The Importance of Buying Coffee From Smallholder Mexican Producers

Elia Chavez, collecting cherry to be included in the community lots of Cafe El Zapoteco, Oaxaca

Although Mexico is ranked 64th globally in GDP per capita, the coffee-producing states in southern Mexico face a very different economic reality. Oaxaca and Chiapas are the two poorest states in Mexico, with poverty rates of 60-80% and extreme poverty rates of 20-40%.

The vast majority of Mexico’s 500,000 coffee producers are smallholder farmers growing coffee on one hectare or less. The average annual production for many producers is just 100kg.

Average kg comparison yield / Ha between Mexico and Colombia

A perfect storm of imperfect events

Alongside low yields, coffee production over the last ten years has plummeted

It is important to understand that this ten year drop is part of a much longer timeline of circumstances that created it.

The International Coffee Agreement was abandoned, which secured prices for coffees internationally.

1989

Saw the crash of the once booming Mexican coffee industry. And with it, the eradication of funds, training, and support for those in the countryside. It was at this time that coffee prices hit an unfathomable price, 1 peso/kg. This is equivalent to $0.10 USD/kg today. Many farms are abandoned, and a generation loses access to the knowledge and practice of tending to coffee as a crop.

2000

Roya hits, and decimates already dwindling yields once again

2012

As coffee farming becomes more and more unsustainable, this fuels widespread migration to urban centres in Mexico and the United States.

In short, coffee production here is disappearing. And without support, in 20 years, Oaxacan coffee may not exist in any meaningful way.

But hope is not lost

The specialty coffee market must incentivise coffee producing communities, to allow them to remain as part of the supply chain. Without which, the rest of our industry cannot exist. This is made possible through strong relationships, and just prices which are reflective of quality.

On the ground, we support initiatives such as demonstrative farms, composting initiatives, and knowledge share. These are key elements identified by the communities, to ensure coffee production has a future in these regions.

The situation for Mexican coffee producers is a huge, frustrating, and fascinating area of our work. If you have any questions get in touch.