Mexico Advances Sustainable Coffee Procurement – Mexico Business News

Report on Sustainable Public Procurement Policy for Coffee in Mexico

1.0 Executive Summary

A multi-agency meeting was convened by the Ministry for Anti-Corruption and Good Governance and the Ministry of Agriculture and Rural Development (SADER) to review the “Sustainable Public Procurement Policy for Coffee from Social Sector Organizations (OSS).” The meeting detailed the outcomes of the inaugural 2025 procurement initiative and outlined the implementation strategy for 2026. The policy represents a significant advancement in aligning national procurement with the Sustainable Development Goals (SDGs), particularly those concerning poverty reduction, inequality, responsible consumption, and environmental protection.

2.0 Alignment with Sustainable Development Goals (SDGs)

The initiative is strategically designed to leverage public procurement as a tool for achieving multiple SDGs:

• SDG 1 (No Poverty) & SDG 10 (Reduced Inequalities): The policy directly targets approximately 500,000 small-scale coffee producers, 75% of whom belong to Indigenous communities, aiming to correct historical inequities and provide stable economic support.
• SDG 8 (Decent Work and Economic Growth) & SDG 12 (Responsible Consumption and Production): By creating a fair and direct market for OSS, the government is fostering inclusive economic growth and establishing a model for sustainable public consumption.
• SDG 15 (Life on Land): The program supports Indigenous smallholder coffee farms, which are integral to preserving Mexico’s significant biodiversity, contributing to the protection of terrestrial ecosystems.
• SDG 16 (Peace, Justice and Strong Institutions) & SDG 17 (Partnerships for the Goals): The reform of procurement laws and inter-agency collaboration (SADER, SHCP, etc.) strengthens institutional frameworks for justice, transparency, and effective partnerships.

3.0 Policy Framework and Implementation

The government has established a robust framework to ensure the policy’s success and its contribution to social justice and sustainable development.

3.1 Strategic Objectives

1. To convert the nation’s MX$700 billion (US$38.1 billion) public procurement budget into a lever for sustainable development.
2. To address the historical debt owed to the small-scale and Indigenous coffee-producing sector.
3. To create a scalable model for purchasing from cooperatives, MSMEs, and social economy enterprises.

3.2 Key Actions and Mechanisms

• Legal Reform: The Public Sector Procurement, Leasing, and Services Law was amended to permit exclusive procurement schemes for OSS, enabling them to secure contracts without competing under unequal conditions with large corporations.
• Framework Agreement: The Ministry of Finance and Public Credit (SHCP) is developing a Framework Agreement to standardize coffee procurement across all federal agencies.
• Digital Procurement Platform: The agreement will be implemented through the Government of Mexico’s Digital Store, ensuring efficiency, transparency, and expanded participation for social-sector suppliers.

4.0 Results and Future Projections

The initial phase of the program has demonstrated the model’s viability and effectiveness, with a clear path for expansion.

4.1 Current Status

• The 2025 pilot purchase successfully validated the procurement model.
• A significant number of producers are prepared for direct sales, with 5,500 of the 23,700 farmers in the “Field Schools” program ready to participate immediately.
• Anabel Téllez, representing the Yankuik Senojtokalis cooperative, provided testimony confirming the positive impact and interest in fostering equitable commercial relationships.

4.2 2026 Outlook

The program is set for significant expansion with the following targets:

1. Procurement Volume: 68 tonnes of roasted and ground coffee.
2. Estimated Value: MX$20 million.
3. Strategic Goal: To scale the sustainable procurement model across the entire Federal Public Administration, translating policy into direct, tangible benefits for producing communities and advancing Mexico’s commitment to the SDGs.

1. Relevant Sustainable Development Goals (SDGs)

Explanation

The article discusses a Mexican government initiative focused on a sustainable public procurement policy for coffee. This policy directly engages with several SDGs by targeting economic, social, and environmental dimensions of sustainable development. The initiative’s focus on small-scale farmers, Indigenous communities, social justice, biodiversity, and institutional reform connects it to goals related to poverty, inequality, economic growth, sustainable consumption, terrestrial ecosystems, and partnerships.

