Long-term sustainable coffee sourcing- Solutions for the industry-wide future
– FIND THE ORIGIN –
According to a report by the International Coffee Organization in 2022, global coffee demand has exceeded supply by more than 3.1 million 60kg bags. Not to mention, due to the difficult production situation and the current increase in consumption demand, this number will increase rapidly, threatening the economic balance. This is warning of a serious production deficit and a world of coffee shortage in the near future. If it wants to solve this problem, the coffee industry needs to find and maintain a sustainable supply in the long term. Join 43 Factory Coffee Roaster to find out if long-term sustainable coffee sourcing is the key to this dilemma!
What is long-term sourcing?
A basic supply chain usually has a producer, a third party (cooperative, trader, etc.), and a buyer (roaster, consumer). In which, roasters will source green coffee beans through traders or directly from manufacturers. A sustainable supply source must ensure integrity and long-term benefits for all links in the chain from producer to buyer. As such, supplies must meet social, economic and environmental standards, creating balanced value for community and commerce. For example, Fairtrade-certified producers or roasters apply direct trade in coffee purchases to minimize negative impacts and enhance stakeholder benefits.
Moreover, long-term sustainable supply must also protect actors in coffee production, especially small-scale farmers. Small-scale farmers account for 70-80% of the global coffee supply. But most of these farmers are facing many difficulties. Coffee prices fluctuate according to the market, making their income low and unstable. Many farmers do not have enough money to cover their lives, invest in farms to improve productivity and quality, and they are forced to completely abandon coffee production in search of more profitable cash crops. In addition, unpredictable developments of climate change such as natural disasters, water pollution, and rising temperatures cause heavy damage to the farm (diseases, reduced productivity, crop failure, etc.) and threaten the future of the coffee industry. Therefore, it is important in sustainable sourcing to maintain close, long-term cooperation of manufacturers, traders, roasters. For example, roasters can tell producers which coffees are most popular with consumers. Conversely, farmers can tell in advance about the support they may need to continue growing these coffees.
Long-term sustainable coffee sourcing maintains the balance for the industry’s future
Long-term sustainable coffee sourcing not only helps protect the environment, improve the quality of life of farmers, but also creates added value for businesses and the market. These benefits can be clearly seen through the Fairtrade Minimum Price and Fairtrade premium models. Fairtrade Minimum Price focuses on ensuring a minimum price for Fairtrade-labeled coffee to help farmers have a stable income, care for the environment and improve product quality, avoiding the negative impact of the market. The Fairtrade Premium model helps improve the socioeconomic livelihoods of small coffee producers around the world.
Carlos Renato Alvarenga – president of Cafésul – a Brazilian cooperative with more than 180 members that has been Fairtrade certified since 2008 said, Fairtrade Minimum Price helps manufacturers like him to cover production costs and bring enough income to improve the quality of life for themselves and their families. With this model, producers will be guaranteed the most optimal coffee sales profit. For example, when the market price of coffee is above the minimum price, producers receive the market price and a premium based on the quality of the coffee. Conversely, when the market price falls below the minimum price, producers with the Fairtrade label will be purchased at above the minimum price to help them maintain a stable income. In addition, some Fairtrade-certified coffees scoring 87 points or higher can be traced back to individual farmers or farms. This increases transparency, traceability and protects the interests and health of consumers while ensuring the benefits and reputation of farmers and suppliers.
It can be said that long-term sustainable sourcing is really urgent in the current situation of the coffee industry. It provides producers, traders, roasters and consumers with realistic expectations when they buy coffee. Furthermore, long-term sustainable sourcing builds long-term, mutually beneficial working relationships, improves environmental efforts from the start, and supports optimal livelihoods for small producers. If you are looking for coffee from sustainable sources, you can visit XLIII Coffee – a brand developed from the forerunner 43 Factory Coffee to experience it!