Do coffee farmers really make money from the coffee price?
In the conventional chain mostly very little — a farmer often receives only 5–10% of the final price. With Fairtrade and Direct Trade, the share is significantly higher, at 15–30%.
Why that is
Coffee passes through many hands on its way from the shrub to your cup: farmer, cooperative, exporter, importer, roaster, retailer. Each station takes its share — and the farmer is at the beginning of the chain, where margins are smallest.
The numbers in conventional trade:
- The world market price for raw coffee (Arabica, C-Market) fluctuates strongly — in recent years between around 2 and well over 6 US dollars per kilogram of raw bean.
- A kilogram of supermarket coffee costs 8–15 euros in the store. The farmer receives approx. 0.50–1.50 euros of that — so 5–10%.
- Worldwide, around 100 million people live from coffee cultivation, many below the subsistence level.
- The production costs per kilogram for a smallholder are 1.50–3.00 US dollars. If the market price falls below this, the farmer makes a loss.
Fairtrade:
Fairtrade guarantees a minimum price (since 2023 around 4 USD/kg for washed Arabica) plus a premium of 0.44 USD/kg for community projects. This protects against price crashes, but is still below what many farmers would need to operate sustainably.
Direct Trade:
Specialty roasteries that buy directly from farms often pay well above the world market price. The advantage: no middlemen, direct relationship, quality feedback to the farmer. The disadvantage: not certified, no independent control.
Why this is important:
If a farmer doesn't receive a living income, they cannot invest in quality — no selective harvesting, no careful processing, no shade-grown cultivation. Low prices lead to lower quality, which leads to even lower prices. A vicious circle.
In practice at Green Wall Coffee
At Sophienstraße 27, we know where our beans come from: our roasters name origin and producers. Transparency is important to us — not as marketing, but because fair prices are the foundation for good coffee.
Feel free to drop by for a coffee — Green Wall Coffee, Sophienstraße 27 in Berlin-Lichtenberg, Mon–Fri 8am–5pm and Sat 10am–5pm.
Further reading
Related questions:
- Is coffee sustainable or climate-damaging?
- What can I do to drink coffee more sustainably?
- Which coffee certifications are really meaningful?
Also relevant:
- What is Direct Trade and why is it considered fairer? — Specialty Coffee & Industry
- What is the difference between Fairtrade, Direct Trade and Rainforest Alliance? — Specialty Coffee & Industry
All questions in this topic: Sustainability & Ethics