We chat with Javier Gutierrez Abril, founder of Caribbean Goods and our Guatemalan sourcing partner, about the realities faced by small-holder farmers in the country.
It produces some of the world’s tastiest coffee, but how much do you know about Guatemala’s specialty coffee industry?
We’ve dug down into some of the realities faced by small-hold farmers and chatted to founder of Caribbean Goods and our Guatemalan sourcing partner, Javier Gutierrez Abril, to take a closer look at exactly how Guatemalan beans go from farm to cup.
What does the third wave of coffee look like in Guatemala?
The term ‘third wave of coffee’ can mean different things depending who you ask, but it undeniably signifies a greater emphasis on quality.
In Guatemala, this movement involves farmers selling premium coffee with scores of 85 or higher through direct relationships, which often come with greater risks compared to traditional cooperative-style sales - and this trend continues to grow.
Guatemala is particularly well-suited for growing high quality coffee, thanks to its highly fertile volcanic soil, microclimatic conditions, and high-altitude agricultural land, all of which contribute to some fantastic flavours.
With more experimental processing methods and smaller farms suddenly finding their place on the coffee map, it’s an exciting time for Guatemala… but it’s not an easy road ahead by any stretch.
Javier explains:
“When discussing ‘third wave coffee’, I define it as a movement within the coffee industry that treats coffee as an artisanal product rather than a commodity. Guatemala exemplifies this philosophy, as coffee here is traditionally hand-picked and sun-dried.
“Farmers manually turn the parchment with consistency throughout the drying process. These meticulous methods result in Guatemalan coffee consistently achieving higher quality scores compared to coffee mass-produced using machines for harvesting and mechanical drying, which can take just a day instead of the traditional seven days under the sun.
“From this perspective, Guatemala aligns naturally with our principles of third wave coffee.
“However, there are significant barriers - mainly economic - that hinder small farmers from experimenting or advancing to higher levels of complexity.
“Coffee plants typically take 3-4 years to bear fruit, and most small-scale farmers rely on the trees already established in their fields. These are often traditional varieties like Bourbon, Caturra, Pache, and so on, which are resistant to diseases and yield a reliable volume of cherries. While these varieties produce the classic Guatemalan flavour profile, they often lack the complexity required to stand out in specialty coffee competitions.
“Replacing existing trees with new varieties that could potentially yield more complex flavours poses significant challenges. The gap of several years without income during the replanting process is a major deterrent for small producers. Additionally, there is a scarcity of reliable seed suppliers in Guatemala. Even when seeds are available, farmers face the risk that new varieties might not adapt well to their specific farms, resulting in potential crop failure.
“The country faces a critical gap in financing solutions to help farmers experiment with new genetic varieties and bridge the economic challenges of replanting. Addressing these issues could enable even small-scale producers to push the boundaries of quality and complexity, further solidifying Guatemala’s place in the third wave coffee movement.”
How does selling on the third wave differ to the second wave model in Guatemala?
In Guatemala, coffee farmers face a tough decision when it comes to choosing which market to sell to: the more stable second wave market or the riskier, but potentially more lucrative, third wave. Both have their pros and cons, and the choice often comes down to balancing financial security with the potential for higher profits.
The second wave coffee model revolves around farmers selling their beans through cooperatives. This approach allows them to share the financial burden of certifications like Fairtrade, which ensures a minimum price for their coffee. This price floor offers farmers much-needed stability, shielding them from the unpredictable fluctuations of the coffee market - an essential safeguard for those who depend on coffee as their primary source of income.
The third wave market, in comparison, offers farmers a more lucrative market to sell their coffee, yet it’s riskier and more competitive. And it can be seen to pit farmers against one another in some cases.
Who grows coffee in Guatemala?
Coffee farmers in Guatemala can largely be categorised into three main groups: family-owned farms, small producers, and business-managed farms. Each group has its own distinct challenges and opportunities within the industry.
- Family-Owned Farms
Javier explains:
“These farms are often passed down through generations, with the family’s legacy closely tied to the farm’s reputation. The main challenges faced by these farmers include limitations tied to their location - such as fixed altitude - and the rising costs of labour (coffee pickers) and fertilisers, all compounded by the volatility of the commodity market.
“To overcome these challenges, family-owned farms often prioritise quality, experimentation, and differentiation. They aim to produce unique coffees and establish strong brand recognition for their farms.
“Building the farm’s reputation allows them to secure fixed prices above commodity market rates. The long-term advantage of this model is that the farm’s name, fame, and established practices are passed down to the next generation, ensuring continuity.”
- Small Producers
Small producers may include indigenous groups or non-indigenous communities.
Indigenous groups, mostly living in western regions, make up a significant section of this growing population – many of whom have been granted ‘third wave producer’ status due to the history of land ownership in the country.
Many of these groups were pushed to the higher steep slopes which, although were seen as unsuitable for large-scale production, now provide the perfect characteristics for growing high-scoring coffee.
