Africa’s coffee, cocoa and tea farmers face growing risks as prices swing

Africa’s coffee, cocoa and tea farmers face growing risks as prices swing

Behind volatile global prices for coffee, cocoa and tea are millions of smallholder farmers whose livelihoods depend on these crops. The FAO warns that climate shocks, diseases and market instability are putting pressure on producers, especially in African countries where these commodities are vital sources of income.

Global price fluctuations for coffee, cocoa and tea are creating growing uncertainty for millions of small-scale farmers, with producers often facing the greatest risks across the supply chain.

According to a new report from the Food and Agriculture Organization of the United Nations (FAO), weather disruptions, crop diseases and shifting supply and demand patterns have driven sharp price movements in recent years.

"These price fluctuations have a significant impact on those who produce these commodities, namely smallholders," said El Mamoun Amrouk, senior economist at FAO’s Markets and Trade Division. "Smallholders are responsible for more than 60 percent of global production of these commodities, essentially coffee and tea."

Africa’s producers exposed to shocks

Many African economies rely heavily on cash crops such as cocoa and coffee for export revenues and rural employment. But production concentrated in a limited number of countries makes farmers particularly vulnerable when climate or market disruptions occur.

Côte d’Ivoire and Ghana account for more than two-thirds of global cocoa production, while major coffee-producing countries such as Ethiopia and Uganda contribute significantly to international markets.

Droughts, floods, rising temperatures and the spread of pests and diseases are increasingly threatening harvests, putting pressure on farmer incomes and rural communities.

Climate resilience becomes urgent priority

The FAO says strengthening agricultural systems is essential to protect farmers from future shocks.

"The main two recommendations of the report are, number one, we need to strengthen production systems for these commodities by introducing climate-resilient practices, new technologies, new techniques to control the spread of pests and diseases," Amrouk said.

The agency is calling for greater investment in farming methods that can withstand changing weather conditions, while improving access to tools and knowledge that allow producers to manage risks.

More transparency for smallholders

Beyond production challenges, the FAO highlights the need for fairer and more efficient markets.

Improved access to information on prices, crop conditions, stocks and trade flows could help farmers make better decisions and negotiate stronger positions within global supply chains.

"Improving market efficiency and transparency is critical for smallholders and producers to make the right decisions on how to allocate their scarce resources," Amrouk said.

Protecting livelihoods beyond the harvest

Coffee, cocoa and tea are not only global consumer products but also essential sources of income for millions of rural households.

The FAO warns that repeated price shocks could deepen poverty, threaten food security and reduce export revenues in producing countries unless governments and industry players invest in more resilient and inclusive systems.

The agency says expanding opportunities for farmers to participate in processing, certification and branding could also help producers capture a larger share of the value generated by these global commodities.