Buying Direct from Ethiopia

growing, harvesting, processing, cupping, purchasing

Buying Direct from Ethiopia

Postby onocoffee on Tue Mar 06, 2007 9:57 am

Many of you know that I co-host the Portafilter.net podcast. In spite of this fact, I don't spend much time listening to podcasts of any nature so when Nick told me to check out the latest AA Cafe Podcast, I was more than hesitant but decided to take a listen anyway. If you're interested in following along, you can listen to it here:

feed://doubleshotcoffee.com/aacafe/rss.asp

You'll be listening to Podcast 39 and the section on "Liars in the coffee industry." Most of the content is a bit dry, so I suggest forwarding to the pertinent section.

In this podcast, the AA Cafe crew talks about misleading and deceptive practices within the coffee industry, naming a 3W shop as one of the guilty. Evidently, the company claims to source an Ethiopian Yirgacheffe "directly from the farmers and avoiding all middlemen."

Personally speaking, I don't know much about procuring coffee in-country so I'm hoping that the more knowledgeable here can fill in the details. Is it possible to purchase coffee and avoid all the middlemen? If so, how can we make this happen? I'm interested because there were some discussions in Ethiopia about roasters' misleading practices.

For reference, here's the text in question from the roasters' website:



Ethiopian Yirgacheffe washed Addis Ketema co-op Rare Estate Reserve coffee. The Addis Ketema is perhaps the best example of an Ethiopian washed Yirgacheffe we have tasted. It is crisp and refreshing, delicate and floral, strong and citrusy all in the same cup. XXXXXXXX was lucky enough to partner with four other artisan roasters to buy this amazing world class coffee direct from the growers in Ethiopia! Addis Ketema is an extremely progressive co-op in the Yirgacheffe region of Ethiopia. The farmers practice Organic and sustainable growing methods and are very democratically organized. The Addis Ketema co-op is an organic certified group of about 1500 garden farmers whose land sits 6500-7500 ft above sea level. Like many co-ops in Yirgacheffe much of their equipment was decades old and ceasing to function. Output of washed coffees in the past few years has been 1/4 capacity. This year they are having a new ECO pulper installed and next year should be back up to normal capacity producing washed, semi-washed and natural coffees. The Addis Ketema is perhaps the best example of an Ethiopian washed Yirgacheffe we have tasted. It is crisp and refreshing, delicate and floral, strong and citrusy all in the same cup. The taste of heavenly sweet peaches, ripe loquats and summer sunshine spill over your tongue in luscious waves of pleasure. It has mountain high hibiscus like florals with a potent orange blossom airiness. Shimmering citrosity and a delightfully clear and crisp acidity set off a nice light body and resonates in a effervescent finish that leaves you slightly panting with joy. We really, really like this coffee. Harvested at excessively high altitude and in full native species shade this coffee is the epitome of sustainability. In buying this coffee direct from the farmers and avoiding all middlemen XXXXXXXX is able to pay a super premium price and have the farmers receive all of the money for this amazing coffee. The price we paid was almost three times the normal price they receive. only $15 / pound for this amazing coffee!




Thoughts?
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Re: Buying Direct from Ethiopia

Postby Mike Paras on Tue Mar 06, 2007 11:36 am

onocoffee wrote:Most of the content is a bit dry, so I suggest forwarding to the pertinent section.

Approx 25 minutes in
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Postby SL28ave on Tue Mar 06, 2007 11:50 am

It really depends on the situation. Middle men are often needed and helpful. Sorting through all the "logistics" in a country like Ethiopia can be quite intensive. It's often a big help to have someone, an organization with said purpose, accountable to tend to the hundreds of details to keep the quality high, etc... at least at this point in time.... on the other hand, I wish things could be a lot simpler. :?

