- Coffee producers are growing their presence in consuming markets
- This moves them closer to where value is added along the coffee supply chain
- However, achieving this remains financially and operationally challenging for many smaller producers
Coffee producers are increasingly establishing a presence in consuming markets, from opening cafés and roasteries to setting up import offices. In doing so, they are moving closer to the final point of sale – and, in some cases, closer to the most profitable parts of the value chain.
The shift reflects broader changes within the industry. Greater access to market information, social media, and international coffee events has reduced the distance between producer and consumer over the years.
But will this trend enable producers to challenge traditional supply chain structures – or prove to be too challenging?
Going where the value is
As well as increasing their ability to add value, this shift may also be about producers reducing reliance on intermediaries and gaining greater control over how their coffee is sold, positioned, and valued further down the supply chain.
Gabriella Oliveira is Coffee Sales Manager at Cumpa GmbH and Founder of Specius Coffee Roastery in Brazil. Originally from Brazil and now based in Germany, she has worked across green coffee trading, logistics, quality control, and producer relations.
According to Gabriella, the movement of more producers to establish a presence in consuming countries is being driven by both economic and personal motivations – effectively closing the distance between producers and roasters.
“Greater access to market information, social media, coffee events, and people from origin countries physically moving abroad have all played a role in shortening that distance,” she says. “Plus, there is a growing desire from producers to be closer to the final market – not just to sell more, but to be recognised internationally.”
For some producers, operating in consuming markets allows them to create stronger commercial relationships with roasters, who may, for instance, have easier access to spot inventory in consuming countries.
“From a roaster’s perspective, buying directly from someone you’ve met in person, whose values align with yours means something beyond cup quality,” Gabriella says. “And for producers, it’s mostly the bigger, the established ones who have a physical presence here, a warehouse in Hamburg or London for example, and selling spot inventory directly to small and medium roasters.”
However, she also stresses that the economics are more complicated than they may initially appear.
“They capture more margin that way,” Gabriella says, referring to producers who establish warehouses and spot inventory in consuming countries. “But it requires real planning and people locally, you need to know exactly how you’re going to operate before you start.”
This creates an important distinction. While the model may offer greater upside, it also introduces significantly greater operational and financial risk.
“The large importers still have advantages: cheaper freight from volume, stronger negotiating power, established infrastructure,” Gabriella says. “They’re not going anywhere.”
Rather than eliminating intermediaries entirely, the trend may instead be reshaping expectations around what value intermediaries are expected to provide.
From farmer to operator
Historically, coffee producers have often been positioned primarily as agricultural suppliers. Increasingly, however, many are presenting themselves as entrepreneurs, educators, and brand owners.
This reflects a growing emphasis on producer identity within the industry. Rather than focusing solely on country or region, consumers are increasingly engaging with individual producers, farms, and processing styles.
“When farmers present and brand themselves, it brings the final consumer genuinely closer to origin, it opens doors for direct contact, farm visits, real transparency, and it protects their story,” Gabriella says.
At the same time, social media and other digital platforms make it easier for producers to shape their own narratives more than before.
“When producers own their narrative, it’s much harder for someone else to simplify or misrepresent it,” Gabriella explains.
This shift has implications beyond marketing, too. Direct connection with consumers can improve stability – but this increased visibility may also create new pressures.
At the same time, the ability to operate successfully in consuming markets remains uneven. While larger producers and cooperatives may have the scale and financial capacity to establish international operations, many smaller producers will have no choice but to rely on existing export structures.
“Good coffee and big volume aren’t enough on their own,” Gabriella explains. “Without real financial visibility and operational knowledge, accessing consuming markets directly can carry more risk than reward.”
The traditional setup isn’t going anywhere
While there are clear motivations behind it, this shift is likely to only represent a small percentage of the market. It may, however, increase pressure on upstream supply chain partners.
“As producers get closer to consuming markets, roasters and importers have to be clearer about what they actually do, what value they add, how they support producers beyond just buying and selling,” Gabriella says. “That accountability is a good thing, even if it’s uncomfortable for some.”
At the same time, she explains that this is not indicative of a complete restructure in the industry, nor a new standard by any means.
Ultimately, this is challenging for all but a tiny percentage of coffee producers to achieve. Only those with the scale, structure and financial capacity to make it work will do so. It’s not realistic to assume most producers can just vertically integrate themselves across the supply chain.
“To make this model viable you need volume, solid commercial relationships, and the ability to manage logistics, regulation, marketing and customer service in a foreign market,” she says. “That’s a lot to ask of most producers.”
Looking ahead, it’s clear this shift won’t become the norm. But if it becomes more prevalent among larger, more well-recognised producers – it may at least lead to a wider, more nuanced conversation about who adds and distributes value across the global coffee supply chain.
