Mexico

Coffee arrived in Mexico in the 1700s with Spanish settlers who brought coffee trees from Cuba and the Dominican Republic, which were most likely planted in Veracruz, which is where coffee production first commercially established itself within the country. Like many other countries, early coffee plantations were largely owned and operated by expats, mainly German and Italian migrants, who employed indigenous people as workers.

These first coffee plantations slowly expanded across Veracruz and into Oaxaca and Chiapas, but initially from a consumption standpoint, coffee initially competed internally with chocolate and atole (a corn-based stimulant beverage), which were already popular among locals and remain popular today. By the 1870s, plantations began producing and exporting larger volumes of coffee, and by the early 1900s, smaller, subsistence farmers began producing and selling coffee for export as well. Smallholders were mainly located in southern Mexico, where steep slopes and warm weather were ideal for high-altitude coffee production.

The post-war period brought intense modernization and industrialization to Mexico. The industrial centers in Mexico were few and highly centralized. In 1980, nearly 25% of Mexico’s entire population lived in Mexico City. Rural economies have lagged significantly behind urban ones and as a result, migration from rural to urban areas has been consistently high in Mexico since the 1950s. Additionally, like many Latin American countries, Mexico has experienced a significant amount of migration to the United States. All this has led to consistent underinvestment in rural areas and a lack of economic opportunities for people in rural areas.  

Due to high migration to urban areas, much of the seasonal labor on coffee farms is completed by migrants from Guatemala and other nearby countries. These laborers travel to Mexico during the harvest season to work for several months and then return home. At the same time, Guatemala is also experiencing high rates of urban migration and high rates of migration to the United States, so the total labor pool is small and labor shortages at harvest time are frequent and enduring.  

One of the biggest struggles for Mexican coffee producers was establishing governmental support for coffee production. While coffee is produced on individual farms and plantations, it benefits from strong government backing to be truly successful. Coffee producers benefit greatly from variety research, agronomic outreach, access to credit, working roads and more to export coffee. Without that support, success can be more difficult.  

A series of changes in the 1980s significantly affected stability for coffee producers in Mexico, including the dismantling of The Mexican Coffee Institute (INMECAFE) in 1989. INMECAFE had regulated coffee production since the 1970s and, combined with the breakdown of the International Coffee Agreement (ICA) in the same year, coffee producers were suddenly left without any price support and no safety net.  

For many small-scale farmers, the lack of support makes it difficult to see coffee as a viable long-term livelihood. At the same time, Mexico’s booming manufacturing and tourism sectors create powerful incentives to seek work elsewhere. As a result, younger generations are increasingly leaving the coffee fields in search of stability and greater economic opportunity. 

More than 500,000 farmers produce coffee in Mexico. Smallholders with less than 10 hectares compose a full 70% of Mexico’s coffee producers, and Mexico has one of the highest percentages of smallholder ownership relative to large farms. This is due in part to a revolutionary war in 1910. While the Revolution addressed multiple political and social issues, land redistribution and efforts to reduce deep rural inequalities became some of its legacies. Today, much of the country’s coffee producing land is communally owned. This land structure holds communal land that is privately cultivated by the people who live on or near it. The community assigns land use, and the family can maintain use rights as long as they’re cultivating crops on the land.  

Despite Mexico’s size and the large swathes of arable land, productivity remains low due to a lack of investment, new rootstock, varieties, technologies and techniques. One significant factor is the lack of modernization among smallholder farmers. Due in part to Mexico’s size and the remoteness of farms, new technologies and ideas spread more slowly .  

90% of Mexico’s coffee production occurs in Chiapas, Oaxaca, Veracruz and Puebla, all states in the southern half of the country where they benefit from higher altitudes and ideal climates for coffee production, although coffee is produced in 15 states (out of 30) in Mexico in the southern and center regions of the country.  

In these states, producers are located in remote areas that make it difficult to access credit, technical support and inputs. Additionally, many farmers sell their coffee to intermediaries who combine many lots and sell in bulk in larger trading centers.  

Arabica trees are mainly traditional varieties such as Garnica, Typica, Caturra and Bourbon. In 2012, Mexico experienced a severe Coffee Leaf Rust (CLR) outbreak, which cut production by almost 50%. Since then, growers have worked hard to recover by renovating and replanting with CLR-resistant varieties, such as Catimor. Adjusting to CLR was not only about replacing trees but also about understanding CLR better and adjusting farming practices. These new varieties come with recommended changes to coffee plantation structure, such as increasing the density of coffee plants per hectare and reducing the number and type of trees used for shade cover. While CLR remains a concern, producers have been more efficient and effective at controlling the disease. 

Due to their small size, most farm work is done by the family. Most farms are organic by default and many are certified. However, as CLR continues to be a problem, the future of certified organic coffees in Mexico is uncertain.  

Since the 1990s, producers have largely been successful at forming cooperatives that sell certified coffees and help them gain market access to garner higher prices. Organic and Fairtrade certifications have proved an effective way for farmers in remote regions to stabilize prices and garner premiums for their work. A lack of access to services continues to be a problem for many farmers and non-certified farmers still face substantial price volatility.  

Specialty coffee is gaining market share in Mexico. The growing internal market has created more competition for specialty coffee on the international market. Since high-scoring coffees can fetch good prices from national roasters, producers have more leverage to negotiate better prices from international buyers.  

Many producers have taken note of the growing interest in specialty coffees in cities. Some have opened their own roasteries and cafes and many others have forged direct relationships with new specialty cafes. 

As a result of this growing interest in specialty coffees, we’re seeing close partnerships between coffee producers and coffee roasters. Direct relationships between producers and roasters in Mexico can result in higher prices and a more consistent market for farmers, as well as better quality coffee for consumers. 

Ecommerce expansion is also making it easier than ever to sell Mexican specialty coffee. We’re seeing coffee subscriptions from producers and roasters selling roasted coffee directly to consumers. The internet is making it possible for roasters, producers and consumers to connect on national and even global scales.