Identified SDGs

1. SDG 1: No Poverty
   • The policy aims to provide economic benefits directly to “around 500,000 producers; 95% of them are very small-scale farmers.” By creating a direct and equitable market, it addresses poverty in vulnerable rural communities.
2. SDG 8: Decent Work and Economic Growth
   • The initiative promotes inclusive economic growth by supporting “cooperatives, MSMEs, and companies in the social economy.” It aims to foster entrepreneurship and create more equitable commercial relationships for small producers.
3. SDG 10: Reduced Inequalities
   • The policy is explicitly designed as a “tool for inclusion and social justice,” targeting marginalized groups. It notes that 75% of producers “belong to an Indigenous people” and reforms procurement laws so these groups can “avoid competing under unequal conditions with large companies.”
4. SDG 12: Responsible Consumption and Production
   • The entire initiative is framed as the “Sustainable Public Procurement Policy for Coffee.” This directly aligns with promoting sustainable practices through government purchasing power, influencing both production patterns among farmers and consumption patterns within federal agencies.
5. SDG 15: Life on Land
   • The article highlights the “deep social and environmental roots of Mexican coffee,” stating that “Indigenous smallholder coffee farms are part of that biodiversity.” By supporting these farms, the policy indirectly supports the conservation of terrestrial ecosystems and biodiversity.
6. SDG 17: Partnerships for the Goals
   • The project is a multi-stakeholder collaboration involving various government bodies (Ministry for Anti-Corruption, SADER, Ministry of Finance), social sector organizations (the cooperative Yankuik Senojtokalis), and legislative figures. This partnership is essential for implementing the policy effectively.

2. Specific SDG Targets

Explanation

Based on the specific actions and objectives described in the article, several SDG targets can be identified. These targets reflect the policy’s goals of using public procurement for social inclusion, supporting small enterprises, promoting sustainability, and empowering vulnerable communities.

Identified Targets

1. Under SDG 1 (No Poverty)
   • Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources. The reform of the “Public Sector Procurement, Leasing, and Services Law” to give small producers direct access to government contracts with “equitable award conditions” directly supports this target.
2. Under SDG 8 (Decent Work and Economic Growth)
   • Target 8.3: Promote development-oriented policies that support productive activities… and encourage the formalization and growth of micro-, small- and medium-sized enterprises. The policy is a clear example of this, as it was designed to allow the state to “buy from cooperatives, MSMEs, and companies in the social economy.”
3. Under SDG 10 (Reduced Inequalities)
   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… ethnicity, origin… or economic or other status. The article states the goal is to convert public purchases into a “tool for inclusion and social justice,” specifically benefiting Indigenous peoples and small-scale farmers.
4. Under SDG 12 (Responsible Consumption and Production)
   • Target 12.7: Promote public procurement practices that are sustainable, in accordance with national policies and priorities. The initiative’s title, “Toward a Sustainable Public Procurement Policy for Coffee,” and the creation of a “Framework Agreement for the Procurement of Coffee from OSS” are direct implementations of this target.
5. Under SDG 15 (Life on Land)
   • Target 15.9: By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, [and] poverty reduction strategies. The government’s recognition that “Indigenous smallholder coffee farms are part of that biodiversity” and its integration of this value into a national procurement and development strategy aligns with this target.
6. Under SDG 17 (Partnerships for the Goals)
   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The meeting described, which included multiple ministries, a senator, financial agencies, and a producer cooperative, exemplifies the formation of such a partnership to achieve a common goal.

3. Relevant Indicators

Explanation

The article does not mention official SDG indicator codes, but it provides specific data and quantifiable goals that can serve as de facto indicators to measure the progress and success of the sustainable procurement policy. These implied indicators are directly linked to the identified targets.

Identified Indicators

1. For Target 1.4 (Equal rights to economic resources)
   • Implied Indicator: Number of small-scale farmers with access to the government procurement market. The article provides a baseline figure: “We have 23,700 coffee farmers in the Field Schools, and 5,500 of them could sell coffee tomorrow.”
2. For Target 8.3 (Support for MSMEs)
   • Implied Indicator: Number of social sector organizations participating in the procurement scheme. The article mentions the goal is to “expand the participation of these organizations, and strengthen the registry of social-sector suppliers.”
3. For Target 10.2 (Inclusion of all)
   • Implied Indicator: Proportion of public procurement contracts awarded to Indigenous and small-scale producers. The policy aims to address a “historical debt to this sector,” and tracking this proportion would measure progress towards social justice.
4. For Target 12.7 (Sustainable public procurement)
   • Implied Indicator: Volume and value of sustainably sourced coffee procured by the government. The article provides a specific projection: “For 2026, the purchase of 68t of roasted and ground coffee is projected, with an estimated value of MX$20 million.”
5. For Target 15.9 (Integration of biodiversity values)
   • Implied Indicator: Number of smallholder farms practicing biodiversity-friendly agriculture that are included in the program. This is implied by the statement that “Indigenous smallholder coffee farms are part of that biodiversity” and the focus on sourcing from them.
6. For Target 17.17 (Partnerships)
   • Implied Indicator: Number of diverse stakeholders actively participating in the policy’s implementation. The article lists the “Ministry for Anti-Corruption,” “SADER,” “Ministry of Finance,” “Senator Susana Harp,” “Finabien, INAES, AEFCLM,” and the cooperative “Yankuik Senojtokalis” as participants.

4. Summary Table: SDGs, Targets, and Indicators

Source: mexicobusiness.news