Supporting Coffee Farmers Toward a Living Income

Coffee farming is a critical economic backbone for many communities around the world. Nonetheless, many coffee farming families struggle to achieve a living income – that’s why Living Income is one of the five goal areas of Sucafina’s IMPACT Program. This article examines the barriers to economic resilience that farmers face and draws on case studies from East Africa to illustrate how our IMPACT Beyond programs are helping to close the living income gap in coffee farming households.  

In this article we explore:  

• The key challenges to economic resilience that farmers face.
• How Sucafina is supporting farmers to improve their income, from sustainable farming practices to facilitating access to finance. 
• How IMPACT aims to improve farmer livelihoods in East Africa through tailored programs and data-driven insights. 

What Is a Living Income?  

A living income is recognized as a fundamental human right and is one of the five goal areas of Sucafina's responsible sourcing program, IMPACT. Living income is defined as the net annual income required for a household to afford a decent standard of living for all its members. This standard includes access to nutritious food, clean water, decent housing, education, healthcare, transport, clothing and other essential needs, as well as the ability to cover unexpected expenses.  

FairTrade has estimated that a majority of the 125 million coffee farming households around the world earn less than a living income. When the income of farming families is consistently below this threshold, the long-term consequences include: 

• Inability to consistently afford nutritious food, leading to hunger and malnutrition; 
• Limited access to medical care and treatment when sick; 
• Child malnutrition, poor sanitation and vulnerability to preventable diseases; 
• Barriers to education for children, limiting future opportunities; 
• Chronic underinvestment in farms and livelihoods, trapping families in cycles of poverty. 

In light of this, it is arguable that achieving a living income is foundational for all of the five goal areas that IMPACT seeks to address.  

Sucafina’s approach to tackling the living income gap integrates data-driven insights with practical, on-the-ground initiatives, using elements from the Anker methodology. Our systematic methodology includes: 

• Identifying the living income gap through living income benchmarks and surveys to measure current household income.  
• Analyzing opportunities to increase farmer income using survey data and consultation. 
• Co-designing and implementing projects in collaboration with farmers, local communities and other stakeholders. 

Our research within the East African countries where we work has revealed that many of the farmers within our network earn an income below the living income benchmark. These farmers, the majority of whom are heavily reliant on coffee as their primary source of income, tend to achieve lower yields (1-3 kg cherries/tree/year) due to insufficient investment in their coffee plantations, perpetuating a cycle characterized by low yields and minimal investments, which, in turn, leads to even lower income. 

IMPACT Beyond initiatives in East Africa are uncovering the most effective ways to end this cycle through the promotion of sustainable farming practices, financial support and training on income diversification. 

Sustainable Farming Practices as a Tool to Improve Farm Income 
 
Improved farming practices can make a huge difference to farming households’ income, particularly when there is a high reliance on coffee. Agricultural practices that prioritize boosting yields and/or quality and farm profitability, such as tree rejuvenation and soil health improvements, have the potential to substantially increase returns on farming.  

Coffee tree rejuvenation, in particular, can significantly improve production. Aging coffee trees are a key factor in low yields (and thus, low returns from coffee) across East Africa. To address this, Sucafina has run comparative trials of tree rejuvenation methods on demonstration farms** in Rwanda and Uganda, measuring the effect on overall production. Depending on their age and condition, trees are pruned or stumped*. Although most rejuvenation methods take 3 years to see full results, these initial trials indicate yield increases ranging from 100% to 200%.   

Improving soil health and composition can also yield big benefits. One effective approach is the addition of lime to reduce high acidity. Acidic soils are common in land that has been farmed for an extended period and can limit plants’ nutrient absorption, slowing growth. Applying lime helps neutralize soil acidity, allowing coffee trees to take in nutrients more effectively. The first assessment of the lime effect in performance demonstration plots in Rwanda has shown that productivity can increase by almost 50% between limed and non-limed farms. This is supported by soil analyses, which guide tailored recommendations on inputs for each farm.  

Financial Support Structures:  Bridging the Gap to Sustainable Farming 

Implementing sustainable farming practices can boost yields and income over time but comes with upfront costs. For example, tree rejuvenation results in an immediate loss of income, since rejuvenated trees take around 3 years to reach full production. Meanwhile, lime and other inputs for soil improvement are not free.  

