A study using real coffee transaction data reveals that specialty coffee markets have less equitable revenue distribution than mainstream coffee markets. While specialty coffee is seen as a safer haven for producers, the expected sharing of value added from quality improvements is not happening. The research shows that the rise in retail specialty coffee prices has not resulted in improved value capture for producers. The overall distribution of prices between farmgate, FOB, and retail has remained constant, with 23.5% FOB share of retail prices noted from 2015-2019.
The findings indicate that specialty coffee segments are characterized by less equitable revenue distribution than what we see in mainstream coffee markets.
Improvements that lead to elevated consumer valuations and higher retail prices are supposed to be shared among chain actors based on their respective contributions.
The rising tide of retail specialty coffee prices is not (yet) lifting all boats, as the distribution between farmgate, FOB, and retail prices has remained relatively constant.
The 2015-2019 FOB share of retail prices was 23.5%, indicating that the overall value distribution has not significantly improved for coffee producers.
Collection
[
|
...
]