The Asia Pacific region is pivotal in global coffee production, contributing approximately 25% of the world’s total output. In recent years, sustainable coffee production in the region has seen substantial growth, with around 30% of the coffee produced being certified as sustainable by 2022. Vietnam, the largest coffee producer in the region, accounted for about 15% of global sustainable coffee production, while Indonesia contributed nearly 10%. Sustainable coffee exports from the region comprised approximately 20% of total coffee exports in 2022, highlighting the region's growing commitment to environmentally and socially responsible practices.

FROM THE ASIA PACIFIC TO YOUR CUP!

Fairtrade Production and Sale- Asia Pacific

At Fairtrade NAPP, coffee production is not only about quantity but also about the growing commitment to sustainability and ethical practices that protect both the environment and livelihoods. Fairtrade coffee is primarily produced in three key countries—Indonesia, India, and Vietnam—which are also significant contributors to global coffee exports while emerging players such as Papua New Guinea, Thailand, Laos, Timor Leste, and Myanmar are also gaining recognition in the specialty coffee market.

Between 2019-22, over 200000 MT of arabica and robusta was produced from the Asia and the Pacific region with Indonesia at the forefront, contributing nearly 50% of the region's total output. India as the second largest producer with 23% followed by Vietnam with 7% and the remaining 16 percent from smaller but equally passionate coffee-growing regions.

In 2022 alone, over 16,000 metric tons of coffee were sold under Fairtrade terms, with Indonesia (50%), India (20%), Vietnam (8%), and Papua New Guinea (7%) leading the sales. Notably, 74% of this coffee was sold as organic, reflecting the growing consumer and business demand for ethically sourced and environmentally sustainable coffee.

Overview of Fairtrade Coffee Producers

For smallholder farmers in the region, coffee is more than just a crop—it is a vital cash crop with many depending almost entirely on it as their primary source of livelihood.

Fairtrade certification plays a pivotal role for coffee producers in the region.  As of 2022, nearly +43000 farmers in the Asia-Pacific region were certified under the Fairtrade system, contributing to the region’s substantial coffee output.

Current challenges

Though the coffee industry is a billion-dollar one, many farmers are paid less for their hard work than what it costs to grow and harvest their beans. The situation is unsustainable, and the future of coffee is under threat.

• Farmers aren’t earning enough to cover their costs. While others in the supply chain are also facing higher bills, many farmers don’t have the reserves to cope. There is often nowhere to cut costs, either. Many coffee farmers are living in poverty. Additionally, inefficiencies in the supply chain mean that smallholder farmers often receive only a fraction of the final retail price for their coffee, limiting their earning potential.
• The global price of coffee is highly volatile. Production depends on variables such as weather and diseases. Coffee is also a popular object of speculation on the stock market. This instability means farmers can struggle to predict their income and budget ahead for what their farms and families need.
• The beans a farmer grows are often exported early on. Being left out of the processing along the value chain means producing countries are missing out on the chance to earn valuable extra income. Many small scale farmers don’t have the incentives or resources for purchasing expensive inputs necessary  for processing.
• Climate Change and Loss of Production. Unpredictable weather patterns, rising temperatures, and irregular rainfall directly affect coffee yields, quality, and the growing conditions for both arabica and robusta varieties further straining smallholder farmers.
• Compliance Cost. New Trade Regulations like the EUDR and HREDD laws put significant pressure on small-scale coffee farmers. While these regulations are essential for promoting responsible sourcing and protecting the environment, they impose additional costs and complexities on small farmers, who often lack the resources, infrastructure, and technical expertise to comply.
• Labour Shortage: Coffee production is highly labor-intensive, with labor making up to 50% of costs. The average age of coffee producers is rising, while their numbers are shrinking. Many lack knowledge of high-quality processing, and years of low, unstable prices have left farmer organizations in debt, with little to invest in technical support. This cycle of low productivity and poverty drives younger generations to seek better-paying jobs elsewhere, abandoning coffee farming.

WHY CHOOSE FAIRTRADE COFFEE ?

Fairtrade coffee ensures ethical sourcing and promotes sustainable livelihoods for coffee growers across Asia and the Pacific region. With every sip, you are helping build a future where farming families can thrive.

• Protection against Price Fluctuation. We all need to understand what coffee actually costs to be produced sustainably. Farmers need fair pay.

1. The Fairtrade Minimum Price is a safety net that offers coffee farmers stability in the unpredictable global market. This security protects them from sudden price drops, allows them to better plan financially and make investments that would increase their income for the future. Cooperatives can invest in value-adding equipment like roasting machines, or branch out into new areas such as agrotourism. 
2. The Fairtrade Premium. Farmers can invest the Premium, an extra sum of money paid on top of the selling price, in business or community projects they choose. A portion of Premium goes towards improving coffee production or quality. Organically grown coffee receives an additional price. 

