FIVE PILLARS
2. SUSTAINABLE SOURCING OF COFFEE
With producers having to adapt to very real challenges, such as the impact of climate change on their farm productivity, it is more important than ever that we source our coffee sustainably. In this section Estelle MacGilp, Head of Coffee Sourcing, delves deeper into some of the effects of climate change on the coffee futures market. We also share the progress we’re making against our goals, and how our partnerships with cooperatives and commitment to certifications like Fairtrade are making our coffee supply chains more resilient.
Goal Update
Click on each of the below goals to see our progress in 2023 and 2024:
Our
Ambition
for 2025
- 90% of the coffee we source has at least 1 certification.
- Visit at least one key sourcing origin.
- Provide 70% of core suppliers with coffee contracts prior to or in the first month of the harvest season.
Climate Change and Coffee Futures Markets
Coffee prices are linked to the respective futures markets, New York Intercontinental Exchange (NYICE) for Arabica and London International Financial Futures and Options Exchange for Robusta (LIFFE). The futures markets are driven by supply and demand factors and given that coffee is an agricultural commodity, they are very much driven by weather conditions that can adversely affect drop development and availability. It has become increasingly apparent in recent years that the effects of climate change have had a significant impact on crop development with extreme weather conditions in many coffee producing regions leading to serious concerns over future crop availability. During 2024, a prolonged period of dry weather in Brazil’s coffee producing regions, the world’s largest coffee arabica producer, has driven coffee futures progressively higher this year as the concerns increase over the effect this has had on the soil and subsequent flowering and output. In the world’s largest robusta producer, Vietnam, there have been similar concerns due to excessive dry weather and more recently excessive wet weather with flooding and tropical storms leading to concerns over future supply and increasing futures prices significantly.
Estelle MacGilp, Head of Coffee Sourcing
Net Zero Supply Chains Pilot Project
Since 2023, we have been working in collaboration with the civil society organisation Solidaridad and the Cafetalera Capucas Limitada or “Capucas” cooperative in Honduras to equip Capucas to transition to lower carbon, sustainable farming and to create a source of carbon credits for farmers, diversifying their income.
As is the case for most coffee roasters, our scope three value chain emissions make up the biggest proportion (96.93%) of our carbon footprint and therefore one of our biggest challenges in reaching net zero is deep decarbonisation of our supply chains by 2040. Working with our suppliers to accurately measure our supply chain carbon emissions is a key first step in this journey because it will allow us, and them, to move away from estimates and get a better idea of the emissions hotspots that need to be addressed. We hope to use this project as blueprint for engaging with our key coffee suppliers on the road to net zero.
The programme will also increase our preparedness for the new European Union Deforestation Regulation (EUDR) by implementing technology to identify forest losses on farms over the last five years and to understand the impact of agricultural activities on the forest.
Activities & Updates
CARBON FOOTPRINT
Training has been carried out with 45 technical staff and producers covering climate change topics, including carbon foot printing and ata collection from 100 producers has been completed and initial findings have been analysed.
The average emissions generated are 2.6 kg of CO2 equivalent per kilogram produced and 2,707 kg of CO2 per hectare. The analysis shows that 68.7% of total emissions are attributed to application of fertilizers, as the amount of fertilizer applied is high compared to production levels.
Although carbon storage in trees is significant, 85% of the agroforestry systems have reached their limit in the carbon sequestration curve, as the trees are on average more than 20 years old since establishment.
DECARBONISATION PLAN
An extended workshop has been planned to determine the best production systems, accounting for specific needs and characteristics of each farm and producer.
Based on the analysis of the data collected, the improvement strategy will be focusing on improving soil nutrient levels, reducing the use of synthetic fertilisers and optimising shade management by adjusting density and timing of pruning. Once the data has been analysed, an extended workshop has been planned to determine the best production systems, accounting for specific needs and characteristics of each farm and producer.
PROTECTING FORESTS
Multi-temporal analysis of deforestation has started, with 50 polygons (farm areas) being monitored. Visits were also made to some farms, and drone footage taken to obtain accurate determination of forest dynamics.
GENDER EQUALITY
An analysis of the committees within the cooperative was carried out, highlighting the need for effective gender participation.
Leadership training has been provided to 50 young coffee farmers, specifically young women.
