Living incomes in the coffee sector
Since 2023, the working group for living income for smallholder farmers has been dedicated to improving the income and living conditions of producers in their coffee supply chains. Together, the group members are working on a project that aims to enhance the livelihoods of coffee producers, which started in early 2025. Participating companies in the Living Income Project are dm-drogerie markt, Kaufland, Lidl, and the REWE Group. The project is being implemented in Honduras and Peru.
To drive long-term, wide-reaching changes in the global coffee sector, the working group focuses on pre-competitive collaboration instead of individual solutions. This approach enables the development of cross-cutting measures while minimizing additional efforts for supply chain partners.
The working group follows a holistic approach that addresses multiple points in the supply chain to enable living incomes. The three strategic goals at the core of the project are:
Establishing responsible and sustainable sourcing practices to create transparency in the supply chain, secure long-term trade relationships, and implement pricing mechanisms that help close income gaps.
Promoting resilient and efficient production systems and professionalizing producer organizations to contribute to stable income situations. Strategies to increase yields and diversify income are also aimed at improving the household incomes of participating smallholder farmers. Gender equality plays a central role in this process.
- Encouraging collaboration and exchange with relevant stakeholders at local, regional, and international levels to leverage synergies and drive sustainable change across the sector.