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Coffee smallholders more sustainable than large-scale producers: Fairtrade

Smallholder coffee plantations in Latin America are more climate-friendly than large-scale operations, according to an environment-focused study by Fairtrade Foundation.

The new Fairtrade study, Understanding the Climate and Environmental Impacts of Smallholder Coffee Farming, investigated existing academic and sector-based research regarding the environmental sustainability of small-scale coffee production in five Latin American countries: Brazil, Colombia, Peru, Nicaragua and Honduras.

Fairtrade Foundation, the organisation behind the sustainability certification and labelling system, compared findings with large-scale production. “It showed that small-scale coffee production in Latin America is, on average, more environmentally friendly than large-scale production,” Max Milward, Fairtrade Foundation’s sustainable sourcing manager for coffee, told Ingredients Network.

“Large plantations in the region often produce coffee using unshaded monoculture, mechanisation and chemical inputs, but the situation on small-scale coffee farms is often quite different,” said Milward. Small-scale coffee producers in Colombia, Peru, Nicaragua and Honduras generally use less energy than larger plantations because farms are often less mechanised.

Promoting small-scale production

Small-scale coffee farmers produce around 60% of the world’s coffee. While the numbers indicate that coffee production favours small-scale operations, more can be done to increase the presence of this manufacturing method in the food industry.

Fairtrade International, which works with small-scale coffee farming co-operatives and does not certify plantations, has certified over 800,000 smallholder coffee farmers in over 600 organisations across 32 countries.

Agroecological practices are highlighted as a core way to improve the food security of smallholder coffee farmers. “Agroecological practices enhance environmental sustainability through reducing GHG emissions and storing carbon, using less water and boosting biodiversity on smallholder coffee farms,” said Milward.

Agroecological farming enables smallholders to use fewer chemical inputs and grow more diverse crops. “This can create considerable input savings for small producers, who can also rely on a diversified income and improve their households’ food security, which is the best way to face climatic changes and price shocks,” Milward added.

Agroforestry, where shade and other trees are planted alongside coffee plants, also plays a vital part in the sustainability of coffee growing. The nature-enriching production method can address the environmental, social and economic challenges smallholder coffee farmers face in Central and South America while significantly contributing to climate adaptation and mitigation.

Smallholder coffee farmers in Honduras, Nicaragua, Colombia and Peru mainly practise diversified shaded agriculture. Adopting this coffee production approach helps preserve and enhance coffee, storing carbon and conserving soil and water.

Fairtrade has adopted agroecology as its framework for sustainable agriculture. As part of its advocacy for the production method, the organisation states it is working to support coffee farmers to adopt agroecological practices.

R&D: The future of coffee production

Fairtrade’s findings may impact how large and small-scale farmers approach coffee production in the coming years. Research and development (R&D) is a crucial part of implementing agricultural methods that prioritise a sustainability lens.

“It demonstrates why small-scale coffee farmers urgently need fair terms of trade so that they can cover their production costs and earn sustainable livelihoods,” said Milward. Farmers living on the frontline of climate change are already seeing how changing weather patterns are having devastating impacts on their ability to grow the crops they depend upon.

“Without fair prices and long-term contracts, many producers will not be able to continue farming in the future, leading to increased poverty in many parts of the world and threatening the availability of food staples such as coffee,” he added. The ability of producers to earn a living income through higher prices for their produce is expected to be a key enabler and a precondition for ensuring effective climate action.

“Smallholder coffee farmers’ fundamental role in climate adaptation and mitigation should be acknowledged across the value chain,” Milward added. Fairtrade hopes that different players, including commercial partners, producer organisations and its organisation, can collaborate to face global environmental challenges and support sustainable coffee production in the future.

Recommendations for producers

“We are faced with challenges of a greater complexity than ever before,” said the sustainable sourcing manager. For those manufacturers and brands using coffee as a key ingredient in their food products, actions centre around the importance of sustainable operations. “We’d urge all coffee businesses, from coffee roasters to café brands and retailers, to consider responsible sourcing.”

Fairtrade has launched a Shared Impact initiative that allows brands and retailers to build closer ties to a smaller pool of coffee, cocoa and banana producers. It is designed to provide better supply chain insights for businesses and longer-term commitments for producers, enabling them to invest more strategically in the salient risks in their supply chains, such as climate and living incomes.

Through its impact-led model, Shared Impact, Fairtrade strives to provide businesses with the bridge to connect both ends of the supply chain, providing transparency, security, and the opportunity to collaborate on risk and facilitating compliance with upcoming due diligence legislation.

“Producers who benefit from the full package of Fairtrade Standards, pricing, Premium and programmes have been found to be more resilient in times of global crisis,” said Milward. On average, the organisations found households from Fairtrade-certified producer organisations were less affected by COVID-19 than those at non-Fairtrade-certified producer organisations (36% versus 48%, respectively).

Programmes like the Fairtrade Alliance for Climate Smart Supply Chains in Africa (FACSCA) have been designed in partnership with producers to help increase their knowledge of sustainable agriculture land management practices. It strives to boost productivity and reduce water consumption and carbon footprints.

“The climate crisis is putting in jeopardy the future of farming and we are facing multi-faceted problems in our global supply chains,” Milward said. “We must push forward on fair prices and equitable power structures and increase the pace of change.”