Is Africa’s coffee industry in decline?

The African coffee industry is currently facing a crisis as reports emerge of Kenyan coffee farmers being paid significantly less for their crop than they were 35 years ago. In an interview with coffee activist and founder of Cafe for Change, Fernando Morales de la Cruz, the dire situation was laid bare. According to Cruz, Africa's coffee production has plummeted over the years, with the continent now accounting for less than half of the global coffee output, down from 23% in the past. The most alarming statistic presented by Cruz is the fact that African coffee farmers are now receiving 75% less for their produce than they did over three decades ago. This trend is not only economically unsustainable but also morally reprehensible as farmers and farm workers rely on these earnings for their livelihoods, while the industry rakes in billions in profits. Cruz pointed out that multinational companies such as Nestle, Job Holdings, La Vazza, Starbucks, and McDonald's are major players in the coffee market and are reaping huge profits at the expense of the farmers. He highlighted that these companies, particularly those based in Switzerland, where 70% of coffee trading takes place, are collectively saving $28 billion, a stark contrast to the meager earnings received by the farmers. The disparity in income between the coffee corporations and the farmers is stark, with less than two cents from a cup of coffee in Brussels reaching the hands of the farmers today, compared to four times that amount 36 years ago. The impact of this exploitative pricing is evident in countries like Kenya, where some coffee farmers are considering abandoning their crops due to the low prices which make it economically unviable to sustain coffee farming. The implications of this crisis are far-reaching, not only affecting the livelihoods of farmers but also stunting the economic growth of rural communities. This alarming situation calls for immediate intervention from governments and regulatory bodies to protect the interests of coffee farmers. Cruz emphasized the need for African nations, along with other coffee-producing countries like Brazil, Colombia, and Mexico, to come together and take a stand against the exploitation by multinational corporations. He highlighted the legal rights of nations to form alliances similar to OPEC to regulate and stabilize coffee prices for the benefit of farmers. Cruz called for a policy change that would ensure fair compensation for coffee farmers and prevent the continued subsidization of multinational corporations at the expense of the hardworking farmers. Additionally, he criticized the European Union for prioritizing cost savings in coffee purchases over the welfare of farmers, noting that the savings made by the EU translate to billions of dollars withheld from rural communities in coffee-producing countries. The lack of equitable compensation for coffee farmers not only perpetuates poverty but also hinders the development of infrastructure and essential services in these regions. In conclusion, Cruz underscored the urgency for systemic change in the coffee industry that prioritizes the welfare of farmers and ensures a sustainable future for the African coffee sector. The plight of coffee farmers in Africa is a wake-up call for stakeholders across the industry to address the glaring disparities and work towards a fair and equitable trade system that benefits all parties involved.