Since 2018, the C market, or commodity price for coffee has been in crisis. At a 10 year low, farmers across the globe are experiencing a depression style crash in the market. For the poorest of coffee countries/communities, these economic forces hit particually hard... but they don't have to.
Understanding the real world costs that go into growing coffee is a core value in how we work with and purchase coffee from our partners at origin.
We call it being Economically Calibrated.
Average cost to produce 1 lb of coffee (Nov 2018) = 2.1 USD/lb
C Market value of coffee (March 2019) = 1.06 USD/lb
With Nicaragua currently facing tremendous economic headwinds, we are especially tuned into their struggles and needs. With the global price for coffee at a decade low and corruption throughout the country, farmers are struggling. And that includes our revered partners.
Pedro, Octovio, Donaldo, and Hugo during pre-harvest converstations at the Peralta Mill in San Fernado, Nueva Segovia.
While we can’t fix the global pricing crisis in coffee, we can be a safe harbor for a few. Our solution to helping our friends in Nicaragua came to life in the form of a shipping container. We sponsored a full container, purchased at a pre-negotiated price that was defined by our growers. This one container carries about 33,000lbs of coffee, which equals about 278 bags and our four farmer’s near entire production for 2019.
Unable to purchase the entire lot ourselves, we reached out to other roasters throughout Texas to get them on board. We shared our story, and invited everyone to Austin to taste the coffee for themselves before making their final commitments. The goal was simple: fill that container! And after lots of conversation (and coffee), that’s exactly what we did.
Logan blowing minds, and waving arms during the cupping in Austin, TX.
Purchasing this container allowed our partners in Nicaragua to make 3 times what they would had they just gone to market (~$68,000 USD more ). Not only did they get more money, but they got it much faster, allowing them better set up for next year, and take one more step towards a brighter future for themselves and our coffee.
We are so incredibly thankful to everyone who helped us spread these ideas of attainable change into our beloved industry.
This very special harvest will be hitting Texas Roasteries in July 2019!
A very special thanks to all the coffee professionals who contributed:
Atlas Coffee Club
Purefi Coffee Roasters
Numinous Coffee Roasters
Brew and Brew Coffee
Anthem Coffee Imports