Coffee Prices Hit Record Highs But Farmers See None of the Gains
Belgian consumers are paying more than ever for their morning coffee, with prices reaching historic records on the world market. Arabica beans spiked to as high as $4.40 per 450 grams in 2025. Yet the farmers who grow the coffee — in countries like Ethiopia, Vietnam, and Brazil — are seeing almost none of that windfall.
According to De Morgen, the disconnect between what consumers pay and what producers earn has never been starker. Shareholders of major coffee roasters are reaping the rewards, while poverty and climate stress remain daily realities for millions of farming families.
The Broken Promise of High Prices
The 2026 Coffee Barometer, released on June 10 by the Solidaridad Network, exposes the structural flaws in the global coffee industry that prevent higher market prices from reaching producers. In eight out of ten major coffee-producing countries, the average farming household still does not earn enough to live decently.
“In 20 years the language has shifted: worrying less about hunger in the coffee lands, and more about the cost of a daily espresso,” said Sjoerd Panhuysen from Ethos Agriculture, lead author of the Coffee Barometer 2026.
The report argues that the historic price lows of the early 2000s and today’s record highs are “not separate crises, but two phases of the same story.” The structural conditions that undermine producers’ livelihoods — thin margins, rising input costs, and climate vulnerability — remain unresolved by the price spike.
Where the Money Goes
For a pack of regular ground coffee in the supermarket, the farmer receives only about 4% of the retail price. The disparity is even starker for coffee capsules: of every €28 in extra value a luxury capsule generates compared to ground coffee, the farmer sees just €0.36. The rest flows to branding, marketing, and shareholders of giants like Nestlé and Starbucks.
“Coffee farmers are price-takers: they often sell long before the market price peaks, frequently below their production costs. The profit mainly remains with traders, roasters, and retailers,” explained Susanne Boetekees, Director of Policy and Sustainable Sourcing at Fairtrade Netherlands, in an opinion piece for Trouw.
The Coffee Barometer reveals an even more uncomfortable truth: ten percent of the retail cost of a pack of coffee is effectively subsidized by farmers’ families through unpaid labor. Women perform up to 70% of the work on plantations but often have no land rights or access to credit.
The Rise of ‘Greenhushing’
As consumers become more conscious of sustainability, the report identifies a troubling counter-trend. Companies are increasingly practicing “greenhushing” — talking less about their sustainability goals to avoid criticism or legal action. They are replacing independent certifications like Fairtrade or Rainforest Alliance with their own, less transparent verification systems.
Of the fifteen largest coffee companies assessed, not a single one discloses its pricing structures, contract durations, or premiums paid above the commodity price, according to the Coffee Barometer 2026.
Multi-stakeholder initiatives designed to bring the sector together have proven largely toothless. The agenda is set by the parties with the money — roasters and Western donors — while the farmer’s voice remains marginal.
Climate Change Deepens the Crisis
The current price surge is primarily driven by climate-related disruptions. Extreme drought in Brazil, erratic weather in Colombia, and changing growing conditions in Ethiopia and Vietnam are reducing yields and quality. Yet the farmers most vulnerable to climate impacts are the least able to benefit from higher prices due to their position in the supply chain.
A Glimmer of Hope from Brussels
The only meaningful change may come from European regulation. New legislation — the EU Deforestation Regulation (EUDR) and the Corporate Sustainability Due Diligence Directive (CSDDD) — is forcing companies to take more responsibility for their supply chains. From 2029, the right to a living income for farmers will become a legal standard within the EU.
However, the Coffee Barometer warns that regulation alone is not enough. Without meaningful public disclosure of pricing structures and purchasing practices, there is no credible way to verify if corporate investments are genuinely improving conditions in producing communities.
What’s Next
The choice between sustainability and profitability is a false one — they are interdependent, the report concludes. Lasting transformation in the coffee sector will only be possible through a fundamental redesign of business and sourcing models across the industry.
For Belgian consumers, the question is whether higher prices at the checkout will translate into a fairer deal for the people who grow their coffee. As EU regulations take effect and awareness grows, the pressure is mounting on roasters and retailers to prove that sustainability is more than a marketing claim.