The economic realities of the ongoing coronavirus pandemic are expected to continue threatening coffee producers’ livelihoods around the world.
That’s the conclusion of a recent survey conducted by the International Coffee Organization. The June study, released as part of the ICO’s Coffee Break Series, asked national coffee-exporting organizations how the Covid-19 virus is likely to affect each country’s coffee industry. Sixteen nations, representing 85% of all coffee produced, responded.
While the outlook for the next year remains cloudy, the survey analysis concludes many countries already are experiencing strong negatives and there’s little expectation of improvement. Farmers’ livelihoods are at risk for a variety of reasons. The costs of producing coffee and managing farms, for example, are increasing while revenues are down. Travel restrictions in place to control possible spread of the virus also affect farms because migrant workers are not able to arrive and provide needed labor.
And, reduced consumer income and social distancing have forced down domestic coffee consumption.
On the export side, supply chain infrastructure and logistics have been disrupted by lockdowns, social distancing and other safety precautions. Some sales contracts have been canceled while others were changed.
In search of relief, the study said, representatives from exporting countries look for coffee buyers to help in order to “minimize the socio-economic impact on farmers and their families. More long-term contracts could increase resilience and sustainability of the coffee sector in the future.”
“The long-term impacts of the Covid-19 crisis on the economic, social and environmental sustainability of the coffee sector need to be closely monitored and national, regional and international support and resourced mobilized quickly,” it said.