Marvin Omari Suazo is a member of the Capucas cooperative taking part in this project. He has participated in the climate change and carbon footprinting training, as well as training on gender equality, finding these topics “[helpful] to change our way of seeing coffee and how we produce it”. He explained that “though we always heard about climate change we thought that we were not part of this problem and that only big industries pollute the planet and that is why it is getting warmer.” He is actively supporting technicians when they visit his farm, providing information about the processes he carries out to ensure that the project can get the best results possible. Marvin has already introduced shade trees and agroforestry systems to his farm to maximise productivity, but he’s excited at the prospect of being able to benefit from selling carbon credits - “This incentive will support the implementation of improved agricultural practices, since these are activities that require an investment to improve the production system.”
Marvin Omari Suazo
FAIRTRADE TURNS 30
Contribution by Max Milward from Fairtrade (Sustainable Sourcing Manager)
2024 was a milestone year for Fairtrade. We celebrated our 30th anniversary and were proud to look back on some huge achievements. Fairtrade now works with more than 2 million farmers and workers to achieve fairer prices for their produce. The FAIRTRADE Mark is the most recognised and trusted ethical label in the UK, with almost 5,000 Fairtrade products available to buy. And Fairtrade producers across the globe - who farm a huge range of crops from coffee to cocoa and sugar to bananas - have shared an estimated £1.7 billion in Fairtrade Premium payments between 1994 and 2022.
Matthew Algie has played a vital role in Fairtrade’s journey, having sourced Fairtrade coffee for over 25 years and having brought the first Fairtrade espresso to the UK market. Long-term commitments, like Matthew Algie’s, support producers to invest their Fairtrade Premium in projects they choose, such as community and school infrastructure development, crop productivity improvements and reforestation programmes.
Photo credit: Rodrigo Santus, picture of Luiz Flavio Pereira de Castro.
Luiz Flavio Pereira de Castro, a coffee farmer from ASCARIVE cooperative in Brazil, explains one of the reasons why education is important...
“Thanks to Fairtrade I am able to send my children to college. Study is the light of life. Without study we don't get anywhere. I hope they will come back to introduce and apply what they learned out there to the farm, making sure that it continues to have a bright future.”
And what their long term partnership with Matthew Algie means to them...
“I would like to congratulate Matthew Algie for choosing Ascarive for coffee purchases. I hope that you will stay for another 100 years buying our coffee, bringing hope to us, always. That you keep buying our coffee so that we can keep fighting and bringing to your consumers' cups our quality, our joy, our peace, our will to keep fighting for coffee production.”
Looking ahead, Fairtrade recognises that there is still much work to be done. The world in 2024 is much more insecure than it was in the mid-1990s. Climate change and unseasonal weather events, for example, threaten coffee farmers’ crops and their livelihoods.
Jaime Alberto García Flórez, a coffee farmer from Red Ecolsierra cooperative in Colombia, is one of many coffee farmers worried about the future of coffee.
“We live from coffee. We fight for coffee so that we can have this tradition in the future for our children… we are in danger because of climate change. It’s really here. The temperature is too high so we have had to replace coffee with cocoa and plant trees between our remaining coffee bushes to give them shade. We are the first generation to feel the change and the last generation to be able to change it.”
On top of climate change, unfair trade practices further exacerbate poverty and inequality in agricultural communities. And supply chain disruption - caused by geopolitical events, conflicts and pandemics - continues to expose the fragility of our food systems.
To tackle these huge challenges, Fairtrade must now push forward on fair prices and increase the pace of change. We call on businesses to grow their Fairtrade sourcing commitments, work with us on innovative new approaches (such as our new impact-led sourcing model Shared ImPact), and advocate with us to ensure legislation allows responsible businesses to thrive. Together, with producers, we can shape a more sustainable and equitable world for future generations.
Photo credit: Zamira Ramirez, photo of Jaime Alberto García Flórez.
Direct Worker Reporting Pilot in Honduras
In 2023, we worked closely with &Wider and Rainforest Alliance on a programme carried out with two cooperatives in Honduras. &Wider are experts in collecting anonymous data directly from workers and have proven their methodology in various supply chains across the world. We wanted to take the opportunity to harness their approach to hear from farm workers on smallholder farms. These labourers are often invisible in coffee supply chains because we tend to focus on the smallholder farm owner, and there are practical challenges to overcome because they may be only employed seasonally for harvesting coffee or could travel to and from the area specifically to find work.
