Is paying a high price for specialty coffee enough to create sustainability in the supply chain?
In discussions by experts, high price for specialty coffee to increase the income of coffee workers is always a mentioned solution to building a sustainable supply chain. Because when paying high prices, coffee farmers and workers have a good source of livelihood to live and improve their farms, thereby contributing to the strong, long-term development of the industry. However, according to actual surveys, although specialty coffee prices are currently high, the majority of coffee farmers are still falling into poverty and are forced to migrate or quit their jobs. So is paying a high price for specialty coffee really enough to create sustainability for the entire supply chain? How to ensure farmers get a good enough price and ensure sustainable development? Let’s find out with XLIII Coffee!
Sustainability isn't just about paying a higher price for specialty coffee
According to experts, sustainability in the coffee industry is understood as prosperous, long-term development. It is guaranteed to build fair value for all parties and is economically, environmentally and socially balanced. However, paying a higher price for specialty coffee is not always the most important thing in the industry. To develop a sustainable industry, we also need to build trust and establish long-term relationships between actors in the supply chain. Because it is difficult to determine whether the amount of money farmers receive is enough to cover production and living costs.
If through shared trust, a long-term coffee relationship allows for transparent, accurate information about production, harvest, origin, processing methods, etc. reach the final consumer. This also motivates businesses to make long-term purchases and commit to paying higher prices to manufacturers. Additionally, long-term partnerships can mitigate the risks associated with C-market volatility, helping manufacturers earn more sustainable income. When producers are assured that the roaster is committed to buying coffee each year, they are more likely to experiment with new farming methods or processing techniques or invest in new machinery and equipment. This helps farmers limit risks and develop better coffee quality.
Sustainable based direct trade specialty coffee
Under traditional trade models, farmers have little or no access to roasters and consumers. This means they often receive a lower price because the coffee has less value at the point it is only a semi-finished product. Therefore, according to data from Enveritas, about 5.5 million small-scale coffee farmers are currently living below the poverty line.
Direct trade is understood as a form of producers and buyers cooperating directly with each other in a way that brings mutual benefits. This contributes to a more sustainable and resilient supply chain for all participants. In direct trade, producers are often empowered and guaranteed to receive a higher price for their coffee that is worth the effort and expense they spend. Cooperation is established by ethics, responsibility, fairness, equality, towards common values and long-term development.
Stakeholders can communicate more openly and easily between manufacturers and roasters, creating a premise for enhancing and improving product quality. For example, a roaster can provide a manufacturer with information about a particular coffee or what flavor profile is popular. Producers can diversify and focus on different farming practices or processing methods to meet these preferences. Information in direct commerce is also often guaranteed to be highly transparent and traceable to consumers. So, the direct trade model really helps empower coffee producers and improves long-term sustainability.
Why buy specialty coffee from the direct trade
When using traditional trade models, tracing the origin of a specific coffee is quite difficult. Meanwhile, with coffee through direct trade, consumers can know where the coffee comes from, even the name of the farm, batch number, producer and varietal and technical characteristics. processing or terrior factors of the growing area. This helps users determine quality and receive more complete value in the product.
Besides, direct trade facilitates connecting consumers with producers through roasters. They can help provide more information about coffee and help users feel more clearly about the unique value of the product, enhancing the experience with each cupping experience.
As a sustainable strategic-oriented enterprise in all aspects, XLIII Coffee always strives to purchase specialty coffee through direct trade. We contact partners, farmers, and cooperatives directly and pay them a price equal to or higher than the proposed price. We also carefully record each information and process about coffee production in the most accurate and detailed way, ensuring transparency and traceability of the origin of each type of coffee. If you want to learn about the growers, growing regions and profiles of each type of coffee bean you enjoy, visit XLIII Coffee!
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