(I'll try listening to the podcast later.)
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Postby Peter G on Tue Mar 06, 2007 3:56 pm

I can't quite muster the strength to make it through another long podcast (I'm at my limit this week)

However, I can comment on the idea of "direct". This is, like many words in our language, somewhat subjective. Example: if someone is buying a car directly from the manufacturer, does that mean that they're paying the guys on the assembly line? Or does it mean that they buy it at the factory in Detroit? Or does it mean that they buy it from a factory-owned dealership? What if they buy it from a salesman who works for that dealership? What if he is an independent contractor? What if it is an independent dealership, still bearing the corporate (factory) name?? Where is the line?

In the industry, I think that the commonly accepted meaning of "buying direct" means that the roaster is communicating and negotiating directly with the leadership of the co-op, or owner of the farm. They may actually write the check to an importer, who pays the exporter, who pays the co-op, but if the entire transaction is transparent to all sides and stakeholders, and all agree on the terms, in my opinion it qualifies as "direct". Geoff has graced us with his philosophy on Intelligentsia's "Direct Trade" concept, which is an excellent conception of the term.

"Eliminating all middlemen" might be indulging in a little marketing hyperbole, but I hardly think it deserves branding the roaster as a "liar". As Peter says, there is lots of value people besides farmer and roaster can bring to the chain. I, personally, reserve the word "middlemen" for those who bring NO value to the transaction they participate in (see my comments on "coyote".) However, how would you describe a marketing agent, exporter, importer, shipper, etc? No coffee transaction can get done without people performing these vital functions, whoever they work for. Are these middlemen? If not, what are they??

And, if they spend cash money, is it tax-deductible??? (that one was for Jimmy O, in the WTF department)

I just realized that the podcast is from a small coffee roaster, and who is apparently calling another small coffee roaster a "liar". Bad form. Hey Marshall, is there a libel complaint here somewhere?

Peter
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Re: Buying Direct from Ethiopia

Postby barry on Tue Mar 06, 2007 8:29 pm

onocoffee wrote:


Ethiopian Yirgacheffe washed Addis Ketema co-op Rare Estate Reserve coffee. The Addis Ketema is perhaps the best example of an Ethiopian washed Yirgacheffe we have tasted. It is crisp and refreshing, delicate and floral, strong and citrusy all in the same cup. XXXXXXXX was lucky enough to partner with four other artisan roasters to buy this amazing world class coffee direct from the growers in Ethiopia! Addis Ketema is an extremely progressive co-op in the Yirgacheffe region of Ethiopia. The farmers practice Organic and sustainable growing methods and are very democratically organized. The Addis Ketema co-op is an organic certified group of about 1500 garden farmers whose land sits 6500-7500 ft above sea level. Like many co-ops in Yirgacheffe much of their equipment was decades old and ceasing to function. Output of washed coffees in the past few years has been 1/4 capacity. This year they are having a new ECO pulper installed and next year should be back up to normal capacity producing washed, semi-washed and natural coffees. The Addis Ketema is perhaps the best example of an Ethiopian washed Yirgacheffe we have tasted. It is crisp and refreshing, delicate and floral, strong and citrusy all in the same cup. The taste of heavenly sweet peaches, ripe loquats and summer sunshine spill over your tongue in luscious waves of pleasure. It has mountain high hibiscus like florals with a potent orange blossom airiness. Shimmering citrosity and a delightfully clear and crisp acidity set off a nice light body and resonates in a effervescent finish that leaves you slightly panting with joy. We really, really like this coffee. Harvested at excessively high altitude and in full native species shade this coffee is the epitome of sustainability. In buying this coffee direct from the farmers and avoiding all middlemen XXXXXXXX is able to pay a super premium price and have the farmers receive all of the money for this amazing coffee. The price we paid was almost three times the normal price they receive. only $15 / pound for this amazing coffee!




Thoughts?


they need a better editor.
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Postby barry on Tue Mar 06, 2007 8:45 pm

holy crap, do these guys <i>want</i> to get sued?

haven't they been bitch-slapped enough by starbucks?
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Postby Marshall on Sun Mar 11, 2007 12:41 am

Peter G wrote:I just realized that the podcast is from a small coffee roaster, and who is apparently calling another small coffee roaster a "liar". Bad form. Hey Marshall, is there a libel complaint here somewhere?

Peter


Sorry, Peter, the link is gone. Darn, another ambulance I missed!

