7 Things We Learned From Farmers in the Coffee Supply Chain
In partnership with the Small Foundation, 60dB launched the Farmer Thriving Index – a way to hear directly from farmers in supply chains about their own wellbeing. The index is a standardised and holistic measure of farmer wellbeing, covering the themes of living standards, food security, resilience, and outlook on coffee farming.
Here are some things that stood out:
Profitability is not a given for all coffee producers
More than 1/3 of coffee growers in Uganda reported no profit for the previous year, with 21% experiencing financial losses. Growers are vulnerable to market fluctuations and climate conditions, which makes harvest seasons unpredictable. 22% described the prices they received this season as poor and 20% said the season was worse than an average year, which may have contributed to the low profitability.
Half of the coffee farmers surveyed are vulnerable to financial shocks
In the past year, 46% of Ugandan coffee farmers reported not saving any money, while 22% managed to save only occasionally. Many farmers indicated that obtaining emergency funds would be difficult. Farmers who rely on coffee for more than half their household income are more likely to save regularly and find it easy to afford emergencies. Owing to higher incomes in the region, Central Ugandan farmers can more easily access emergency funds than their peers in other regions.
Access to critical services is low
Only 19% of the Uganda coffee farmers we spoke to have reliable access to agricultural extension which promotes adoption of resilient agronomic practices. Although intercropping is prevalent among farmers (71%), less than half compost and less than a quarter of all farmers conserve water or use biological pest control. Extension coverage varies by region with 41% of farmers in Western Uganda reporting access. Access to other essential services is also low—insurance (2%), weather alerts or information (12%), and credit (11%)—and varies by region.
A third of households are food stressed
Overall, 57% of Ugandan coffee farmers are classified to be experiencing ‘minimal’ food insecurity as per the IPC’s definitions. 29% of farmers are classified as food ‘stressed’—more so among households who were surveyed during the growing season (when they were not harvesting). Food security is also slightly lower in the Northern region.
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% of farmers strongly agreed. 73% of growers plan on increasing their investment in coffee for the upcoming seasons primarily by expanding their land or adopting better practices or inputs.
Coffee processing adds value for farmers
55% 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.
The 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% vs. 51%). Expectedly, agricultural extension access is much more prevalent among cooperative farmers: nearly all of them report adopting at least one resilient agronomic practice, with a high adoption rate 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.
These insights come from conversations with farmers 60 Decibels engaged with in one of two ways:
Uganda National Survey: In October 2023, we worked with a Ugandan partner to identify coffee farmers to participate in the survey. Farmers were selected at random from coffee producing districts across Uganda. Farmers in the national survey are not associated with any one cooperative or buyer. Our goal in speaking with these farmers was to gain an understanding of the ‘typical’ Ugandan coffee producer and establish a benchmark for their wellbeing.
Cooperative Surveys: Four Ugandan cooperatives participated in the Farmer Thriving Index. For each, we spoke with a random subsample of members from the contacts shared by the co-ops. Four Rwandan cooperatives also participated.