Origin
performanceand risk report
COFFEE SNAPSHOTColombia

Introduction
Our “Coffee Snapshot” series provides stakeholders—from roasters to buyers—with a localized overview of

the key sustainability challenges in different coffee

producing origins. This “snapshot” report, focusedon Colombia during 2020-2022, summarizes trends

emerging from an analysis of our own internal
proprietary data, external research, and expert

input. In other words, the insights and recommended
sustainability interventions highlighted here reflect
the collective “hive mind” of our ever-growing global
alliance.1

KEY SUSTAINABILITY ISSUES2

LIVING INCOME
COFFEE PROFITABILITY
CLIMATE CHANGE
DEFORESTATIONWORKERS RIGHTS

1

The report is not meant to highlight how Rainforest Alliance farms are performing compared to non-certified farms. The analysis firstlooks at priority issues within the value chain in the country of focus and then analyzes Rainforest Alliance farms’ performance amidst
the priority issues. More details on the data sources used and methodology can be found at the end of the report2

That is not to say that there are no other issues present, however, these are the key issues that research concludes are needing themost attention currently.

The Coffee Sector
in Colombia
Although coffee is still an important agricultural commodity in

Colombia, the coffee share of GDP has significantly declined over the
past 40 years (from more than 20 percent of the agricultural shareof GDP to less than 10 percent). Factors related to climate variability,

increased production costs, labor shortages, and price volatility haveaffected the coffee industry and could contribute to future declining
production in some traditional coffee growing areas of in Colombia.3
3

Rainforest Alliance 2022; Saenz et al 2021; Alvarez 2017

543,000

720,000

8%

13 MILLION
60-kg BAGS

96%

69%

Smallholder coffee farmers (<5 HA)

Total coffee production
from smallholders

MAY

SEP

Total coffee producers

Direct jobs across value chain

Coffee production 2021/2022

Share of global coffee production

MAIN CROP HARVEST
JAN

FEB

MAR

APR

3RD LARGEST COFFEEEXPORTER GLOBALLY

JUN

JUL

AUG

1.5 HA

AVG farm size

OCT

NOV

DEC

16 60-KG BAGS/HA
AVG yield

Sources: Rainforest Alliance 2022; USDA 2022; Solidaridad 2021; USDA 2018; FAOSTAT 2020; Suárez et al 2021

33%

3.675 MILLION

Of total country volume Rainforest Alliance Certified

60-kg bags Rainforest Alliance Certified coffee

19,813133,077

Certified producers

Workers on certified farms, permanent and seasonal

Sources: Rainforest Alliance 2021/2022*, USDA 2022 *Certified figures are the sum of UTZ Certified and Rainforest
Alliance 2020/2021 totals with and estimated 30% of multiple certification taken into consideration

Economic Issues
50-80 percent of coffee growers in Colombia do not earn a living

income (at least USD 4,150 per household).4 Many would need toincrease their household income by 40 percent to bridge the living
income gap.5

Just over half of Colombia’s coffee farmers (approximately 270,000)
have less than 1 ha planted with coffee and are largely dependent thissingle crop as their main source of income (60-90 percent of total
household income). More than 31 percent of growers declare that

their income does not cover minimum expenses. This is due, in part, tothe fact that prices do not always cover direct production costs, time,and effort for many farmers. At the same time, many farmers do not

maintain sufficient records of household economics to help improvethis.6KEY ISSUES

LIVING
INCOME

COFFEEPROFITABILITY

4“Responsible Coffee Sourcing: Towards a Living Income for Producers” by Kaitlin Y. Cordes, Margaret Sagan et al. (Columbia.edu)

5

Rainforest Alliance 2022; CCSI 2021; ICO 2022; IDH 2022

6

Rainforest Alliance 2022; Acuerdo Café Bosque y Clima 2021

LIVING INCOME

80%

50-80 percent of coffee growers in Colombia do not39%

earn a living income (at least USD 4,150 per

household). Many would need to increase theirhousehold income by 40 percent to bridge theliving income gap.7

Just over half of Colombia’s coffee farmers

COFFEE FARMERS’ %INCOME FROM COFFEENATIONAL
POVERTY RATEWith an avg of
60-90% of total
incomeMeaning 39% of the
population lives onless than USD 3/day

$ USD

$ USD

1,3693,125

4,150(approximately 270,000) have less than 1 ha plantedwith coffee and are largely dependent this single

crop as their main source of income (60-90 percent
of total household income). More than 31 percent ofgrowers declare that their income does not coverminimum expenses.

