Showing posts with label Direct Trade. Show all posts
Showing posts with label Direct Trade. Show all posts

Wednesday, October 17

How Direct Trade Starts

Geoff Watts is the VP of Coffee at our roaster Intelligentsia. In his latest post from his travels he tells of his journey to a village in Papua New Guinea and just what he is looking for when starting the Direct Trade process with a coffee grower. It is long but a very interesting read to see what goes into your morning cup of coffee.

Hola:

It's always a big time thrill to visit a country for the first time. The local languages; cultural views on human, ethical, and political topics; and details about traditional lifestyle are fascinating. You step off the plane not really knowing what to expect, and after a few days, you begin to feel like a sponge as you attempt to absorb as much as you can. I landed in Papua New Guinea earlier this week ostensibly to participate in a small coffee competition organized by the Federation of Coffee Growers, but really I'm here to scout and lay some groundwork for developing a Direct Trade program. This effort can take on many forms, and in every country it is different, yet the basics still apply.

The first thing I do is just observe. It is important to gain understanding about the way the local industry has been working (or not working) and who the players are. Learning about the history of the coffee sector is the first step towards preparing oneself to dig in and figure out how to create positive change. Part of this usually involves deciding who not to work with for reasons that can range from extreme apathy or overwhelming cynicism to the more serious obstacles like apparent corruption or historical misdeeds.

Once I've gotten a general lay of the land, I try to understand what the key quality hurdles are and where the problems reside. This means assessing processing traditions, looking at infrastructure deficiencies, and examining the chain of custody. Typically the greatest sources of quality loss come down to harvesting (cherry ripeness), wet milling logistics, and post-fermentation drying. Every scenario is different. In some places farmers deliver cherry to centralized wet mills while in others they sell dry or semi-dry parchment. Fermentation can take place in plastic sacks, in wooden boxes, in cement tanks or on patios; sometimes it is skipped altogether in favor of mechanical processes where the beans are scrubbed free of pulp using friction.

It also makes a big difference whether or not farmers have close access to mills. Those who are the farthest away tend to face bigger hurdles as transport of just-harvested cherry can present a lot of quality risks. In the ideal scenario, freshly picked coffee cherries are depulped and enter the fermentation process within 4 to 5 hours after harvest. The ability of a mill to separate lots and retain traceability to the farmgate is critical and often lacking. And steady, uniform drying is a huge challenge in many growing areas that receive sporadic rainfall throughout the picking season.

Once I've got a sense of how things typically work in a given place, I then focus on two things: finding the right environmental conditions that are especially favorable to quality potential and finding the right people to work with. The latter involves meeting with various farmer groups and millers and spending time together to see if our interests can align. I've found that it is critical to partner with farmer groups who have some degree of organizational stability. Most often it is the smallest groups that qualify since they all live together in a community and trust one another and know how to work together. The bigger a cooperative group gets the more likely it is that politics will interfere with progress.

Part of it comes down to the intangible… or just the vibe of the place. My vision is long-term. We hope to work with the same farmers for years or decades and to stay in close communication. So it is important that we like each other and are able to relate to a similar vision for the future. I've learned to trust instincts when it comes to these things, and over time I have gotten better at identifying red flags that might mean headaches or frustration down the road. No one wants to invest time, energy, and dollars in trying to build something only to realize that it isn't going to work. I've had one or to Sisyphus-like experiences where it seems that you could be battling the same issues over and over again perpetually. One of the most important measurables in Direct Trade is progress over time; if quality and farmer livelihoods do not improve in step and in some tangible ways, we have failed in our mission. One ingredient in success is ensuring that the preconditions exist to make it possible.

It's been a long time since I have had a day as exhilarating as yesterday. We set off in the morning to visit the Asuke cooperative, just north of Goroka. It was a quick 45 minute ride in the back of a pickup before we reached the end of the road. From there we disembarked and hiked for about an hour and half to get over the ridge into the adjacent valley where we encountered a fairly sizeable river. Fortunately there was a small raft that the farmers had constructed, so we stripped down and loaded our gear onto the raft and then swam across the river. It was invigorating…the hike had gotten us pretty heated up and the cool river was a wonderful antidote.

