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Mexico is an important global producer
Coffee land
‘000 hectares, 2014
699
Production share
Global & region
11th largest producer in the world
1st in North America
Production
‘000 tons, 2014
215
Varieties
Arabica-Robusta
~95% Arabica
~5% Robusta
~40% of land is in need of R&R, ~7% of global need
‘000 hectares
Need is driven by the age of trees and exposure to disease (~15% of coffee land was affected by La Roya), and to a lesser extent by climate change.
+100%
Significant uplift potential given low current SHF yields.
~5-15%
Total national supply could increase ~5-15% if R&R and GAP is implemented on all SHF land in need of R&R 2
Notes:
(1) The current yield is calculated on the basis of SHF production divided by SHF land area, the potential yield uplift is based on an internal estimate based on other mixed countries and current yields.
(2) Rounded to the nearest 5%, estimate assumes that R&R and GAP increase yields with 86%, and the range reflects a 25 - 100% R&R success rate sources: FAO Statistics database; ICO statistics; Hector Manuel Robles Berlanga, Los Productores de Café en Mexico: Problematica y Ejercicion del Presupuesto, Mexican Rural Development Research Reports, 2011; AGARPA, Plan Integral de Atencion al Café (PIAC), 2015; FIRA, Panorama Agroalimentario, 2016; Dalberg interviews
Most SHFs are at the bottom of the pyramid
National production is split between large and medium farmers and SHFs.
More than 85% of farmers are SHFs, but they own less than 50% of the coffee growingareas. They are typically disconnected.
# SHFs
‘000
230
~2.5% of global SHF1
# SHF land
‘000 hectares
420
(~60% of national land) – farm size typically ~0.5 hectares
# SHF production
‘000 hectares
85
(~40% of national production)
Assessment of SHF orgs.
Coops usually have low capacity to provide TA - ~25% of SHFs are in a coop.
Links to market
A majority of SHFs are linked to the market through “coyotes”, lenders that charge extremely high interest rates.
Notes:
(1) Assuming a global SHF population of 20 million – estimates of farmers are high-level only and vary significantly. Sources: FAO Statistics database; ICO statistics; Hector Manuel Robles Berlanga, Los Productores de Café en Mexico: Problematica y Ejercicion del Presupuesto, Mexican Rural Development Research Reports, 2011; SAGARPA, Plan Integral de Atencion al Café (PIAC), 2015; FIRA, Panorama Agroalimentario, 2016; Dalberg interviews.
In Mexico, past R&R programs have focused on renovating areas affected by La Roya
SAGARPA - Integrated Program for Coffee, PIAC
(2015-2019)
R&R is one of the PIAC components. PIAC aims to develop certified nurseries to supply producers with quality disease-resistant plants, to renovate coffee plantations, and to provide maintenance and rehabilitation of existing crops.
Root Capital – Coffee Farmer Resilience Initiative
(since 2013)
Root Capital lent USD 1.1 million to farmer organizations in Mexico and trained them to deliver loans to their members.
Neumann Kaffee Gruppe – Por Mas Café
(since 2014)
NKG’s exporting company in Mexico partners with a local bank to provide loans for renovation to farmers in its supply chain.
There is a lot of work to be done to ensure the long-term supply of coffee from countries where the crop has long shaped the social and economic fabric. Learning to extend the life of their trees and improve yields helps farmers stabilize annual production and in turn, income, while the rest of the world benefits from a steady supply of quality coffee. Continue on to learn more about the immediate attention and action that is required to make this a reality.