The aroma of freshly brewed coffee is a daily ritual for millions, but behind that comforting cup lies a harsh reality for many coffee farmers. Low incomes and economic instability threaten their livelihoods and the future of the coffee industry itself.
Last January 25, stakeholders from across the Philippine coffee sector gathered for the “Living and Prosperous Income” workshop, organized by the International Coffee Organization’s Coffee Public-Private Task Force (ICO/CPPTF) in partnership with the Philippine Coffee Board and the University of the Philippines School of Economics. The workshop’s primary goal was to explore the concept of “living income” within the Philippine coffee sector and determine pathways to achieve it.
Defining Living Income and Its Importance
“Living Income,” as defined by the Living Income Community of Practice, represents the net annual income required for a household in a specific location to afford a decent standard of living for all its members. This includes essential needs like food, water, housing, education, healthcare, transport, clothing, and provision for unexpected events.
Achieving a living income is not just about economic stability; it’s a fundamental human right, as enshrined in UN conventions. Low incomes and poverty contribute to a host of social and environmental challenges, from deforestation to immigration. Furthermore, ensuring farmers earn a decent living from their coffee is crucial for managing supply, mitigating risks, and guaranteeing the quality and quantity of coffee demanded by the market.
The Living Income and Living Wage 2024 Update Report for tobacco farmers in Ilocos Sur revealed that a family’s living expenses amount to PHP 26,210 but the gross living wage is only PHP 17,744, highlighting the urgency of this issue. Focusing on improving farmers’ incomes is essential for continuous improvement and long-term prosperity within the coffee sector.
The workshop and its key takeaways
The “Living and Prosperous Income” workshop held in UP Diliman brought together a diverse group of stakeholders, representing the entire coffee value chain, from farmers and academics to government officials, NGOs like the Asia Farmers Association, roasters, and café owners. This diverse participation underscored the collaborative nature of the challenge and the need for collective action.
The workshop’s core message resonated strongly: achieving a living income for coffee farmers requires a concerted effort from all involved—government, civil society, and the private sector. Participants recognized that shared responsibility is paramount. A key outcome of the workshop was the agreement to form a mini task force in the Philippines. This group will be dedicated to further defining the Prosperous Income level specific to the Philippine context, laying the groundwork for targeted interventions and strategies.
The workshop was facilitated by Mr. Christopher Wunderlich, Co-coordinator of the ICO/CPPTF’s Living and Prosperous Income and Director of Agrofuturo Global, whose expertise guided the discussions and helped participants navigate the complexities of the living income concept.
The ICO’s vision and approach
The International Coffee Organization’s Coffee Public-Private Task Force (ICO/CPPTF) is committed to ensuring a sustainable coffee sector for future generations of both producers and consumers. Its vision centers on creating farmer prosperity, supporting transparent markets, and building resilience and value at the origin.
Its approach to achieving this involves working at scale, engaging all key stakeholders, and identifying the specific drivers of income within the coffee sector. It also emphasizes the importance of shared responsibility throughout the value chain, ensuring that costs and risks are not disproportionately borne by farmers, a common and detrimental practice.
Opportunities and methodology
Adopting the Living Income concept presents numerous opportunities for the Philippine coffee sector. It can promote the economic and social value of Philippine coffee, support compliance with market regulations, raise awareness about the income needs of farming households, provide a clear goal for strategies and collective efforts, and inform strategies to improve incomes and economic resilience.
Doing this involves measuring income gaps, identifying existing support programs, analyzing income drivers, and assessing the impact of different income components (including price). Monitoring progress and creating marketing opportunities are also crucial. Working in groups, the participants identified income drivers and key stakeholders in the Philippine coffee sector, and ways to improve producers’ incomes and economic resilience of the sector.
The road to prosperous income
Achieving living incomes for coffee farmers is a complex but essential undertaking. It requires genuine collaboration and shared responsibility among the public and private sectors, as well as civil society, working across the entire coffee value chain. By working together, the Philippine coffee sector can create a future where farmers thrive and the industry flourishes.