Through anonymous surveys, questions were asked about working conditions on farms, addressing high risk elements of coffee farming, including child labour and modern slavery. Data was collected about working conditions in two different seasons of farming and then compared. Due to the locations of farms, it was expected to be difficult to attract engagement, but we received a good response rate and overall, we were encouraged that this type of tool could help us, and the cooperatives that we source from, understand more about who is employed by the smallholder farmers. For example, at both cooperatives the responses demonstrated that migrant workers were not commonly employed. Furthermore, even though the cooperatives are located near to one-another, there were some distinct differences in the demographic of the farm workers who responded to the surveys. One group seemed to rely more on employing extended family members and the other group had a higher proportion of workers who were female.
The trial proved very valuable for hearing from these types of workers for the first time, and we would be keen to employ this methodology again where we feel we need more information to increase the visibility of specific human rights risks in our supply chain.
We’re very grateful to the Cooperativa Agricola Cafetalera San Antonio Limitada Cooperativa and Cafetalera Capucas Limitada cooperatives for allowing ourselves, Rainforest Alliance and &Wider the opportunity to pilot the technology and learn from the partnership.
Emerging Leaders Training in the M&S Supply Chain
Our customer, Marks & Spencer, launched their “Cup of Ambition” programme in 2023 to reinvest 1p for every tea and coffee sold in their café back into empowering growers in their tea and coffee supply chains. M&S have a longstanding partnership with the organisation Emerging Leaders and wanted to use some of the Cup of Ambition funds to bring the Emerging Leaders training model to coffee farmers in their supply chain. Emerging Leaders aims to deliver training to change mindsets, equipping growers to lead their businesses and their family finances so that they can achieve more sustainable livelihoods. In 2023 Emerging Leaders kicked off their engagement by training 250 farmers, including 158 women, in three cooperatives in northern Peru – APROCOYCE, APRYSA and Cooperativa Agraria Frontera San Ignacio.
Through the workshops at APRYSA, farmers have learnt how to increase their incomes by growing additional crops, such as maize and cassava, and are able to save and reinvest this money, both to grow their businesses, and to keep their children in education. With the recent challenges, including the increasing price of growing coffee and labour shortages affecting many coffee smallholders, learning how to launch and manage additional income streams is essential.
At Frontera San Ignacio, farmers have expanded their farms, raising animals, running shops and creating new businesses. Yaneli Santur, who manages a farm at an altitude of 1200 metres has started a gas cylinder distribution business in addition to her farm, providing additional income to fund her children’s education. Teaching financial management also enables farmers to care for their environment, for example facilitating bee-keeping which improves pollination and biodiversity. Valeriano López, a member of the APROCOYCE Cooperative from the Río de Pesca village in Limabambahas started a reforestation initiative, planting over a thousand trees along the farm perimeter and riverbanks, safeguarding water sources and reclaiming deforested areas.
This programme has shown great successes so far, enabling farmers to manage their farms more efficiently, and increasing their incomes. In 2025, M&S plan to expand this training with Emerging Leaders to other countries and cooperatives where they source their coffee from, as well as funding additional partners to expand Cup of Ambition’s impact.
Photo of Yaneli Santur
“At M&S, we want to ensure that our coffee and tea not only tastes good, but does good. In May 2023, M&S launched our “Cup of Ambition” fund. For every cup of tea or coffee sold across our UK cafés, we donate 1p to a programme that empowers smallholder tea and coffee growers in our café supply chains, including cooperatives where Matthew Algie has had long-term sourcing partnerships such as ASCARIVE in Brazil. M&S and Mathew Algie visited ASCARIVE in October 2024 and heard directly from some of the programme beneficiaries and saw some of the income diversification projects smallholders had set up. Since launching Cup of Ambition in May 2023, M&S’s delivery partner Emerging Leaders has delivered mindset and financial literacy trainings for 1000 coffee and tea growers across Kenya, Rwanda, Malawi, Peru and Brazil. We have expanded the programme this year to include more delivery partners and drive further impact in Peru and Ethiopia, two key coffee origins for M&S and Matthew Algie.”
Hannah Radvan, Human Rights Manager for M&S Food