Marshall "gave up litigation in 1982"
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silly willy stuff

Postby barefoot on Thu Apr 05, 2007 9:20 pm

So golly geepers here we are all talked about.

So if you listen to the podcast the guy basically jerks off to his own awesomeness and talks about how everyone else sucks except for him. oh well.

so Here is how we bought that Ethiopian and a few other coffees last year.

1. two members of a buying group we were in went to Ethiopia for ecafe to judge.
2. they went to a few other co-ops and tasted some sweet and tasty coffees.
3. they really liked them and wanted to buy them.
4. we all agreed to buy them based on SAS.
5. some were co-ops, some were small stakeholders.
6. we negotiated a price that went to the co-op or farmer.
7. the we negotiated a price for the expediter in ethiopia.
8. then we asked a broker in the US to bring it in and warehouse it. we paid them a fee for that on top of the price we paid.
9. so of course just like in most EVERY country you use a local agent or broker or exporter to do the paperwork. you use a US importer to do the paperwork here and warehouse if needed. they all need profit which we pay.
10. this worked so well that we are using this same exporter which we talk to directly to buy another set of coffees this year from a small group of three farmers that are NOT in a co-op NOR a union.

So yes we did NOT go to Ethiopia and carry this coffee back on our backs. bastards. But I DO see the confusion and see the mis-statement in the description.

So for this year we are being even more demanding of transparency. We are requiring in country agents and US importers to break out their charges and profits from the money that goes to the farm or co-op. And in some cases we are then sending extra checks above and beyond the co-op or farm price for special projects in the community. We are trying to work directly with the farmers to develop a community project.

like in Guatemala we buy from the farmer who happens to have an export license so we actually buy from the exporter who is also the farmer. then we pay a warehouse/broker to store it and ship to us every few weeks.
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Postby onocoffee on Fri Apr 06, 2007 5:10 am

Andy's comments bring up another thought to my noodle...


We continuously hear talk of "transparency" in the purchasing of coffee, but are we also talking about transparency throughout the process to our customers? Meaning, are the companies claiming transparency opening their coffee paper trail to their customers for scrutiny?
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Postby trish on Sat Apr 07, 2007 2:28 pm

Jay asked
...are the companies claiming transparency opening their coffee paper trail to their customers for scrutiny?

Just want to float this idea out there: why should I have to do this? I mean, I know I don't HAVE to, but it feels like my arm is twisted behind my back. Sure I can do it, but it doesn't really tell us everything we need to know. How much did I pay...easy answer. How much did the farmer get when all is said and done? Sometimes not so easy.
And does it make sense to show a customer the price per green pound? Should I show them my entire P&L? becuase that is what they'll need to see to understand the expense and the mark up. Will my mark up be better or worse than another company? Good question. That moves into a discussion about the priorities and objectives and goals for the company....the strategy....proprietary territory. And if I make a profit, what is the most comfortable profit margin for my customer to see me earning? What if my margin is wider than another guy's? Is his modest profit a good thing or a bad thing in the customers' eyes? Will my wholesale customer need to see my margin match his/hers to feel okay about me?

No matter how you slice it, we are all trying to keep our doors open or grow as a business and I want to say -with all due respect, mind you- none of your beeswax.

you dig?
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Postby barry on Sat Apr 07, 2007 7:54 pm

trish wrote:No matter how you slice it, we are all trying to keep our doors open or grow as a business and I want to say -with all due respect, mind you- none of your beeswax.



and i think that's just jay's point: if roasters & retailers are desiring that sort of exposure from the people they source from, then why aren't they willing to provide the same level of transparency to their customers? is it right to require the cost breakdowns from your importers, exporters, mills, and farmers, when you're not willing to provide the same information to your own customers?
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Postby Marshall on Sat Apr 07, 2007 10:14 pm

barry wrote:and i think that's just jay's point: if roasters & retailers are desiring that sort of exposure from the people they source from, then why aren't they willing to provide the same level of transparency to their customers? is it right to require the cost breakdowns from your importers, exporters, mills, and farmers, when you're not willing to provide the same information to your own customers?


