Business
Coffee giants face EU pressure after report reveals farmer income gap
A new Coffee Barometer report has found that leading coffee companies have not publicly committed to ensuring farmers earn a living income. The findings come as European supply-chain regulations draw closer, increasing scrutiny of sourcing practices, farmer earnings and compliance risks across the global coffee industry.
Coffee sector under mounting pressure on eve of new EU supply-chain regulations as new report reveals world's largest coffee companies make no public promise that farmers are paid a living income.
The findings come from a new Coffee Barometer 2026 report, a study examining the sustainability commitments and purchasing policies of leading coffee traders and roasters. Those evaluated included Nestlé, Starbucks, JDE Peet's, Olam, Ecom, Louis Dreyfus Company and Volcafe.
None of the companies surveyed have yet made a public pledge to ensure a living income for coffee-growing households, according to the report, at a time when human rights within agricultural supply chains are under increasing regulatory pressure.
New rules shift focus away from sustainability targets
The report arrives as businesses begin preparing for the EU's Corporate Sustainability Due Diligence Directive (CSDDD), a law that will oblige larger companies operating in Europe to identify, prevent and mitigate adverse human rights and environmental impacts across their value chains.
For large multinational food, beverage and commodity corporations, the legislation is expected to place a particular focus on the purchasing practices, contracts and pricing strategies which impact farmer income.
The Coffee Barometer suggests that sustainability programs and certification schemes will not meet future regulatory demands if existing purchasing practices continue to leave producers below living income levels.
Smallholder farmers remain vital to global supply
The report estimates that around 12.5 million coffee-growing households supply the bulk of global coffee. The countries where these farming families predominantly live include Brazil, Vietnam, Colombia, Ethiopia, Honduras and Uganda-all of which are key global supply markets for the world.
The vast majority are smallholders farming under two hectares, with only coffee prices rising significantly in recent years due to weather and supply shocks, the report said, due to soaring costs and their limited bargaining power many farming families still struggle financially.
According to International Coffee Organization industry data, 178 million 60kg bags of coffee are projected to be produced across the globe during the 2025-26 season-reinforcing the dependency of global coffee supplies on these small-scale farmers.
Compliance risks take centre stageLiving income is already a quantifiable issue for supply chains, moving away from optional sustainability, the report stated.
With the implementation of EU due-diligence requirements looming, European, Australian and North American coffee companies that purchase coffee from developing countries could face increased scrutiny over how their purchasing practices impact the lives of producers in crucial coffee-growing regions.
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