BERKELEY, Calif., USA – Bellwether Coffee, the technology company advancing electric coffee roasting to deliver the lowest carbon footprint in the industry, is announcing its commitment to Living Income Pricing for 100% of the Bellwether Green Coffee Marketplace by the end of 2024. Within the last year, Bellwether has transformed 25% of its supply chain to living income coffees and is doubling down on its support with an aggressive plan for the future of coffee producers worldwide.
“Despite the industry’s efforts to ensure farmers are paid fairly, 80% of the 12 million coffee producers around the world are still living below the poverty line,” said Grayson Caldwell, Head of Sustainability & Impact for Bellwether Coffee.
“As a result, Bellwether is completely transforming our own supply chain and taking on living income pricing as a major company initiative to work towards closing the poverty gap amongst coffee farmers worldwide. For farmers, coffee retailers, and the conscious consumer – this is the future.”
Launched two years ago, Bellwether’s Living Income Pricing, a new pricing methodology that establishes origin-specific minimum prices, is already in place for 26 countries it serves – predominantly across the vast majority of coffee-producing countries, including countries in Central and South America.
Currently, the price that farmers are paid for unroasted coffee is based on the International Commodity Exchange, which determines prices based on the worldwide supply and demand of coffee.
To establish a new minimum price for a region, Bellwether and its partners across the supply chain collect data on the cost of production, land size, and productivity level and combine it with a Living Income Benchmark, the annual income required to afford a decent standard of living for all members of a household in that area.
“This pricing methodology is not a mechanism to negotiate contract prices, but instead to hold Bellwether accountable to pay prices that help to close the living income gap for producers,” added Caldwell.
To support living income pricing for farmers, retailers using Bellwether’s electric roasting system can leverage its unique Green Coffee Marketplace for access to curated coffees from around the world that deliver the highest quality in fresh, seasonal coffees and meet rigorous standards for equity and sustainability.