It depends. If an importer is doing "cause marketing" or otherwise claiming to be humanitarian in its dealings with farmers, it is both fair and reasonable to ask what the farmers are actually getting. If roasters and retailers are doing the same thing, I'd hold them to the same standard on their "cause" coffees.

If you are holding yourself out as having charitable programs, you should be prepared to substantiate them. You wind up looking terrible, if you can't.
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Postby Peter G on Sun Apr 08, 2007 12:36 pm

We must remember that the history of the coffee industry is steeped in colonialism, exploitation, and deception. Some of the most egregious crimes in the name of commerce were committed by those in the coffee industry. Literal slavery in the early years of the coffee trade evolved into the modern developed world/consuming world dichotomy that haunts us today. Coffee producers in Latin America, Asia and Africa have been exploited for generations by a variety of exporters, multinationals, etc. Meanwhile, commercial coffee roasters in the U.S. and Europe have an unfortunate tradition of deception, obscuring coffee's origin (and destroying quality) in the name of commerce. "Secret blends" used to mix in as much robusta as possible, using "non-coffee material" in ground coffee, and 5% "Kona Blend" are all an unfortunately a part of our trade.

Disclaimer: I know that none of us here are (intentionally, anyway) participating in this sort of thing.

However, we in the coffee industry have an enhanced responsibility towards transparency and dialogue about ethics, simply because of the history of our trade, and the current practice of some still exploitative companies. Those of us who are engaged in the quality coffee trade, who play fair and square with our vendors and our customers, and seek to build a sustainable business are doing a wonderful thing: we're proving that it is possible to build an ethical industry based upon solid values and business practices.

In addition, we've got to keep in mind that our industry virtually INVENTED multinational trade. We buy products from countries whose labor laws are frequently weak, and who often have a history of marginization and exploitation of small farmers and plantation workers.

To me, this all makes transparency really important. "Sunlight is the best disinfectant", so the saying goes, and I strongly believe that the way towards building a sustainable coffee industry is to let go of our ideas about secrecy and fling open the doors of our businesses. By this I mean being willing to share virtually everything with every other member of the chain. This is what I call "radical transparency".

To this end, I have tried to build a business model based on an absolute willingness to "open the books" at any point. I am always willing to share with anyone; customer, consumer, producer, whoever, all my coffee costs. I expect my coffee suppliers to be transparent with me, and I feel the responsibility to offer the same transparency to anyone else. This can be a challenge: just collecting and organizing information is difficult (as Trish says). And, the willingness to share data also comes with the responsibility in explaining it: most consumers don't understand how a coffee farmer can be paid 1.50/lb and the coffee is sold for 11.50/lb. Actually, most coffee producers have a hard time with that one, too.

But, in my view, this is one of the best things about the high-end coffee industry. We have the opportunity to work towards real sustainability (no, we ain't there yet), and build awareness in the developed world about the developing one. We can use coffee as a way to build ethical international business models, which do not require economic disparity to thrive. We can serve as an example to others in our industry, and indeed other industries, that transparency is possible and is actually a sound business practice. In this, the age of Tyco and Enron, we really need this kind of positive example. I am proud that coffee, even with our obstacles, can be that kind of example.

By the way, this attitude now extends to our entire business. We openly share information about costs in equipment, and we always give maximum, real detail in coffee origins. We have no secret blends, in fact all our blend recipies are available to anyone. Brett, my partner, has delivered detailed presentations of how markup, costs, etc. work to coffee producers. We're still trying to find ways to share more and better information, while still being respectful of individual privacy (like salaries, for example.)

So, in the end, I strongly feel that coffee should both expect and provide a high level of transparency to everyone.

Peter G
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Postby trish on Mon Apr 09, 2007 8:08 am

Fair enough.
Peter, how many times has a customer taken some time to come and look into your files?
It's never been asked of me.
Most of the time they ASK me how it's done. I tell them (with slide show, extensive emails, and detailed examples), then aswer questions as they come up. Sometimes I offer up my figures in example to illustrate my point. I do that myself...no one has ever asked for, or has even been prepared for the figures in an example. And no one has ever said, "take me to your files, I wanna see all of it".

