For decades, the global coffee industry has operated under one unchanging rule: money flows downhill. Roasters and traders in wealthy consuming nations advanced funds to farmers and exporters in producing countries — securing harvests long before beans ever left the farm. But now, the script is being rewritten. Amid inflation, rising tariffs, tightening credit, and record-high coffee futures, the financial balance of power is shifting. A new and surprising trend is emerging: farmers financing roasters. What was once a one-way transaction has evolved into a more complex relationship — one that raises a vital question: Is this true empowerment, or just opportunism dressed as partnership?
The New Reality of Coffee Finance
In early 2025, Philipp Schallberger, Managing Partner at a coffee brand in Switzerland, shared an eye-opening story on LinkedIn. For the first time, one of his producer-exporter partners in Brazil pre-financed a coffee shipment to his roastery — flipping the traditional direction of trade capital.
“Buying coffee is part relationship, part financial transaction,” says Philipp. “When a producer pre-finances us, it’s both trust and liquidity. These days, business is about cash flow — and open, honest conversations about money are relationship-building, too.”
In a market where coffee prices are near all-time highs and banks are reluctant to lend, this unconventional practice starts to make sense. European and North American roasters face higher green coffee prices and shrinking retail margins. For some, turning to producers with available liquidity feels like the only way to stay afloat.
Yet, not everyone sees this as progress. Some view it as a symptom of deeper inequality — where financial pressure is merely being pushed further down the supply chain.
Why Farmers Are Now Financing Roasters
A series of global factors has accelerated this shift:
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Tariffs and Trade Disruptions – Coffee tariffs on Brazil and Vietnam have distorted pricing and reduced availability.
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Rising Costs – From logistics to energy, operating costs for roasters have surged.
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Bank Reluctance – Financial institutions are tightening credit to coffee companies amid commodity volatility.
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Producer Liquidity – Some large estates or exporter-producers, flush from local market sales, now have the cash to offer terms to their roaster partners.
As a result, farmers financing roasters has quietly become a tool of survival and leverage in the specialty coffee trade. But this new “innovation” also raises questions about fairness, risk, and transparency.
Empowerment or Exploitation?
Critics argue that the trend may simply repackage old power imbalances under a new name. “Farmers have been crushed by low prices and double-digit interest rates for generations,” says Martin Mayorga, CEO. “Now, when roasters face cash-flow issues, they ask farmers to extend credit — often at 0% — and call it ‘partnership’. That’s not empowerment; that’s extraction.”
In Latin America, farm loans can carry annual interest rates of 20% to 30%. For smallholders, access to affordable credit is nearly impossible. So, when farmers extend financing without interest — while paying steep rates locally — they’re effectively subsidizing roasters’ operations.
“If a roaster wants terms, they should compensate for the producer’s cost of capital,” Mayorga insists. “Otherwise, they’re asking the poorest link in the chain to absorb the financial risk.” In this light, farmers financing roasters may look less like partnership and more like desperation — or at best, an uneven trade-off.
Who Benefits From the Shift?
There’s no single answer. Wealthier or more diversified producers may see pre-financing as a strategic move — a way to secure long-term contracts, stable demand, or better prices.
“In Brazil, for instance, some producers can afford to offer flexible payment terms,” Philipp explains. “But in rural Mexico, where most farmers live off less than a hectare of land, asking for pre-financing would be absurd.”
For large farms, credit can become leverage — a bargaining tool in negotiations. For smallholders, however, it risks becoming another burden. This contrast illustrates a dangerous reality: if the industry normalizes producer credit, the poorest farmers could be pressured to take risks they can’t afford.
Redefining Partnership: Capital or Reciprocity?
True partnership means shared risk and shared reward. In practice, that means any pre-financing agreement should include:
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Transparent interest rates tied to local borrowing costs.
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Structured repayment schedules that protect both parties.
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Reciprocal benefits, such as better prices or guaranteed volume.
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Investment in local credit facilities to lower borrowing costs at origin.
Without these safeguards, farmers financing roasters could deepen existing inequalities rather than dismantle them.
As Mayorga puts it: “If producers extend credit, roasters must pay a finance charge indexed to local costs. Otherwise, farmers become back-door lenders at 0%. That’s not sustainable — that’s hidden exploitation.”
A Fragile Future for Coffee Economics
The growing reliance on producer financing highlights how fragile specialty coffee’s economics have become. Inflation, tariffs, and climate disruptions have squeezed margins across the industry — and even established roasters are feeling the strain. In this climate, capital may move both ways, but empowerment isn’t about who writes the cheque. It’s about fairness in the terms and balance in the risk. If producers with capital can use financing to negotiate better contracts, the shift could represent a new kind of empowerment. But if roasters accept zero-interest credit while branding it as “innovation,” it risks becoming another chapter in coffee’s long history of inequality.
A Path Toward True Collaboration
The industry can turn this challenge into progress — if both sides act responsibly. Roasters can help by:
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Facilitating access to affordable credit for cooperatives.
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Sharing financial risk through pre-harvest contracts.
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Offering floor prices and revenue-sharing models that stabilize farm income.
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Promoting transparency and fair compensation in all financial arrangements.
Done right, this could transform “farmers financing roasters” from a sign of crisis into a tool for long-term resilience.
Helena Coffee Vietnam: Building Fair and Transparent Partnerships
At Helena Coffee Vietnam, we believe that sustainability begins with fairness — in trade, in pricing, and in relationships. As both a producer and exporter, Helena Coffee ensures that value flows both ways across the supply chain. We work directly with roasters worldwide, not only delivering premium Vietnamese Arabica and Robusta, but also fostering ethical financial partnerships built on trust and transparency. From the highlands of Buon Ma Thuot to coffee lovers around the globe, our mission is clear: To bring the true value of Vietnamese coffee — and the people behind it — to the world.
👉 Visit www.helenacoffee.vn or Info@helenacoffee.vn to explore our products and request a direct quote today!
