As the coffee industry deepens its interest in digital payments, it is important to monitor the lived experiences of coffee farmers and the impact of this digitization on their lives and livelihoods. Through these insights rooted in farmer voices, we hope to help the stakeholders in the coffee value chain better appreciate if and how digital payments and deeper financial engagement can support realizing their goals; motivating them to engage in responsible digital payments across their supply chain more actively.
Sucafina Uganda (UGACOF) is a leading coffee buyer and food processor, working with over 8,000 farmers, with a focus on agricultural extension and improving processing infrastructure. Over the past two years, Sucafina has enabled digital payments for all coffee producers through mobile money. 60 Decibels conducted phone surveys with 500 Arabica coffee farmers receiving digital payments from Sucafina – here’s what we found.
Farmers have typically been using mobile money for the past 8 years, with nearly all saying they had access to a mobile money account prior to Sucafina. All farmers used mobile money to make or receive payments in the last 30 days.
On average, farmers receive payments for their coffee a day later than anticipated. However, 89% of farmers expect to be paid within one day or at the point-of-sale. They typically wait 3 minutes to withdraw their payment.
Of those who incurred a cost during withdrawal, 70% talk about deductions on their income. This is typically 1% of the total payment value.
Nearly 4 in 5 farmers say their most recent payment experience with Sucafina was good. Based on this experience, more than 9 in 10 farmers are ‘very likely’ to continue selling their produce and recommend Sucafina to others.
