The Farmer Thriving Index — a holistic, standardized way of understanding farmer
wellbeing that is grounded in farmer voice — set out to answer a simple
question: Are farmers in coffee supply chains thriving, or barely surviving?
Despite the rising demand for coffee globally, nearly half of all
coffee-growing households still live below the poverty
line.
Some research estimates that proportion to be as high as 80 percent. More than
half the world’s coffee is grown on small family farms by 12 million smallholder
producers who rely on coffee for their livelihood. These farmers and their crops are vulnerable
to the changing
climate
— with models predicting that land suitable for coffee cultivation could be cut
in half by 2050 — and to fluctuating global coffee
prices.
Leading coffee brands collectively invest millions of dollars in programs and
certifications aimed at improving the lives of these farmers. For the conscious
consumer, this abundance of schemes can be overwhelming — grocery store shelves
are lined with bags of coffee featuring certification logos, photos of farmers,
and claims of social
responsibility.
Despite this surge in concern for farmer wellbeing across these programs and
certifications, the farmers’ own perspective on their wellbeing is rarely
incorporated.
In 2023, 60 Decibels — a leading social-performance
measurement company — set out to test if a standardized measure of farmer
wellbeing could increase supply chain transparency and help companies remain
accountable to the farmers they work with. In partnership with the Small
Foundation and coffee roasters including Counter
Culture and Thanksgiving
Coffee, 60 Decibels launched the Farmer
Thriving Index — a
holistic, clear, standardized way of understanding farmer wellbeing that is
grounded in farmer voice. We set out to answer a simple question: Are farmers in
coffee supply chains thriving, or barely surviving?
We conducted 15-minute phone interviews with more than 3,000 farmers in
Uganda and Rwanda — asking farmers about their food security,
resilience, living standards and outlook on coffee farming — and recently
published a report summarizing the results. Here are a few things that stood
out:
Profitability is not a given for all coffee producers.
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More than a third of Ugandan coffee farmers say that they did not earn a profit
last year, with 21 percent saying they made a loss in their farming. Growers are
vulnerable to market fluctuations and climate conditions, which makes harvest
seasons unpredictable.
Half of the coffee farmers surveyed are vulnerable to financial shocks.
46 percent of Ugandan farmers report not saving at all in the last 12 months,
and 22 percent saved sporadically, or once every few months. When asked about
how easy or difficult it would be for them to access funds in an emergency, a
similar proportion of farmers said it would be challenging.
Access to critical services is low.
Only 19 percent of the Uganda coffee farmers we spoke to have reliable access to
agricultural extension which promotes adoption of resilient agronomic practices.
Yet, farmers aren’t giving up on coffee.
Nearly all farmers surveyed expect to produce coffee for at least the next 5-10
years. To assess how farmers perceive the longevity of their livelihoods, we
asked whether they would like their children to grow coffee as adults. 81
percent of farmers strongly agreed; 73 percent of growers plan on increasing
their investment in coffee for the upcoming seasons primarily by expanding their
land or adopting better practices or inputs.
More than half of coffee producers are food secure.
Overall, 57 percent of
Ugandan coffee farmers are classified to be experiencing ‘minimal’ food
insecurity, as per IPC definitions.
Coffee processing adds value for farmers.
55 percent of Ugandan farmers
report selling most of their coffee as parchment while the remaining sold
most of their harvest as raw cherries. Selling coffee processed as parchment is
correlated with farmers receiving better prices and reporting profitability.
These outcomes have a downstream relationship with farmers’ financial
resilience: parchment sellers are more likely to be saving regularly and can
afford emergencies easily, compared to their peers selling raw cherries. Their
households are also more food secure.
Participating cooperatives are enabling farmer wellbeing.
Farmers associated
with the four Uganda cooperatives that participated in the study are
significantly more likely to report reliable access to at least one essential
service, compared to the average Ugandan farmer (80 percent vs. 51 percent).
Expectedly, agricultural extension access is much more prevalent among
cooperative farmers: nearly all of them report adopting at least one resilient
agronomic practice — with high adoption of intercropping, composting and water
conservation. They are also more likely to report receiving good prices, earning
a profit, saving regularly and affording emergencies with ease.
Coffee producers — much like cups of coffee — vary widely. Even within Uganda,
altitudes, microclimates, varieties and access to services change the lived
experience of growing coffee. With that in mind, the only universal
recommendation we can offer to improve farmer wellbeing is this: Listen to
farmers directly. They know if they are thriving or barely surviving, and they
know what they need.
That being said, we did learn a few things that, once contextualized, offer
practical guidance on how to further support farmer wellbeing. These insights
align with conventional wisdom in smallholder farming systems — but hearing them
directly from farmers reflecting on their own wellbeing should underscore their
importance:
-
Expand training and advisory. Across Uganda, access to extension and
information services is low. This is a critical service that contributes to
productivity and resilience across crops and contexts.
-
Support coffee processing. Processing is called 'value addition' for a
reason! While we cannot directly attribute wellbeing to processing, we did
find that farmers selling coffee as parchment are generally better off.
Processing typically requires equipment or infrastructure, like a washing
station, that may be shared among a group of farmers.
This initiative was a pilot, to test the concept and demonstrate the power of
standardized measurement grounded in farmer voice. 60 Decibels is now exploring
opportunities to scale up the Farmer Thriving Index with additional coffee
companies, and in other smallholder-led supply chains.
Published Aug 20, 2024 8am EDT / 5am PDT / 1pm BST / 2pm CEST
Ellie Turner is Head of Agriculture at 60 Decibels — a global, tech-enabled impact-measurement company that brings speed and scalability to social-impact measurement and customer insights.
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