The Fairtrade Foundation has issued a statement addressing the recent rise in coffee bean prices, cautioning that it will not solve the underlying issues faced by coffee farmers.
Max Millward, Sustainable Sourcing Manager at the Fairtrade Foundation, explained that while price increases might seem beneficial at first, they are often temporary and fail to address the systemic inequalities in the coffee supply chain.
“The global coffee industry is worth over $200 billion, but less than 10% of that wealth remains in producing countries,” Millward said. “The recent price surge highlights the volatility of the market and the challenges it creates for farmers.”
He explained that sudden price fluctuations can be destabilizing, making it difficult for farmers to plan or invest for the future. The current price increase, driven by extreme weather events in Brazil and Vietnam and growing global demand, underscores the fragility of the supply chain.
Millward emphasized the need for long-term solutions that provide stability for farmers. “Building systems that support farmers, allow them to invest in their communities, and help them adapt to climate change is crucial,” he said. “Fair and equitable trade practices, such as fair pricing and long-term contracts, are essential for creating a sustainable and stable future for farmers and the coffee industry as a whole.”
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