• Living Income. The agricultural supply chain is complex, with raw products passing through multiple hands—growers, traders, processors, exporters, roasters, and retailers—before reaching consumers. Many small-scale farmers, facing consistently low incomes, struggle to invest in their farms, leading to low yields and perpetuating a cycle of poverty. Fairtrade's Living Income Reference Prices aim to break this cycle by ensuring farmers earn a sustainable income that supports their families and improves farm productivity. In collaboration with 23 Coffee Small Producer Organizations (SPOs) and 513 farmers, Fairtrade has set a Living Income Reference Price for organic Arabica coffee in Aceh, Indonesia. 
• Stronger together with cooperative. Processed coffee beans, ready for export, offer a more lucrative option but are accessible only to farmers who can form cooperatives, purchase processing equipment, and manage export logistics. Fairtrade NAPP helps smallholder farmers organize into producer cooperatives and associations, promoting financial stability and economic independence. By forming cooperatives, farmers break free from dependence on middlemen, gain collective bargaining power, and access direct credit, marketing opportunities, and technical support, empowering them to achieve better terms and secure a sustainable livelihood.
• Building Next-Gen Agripreneurs.  Unstable prices leave farmers' organizations with limited resources to provide technical support, trapping them in a cycle of low productivity and poverty. This discourages younger generations, who often abandon farming for better-paying jobs elsewhere, viewing it as a high-risk, low-status profession. Without adequate support for producers, coffee companies risk undermining the future of their supply chains. Fairtrade NAPP addresses this by implementing youth empowerment programs and training, making farming more appealing to young people. They engage the next generation of leaders, empowering them to become Ambassadors and Advocates for Fairtrade within their countries and regions.
• Creation of Value Chain and Business Development. Farmers remain vulnerable to decrease in productivity and quality due to slow adoption of better processing techniques, rising threat of disease and weather shocks due to climate change. Fairtrade NAPP implements training and other projects to improve practices and make important progress all along its value chain.
• Fairtrade NAPP Coffee Product Network. Through the network we foster localized coordination, provide tailored support, and enhance market access for producers, empowering them further within the global supply chain. The network is led by an advisory committee consisting of members from major coffee-producing regions, ensuring that we address coffee-related needs and challenges and effectively address it.
•  Safe for the Planet- Safe for the People. Fairtrade NAPP offers members advisory training on adopting climate-smart and environmentally friendly practices, ensuring a reliable, secure, and sustainable supply of high-quality coffee for consumers. Additional support helps farmers comply with evolving international regulations, such as Human Rights and Environmental Due Diligence (HREDD), European Union Deforestation Regulation (EUDR), and EU Organic Regulation (EUOR). This ensures their products meet global standards, protecting both the environment and human health.

Fairtrade NAPP Key Intervention for an effective value chain for coffee

• The Coffee Development Plan (2022-25), funded by Max Havelaar Switzerland supports various initiatives to improve the sustainable livelihoods of 40 coffee producers across India, Indonesia, Vietnam, and Laos who contribute 89-95% of the region’s coffee benefiting over 1,400 farmers.
• Fairtrade NAPP Coffee Business School launched in 2022 provide coffee producers with essential business and trading skills and targeted training on key areas such as market dynamics, pricing strategies, supply chain management, and global trading practices benefitting over 40+ coffee producers
• Fairtrade NAPP facilitates the participation of producers at Specialty Coffee Shows across major coffee destinations in Europe, USA, Korea, and Japan to promote high-quality, ethically grown coffee to global buyers, roasters, and coffee enthusiasts. This helps producers stay competitive in an increasingly dynamic and demanding coffee market.
• Compliance with EU Trade Regulations (2023-2026): Enabling Fair Trade Supply Chains. Funded by the German Agency for International Cooperation (GIZ) and Fairtrade Germany, this joint initiative between Forum Fairer Handel (FFH) and Fairtrade Deutschland (FT-DE) is designed to support compliance with the new EU trade regulations. The program focuses on enabling more coffee producers from India and Indonesia to meet the regulatory requirements of Human Rights and Environmental Due Diligence (HREDD) ensuring smooth and sustainable operations within the evolving EU trade framework.
• The Geolocation Project for EUDR Compliance (2024-25) addresses the stringent demands of the EU Deforestation Regulation (EUDR), which requires small producer organizations (SPOs) to implement detailed geospatial monitoring, traceability, and reporting. Funded by Fairtrade Germany and Max Havelaar Switzerland, the project eases the compliance burden for coffee producers. Technical assistance, capacity building, and resources are being provided to 32 coffee producers across Indonesia, India, Thailand, Vietnam, China, Timor-Leste, Myanmar, and Papua New Guinea to implement geofencing strategies, ensure accurate data analysis, and develop user-friendly dashboards to meet regulatory requirements, all while maintaining sustainable, deforestation-free practices.

Support Farmers. Choose Fairtrade Coffee.

When you buy Fairtrade coffee, you’re not just enjoying a quality cup. You’re directly supporting the livelihoods of farmers in the Asia Pacific who are working hard to create a sustainable future.

For more information write to us at comms@fairtradenapp.org