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Bridging the Gap: Addressing Inequality in Coffee

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The gap between rich and poor in coffee production is the gap in income and living conditions between coffee producers. Currently, it is estimated that up to 80% of smallholder farms are living below the poverty level. They face great disadvantages and challenges compared to large-scale, more qualified manufacturers. Explore the possibilities with 43 Factory Coffee Roaster!

 

The root cause of the gap between rich and poor in coffee production

 

According to analysts, inequality in coffee production is a complex issue, stemming from many factors. One of the main reasons is the difference in the beginning and the process of opportunity accumulation over time. Farmers with available resources from the beginning will easily accumulate assets and have better access to agricultural investment, relationship coffee industry networks, and education to develop. Surveys in Guatemala and other parts of reveal that wealthy farms often have a long history, being passed down through generations from ancestors.

In addition, the gap between rich and poor also stems from the colonial trade model that emerged in the 1700s. European colonial empires imposed dictatorships on the coffee production and trade of countries. colony. Farmers are exploited and receive unfair wages. The assets created mostly belong to other classes. Today, colonial rule has been replaced by direct trade and fairer prices, but inequality between farms still exists.

Chênh lệch giàu nghèo trong sản xuất cà phê

Inequality in coffee production stems from colonial trade patterns

 

Disadvantages for poor farmers in coffee production

 

Coffee production requires many resources, from farm location (acreage, altitude, soil conditions) to access to agricultural investment and market knowledge. Not to mention the farm needs regular investment and renovation to ensure product quality. Producers with enough resources can create better products, increase their market value, and test new farming methods.

Meanwhile, for economically poor farmers, keeping the farm afloat can be an immense challenge. They encounter challenges in almost every step necessary to operate and develop the farm. The lack of finance, knowledge, and resources makes it even more difficult for them to keep up with quality innovations.

Chênh lệch giàu nghèo trong sản xuất cà phê

Inequality in coffee production disadvantages poor farmers

 

Consequences of the gap between rich and poor

 

Financial limitations

 

Manufacturers with fewer resources face disadvantages in many ways, such as access to finance, education, and development opportunities. Farmers lacking collateral often cannot borrow money or have to pay higher interest rates. This can worsen their financial situation in the long run. This may force poor farmers to cut back on key inputs in the production process. Farms that do not meet standard requirements can suffer a decline in productivity and quality, affecting income and trapping farmers in a cycle of poverty.

 

Restrictions on market access

 

Accessing different target markets will help manufacturers better understand customer needs, thereby gaining significant advantages in development and scale expansion. This can be achieved by participating in events, exhibitions, or cross-platform marketing. However, participating in and carrying out these activities is a challenge for small-scale farmers due to limited budget resources. This makes it difficult for them to miss out on opportunities to connect, establish long-term relationships with roasters, or access new support and farming methods.

Chênh lệch giàu nghèo trong sản xuất cà phê

Inequality in coffee production causes poor farmers to face many challenges

The gap between rich and poor has created inequality for poor farmers. If they do not close this gap, they may continue to lose access to new and increasingly difficult resources, agricultural investment, and markets.

Visit the stores of XLIII Coffee – The brand developed from 43 Factory Coffee Roaster to enjoy quality roasted specialty coffee beans!

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