
Cooperatives are a catalyst for economic democracy and social development. Women from the Maraba Coffee Cooperative in Bulare, Rwanda, bring their coffee cherries to be washed and processed at the co-op’s communal washing station. Photo Credit: Rainforest Alliance
Cooperatives are among humanity’s most fascinating experiments in economic democracy and social development. Unlike conventional enterprises, cooperatives are organizations dedicated to solving common needs and improving the quality of life for their members. The International Cooperative Alliance defines them as “democratic and people-centred enterprises owned, controlled, and run by and for their members to realize their common economic, social, and cultural needs and aspirations.”
2025 is the United Nations International Year of Cooperatives, spotlighting the transformative potential of cooperatives in fostering sustainable economic development, social cohesion, and environmental stewardship. Cooperatives have long played a critical role in the coffee and tea industries by empowering smallholder farmers, strengthening communities, and contributing to more equitable and resilient supply chains.
The Global Significance of Cooperatives
The cooperative model, grounded in democratic decision-making and equitable resource distribution, has proven adaptable across diverse sectors and geographies. From agriculture to finance and energy—and now consumers—cooperatives collectively support 10% of the employed population and at least 12% of humanity who are members of any of the 3 million cooperatives around the world, according to the International Cooperative Alliance (ICA). The UN's designation of 2025 as the International Year of Cooperatives underscores their importance in promoting inclusive growth and achieving the Sustainable Development Goals (SDGs).
Empowering Smallholder Farmers in Coffee and Tea Production
As cooperatives support broad, global economic growth, their impact is most deeply felt in sectors like agriculture, where smallholder farmers benefit from the empowerment and opportunities these organizations provide. The coffee and tea industries, dominated by smallholder farmers in terms of population and market share, provide fertile ground for cooperative development. Cooperatives help farmers access technical assistance, economies of scale, international markets, and negotiate better prices for both products and inputs.
As Alexandre Monteiro, the ESG Manager of Cooxupé Cooperative in Brazil, one of the top green coffee-exporting organizations in the world, representing 18,000 coffee producers (82.6% of whom are smallholder producers), states in a case study for SGS: "The cooperativism that we believe in is a sustainable model because we are not B2B (business-to-business), nor B2C (business-to-consumer). We are P2P (people-to-people). We are a people organization that came together to solve common problems for families that farm coffee. Our Gerações program was created to improve the lives of coffee growers and the communities where they live."
In Kenya, the Kenya Tea Development Agency (KTDA), a company owned by about 650,000 farmers spread across 17 tea-growing counties, directly employs over 10,000 individuals in the smallholder sector. Additionally, KTDA benefits almost four million people indirectly across the value supply chain. KTDA is committed to advancing several SDGs by enhancing farmers' incomes through fair markets, financial services, and training while promoting sustainable and inclusive economic growth and adopting climate action. Since its formation, KTDA has helped increase farmer incomes by an average of 30% while also reducing deforestation in tea-growing regions by implementing sustainable farming practices such as agroforestry.
Building Social and Community Resilience
Beyond economic empowerment, cooperatives foster community development and social cohesion. They often reinvest profits into educational programs, healthcare services, and infrastructure projects that benefit entire communities. Cooperatives in the coffee and tea sectors have also been instrumental in advancing democracy and gender equality by promoting women's leadership and participation in decision-making.
Juan Valdez Women’s Programs exemplify how cooperatives in the coffee sector contribute to social and community resilience. These initiatives, led by Procafecol—a joint venture between the National Coffee Growers Federation and minority coffee growers shareholders—focus on empowering women through leadership training, financial education, and support for entrepreneurial ventures. By fostering women’s active participation in decision-making processes and coffee production, the programs promote gender equality and strengthen local economies.
Furthermore, reinvesting in educational and social projects ensures broader community development, reinforcing social cohesion and creating sustainable opportunities for women and their families in coffee-growing regions.
Driving Sustainability and Climate Adaptation
The coffee and tea industries are highly vulnerable to the impacts of climate change, including unpredictable weather patterns and soil degradation. Cooperatives have proven effective vehicles for adopting and disseminating sustainable farming practices.
The Sukambizi Association Trust (SAT) in Malawi, a Fairtrade-certified organization, exemplifies how tea cooperatives can drive sustainability and climate adaptation. Established in 2000, SAT comprises around 12,000 smallholder tea farmers, with 68% women participation, in the Mount Mulanje area. The cooperative promotes environmental sustainability by planting drought-resistant tea clones and indigenous trees to provide shade and establish woodlots. These practices enhance resilience to climate change and contribute to sustainable tea production.
Celebrating Cooperatives as Catalysts for Change
As we celebrate the International Year of Cooperatives in 2025, the coffee and tea industries stand out as powerful examples of how collective action can drive meaningful change. These cooperatives are not just businesses—they are engines of economic empowerment, social upliftment, and environmental care. Working together creates opportunities for farmers to thrive, strengthen communities, and protect the planet. The International Year of Cooperatives in 2025 presents an opportunity to reflect on how far cooperatives have come and how much more can be achieved. With continued investment and collective action, cooperatives can drive a more inclusive, sustainable, and equitable global economy. Cooperatives truly capture the essence of cooperation, offering a hopeful vision for a more inclusive, fair, and sustainable future for all.