This is due, in part, to the fact that prices do not

RANGE HOUSEHOLDNET CASH INCOME

always cover direct production costs, time, and effort

for many farmers. At the same time, many farmers

BENCHMARK NET
LIVING INCOME(Avg. during 2021)9

do not maintain sufficient records of household
economics to help improve this.8

KEY CHALLENGES TO
REACHING A LIVING INCOME
FOR COFFEE GROWERS IN
COLOMBIASMALL FARM SIZE

51% families have 1HA or less of land

HIGH DEPENDENCY ON COFFEE

Which has increased in the past years

LOW COMPENSATION

Income does not cover minimal household expenses foran estimated 31% of growers

Sources: Rainforest Alliance 2021 & 2022; WorldBank 2022; Reuters 2022; We the Origin 2020;
Acuerdo Café Bosque y Clima 2021

LACK OF EDUCATION

Affects opportunities to improve on quality advantages
to earn from speciality coffee

RECOMMENDED INTERVENTIONS“Coffee prices matter, but investments in farmer trainings are also important for living income. Together,companies and supply chain actors can start the process by providing trainings and technical support

to farmers so that they can embrace more sustainable practices that help improve their yields and thequality of their products. They can also support income diversification by helping farmers to access markets,rewarding them with better prices for specialty coffee, or offering guaranteed minimum prices.”- Miguel Gamboa, Sector Lead, Coffee, Rainforest Alliance7

Rainforest Alliance 2022; CCSI 2021; ICO 2022; IDH 2022

8

Rainforest Alliance 2022; Acuerdo Café Bosque y Clima 2021

9

“Responsible Coffee Sourcing: Towards a Living Income for Producers” by Kaitlin Y. Cordes, Margaret Sagan et al. (Columbia.edu)

COLOMBIA

BRAZILVIETNAM

60-KG
BAGS/HA

60-KG
BAGS/HA

60-KG
BAGS/HA

16

COFFEE PROFITABILITY

If growing coffee doesn’t make business sense forfarmers, especially young farmers, they will switch

29

46

to more lucrative crops (such as avocado or citrus)
or abandon farming altogether.

40%

3-8%

Estimated fertilizer cost
increase 2022 vs 2021

Total country production
decline due to heavy rainfall
for 2022/2023

Like many coffee farmers throughout theworld, Colombian coffee farmers are facing

unprecedented challenges. Climate change isaltering harvest periods (moving from two distinct

seasons to trickling year-round production), fertilizer
prices are at an all-time high (40 percent increase

from 2021), and labor is scarce (many workers

4%

5070%

% of land under coffee
cultivation bandoned
due to low prices in 2019

Estimated costs of laboras total % of coffee
production costs

are now migrants from Venezuela).10 Managing

coffee economics requires a holistic approach thatbalances producers’ income (cost of production

and profitability) and social development (qualityof life) with climate-resilient production and better
preservation of natural capital.11

Sources: Rainforest Alliance 2022; Pulitzer Center 2022; ESM 2022; USDA 2022;
Reuters 2022; Yale Environment 360 2019

KEY DRIVERS AFFECTING
COFFEE PROFITABILITY 12
LOW PRODUCTIVITY

Colombian coffee is grown on steep hills, whichmeans harvesting takes more time. This puts thesector at a competitive disadvantage compared toBrazil and Vietnam.

EXTERNAL FACTORS

Weather and rising fertilizer costs have
hampered profitability.

LABOR SHORTAGE

A rural labor shortage impacts cost of production andleaves the coffee crop overly exposed to pests andincorrect timing of harvest. Small farmers rely on familylabor, which is a challenge when youth move to cities.
Poor farmer profitability is detrimental for the entire
coffee industry Farmers will switch to other crops or
abandon farms, leading to overall supply declines.
Better prices and sustainable farming practices that
help increase productivity and climate resilience mustbe part of the solution.