I think this would be the situation for most of us. Most of us are working within professional relationships.
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Postby trish on Mon Apr 09, 2007 8:11 am

trish wrote:Will my mark up be better or worse than another company? Good question. That moves into a discussion about the priorities and objectives and goals for the company....the strategy....proprietary territory. And if I make a profit, what is the most comfortable profit margin for my customer to see me earning?


What do you think about this idea? Seems overlooked in this discussion.
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Postby barry on Mon Apr 09, 2007 9:04 am

trish wrote:And if I make a profit, what is the most comfortable profit margin for my customer to see me earning?



perhaps we should be asking "what is the most comfortable profit margin for my suppliers to see me earning?" would you feel comfortable showing a grower from ethiopia around your facility and your home, w/o either one of you feeling that maybe that last lot of coffee should have been purchased for $1.60/lb instead of $1.50/lb?
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Postby trish on Mon Apr 09, 2007 10:09 am

barry wrote:
trish wrote:And if I make a profit, what is the most comfortable profit margin for my customer to see me earning?



perhaps we should be asking "what is the most comfortable profit margin for my suppliers to see me earning?" would you feel comfortable showing a grower from ethiopia around your facility and your home, w/o either one of you feeling that maybe that last lot of coffee should have been purchased for $1.60/lb instead of $1.50/lb?


I was at "Let's Talk Coffee" in Oaxaca when Peter's partner, Brett, made a presentation to many of our coffee suppliers/vendors/producing partners. His presentation detailed the expense and cost per 1lb, (12 oz) retail bag whole bean coffee sold. Right afterwards, Ric Rhinehart did the same for a 16 oz cup of brewed coffee.
It was illuminating, we all saw that- on average- a roaster/retailer enjoys approx. 6% profit margin on coffee whether brewed or whole bean. Still pretty rich in the producers' eyes. Talked with some after the presentation. They told me, "I would love to make that much of a margin. Even with FTO and quality differential on top, I can barely keep going". All I could say is that that is the margin we need to keep our doors open and also find a way to grow....so we can keep on buying coffee.
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Postby Troy Reynard on Mon Apr 09, 2007 10:14 am

Andy, from looking at the Barefoot website, and listening to the podcast, you did lie to consumers. If I was buying coffee on the internet and saw your website, not knowing anything about the industry, I would assume that you went directly to the farm and bought it. Americans are used to going to farms to buy directly from a farmer, why wouldn't they assume the same relationship exists in coffee. I can go to a farm three miles from my house and buy raw milk, grass-fed, free range beef, eggs, and cheese, all grown and processed on that farm. To "golly geepers" it sounds like "W" not finding WMD's.

Regardless of what you think of the podcast, he's right, and to childishly insult him "basically jerks off to his own awesomeness and talks about how everyone else sucks except for him" for calling you on it is wrong. If I make a drink that sucks, I make it over again, I don't say "well he/she is just an asshole, they don't deserve a quality drink anyway." Have you contacted Brian Franklin to share your side of the story, or, are you just going to insult him on an internet message board? On the podcast, he indicates he emailed you, but you didn't respond.

The bottom line is, I think roasters have an obligation to represent their relationship coffee accurately. If you used two middlemen in the process, you don't say that you "avoided all middlemen", because it's not true. If you are going to market direct trade coffee, I think Intelligentsia has done an excellent job of communicating to their customers what that means.
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Postby Jim Saborio on Mon Apr 09, 2007 10:16 am

barry wrote:would you feel comfortable showing a grower from ethiopia around your... home, w/o either one of you feeling that maybe that last lot of coffee should have been purchased for $1.60/lb instead of $1.50/lb?


Gee... I've never been to Ethiopia, but my guess is that the country is barking up the wrong tree if it thinks coffee exports will produce it a standard of living comparable to that of the "consuming countries".

