Last month we had an Instagram Live Q&A with Karl Weinhold from Cedro Alto - the coffee collective where we souce most of our Colombian coffees. We focused on supply-chain transparency and why/how we should care. We attempted to cover a lot of ground but my main take-away was that there are no simple answers, however if we care about where our coffee comes from and making sure it is good for all involved, we need to pay attention to some serious details.

Interview Notes:

1. Why and How can we Care about Supply Chain Transparency?

   1. Transparency only matters if a coffee source (importer, collective, roaster, shop) claims to be focused on altruism (common good) in their coffee dealings. If this is something we truly care about we need some serious information:

   2. What does fair mean to us? What is the actual price paid to farmers? In what currency? Milled or Green?

2. What is the difference between Direct and Fair Trade?

   1. Fair Trade is a 3rd-party verified certification that sets a price floor for coffee (minimum price paid to farmers). 

      1. Fair Trade is only as good as a farmers ability to market and sell their coffee customers willing to pay a higher price.

      2. The minority of Fair certified coffee is sold as actual Fair Trade price, due to consumer demand and the “C Price” (the price that coffee as a commodity is traded at). 

   2. Direct Trade isn’t a certification, it’s a term that implies the cutting-out of middlemen but it has been used in many different ways.

      1. What do we mean by Direct? Farmer to Importer to Roaster? Farmer to mill to logistics company to roaster? Does the farmer plant, harvest, mill, ship, finance, roast, brew, and sell direct to consumers?

      2. Cutting out intermediaries isn’t always a good thing.

      3. There are many steps from seed to cup so many special skills and a lot of money is required to make this process happen. 

      4. Why shouldn’t whoever can do each process most efficiently, handle that work?

      5. Only the largest and most capitalized companies can afford to be truly direct trade. 

3. Why can I find coffee labeled Fair Trade and/or Organic for so inexpensive?

   1. Scale- Large operations can afford to finance, hold, and coordinate in ways that allow them to cut cost overall and get guaranteed sales on a huge scale.  

   2. Creative blending of multiple origins

   3. The question is:  Will the coffee you love be available in 1, 2, or 5 years if farmers are selling coffee, often at a loss, to compete with commodity prices.

4. What part of Cedro Alto’s work are you most proud of?

   1. We offer our farms a purchase-guarantee for a fixed price

      1. This takes much of the financial risk and stress off the shoulders of farmers as Cedro Also pays up-front with very little buyer-guarantees.

5. What can we as roasters and cafe owners do better?

   1. Plan purchasing of green coffee ahead of time so collective/farmers can count on our money.

   2. Keep in contact and coordinate with importers and farmers in regards to green coffee demand. Price volatility is the most significant hurdle and hardship for coffee farmers.

IGTV Interview: