Fairtrade International welcomes the Coffee Barometer 2026 report and its assessment of the structural challenges facing the global coffee sector.  

The 100-page report highlights the difficulties faced by smallholder farmers, including price volatility, rising production costs, and limited bargaining power, while noting that those who buy and sell coffee further along the supply chain make most of the decisions.      

Fairtrade understands the Coffee Barometer's critique of the coffee sector as a system that continues to generate systemic disadvantages for producers. We also agree that voluntary action alone will not deliver the scale of transformation needed.  

We support new regulations such as the EU Deforestation Regulation (EUDR), the Corporate Sustainability Due Diligence Directive (CSDDD), and the Empowering Consumers for the Green Transition Directive (EmpCo) that are helping to build a more equitable system by enforcing rules rather than relying on voluntary measures.  

At the same time, we believe these regulations create a baseline for responsibility, and Fairtrade is uniquely positioned to enable more equitable outcomes for smallholder farmers due to our Minimum Price and Premium, Living Income Reference Prices, as well as the responsible purchasing practices outlined in our Trader Standard, independent verification, and producer participation in the decision-making process. 

Voluntary approaches alone are not enough

The Coffee Barometer points out that voluntary sustainability schemes have fallen short of transforming global supply chains. We recognise that voluntary certifications alone cannot resolve the structural inequities of the coffee sector, particularly when participation is driven by market demand rather than sector-wide requirements. 

Fairtrade's own reach illustrates both the importance and limitations of voluntary approaches. For example, in 2024, Fairtrade worked with 522 coffee producer organisations representing about 679,000 smallholder households, about 5% of the estimated 12.5 million smallholder farmers globally, as mentioned in the report.  

Fairtrade coffee sales totalled 142,000 metric tonnes, representing about 2% of International Coffee Organization global coffee volumes. Fairtrade also represents 13% of the 4 million metric tonnes of certified production documented in the report.   

These figures demonstrate the uphill battle that smallholder producer organisations face vis-a-vis the proliferation of opaque, in-house "sustainability" schemes that the report investigates, and why Fairtrade pricing interventions are still needed in a non-regulated market. 

Fairtrade pricing interventions remain relevant

Fairtrade agrees with the Coffee Barometer's assessment that coffee prices remain cyclical, volatile, and shaped by structural market imbalances, and that recent price increases should not be mistaken for lasting progress as many producers continue to face economic challenges.  

However, Fairtrade remains unique among voluntary sustainability systems in its pricing interventions that are regularly updated based on producer cost-of-production data and transparent consultation processes.  

The Fairtrade package that includes the Fairtrade Minimum Price, a safety net that offers stability in an unpredictable market, the Fairtrade Premium, the extra sum of money paid on top of the selling price that farmers choose how to invest, and Organic Differential, which incentivises organic farming practices, provides important market safeguards and benefits for farmers.  

Results from this year’s coffee price consultation will be shared in July 2026.  

The report also highlights the links between pricing structures, payment terms, and human rights outcomes. Fairtrade's Living Income Reference Price methodology, identified by the report as one of only two published approaches, supports responsible purchasing practices built on long-term commitments, shared risk, and equitable commercial relationships. These transparent pricing interventions together support the ability for producers to make significant, long-term changes that can shift the system to more equitable outcomes. 

Credible sustainability claims require independent assurance

Fairtrade concurs with the Coffee Barometer that multi-stakeholder initiatives need to address the accountability and representation gaps, especially as more second-party schemes gain recognition as sustainable despite lacking robust independent assurance, transparency, and producer participation in governance. These schemes are not certified by an independent third party. 

And as governments and businesses adapt to new due diligence requirements, independent assurance and accountability is increasingly more important. 

The Coffee Barometer's concerns regarding opaque sustainability claims and proprietary verification systems underline the need for credible, transparent approaches. Fairtrade is not a company-owned sourcing programme. It combines publicly available standards, third-party certification, democratic producer ownership and representation, and transparent pricing and Premium mechanisms. 

Smallholder farmers must remain at the centre of implementation  

Fairtrade shares the Coffee Barometer's concerns about the unintended consequences of the new, expanding regulatory environment, particularly the risk that compliance costs are transferred to smallholder farmers. 

Fairtrade's coffee programme is rooted in strong producer organisations, producer led decision-making, and market inclusion. Beyond setting requirements, Fairtrade invests in programmes and trainings that support producer organisations with readiness.  

Through our partnership with nature tech firm Satelligence, producer organisations receive free deforestation risk reports based on farm geolocation data, while Fairtrade’s three Producer Networks in Asia, Africa, and Latin America and the Caribbean, support data collection and implementation.  

In addition, our new Plot Insights platform helps coffee (and cocoa) cooperatives manage, analyse, and securely share geolocation data in preparation for growing due diligence requirements such as EUDR. 

Fairtrade’s approach helps both producers and companies prepare for new regulatory requirements while ensuring producer consent, responsible data governance, and smallholder inclusion remain central. 

Looking ahead

The Coffee Barometer report makes it clear that incremental change is no longer enough, and that stronger regulation, greater accountability, and shared value and risk are essential to creating a more sustainable coffee sector, and we agree.  

As the coffee industry navigates a new era of mandatory due diligence, Fairtrade will work to improve the livelihoods and resilience of smallholder farmers through a combination of pricing interventions, living income partnerships, independent assurance, responsible purchasing practices, and on-the-ground support for producer organisations. 

Fairtrade believes that a coffee sector where smallholder farmers can earn sustainable livelihoods, participate in decision-making, and equitably share in the value they create is a goal that we must all work towards. 

                                                                                                  ### 

Notes:

The aggregated data presented in the report (Page 30, Figure 4A) does not reflect any notable change in demand/supply of Fairtrade International supply chains but reflects a change in reporting of non-Fairtrade system production and sales volumes. 

Second-party certification involves an assessment by a party with a vested interest, like a customer or industry association. 

Third-party certification is conducted by an independent, accredited body, providing the highest level of objectivity and trust. In sustainability, third-party schemes are preferred for consumer confidence and credibility in verifying claims. Fairtrade is a third-party certification.