How COVID-19 is impacting East Africa’s coffee producers

Coffee importers around the world are facing challenges due to the disruptions caused by the COVID-19 pandemic. The founder of Cafe4Change, Fernando Morales de la Cruz, shared insights on how the crisis is affecting coffee producers in East Africa and other regions. The current coffee prices are significantly low, with farmers receiving less than $1.20 per pound, which is a third of the price set in the International Coffee Agreement of 1983. This situation has led to African, Latin American, and Asian coffee producers subsidizing the profits of their trading partners in developed countries, resulting in inadequate earnings for the farmers. In addition to the existing price woes, the coronavirus crisis has further exacerbated the situation. With major economies like Europe and the United States under lockdown, the demand for products like coffee and cocoa has declined, leading to even lower prices. This imbalance in trade has caused substantial losses for the cocoa farmers in Africa, amounting to approximately $18 billion annually if cocoa prices were adjusted to fair levels. Fernando Morales highlighted the urgent need for African governments to unite and negotiate collectively with trade partners to secure better prices for their products. He emphasized that Africa, being a significant player in the cocoa and coffee market, has the potential to demand fair compensation for its goods. By forming alliances and setting fair prices, African nations can reverse the trend of exploitation and ensure a more equitable trading system. Morales also emphasized the importance of leveraging the current crisis as an opportunity for coffee-producing nations worldwide. As developed countries face economic downturns and rising unemployment rates, African countries have the chance to renegotiate trade terms and advocate for fair trade practices. He called upon political and business leaders in Africa to seize this moment to address the longstanding issue of underpaid farmers and work towards achieving the sustainable development goals. The interview also shed light on the anticipated coffee production in Brazil, which is the largest coffee producer globally. Despite projections of a record-breaking harvest, Fernando Morales cautioned that the actual production may fall short due to existing deficits. He urged stakeholders in the coffee industry to acknowledge the challenges faced by farmers and work towards ensuring a fair and sustainable future for coffee producers globally. In conclusion, the COVID-19 crisis has exposed the vulnerabilities of the coffee industry, particularly impacting farmers in East Africa and other regions. The call for fair trade practices and equitable pricing remains crucial in supporting the livelihoods of coffee producers and fostering sustainable development in the industry.