Once across the river, we entered the forest and were instantly immersed in a huge coffee garden. After about a 10 minute hike up the hill, we heard some high-pitched wailing, which our guide explained was a “cry of joy” at the arrival of visitors. Minutes later, as we continued through the lush forest, we were ambushed by a group of young boys wielding spears and bows and completely covered in oils that gave them a jet-black appearance. They had been hiding in the trees all around us, and in seconds we were completely surrounded. If they had wanted to take us out, it would have been no trouble at all. But of course they were just messing around.

Up at the village we met the growers and had a look around before heading out into the forest again to check out the coffees. I saw a mix of Typica, Bourbon, and Arusha varieties. It was completely gorgeous… forest coffee at its most lush and raw. After about two hours of walking up and down mountain slopes, we arrived back at the village where they had prepared some MuMu for lunch, amazing stuff. In the morning they dig a hole in the ground, fill it with some stones, and create a fire on top of it. Once the fire has died down to charcoal and the stones are hot, they put a layer of wet banana leaf on top and then proceed to stack sweet potato, yams, chicken, pig, greens, and bananas to form this big mound of food organized in such a way that the stuff that demands the most heat to cook is closest to the bottom. The whole thing is covered with more leaf and lots of dirt so that it appears as a 4 foot mound of earth. The heat from below evaporates moisture from the banana leaf and steams the food.

Hours later, the mound is uncovered and layer by layer the cooked food is removed. It was a feast, enough for 40 people or so. The whole village ate together and I had to marvel at the impressive communal feeling that is so lacking in many parts of the world. Being here is like traveling back in time, as the remote villages remain pretty untouched by the modern world. Most of the farmers don't get into town more than once a year or so, and rule of law is nonexistent. They live the way they've always lived, and it feels wonderful to witness a lifestyle where the stresses we encounter living in the material world don't really exist. For sure there are other types of stress, especially related to health maladies and climate conditions. But as far as mental well-being goes, it seems like a good enough trade off.

I was surprised to learn that the tribe still goes to war every now and then with neighboring tribes. Their bows and arrows and stealth attack tactics are not for show; they still face off with other tribes looking to take over their land, and even today fight battles from time to time to protect the land that they occupy. But no one seems worried about it. It's just a part of life. There are more than 700 tribes and languages in PNG, and they've been competing for land and resources for centuries.

Tomorrow we will finalize the coffee competition by holding a short awards ceremony, and then we head west towards Mt Hagen where we'll meet up with a cooperative group somewhere in between and spend the night. I'm looking forward to a good couple of days in the bush.


Cheers,




Geoff Watts
VP of Coffee
Intelligentsia Coffee & Tea

Wednesday, October 3

Direct Trade Video

Everyday Joe's believes that the coffee it buys from Intelligentsia and their Direct Trade model are helping people all over the world. Check out this 9 minute video to see exactly what we mean. Yes I know by internet standards the video is a bit long but it is so nice to be able to put a face on the coffee we buy.

Wednesday, July 4

Good bye Portland, Hello Chicago

Since Everyday Joe's first opened we have been buying our coffee from Stumptown Coffee in Portland Oregon. Over the past month or so we have made the transition to a new roaster. Drum roll please...

Intelligentsia out of the great City of Chicago is Joe's new roaster!

Why the change is probably your first question. Well for many reasons. The biggest being support and vision alignment. I will now tell you how the two go together.

Stumptown's vision is for their coffee never to have to travel more than 45 minutes from its roaster. Those roasters are in Portland Oregon. There is no human way possible to get coffee from Portland to Fort Collins in less than 45 minutes. Joe's was the exception to their rule. Every week after they roasted it they would ship it to us via UPS ground. It would take 3 or 4 days to get here. And since we are all the way in Colorado we did not get much attention from them even though we bought coffee from them every single week for over 3 years. Stumptown is great, some of the best coffee on the planet but they simply do not desire to sell their coffee to anyone outside of Portland so they have not built a system to support anyone outside of Portland. I have done buying for a lot of companies in my life and not having support from such a big vendor of Joe's was very frustrating.

Currently Intelligentsia is the Roaster of the Year according to Roaster magazine. (Stumptown was 2006 Roaster of the Year.) That is what caused me to start talking with them. What I found in Intelligentsia is the same quality of coffee which a far superior support system. Intelligentsia is ready and willing to help a coffee retailer such as Joe's sell coffee and grow its business. And on top of that they ship their coffee via UPS 2nd Day Air. This means our coffee gets here faster and fresher. Not to mention a guarantee that UPS Ground does not offer.

