STiR coffee and tea magazine

STiR coffee and tea 23 By Emilio Bonnet Mexico's Coffee Market Finds a Second Wind F or much of the last decade, Mexico (the geographically privileged, agronomi- cally rich, but institutionally fractured nation) and its coffee industry have been quietly rewriting its own story. Once shaken by disease, low productivity, and the migration of farm labor, it is now leaning on a renewed sense of identity — both at home and abroad. Small Farms, Big Challenges According to the US Department of Agriculture 2024 Coffee Annual Report, "Mex- ico's coffee production for marketing year 2024/25 is forecast at 3.89 million 60kg bags." The rebound follows years of stagnation after rust outbreaks decimated planta- tions in 2014 and 2015. Today, 14 states grow coffee across 712,000 hectares (SIAP, 2021). However, only four states account for 85% of the total coffee area and 90% of total coffee production, namely Chiapas, Veracruz, Oaxaca, and Puebla, according to the ICO Mexican Coffee Value Chain study. Vera Espíndola Rafael — an agricultural economist, former director of strategic initiatives at Azahar Coffee Company, and advisor to Mexico's Ministry of Agricul- ture — has spent two decades studying the link between policy and the livelihoods of smallholders. In an interview with STiR Coffee and Tea, she made her perspective clear: "Although we have 400,000 to 500,000 producers, productivity remains low. About 60% of our coffee comes from indigenous communities that cultivate traditionally and respect the environment." The USDA report confirms that "90% of coffee growers operate small-scale farms averaging 2.9 hectares." This mosaic of small plots under shade forests has made Mexi- co a global leader in both shade-grown and organic coffee production, but it also limits scale and profitability. Processing Power and the Trade Edge What Mexico lacks in plantation scale, it compensates for in industrial capacity. The country hosts two of the world's largest soluble-coffee plants and Descamex, Latin America's first decaffeination facility. Through the government's Sectorial Production Program (PROSEC), companies can import green coffee, process it duty-free within 45 days, and export it without tariffs. This effectively positions Mexico as both a pro- ducer and processor — a hybrid role not commonly found in the coffee world. Advisor to Mexico's Ministry of Agriculture, Vera Espíndola Rafael, discusses the advantages and revitalization of the Mexican coffee market. Rising domestic specialty coffee consumption and prices motivate Mexican farmers to sell their beans to local roasters rather than abroad. Photo credit: CUMBÉ Such trade flexibility is magnified by the US–Mexico no-tariff deal. Mexico's exports are forecast at "2.7 million 60kg bags for 2024/25," mainly to the United States. "We are privileged," Espíndola notes. "Our proximity to the US and our trade arrangements create an advantage that few others have." The Human Equation But proximity does not solve rural pov- erty. Labor shortages and rising costs re- main acute. The USDA highlights that, while production is expected to increase, "limited renovation of coffee farms and shortages of migrant workers, primarily from Guatemala" are critical challenges. Tourism and other sectors are now paying better wages than harvest work, and many young farmers and pickers have left. Espíndola laments that "We have never really understood the agricultural workforce or paid it fairly." In practice, this means many companies' sustainabili- ty programs often bypass the very people they claim to empower. The International Coffee Organiza- tion Mexico Value Chain study shows that, while coffee is the most important income source for the majority of coffee farmers (63%), and despite coffee being financially profitable, net coffee incomes are relatively low in absolute terms due to low productivity levels, placing small- holdings far below the rural national ex- treme poverty line.

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