Report Finds Coffee Giants Yet to Commit to Living Income for Farmers Ahead of New EU Rules
The directive will require large companies to address human rights and environmental risks across their supply chains or face penalties of up to three per cent of global turnover
KAMPALA, June 15, 2026 — A new report on the global coffee sector has found that none of the world’s leading coffee roasters and traders has committed to ensuring coffee farmers earn a living income, despite looming legal obligations under the European Union’s Corporate Sustainability Due Diligence Directive [CSDDD], which comes into force in 2029.
The directive will require large companies to address human rights and environmental risks across their supply chains or face penalties of up to three per cent of global turnover.
The latest edition of the biennial Coffee Barometer, compiled by a coalition of non-governmental organisations, describes the regulation as a turning point for the industry. It is the first EU legislation to formally recognise living income as a binding human rights obligation with direct implications for coffee supply chains.
According to the report, companies will need to establish compliance systems well before the 2029 deadline. This is expected to require major changes to commercial practices, including pricing structures, contract terms and payment conditions — areas traditionally treated as purely business decisions.
The report argues that where such practices contribute to human rights abuses, companies will be legally required to reform them.
Despite the approaching deadline, the Barometer found that none of the 15 largest coffee roasters and traders assessed had publicly disclosed commitments to delivering a living income in their sustainability reporting.
The report highlights persistent poverty among smallholder coffee farmers as one of the industry’s most pressing challenges. An estimated 12.5 million farming households — most cultivating less than two hectares — produce the majority of the world’s coffee but continue to struggle to earn sustainable livelihoods, even amid relatively high global coffee prices.
It further criticises what it describes as a disconnect between corporate sustainability pledges and underlying commercial practices, arguing that continued reliance on low-cost commodity sourcing undermines meaningful progress.
The report concludes that without fundamental changes to the way coffee companies operate, sustainability investments will remain limited in impact and fail to address the structural causes of farmer poverty.
Major companies reviewed include Nestlé, Starbucks, JDE Peet’s, and leading traders Olam, Louis Dreyfus, Ecom and Volcafe.
https://thecooperator.news/instant-coffee-now-officially-included-in-eudr/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