All the past posts relating to Direct Trade are in relation to Intelligentsia. We will continue to educate you the coffee drinker on our new roaster, helping you move into the 3rd Wave.

3rd Wave? What the * is that? We'll get to that soon.

P.S. You have been drinking Intelligentsia Coffee for the past six weeks. And no one has said a word in relation to change in taste or quality.

Wednesday, June 20

Sustainable Social Practices

The Direct Trade talk continues. Sustainable Social Practices are another requirement of Direct Trade. But what does that mean? Well here goes...

This can be distilled to a single essence—is everyone involved in the production of coffee on a Direct Trade farm benefiting? Again, every farm is different. The roaster works with small growers who may farm 2 hectares of coffee and do all the work themselves. The roaster also will work with farms that might employ 300 people during the year. What matters most is that there are good living conditions and the opportunity for measurable economic growth. The roaster avoids trying to determine for the farmer what this really means and prefers to let them tell how things are working. But there are some tangibles to look at. On an medium-sized or single farm the roaster must know what the pickers are being paid, how that wage compares to both the legislated minimums and the average in the region, and whether the workers feel it is a good deal. Are there health services provided? Are there other community services such as education that are financed by earnings from the sale of coffee? On a small farm, the key question is whether or not the farmer is making a living from coffee and earning enough to invest in the health and education of the family. Is there economic progress? There is a big difference between subsistence and development.

That is the jist of it. It is just another step in leveling the playing field in the global economy. Hopefully this will happen more and more in all industries where the 1st world buys from the 3rd world.

This is an exciting direction for Everyday Joe's. One that will help us be better stewards of the gifts we have, both as a coffee shop and as a culture.

Friday, June 15

Healthy Environmental Practices

In our last post we talked about Direct Trade. One of the benefits mentioned about Direct Trade is the fact that farmers must use "Healthy Environmental Practices." So what exactly does that mean?

It means that the farmer is taking proactive measures to ensure the health of the ecosystem both on and around the farm. If the farm uses irrigation, are they recycling the water? What happens to the water used for de-pulping and fermentation? Is part of the farm being maintained as forest? If pesticide or herbicide is used at all, is it minimized and applied responsibly? These are the questions asked before a Direct Trade relationship is established with a grower. It is not dogmatic, because it is recognized that there are different realities on different farms, but it is essential that every Direct Trade farm is consciously following protocols that preserve the environment.

As mentioned before this is another example of how Direct Trade takes the idea of Fair Trade a bit further.

Wednesday, June 6

Direct Trade!

The few readers of this blog will be the first to hear about the new direction Everyday Joe's will be heading. Since we have been open we have been proud to carry Fair Trade coffee. Well we have found something that is better than Fair Trade, it is called Direct Trade.

First let us talk a bit about Fair Trade. Here is what the Fair Trade web site says, " TransFair USA is the only independent, third-party certifier of Fair Trade products in the United States. It works with importers and manufacturers in this country to document business practices, providing a reliable consumer guarantee that indicates what coffees, teas and chocolates have been purchased from producers according to international Fair Trade criteria. These criteria are established by Fairtrade Labeling Organizations International (FLO), a consortium of Fair Trade groups in Japan, Canada, the US and 17 European countries. FLO makes annual inspection visits to producer groups on its Fair Trade Register to ensure that the benefits of Fair Trade relationships are reaching the farmers."

The basic idea is that the farmers get paid a fair price for their products and the buyer receives a high quality product. All this is done through a 3rd party between the seller and the buyer. You can read about until your heart's content at http://www.transfairusa.org/

Now we get to Direct Trade. With Direct Trade we take out the 3rd party and the transaction is between the grower and the roaster. This creates something that is better than Fair Trade. For example the price is set and paid to the farmer, not an exporter. And that price is at least 25% higher than fair trade prices.

The close relationship between the roaster and the grower holds the farmer even more accountable to healthy environmental practices and sustainable social practices.

The roaster visits with the farmer at least 3 times a year. Fair Trade on the other hand is only once a year. And with Direct Trade the roaster always visits at least once during harvest to insure quality. And all people involved in the trade must be open to transparent financial disclosure. So everyone knows what everyone is paying and being paid.

Everyday Joe's feels that Direct Trade is much better for everyone involved. And we will continue this discussion with our customers as we move in that direction. The bottom line is the coffee quality and taste will get better as well as the warm and fuzzy feeling we will have from knowing no one was exploited in the process.

Stay tuned. And as always feel free to ask questions.