Diagnose

- Step 4

Determine the Living Income Benchmark

Access or Calculate the cost of a decent standard of living.
  • What is our ‘dot on the horizon’ in terms of income – what is the required income for a decent standard of living?
  • Explore if existing Living Income benchmarks can be used for your region.
  • If non-existent:
    a. Identify existing relevant data on farmer income and cost of living that can help identify what the “dot on the horizon” should be.
    b. If resources are available and stakeholders support, conduct a Living Income Benchmarking analysis.
  • Measurement of the Living Income Benchmark in three coffee-growing regions of Honduras, New Foresight, Instiuto Hondureño de Café (IHCAFE) (2023)
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  • ILO methodology
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  • NewForesight (2023): LI Benchmarking Methodology
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  • Anker Methodology (2017)
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  • ALIGN (2024): Action process
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  • IDH LI Roadmap (2024): Step 1
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  • The Living Income Community of Practice (n.d.): Living income
    See more

The below graph shows the methodology to determine the Living Income Benchmark.

Living Income is the net income required for a household to afford a basic but decent standard of living.

Index

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Living and Prosperous Income Process Guide page.

Step 1 -

Imagine

Envision a prosperous coffee sector and assess how existing strategies address coffee farmer income and prosperity.

Step 2 -

Define the playing field

Identify the stakeholders, understand their interests.

Step 3 -

Recognize the problem

Understand challenges and their underlying systemic barriers, and identify opportunities.

Step 4 -

Determine the Living Income Benchmark

Access or Calculate the cost of a decent standard of living.

Step 5 -

Identify the solutions

Identify the LI gap and drivers to close the Gap at farm-, supply-chain-, or sector-level.

Step 6 -

Assess existing action

Explore what actions are already taken vs what is required – and by whom.

Step 7 -

Determine roles & responsibilities

Identify role per stakeholder, based on their strengths and position.

Step 8 -

Mobilize stakeholders

Shape high-level Roadmap towards closing the LI gap, including actions at different levels.

Step 9 -

Set governance

Determine how to organize stakeholders – including collaboration with existing initiatives.

Step 10 -

Create Monitoring & Evaluation

Create an M&E framework to measure progress and ensure continuous learning.

Step 11 -

Build workplan and funding strategy

Operationalize activities in planning, conduct fundraising for execution.

Step 12 -

Execute

Carry out the intended activities .