New Analysis Reveals Profit Disparities in Ground Coffee Supply Chain in Germany

A recent analysis sheds light on the detailed cost structure of ground coffee production in Germany under national brands, where the average cost per kilogram reaches €8.06. The data reveals that taxes claim the largest share of this cost at €2.19 per kilogram, followed by retail costs amounting to €1.39 per kilogram. Meanwhile, farmers, who are at the start of the supply chain, earn a net income of only €0.41 per kilogram, highlighting a significant disparity in profit distribution across various stages of production.

The analysis also shows that roasting costs amount to €0.89 per kilogram, trading costs through intermediaries stand at €0.26, and export costs reach €0.29 per kilogram. However, the report raises concerns about farmers, pointing out that family labor is not included in agricultural cost calculations, leaving farmers to bear additional unaccounted burdens that impact their actual income.

On the other hand, the net profit margin for each kilogram stands at only €0.19, while taxes alone consume approximately €0.13 per kilogram. These figures make it evident that most financial returns are concentrated in the final stages of the production chain, while farmers receive a fraction of the earnings despite being responsible for the initial and essential stages of coffee cultivation.

These findings raise serious questions about the fairness of profit distribution in Germany’s ground coffee industry. As the burden on farmers continues to grow, compared to the returns reaped by other stakeholders in the chain, there is an urgent need for a thorough review of the revenue distribution structure. Innovative solutions are required to ensure the sustainability and equity of this critical sector, so that all contributors, especially farmers, receive a fair share that reflects their efforts in delivering coffee to consumers.