Does a sustainable relationship between producers and traders increase the value of the coffee supply chain?
– PROTECT THE ORIGIN –
The coffee industry is made up of many relationships, exchanges, and purchases that are closely related to each other. Especially the links at upstream such as production and supply play an important role in maintaining the whole banana operation and the sustainability of the whole industry. So does a sustainable producer-trader relationship add value to the coffee supply chain? Let’s find out with 43 Factory Coffee Roaster!
What is a sustainable relationship between producer and trader?
The sustainable relationship between coffee producers and traders is one based on respect and long-term cooperation between the parties. It can be built through certifications, standards-based testing, or a transparent review process. In it, coffee producers need to ensure that their coffee batches are grown and processed according to sustainable standards and meet market requirements. Coffee merchants need to make sure they buy their coffee from producers that meet sustainability standards and make sure they pay a fair price for the producer’s product.
Sustainable relationships improve coffee quality
A strong bond between producer and trader is key to maintaining coffee quality and achieving true sustainability. It contributes to economic stability for both sides, as well as building more trust. Because a sustainable relationship is built on the basis of mutual benefits and is maintained for a long time. Producers are paid a share equal to or above the market price by undertakings to pay fair prices. In return, traders will also receive quality finished products on demand in the long term, helping to improve the reputation and preferences of consumers. If this relationship lasts, it helps the suppliers to have a stable supply of high-quality coffee. In addition, when cooperating with reliable traders, the profit source of producers is guaranteed to be stable so that they can focus on investing in farm improvement, product quality improvement and protection. environment contributes to the sustainability of the industry as a whole.
In the words of Jessenia Arguello – Sustainable Production Manager at Mercon Coffee Group, when a strong relationship is established, a green coffee supplier understands the level of effort, investment required and the challenges faced by a green coffee supplier. specialty coffee producers face. From there they can identify and devise appropriate procurement strategies to encourage farmers to maintain a focus on quality.
Moreover, traders also provide feedback on coffee quality to producers to help them identify stages, techniques and methods that need improvement. This information can also help producers invent innovative ideas to implement on their farm, encouraging them to continue to improve the quality of their coffee and motivating them to be more resilient and overcome changing conditions that affect coffee production.
Create a sustainable relationship to help increase the value of the specialty coffee supply chain
Creating strong relationships between producers and suppliers of specialty coffee can benefit the entire supply chain by improving both coffee quality and yield. The increase in quality and productivity increases the value of coffee, bringing a good and stable source of revenue for the parties. The profit earned helps them to continue to pay their costs and develop advanced methods and tools into the stages of production, transportation, etc., at the same time, towards a sustainable coffee model. This helps to increase the quality and value of specialty coffee while contributing to the long-term growth of the industry, in harmony with the living environment of the community.
In addition, the Director of Sustainable Production at Mercon Coffee Group also said that the sharing and use of data by manufacturers and suppliers also helps both parties to be better informed. As more information is obtained, the parties in the supply chain will have good, rational decisions and solutions to better allocate resources and adjust business strategies to promote flexible interaction between different stakeholders. A good example is in 2014, Mercon Specialty guided manufacturers to apply the LIFT platform to their business operations. The LIFT platform provides coffee farmers with training opportunities, as well as access to agricultural resources and support, based on three key pillars: Sustainable Growth, Social Development, and Environment. Thanks to the LIFT platform, producers can change farming practices to restore local ecosystems and improve their social and community conditions. At the same time, it also helps Mercon Specialty update the status of the farm to timely support to help improve and maintain the economic sustainability of producers. This has helped build a profitable, sustainable and integrated value chain from producer to consumer and forge a better coffee industry.
There is no denying the value of establishing a sustainable relationship between manufacturers and traders. It not only helps to increase the value of the entire chain, ensuring the fair interests of the creators, but also helps to ensure that our cup of coffee is delicious, clear, and transparent like never before.