According to a report released today, the “Verified Living Income (VLI) is an initiative focused on developing a transparent and inclusive method of price discovery.” Spearheaded by a coalition of non-profit and for-profit entities, the approach and the sensitivity analysis (developed by the non-profit Heifer International) takes into account over one hundred variables to determine a living income for farmers.
Grayson Caldwell is the head of sustainability at Bellwether, is a driving force behind the project. She saw a disconnect between the industry’s sustainability standards, and the deep poverty in coffee growing communities. She wondered, “So how much do they [farmers] need to earn to live a dignified life? And how can we at Bellwether create a minimum Green Coffee price based on those data points?” She learned about the VLI, and together with coffee importer Sustainable Harvest, they launched a pilot project. {…} What Caldwell found was that Bellwether’s contract prices were 20% under the living income threshold. They reviewed and validated the information with the cooperative manager, and Bellwether revised their contract to increase the price paid to the members of the cooperative by 20%.
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