RECOMMENDED INTERVENTIONS“Maintaining high yields, while balancing production costs is a growing challenge for farmers, but one thatcan be addressed through joint actions. Trainings and technical support in good agricultural practices that

address key issues related to soil fertility, plant nutrition, and plant hygiene can help curtail the outbreakof pests. Companies should also develop long-term plans, like helping farmers transition to regenerative

practices—like composting and cover cropping—that reduce farmer dependence on costly inputs, likefertilizers.”- Miguel Gamboa, Sector Lead, Coffee, Rainforest Alliance10

La Patria newspaper, January 3, 2020 “Difícil saber cuántos recolectores son venezolanos” (lapatria.com)

11

Rainforest Alliance 2022; Daily Coffee News 2022; Coffee Intelligence 2022

12

Rainforest Alliance 2022; Pulitzer Center 2022; ESM 2022; USDA 2022; Reuters 2022; Yale Environment 360 2019

Environmental Issues
Regenerative agricultural practices are key for addressing climatechange and deforestation. Climate change is causing erratic rainfall
and dry spells, which reduces the number of sunny days needed toripen coffee. These climatic changes are altering harvest seasons,as well as productivity, and forcing some smallholders to move tohigher altitudes, clearing natural vegetation and further exacerbating
biodiversity loss.

KEY ISSUESCLIMATE CHANGE

DEFORESTATION

CLIMATE CHANGE

The impacts of climate change on coffee

production vary across different parts of Colombia:

Low altitude farms may face an 8 percent decline inproductivity by 2061, while farmers at 1,500 meters
and above may experience a 16 percent increase.13

The impacts of climate change on the Colombian

OBSERVED AND
PREDICTED EFFECTS
RISING TEMPERATURES
0.3 degrees celsius increase per decade

CHANGING RAINFALL(E.G. extreme rainfall leading to floods)

coffee sector are already present, and they are

expected to intensify. Productivity levels are lower
for farmers with no adaptation measures in place,putting their profitability under even more pressure.

For example, an increase in pests requires more

pesticides, which translates into more expensive
production. Adaptation requirements are a

LOSS OF SUNLIGHT
19% decline in hours of sunlight since 1950

CHANGING SEASONALITY
Moving from 2 distinct harvests to more continual

challenge for the 96 percent of growers that aresmallholders who don’t have the means to invest a
lot in their production.14

Sources: Rainforest Alliance 2022; Ceballos-Sierra 2021; University of Illinois
College of Agricultural, Consumer and Environmental Sciences 2021
USAID, 2018;UK MetOffice, 2011; Haggar J, Schepp K, 2012; Ruiz-Cárdenas R, 2015

ADAPTATION MEASURESFOR FARMERS AT LOWER
ALTITUDES
13

Rainforest Alliance 2022; Ceballos-Sierra 2021; University of Illinois College ofAgricultural, Consumer and Environmental Sciences 2021
14

Rainforest Alliance 2022; Solidaridad 2019SUSTAINABLE AGRICULTURE

Farmers need training and technical support for
improved growing practices, such as irrigation,
agroforestry, and shifting to different coffee varieties.

EXTERNAL FACTORS

Farmers will need support switching to other crops and/or alternative sources of income.15

RECOMMENDED INTERVENTIONS“Supply chain actors should take immediate actions to help coffee farmers increase climate resilienceby investing in technical support and training from local and regional agronomists. This kind of hands-on

support can help farmers embrace climate-smart farming practices, such as intercropping shade trees,
planting cover crops, and conserving riparian buffers. Planting drought resistant varieties can also reallyhelp farmers prepare for future challenges.”-Dr. Celia Harvey, Climate Lead, Rainforest Alliance15

Rainforest Alliance 2022; Perfect Daily Grind 2021 ;Wall Street Journal 2022 ; NPR 2021; DaMatta et al 2006

DEFORESTATIONAs coffee cultivation areas shift due to climatechange, there will be increased pressure on
deforestation in the higher areas (1,500 meters orabove).

