Nestled in the scenic mountains of southwestern Honduras lies Finca El Puente, a coffee plantation that should be thriving given the recent surge in coffee prices in the global market. The farm’s specialty coffee varieties have long been in demand, commanding premium prices and being enjoyed by coffee lovers from Seattle to Seoul. A recent visit from a Malaysian buyer to sample the latest offerings is testament to the farm’s reputation.
Despite this favorable market climate, Finca El Puente’s owners, Marysabel Caballero and her husband Moisés Herrera, are riddled with concern. The cost of running their plantation has ballooned: they face higher wages to draw in scarce workers, and the price of fertilizers has shot up. Climate-related challenges, like unpredictable rains and temperature swings, have also taken a toll on their crops. With these added costs, even the increased coffee prices may not translate into higher earnings this year.
They’re worried that soaring prices might lead some coffee consumers to switch to cheaper alternatives like soda or energy drinks to satisfy their caffeine fix. Looking towards the future, their anxiety deepens, as climate change is the underlying cause of rising prices, threatening coffee supplies worldwide, from rising temperatures to severe droughts in key coffee-producing nations like Brazil and Vietnam.
Around the globe, coffee farmers share these worries, as the benefits of high prices today could quickly be wiped out by the next disaster. After experiencing a damaging cold snap followed by late rains, Finca El Puente sees today’s record prices less as a windfall and more as a sign of trouble brewing.
“Our lives revolve around coffee farming,” Herrera, 58, expressed, while overseeing workers loading hefty sacks of freshly picked beans. “Yet, many producers are gradually losing hope.” Although higher coffee prices could help address historic inequities in the global market, allowing farmers to earn what they deserve, others see this as a necessary change.
According to Amanda Archila of Fairtrade America, higher prices can drive essential investments into the future of coffee production. With about 60% of the world’s coffee grown by smallholders, many of whom survive on minimal incomes, improving their financial standing could empower them to adopt more sustainable, climate-resilient farming techniques.
As the COVID-19 pandemic disrupted industries worldwide, high coffee prices have spotlighted the conditions under which coffee is produced. The question remains: Will this attention lead to meaningful transformation in the sector?
Coffee’s history is marred by exploitation, with colonial empires setting up plantations in Asia and South America, often at the expense of local communities and environments. Over time, coffee became a staple commodity, linking poorly paid workers to affluent consumers willing to pay top dollar for a single cup.
Though major coffee roasters have historically reaped the lion’s share of profits, now the coffee trade faces new challenges. Retailers like J.M. Smucker report increased sales and profits, thanks to passing on higher bean costs to consumers, even as prices climb.
Global shipping disruptions and regulatory changes have led to scarcities in coffee supplies. The European Union’s forthcoming anti-deforestation law has added complexity to trade, even prompting some roasters to stockpile coffee, driving up demand and prices further.
In Vietnam, some coffee farmers have shifted to producing durian to meet rising demand, adding to coffee shortages. Coupled with financial turmoil in the coffee trade, as traders and exporters grapple with steep price hikes, this has created a feedback loop pushing prices even higher.
Luiz Paulo Pereira of CarmoCoffees highlights a significant issue confronting global exporters: navigating the financial pressures of rising prices while minimizing risk. Many traders now avoid long-term contracts, focusing instead on short-term deals, which keeps beans scarce and prices climbing.
Camoong/tuyendo farmers, like Sergio Romero of Honduras, offer solutions rooted in sustainability. He has developed a coffee cultivation model emphasizing resilience, with shade trees and diversified plantings to protect against climate impacts. He pooled family and community resources to create a cooperative, Cafico, fostering eco-friendly practices and achieving Fairtrade certification.
While initial skepticism met his approach due to cost and yield concerns, Cafico’s success has proven its value. Members enjoy fair prices and community support, including essential infrastructure projects.
Yet, as coffee prices surge, some farmers face temptation, selling outside cooperative structures for quicker returns. Even in wealthy countries, consumers who prioritize responsible coffee production are still few compared to those seeking affordable prices.
High coffee prices present at least some benefits; they place more money in the hands of producers. However, many farmers like Josefina Lopez still confront challenges like coffee rust that threaten their livelihoods.
With labor shortages affecting operations, even established farms like Finca El Puente face tough decisions. Mechanization has helped, but climate extremes remain a challenge. Despite the allure of today’s prices, Marysabel Caballero and Moisés Herrera are not sure how long their passion for coffee farming can endure.
Amid the uncertainty, Herrera and Caballero cherish their life centered around coffee production, even as they wonder about its future.
