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Last week, 14 of the largest coffee traders, roasters, and retailers announced they would adopt a new, more collaborative approach to coffee buying. Based on two key principles—forming ongoing partnerships and sustainable coffee buying—the goal is to encourage longer-term, more equitable sourcing practices across the supply chain.
Led by the Global Coffee Platform (GCP), IDH, and Solidaridad, the agreement stems from a nine-month collaboration process based on the findings from a 2024 report entitled The Grounds for Sharing.
That report found value within the coffee industry is poorly distributed, and identified possible solutions: “Two key interventions are needed; sector commitments on sourcing practices that enable value redistribution, and supply chain partnerships that design and implement mechanisms for adding, creating, and transferring value,” IDH’s Tessa Meulensteen told Fresh Cup at the time.
The agreement builds upon these two suggested interventions, dividing them into what the groups call “strategic partnerships” and “sustainable coffee production.” The strategic partnerships principle encourages buyers to shift away from short-term buying practices and towards more lasting, trust-based relationships.
The sustainable coffee production angle prompts companies to focus on environmentally and economically sustainable practices through fair pricing, technical assistance, and access to finance for farmers.
“Ensuring the long-term economic viability of sustainable coffee farming, and overall farmer prosperity is essential for a resilient supply and a competitive coffee sector,” said GCP’s executive director Annette Pensel in a press release. “This requires shared responsibility and a more coordinated approach across the industry.”
The companies involved are Caravela, ECOM, Export Trading Company, Illycaffè, JDE Peet’s, Louis Dreyfus Company, Neumann Kaffee Gruppe, Ofi, Sucafina, Sucden Coffee, Taylors of Harrogate, Touton, UCC, and Volcafe.
Read more on the collaborative coffee sourcing principles from Daily Coffee News here.
Photo by Caelen Cockrum on Unsplash