Is that really what we're going for here?
-JIm

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Postby barry on Mon Apr 09, 2007 11:29 am

JIm wrote:
barry wrote:would you feel comfortable showing a grower from ethiopia around your... home, w/o either one of you feeling that maybe that last lot of coffee should have been purchased for $1.60/lb instead of $1.50/lb?


Gee... I've never been to Ethiopia, but my guess is that the country is barking up the wrong tree if it thinks coffee exports will produce it a standard of living comparable to that of the "consuming countries".

Is that really what we're going for here?



that's not what i'm going for... i'm suggesting that, if roaster/retailers are going to bang the drum for economic justice of some sort for farmers, then they ought to make a little self-reflection now and then. or, just STFU and make money...
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Postby trish on Mon Apr 09, 2007 12:20 pm

Should I start feeling guilty about asking for a raise? What kind of self-reflection are we getting at? That's what I mean. It just does not translate when you start comparing quality of life like apples for apples, which is what JIm is talking about, I think. Who am I to say that Barry doesn't deserve a new car this year?

Ten cents more is really no trouble for me. Really not a problem at all. Typically, I'll pay what ever they ask me to pay for a coffee I want. Sometimes I need to compete for a coffee- and I'm not talking strictly COE, either.
...but have we gone off on a tangent?
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Postby Peter G on Mon Apr 09, 2007 2:21 pm

Trish, Your example is exactly the way it has always happened for me. Simply the aknowledgement that "the books are open" is enough for most people. It happens in a similar way for producers: last week, I was doing business with some producers in Honduras. I explained to them that I would be happy to share what I am paying other producers (and exporters). They politely declined, but were very happy I had offered. I assured them that if they were ever curious I would be happy to have that conversation with them.

Most consumers/customers have a simple goal: they want to be assured that their coffee was bought fairly, from partners who share similar values with them. Everyone understands that businesses must make a profit to be sustainable, and as long as everything is reasonable, I cannot imagine anyone getting bent out of shape.

Most producers are struggling with the idea that the coffee they sell for $1/lb has a value over ten times as much in the U.S. marketplace.

I personally feel that the self-reflection that comes with interacting with coffee producers is very healthy. At the very least, anyone who goes to origin immediately stops spilling coffee. My interaction with coffee farmers has led me to try and increase the efficiency of my business as much as possible, to try and create increased value for both my customer and the coffee producer. And, yes, it's made me reflective about my own wage and has put some perspective on whether I need a new car after all. I wouldn't judge anyone else, but I sure feel a sense of good fortune that I live where I do and have the opportunities that I have, and I have a strong sense of responsibility about that.

I have had coffee producers visit NC and stay at my house, ride in my car, etc. I often think of my own house and standard of living when I am interacting with farmers in their own houses. It drives me to want to pay 1.60, sure.... actually it makes me want to pay $2 or $4/lb for coffee. As a businessperson, though, I understand the only way to pay that kind of moolah for coffee is if the quality is OFF THE HOOK, and my business is running as efficiently as possible, adding value at the lowest possible cost. Can it be done? I think so, and I think that by opening the books to prove it to the rest of the stakeholders is a good way to keep us all honest, and increase competition in the best way: competition to create the best quality, competition to be the most efficient.

While I don't think that guilt is a useful emotion, it is very good for us fortunate ones to feel a little enhanced responsibility when the people we are buying from have a radically different quality of life than we do. I want to share that feeling with my customers, too. If this feeling drives us to behave a little more responsibly vis a vis our brothers and sisters in the rest of the world, then I am all for it. In "A Christmas Carol", Ebenezer Scrooge has a change of heart after he is escorted by a ghost into the Cratchit home, and sees how his employee lives. While I am not saying that we are Scrooges by any means, I think that this kind of self-examination has the effect of making us more responsible, better businesspeople.

And, at the end of the day, I want to go to sleep with the feeling that I, and my business, have nothing at all to be ashamed of. If I operate with the assumption that the details of my business can be examined at any second by anyone who wishes, it goes a long way towards helping me achieve that goal.

Peter
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Postby Brent on Mon Apr 09, 2007 4:37 pm

trish wrote:Should I start feeling guilty about asking for a raise?