From 2001 to 2021, Colombia lost 4.93 million hectaresof tree cover, equivalent to a 6 percent decrease intree cover since 2000. Since a peace agreement was

signed in 2016 between the Colombian government
and the Revolutionary Armed Forces of Colombia(FARC), deforestation skyrocketed by 40 percent.

Currently, coffee does not contribute significantly to
deforestation, especially in comparison to coca andlivestock. However, as climate change affects thesuitability of lower areas for coffee cultivation, therisk of degrading and deforesting the sub-Andean

and Andean forests will increase as farmers arepressured to migrate to the higher, mountainous
regions.16

Sources: Rainforest Alliance 2022; World Bank 2021; UN Biodiversity Lab 2021

PROTECTEDAREAS

FOREST

DEFORESTATION

LICENSED FARMS

RECOMMENDED INTERVENTIONS“Deforestation is one of the largest drivers of global biodiversity loss as well as climate change. Actors

across the coffee supply chain can take concrete action by investing in proven approaches, like Integrated
Community Forest Management, that promote the role of local communities as our best forest guardians.

Companies should also actively engage suppliers in setting deforestation free commitments in line with
the Accountability Framework Initiative.”-Samantha Morrissey, Sector Lead, Forests, Rainforest Alliance16

Rainforest Alliance 2022; Global Forest Watch 2022; Earth 2022

GHG EMISSIONSAt the farm level, most GHG emissions stem from the use of fertilizers, pesticides and fossil fuel (for transport,

drying and processing). If coffee production encroaches into adjacent forest areas, the loss of forest covercan also result in significant GHG emissions at the wider landscape level. To reduce the carbon footprint of
the coffee sector, there is a need to reduce the use of synthetic pesticides and fertilizers, promote the useof renewable energy, and avoid the deforestation and degradation of forests in coffee landscapes.

WATER USAGE

Water is an essential natural resource for coffee production. Most smallholder farmers implement low-techsystems that are very inefficient, using 20 to 40 liters of water per kg of dry parchment coffee. They also lackwater treatment systems, discharging the processing and domestic wastewater directly into the soil andwater bodies, with potential negative consequences for the environment.17

17

Manos al Agua 2013

36%

68%

Of workers receiving lessthan legal minimum wage
2015, during main harvest

Of workers receiving less thanlegal minimum wage 2015,
during mid-season harvest

29%

13%

of farmland, and most of the coffee is manually

Average % noncompliance on Rainforest
Alliance Certified farms

Average % noncompliance on Rainforest
Alliance Certified farms

Venezuela (90 percent).

Agrochemical handling in terms
of proper usage, applicationand cleaning of containers

Written contracts for
employment longer than
3 months

SOCIAL ISSUES

Low farm profitability and labor scarcity is puttingpressure on workers’ rights and well-being, namely
wages, safe working conditions, and the risk ofchild labor.

WORKERS’ RIGHTS

96 percent of coffee growers have less than 5 haharvested by seasonal workers, mainly fromThe low profitability of coffee as a business in
Colombia trickles down to the 720,000 workers

relying on coffee for income. When coffee growers
are squeezed financially, it directly affects workers’

wages, their well-being, and heightens the risk ofchild labor.

18

3%

OF CHILDREN (AGED
5-14 YEARS) ENGAGEDIN CHILD LABORIN COLOMBIAAn estimated210,00 children

47%% OF TOTAL WORKINGIN AGRICULTURE
An estimated
98,000 children

Sources: Rainforest Alliance 2022; Fernández 2019; Sprudge 2020; SOMO 2016;
Coffee Intelligence 2022; DOL 2021

KEY DRIVERSLABOR SCARCITY

LOW WAGES

WORKERS’ RIGHTS AND WELL-BEING

CHILD LABOR

Urbanization and competition from higher paying jobs
has led to a labor shortages. For now, migrant workers
from Venezuela are filling the vacuum but that is likely
only temporary.

The informal nature of coffee picking means that many
workers do have formal contracts or access to proper
safety equipment or training on how to handle hazardous agrochemicals.