Javier says:
“For both indigenous and non-indigenous small producers, their greatest challenge is their deep dependence on the fluctuating commodity market. They often lack formal business structures (for example, standardised accounting, invoices, or limited companies), making them more vulnerable to market instability.
“When commodity prices drop, they suffer heavily; when prices rise, they see significant but inconsistent benefits.
“One unique strength of small producers is their intimate connection to the coffee they grow. Living on the farm allows them to closely monitor and address problems as they arise. Additionally, these producers often do not account for their own labour when calculating costs.
“They tend to price their coffee based only on cash expenses, such as fertilizers, which gives them an artificial advantage in terms of lower costs. However, this practice may undervalue their time and efforts.”
- Business-managed farms
Javier says:
“These farms are typically owned by individuals or companies that acquire them for tax efficiency or as part of a diversified business portfolio. A general manager or CEO, often a family member, is appointed to oversee operations. The CEO usually receives a salary and performance-based bonuses tied to the farm’s profits.
“The primary challenge for business-managed farms is their high operational costs. With significant expenses, such as competitive salaries for staff, these farms often prioritise profitability, sometimes at the expense of artisanal practices, leading to partial commoditisation of their coffee.
“They usually produce a mix of products: higher-quality microlots for specialty markets and larger volumes of commodity-linked coffee with a small quality premium.
“Despite these challenges, business-managed farms often lead the way in innovation and infrastructure. Their wealth and resources allow them to invest in state-of-the-art facilities, international marketing, and advanced agricultural techniques. They experiment with new coffee varieties, closely monitor variables like water usage, sunlight, and humidity, and use detailed data to optimise production.
“These farms frequently trace coffee back to its source and push the boundaries of what Guatemalan coffee can achieve. However, it’s worth noting that they sometimes purchase coffee from nearby small producers and resell it under their own brand.”
Javier adds: “Each type of coffee farmer plays a unique role in Guatemala’s coffee ecosystem. Family-owned farms focus on preserving legacy and quality, small producers bring a personal connection and cost-efficiency to the table, and business-managed farms drive innovation and international visibility. Together, they contribute to the diverse and vibrant coffee culture that makes Guatemalan coffee stand out globally.
“It is worth mentioning that these three are all over Guatemala, and they are usually quite close to each other, generating political and social friction within the country.”
How are different groups equipped to access the third wave market in Guatemala?
In Guatemala, the coffee industry is a key part of the nation's economy, but access to the premium third wave market remains unequal. While some farmers have the privilege of entering this high-end sector, many others face significant challenges that limit their opportunities.
These disparities are often tied to factors like wealth, Spanish language proficiency, and access to specialised knowledge and technology.
For farmers who are already more privileged within Guatemalan society, accessing the third wave coffee market is often easier. Private family farms, in particular, tend to have better access to this premium market because they are generally wealthier. Their economic stability allows them to invest in quality production and processing methods that can increase the value of their coffee.
In addition to their financial resources, these farmers are typically fluent in Spanish, which is a major advantage when communicating with international buyers and stakeholders in the coffee trade. The third wave market often emphasises direct trade relationships, and speaking Spanish makes it easier for these farmers to engage in meaningful conversations, negotiate prices, and participate in coffee auctions. This fluency opens doors to opportunities that are harder to access for other farmers who don’t share this privilege.
For poorer farmers, however, entering the third wave market involves more barriers. Many of these farmers are often unfamiliar with the processes that can add value to their coffee. Even if poorer farmers are aware of the potential to improve the quality of their coffee, the technological and financial barriers are often insurmountable. The high costs of equipment and the investment needed to experiment with different processing techniques can be a significant hurdle.
Without economic stability, these farmers are less likely to take the risks associated with experimenting - further limiting their chances of producing coffee that could attract premium buyers.
EXTRA:
“For context, Guatemala has around 20,000 registered coffee farmers, yet most importers work with only 8–12 of them. Popular farmers often have shared buyers, which limits exposure for many others. There are numerous challenges involved in sourcing from smaller, underrepresented farms. This year alone, our imports involved coffee from five different dry mills and seven different export licenses. While it would be simpler to work with a single dry mill, many smaller farmers don’t meet the requirements of these mills, which creates a unique set of obstacles.
One farm that comes to mind is El Niagara, a small farm in Fraijanes (where I grew up) that produces around 7,000 kg of coffee annually. I bought their entire production for two years, but due to various factors, I couldn’t work with them this year. The farm has been in the same family for five generations, and for over 120 years, its coffee was often purchased and resold by more established producers. I supported the owner in becoming certified and licensed as an independent exporter, helping with all necessary paperwork to become a “legitimate” producer in the industry. Unfortunately, this year, we couldn’t collaborate, which was a reality check. This industry can be complex, even harsh—but I believe there’s so much potential for positive change.