Both.

Open books is I think relevant if you are pushing fair trade etc coffee / products.

But not completely open, as I don't really care what Trish is being paid, nor is it my concern if she is due a payrise. The transparency of the purchase process is all very well, but I don't see the need for completely open books. I understand accounts, and would gleam a lot more info than most, so the questions as to why x get's their cellphone covered, and why Nick and Jay claim costs of competing in Barista competitions aren't going to make sense to a lot of people, so why report it or make it available?

I think that was one of the issues played to an extreme in Black gold, where the price of one pound of cherry is compared to one cup of coffee in the US. It's an extreme difference, on ethat does not take into account the various processes that cherry goes through on it's way to the cup.

Alas, in the western world (and developed third world where I am), we do not have the same cost structures as other countries, or even between developed nations. Things are going to cost more as they move through the delivery chain and have all the associated costs added.

So should we walk around in sackcloth, will that help anybody, I don't think so. However an awareness that a fair price paid for product perhaps ensures that the producer isn't wearing sackcloth either.

In the end we have to live in the bit of the world that we do, and it costs what it costs. If you have a problem with that, move somewhere cheaper... (where you will also earn proportionally less etc etc)
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Postby barry on Mon Apr 09, 2007 6:41 pm

brentling wrote:Alas, in the western world (and developed third world where I am), we do not have the same cost structures as other countries, or even between developed nations. Things are going to cost more as they move through the delivery chain and have all the associated costs added.


that's why i've always been fond of burgernomics:

http://www.economist.com/markets/bigmac/about.cfm
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Postby onocoffee on Mon Apr 09, 2007 9:00 pm

I don't think this issue is about retail customers getting "bent out of shape" but rather notion that some roasters "demand" to see the chain but perhaps are reticent to share their chain with the end user (their customers and retail customers, in the case of a wholesale roaster).

"and I want to say -with all due respect, mind you- none of your beeswax. "

There's something I don't seem to understand. All this discussion about "demanding" to know the cost chain from seed to cup but when we're discussing the opening of that chain to include wholesale and retail customers, the tenor suddenly seems to change from "we're here to help" to "it's none of your business."

Disconcerting to say the least.

That said, I have to applaud Counter Culture's efforts to maintain transparency from the farmer to their customers. While most customers will never ask to see the paper trail itself, the ability and willingness to provide that is what seems to be the goal with the transparency issue.

Maybe the producers will never enjoy a standard of living comparable to ours in the United States or other First World nations, but is this merely a rationalization for the current pricing structure? If so, how is our Third Wave position of transparency really any better than the "exploitative" practices of Sara Lee or Nestle?

As a business, it seems that we're trying to purchase coffee as cheaply as possible for the quality level that we desire. Sure, it's more per pound than Nestle and it's helped to build schools and some infrastructure, but is it helping these poor farmers climb beyond their existence? Are they able to rise from their position into better opportunity?

Seems to me that the answer is no.

Yes, there is some level of improvement and I think that maybe we use that thought to pat ourselves on the back for a job "well done" as we saunter back to our comfy environs while these farmers who we've "helped" still live in squalor and are still unable to prepare themselves for their futures.

Then there are the various auctions like CoE and CQI that produce exorbitant lot prices. Without a doubt these are showcases of the best coffees available, but does one $21 or $50 per pound lot really do anything to help our industry at the producer level while we're still paying $1.75 - $2.25 on average for coffee?

While I was in Ethiopia, one of the figures I heard at EAFCA was that farmers were being paid $0.50 (fifty cents) per KILO of cherries. At those rates, how can any of these farmers ever move beyond their current state?

Don't get me wrong, this is not about indicting any one person or company. Like Peter wrote, it's part of our introspection and self-examination. I've travelled a little bit around the world and I've lived in a Third World country. I've seen the disparity between rich and poor from a very close perspective and none of it looked like fun for the common man.

The question is: are we just using this whole Fair Trade, Direct Trade, Whatever Meet The Farmer Kind of Trade as a marketing tool to separate ourselves from Folgers and Maxwell House?
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