These costs can be out of reach for smallholder farmers, which is why Sucafina recommends coupling these practices with financial incentives to help bridge the gap. In Rwanda and Uganda, Sucafina is trialing various financial models to support farmers to adopt these long-term improvements on their coffee plantations, while minimizing the risk to their short-term financial stability.   

Rwacof, in partnership with Kahawatu Foundation and 100WEEKS, is working on a three-year project, supported by Sucafina partners, to address the living income gap in Rwanda’s coffee-growing communities. Around 750 smallholder coffee farmers have received conditional cash transfers and training to test the return on investment for different models. The project will help develop a more effective approach to conditional direct cash transfers. 

In Uganda, we have partnered with a key stakeholder to provide loans that cover the cumulative costs of stumping. Through the project, we and our partner supported 200 farmers to stump one-third of their farms. The financial support removed barriers for participating farmers, who are on track to see their first yield increases this year.  

Similarly, in Rwanda, the Farmer Development Program, launched in partnership with the London School of Economics (LSE), supports farmers with training in good agricultural practices, along with access to loans and incentives for tree rejuvenation to improve their productivity. 

By easing the financial burden of farm improvements, these initiatives are removing barriers to change, making it possible for more farmers to invest in their future, while also fostering a more resilient coffee supply chain. 

 Building Income Resilience through Diversification & Community Savings Groups  

In addition to improving farming practices and providing financial incentivization, income diversification is a key strategy for supporting farmers to sustain their livelihoods throughout the year. Income diversification is essential in countries like Rwanda and Burundi, where farmers have small coffee plots and the annual coffee harvest does not typically yield sufficient income to sustain farmers year-round.  

Through partnerships with organizations like Kahawatu Foundation, farmers within our network have received support on income-generating activities that help diversify income and are participating in community savings programs, helping them build resilience and grow their earnings. 

One such income-generating activity is livestock rearing. Kahawatu Foundation supports farmers by providing them with livestock, such as pigs, as well as providing training on animal husbandry and entrepreneurship. Each pig can produce 5–8 piglets per litter, and most pigs produce 2 litters per year. The pigs are highly valuable in the market, providing substantial returns, enabling farmers to open new businesses and significantly boosting their income while accessing organic manure for their farms. Farmers who receive pigs are expected to pass on some of the piglets to other farmers in the community as part of a ‘livestock solidarity chain’. 

Other income diversification efforts include the cultivation of crops such as maize and rice. Farmers in Sucafina’s network receive start-up capital to rent land and training in good agricultural practices such as mulching, liming and agroforestry, which are crucial for maximizing land productivity. So far over 19,000 farmers have participated in these training sessions, leading to improved farming techniques and higher yields, as well as helping to stabilize their income streams. 

Village Savings and Loan Associations (VSLAs) also play a pivotal role in strengthening farmers’ economic resilience. VSLAs are  community-led loan programs that help farmers engage in saving culture and access cash loans easily – something that’s almost impossible for smallholders to access from banks. Through these community-run savings groups, farmers can access small loans that can be used to invest in income-generating activities. Sucafina and Kahawatu Foundation’s VSLA program has seen a 160% increase in participation from 2021 to 2024, with farmers' annual savings doubling during this period.  
 
Conclusion 

Initiatives that improve farming households’ income are crucial for ensuring that coffee farmers in East Africa (and in other regions) can maintain a decent standard of living and invest in the future of their farms and families. By continuing to support and expand initiatives through IMPACT Beyond programs, Sucafina is improving farming families’ ability to achieve a living income.  

These efforts don’t just benefit individual farming households but entire communities and the wider coffee industry. Through our comprehensive and integrated approach, we not only aim to enhance the living standards of coffee farmers in East Africa but also to build a resilient and equitable supply chain that is beneficial to all stakeholders.  

To learn more about how Sucafina is working towards enhancing coffee farmers’ income and to see how you can get involved, get in touch with your trader. 

* Pruning is when farmers snip branches off trees in order for new branches to grow in their place leading to higher and healthier yields. Stumping involves cutting the tree down to the base of the trunk. 

**Demonstration farms can also be on participating farmers’ individual plots.