BACKGROUND SMALLHOLDER COFFEE FARMERS As previously highlighted, nearly all coffee supply chains begin in the Global South, where the “coffee belt” running between the Tropics of Cancer and Capricorn produces the ideal tropical conditions for coffee production. The top five coffee-producing nations—Brazil, Vietnam, Colombia, Indonesia, and Ethiopia (in order of metric tons per year)—span three different continents. Smallholder farmers produce an overwhelming majority (70-80%) of the world’s coffee. “Smallholder” refers to farmers who cultivate a relatively small volume of export commodities on relatively small plots of land (usually categorized as under 2 hectares), which they may or may not own. They are less well-resourced than commercial-scale farmers, and usually work within the informal economy as they often lack licenses and regulatory support. While the conditions smallholder coffee farmers face vary by country, region, and farm, they are almost always the most vulnerable link in supply chains. Exploitation of smallholder farmers in the coffee industry has received global attention. Issues such as indentured slavery and child labor are only the tip of the iceberg. Smallholder coffee farmers generally receive about 7-10% of the wealth generated by the product they produce. Most of the wealth and power accumulates at the top end of the supply chain, with roasters taking almost 80% of the wholesale coffee price. Traditional coffee supply chains are notoriously long and complex—as many as 20 middlemen and six months stand between bean and brew. As such, one of the biggest challenges facing smallholder coffee farmers is their lack of direct access to export markets. The lack of market access forces farmers to rely on a string of middlemen to get their green, unroasted beans to the market. 3

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