Wages are based on the number of kilos harvested.
While some workers can earn above the country’s minimum wage of US$ 250, the seasonality of harvestingmeans work is informal, unstable, and iterant.

has improved but it is still endemic, both amongst thechildren of Colombian farmers and migrant workers.

RECOMMENDED INTERVENTIONS“Workers’ rights issues such as low wages, lack of contracts, and worker safety are symptoms of widersocial challenges. Improving workers’ rights is largely rooted in addressing the profitability of coffee farming

and can be supported by addressing poor prices and living income gaps that often drive farmers to pay
low wages and engage in child labor. Additional interventions such as awareness-raising activities andimplementing assess-and-address programs that identify and track cases of worker abuse, including childlabor, are all steps that supply chain actors can take.”- Kunera Moore, Global Themes Lead Forced Labor, Rainforest Alliance18

Rainforest Alliance 2022; Fernández 2019; Sprudge 2020; SOMO 2016; Coffee Intelligence 2022; DOL 2021

Conclusions andRecommendations
The challenges in Colombia are complex and interconnected. For example, addressing
coffee profitability requires helping farmers adopt climate-smart practices andencouraging farmers to avoid expanding into forested areas. Improving worker wages
requires an examination of poor coffee prices and the living income gaps that farmers
face. Recognizing how connected these issues are is the first step in building holistic
interventions.

The Rainforest Alliance has worked with several companies, NGOs, and government
agencies to drive change in Colombia. Our current work includes:

COCOA FOR LIFE
Cocoa for Life aims to promote zero-deforestation cocoa production over nearly 5,000
hectares of productive landscapes on the Amazon Piedmont. We work closely with ourpartners GIZ, UK Pact, and local producer association, ASOPROCACAO.

FOREST ALLIES
Through Forest Allies, we are working to strengthen community forest management in

Guaviare, Colombia to bring 40,000 hectares under sustainable forest management
plans, develop more sustainable value chains, and bring benefits for 250 local families.

AMAZON BIOECONOMY MARKET
This project aims to improve socioeconomic conditions, fight climate change, and help

restore ecosystems in the Amazon regions of Colombia and Ecuador by supporting the
growth of export-oriented bio-businesses. Planned activities include the developmentof an online Amazon Bioeconomy Marketplace (ABM).

ALLIANCE FOR LANDSCAPES
Developed in Caquetá, this project aims to scale-up reductions in commodity-driven

deforestation, while accelerating climate mitigation and restoration by demonstrating
the business case for collective landscape action.

Methodology
and Data Sources
This report draws upon a wide range of internal propriety data: certification data,internal risk maps, project monitoring and evaluation data, and expert opinions. It also

draws on various external sources, including coffee industry reports, project reports,country-specific legislation, and academic literature. While several sources are used,

there are limitations in the completeness of all the datasets used. Therefore, the weighingof risks is based on the frequency they are mentioned, focusing on the probability ofoccurrence, not necessarily on the severity of impacts.19

RISK MONITORING AND CERTIFICATION:ADVANCES IN OUR 2020 SUSTAINABLE
AGRICULTURE STANDARD
Our 2020 Sustainable Agriculture Standard includes many new indicators for certificate
holders to report on. The first set of these indicators will include:
HUMAN RIGHTS VIOLATION CASESSUSTAINABILITY INVESTMENT NEEDSPERCENT OF WOMEN PARTICIPATING IN TRAINING

LIVING WAGE DATAMANAGEMENT CAPACITY ASSESSMENTS*Data from 2021 is being processed and will become available in 2022
19

The data presented is accurate at the time of publication based on the information collected from the above sources. Rainforest

Alliance will not be liable for damage due to inaccuracies in the information. For more information about the method of analysis andsources, please contact us at tailoredservices@ra.org.

ABOUT THE
RAINFOREST
ALLIANCE

The Rainforest Alliance is creating a moresustainable world by using social and market
forces to protect people and nature. Our alliancespans 70 countries and includes farmers andforest communities, companies, governments,
civil society, and millions of individuals. Together
we work to protect forests and biodiversity, takeaction on climate, and promote the rights andimprove the livelihoods of rural people.