How Coffee Farmwashing Exploits Farmers’ Stories and Livelihoods

Ana Sofia Alvarado
4 min readNov 28, 2024

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Companies that fail to collaborate with coffee producers still profit by cultivating brand loyalty through the use of farmers’ stories, often positioning themselves as champions of authenticity while reaping the financial rewards. This mirrors the plight of coffee farmers in the farmwashing debate, where producers are hesitant to speak out against deceptive practices for fear of being delisted by buyers.

This issue is exacerbated by the absence of global standards for handling farmers’ intellectual property and identities, leaving producers vulnerable to exploitation.

Despite the specialty coffee sector’s ethical image, farmwashing tactics persist. Misusing farmers’ photos, misrepresenting sourcing practices, and over-romanticizing relationships with growers are frequent criticisms from both industry insiders and consumers who are increasingly demanding transparency and accountability.

Too many coffee producers, especially smallholders, are already vulnerable due to factors like volatile market prices, climate change, rising production costs, and limited bargaining power. The risks are exacerbated by practices that undermine their ability to earn fair compensation, such as misrepresentation of product origins or unfair supply chain dynamics.

Reports suggest that regions like Central America could lose 38–89% of their land suitable for coffee farming due to climate change, directly impacting farmers’ livelihoods.

Meanwhile, farmwashing practices make it harder for smallholders to gain transparency and fair prices, further increasing financial pressures. This combination of factors puts a significant number of coffee farmers at risk, especially in countries reliant on smallholder production​.

Consumers demand authenticity, honesty, and meaningful actions from brands rather than hollow marketing slogans. This movement highlights the growing expectation that companies uphold their commitments to transparency and ethical practices in the supply chain.

Additionally, it underscores a critical point: when farmers and consumers come together, they possess the power to challenge and hold major brands accountable.

Whether through advocating for fairer practices, pushing for greater transparency, or influencing buying decisions, this united front can drive real change in how coffee is marketed and sourced. By aligning their voices and choices, farmers and consumers can reshape the industry toward greater integrity and fairness.

To mitigate these challenges, solutions like cooperative models, direct trade relationships, and transparency technologies (e.g., blockchain) are being advocated.

In an environment where ethical claims are key to building trust, brands must ensure their stories are authentic — not just to uphold their credibility, but also to truly support the farmers whose narratives they use to connect with consumers.

In Central America, around 70–80% of coffee production is managed by small-scale farmers, who are often at the highest risk due to fluctuating market prices, limited resources, and exploitation by intermediaries.

For example, in Honduras and neighboring countries, many coffee farmers already operate on very slim margins. A 2018 price drop left coffee prices 30% below production costs, pushing a substantial number of farmers into poverty. Coupled with challenges like misleading marketing practices (e.g., farmwashing) that further erode fair pricing, these issues threaten their livelihoods​.

For context, globally, coffee producers often receive only a fraction of the retail price — highlighting systemic inequities in the value chain. These pressures could force numerous smallholders to abandon coffee farming altogether unless transparency and fair trade practices improve.

Embracing transparency and ethical marketing practices is becoming crucial for the coffee industry as regulatory pressures and consumer expectations increase. Initiatives like the EU’s Supply Chain Due Diligence Law and Deforestation Regulation (EUDR) are pushing companies toward more traceable supply chains, fostering accountability and fairness.

Blockchain and transparency tools can significantly reduce farmwashing by creating trust, accountability, and traceability in supply chains.

Farmer Empowerment

Blockchain provides farmers with a direct platform to authenticate their role in the supply chain. This can help protect their intellectual property, ensuring their stories and contributions are fairly represented and compensated.

  • Farmers can create a digital identity tied to their product, ensuring that any claims made using their name or farm are accurate and authorized.
Costa Rican Coffee Farmer — World Bank Image

Farmers can protect their stories by forming strong alliances with companies that respect their origins and using digital tools like blockchain for traceability.

Transparency builds consumer confidence. Knowing that a product’s claims are verifiable through blockchain can restore trust in brands, fostering loyalty among increasingly skeptical consumers. Additionally, transparent supply chains encourage companies to form genuine alliances with ethical farmers. This reduces exploitation, ensures fair trade, and promotes long-term sustainability.

Let’s hope for greater support not just from stakeholders within the coffee industry but from everyone who enjoys and values their daily cup of coffee.

Meaningful change begins with individual actions and awareness, inspiring collective progress.

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Ana Sofia Alvarado
Ana Sofia Alvarado

Written by Ana Sofia Alvarado

Focusing on thematic investing | Sharing my thoughts on #bitcoin, #investing, #coffee, and #trading.

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