
A warning that involvement in specialty markets does not ensure better environmental outcomes or increased livelihoods for smallholder farmers is one that the researchers stress time and again.
According to the study, “the development of specialty coffee value chains does not automatically translate into more sustainable production methods or less deforestation — on the contrary, the majority of the community and private enterprises we studied used conventional production methods in full-sun coffee plantations, which extends to the producers delivering to these companies.”
This is especially true for this type sold domestically, where there is still a low demand for sustainable products and sustainable certification programs.
The study highlights the significance of cup quality specifications and how they contribute to value chain growth, especially in relation to smallholder farmers. Examples of these definitions are the protocols developed by the Specialty Coffee Association.
“Cup quality definitions must consider social and ecological impacts from production to consumption,” the researchers wrote, in order for specialty value chains to benefit family farmers.
The study’s writing team and researcher included:
The individuals listed are Johanna Jacobi from the Federal Institute of Technology (ETH) in Switzerland; Sergio Urioste and Alvaro Irazoque from Slow Food (Bolivia); Derly Lara, Daniel Castro, and Nelson Gutierrez from the Universidad Surcolombiana (USCO) in Colombia; Sebastian Opitz, Sabine de Castelberg, and Chahan Yeretzian from the Zurich University of Applied Sciences (ZHAW) in Switzerland; and Elio Wildisen from the University of Bern in Switzerland.