Felipe Trujillo’s Post

This article unfortunately perpetuates the idea that Direct Trade was designed to “cut out” intermediaries, due to their “bad” reputation. I can tell you as one of the earliest Direct Trade buyers, that was certainly not true. What became known as Direct Trade was in fact developed in collaboration with importers, and Sustainable Harvest Coffee Importers “Relationship Coffee” model was an early, innovative example of Direct Trade. In the many years I was responsible for buying coffee at Counter Culture, we never bought a bean without an exporter and importer. The idea of DT was not about “cutting out”; it was about having clear communication among the supply chain, and building direct, transparent relationships between all parties. Intermediaries like exporters and importers provide vitally important services to the supply chain, which producers and roasters are often poorly equipped to handle themselves. I always saw exporters and importers as valuable, talented peers, not the expensive middlemen described here. I’m glad this article recognizes some of the valuable services performed by exporters and importers, but I don’t see why they should be relegated to “mere service providers” (in the words of the article). Great coffee requires commitment, teamwork, and collaboration between the members of the supply chain, not a hierarchical relationship that devalues some members of the chain.

Direct trade emerged as a response to #intermediaries’ bad reputation, but ironically, it still heavily relies on third party services. Cutting out the middleman can avoid a finder’s fee, but #financingcoffee is expensive – taking up to 120 days to see a return on investment. Handling paperwork, logistics, and marketing can be taxing for both buyer and seller. Sarah Eleanor Charles Charles speaks with Ricardo V. Pereira (Purity Coffee) about direct trade, removing the middleman, and how many #producers and #roasters are seeking out alternatives where they have more control over the product and demand and cut brokerage costs in a more #circulartrade model. https://lnkd.in/eQV5NF5Z

Coffee as a Bartering Chip For many centuries, coffee has been used as a form of bartering. This is especially true in the Middle East, where coffee has long been a part of the culture. Coffee was used as a form of currency in the Middle East long before coins and paper money were introduced. Coffee was used to pay for goods and services or to settle debts. #Bartering #chip #coffee #CoffeeasaBarteringChip #prepping

"The green coffee trading sector is in crisis, and larger green coffee traders are seizing the opportunity to consolidate their market position through strategic acquisitions of smaller players." In today's Coffee Intelligence article, Sarah Eleanor Charles spoke with Bram de Hoog and Stuart Ritson about the challenging coffee year ahead and the changes small to medium-sized green coffee traders must make to thrive. Learn more: https://lnkd.in/eyFY5kXb https://lnkd.in/eyFY5kXb

Thanks for this provocative post Raphael Studer. Algrano is creating a new dynamic in coffee with truly direct trade...democratization of coffee, you've called it. A sustainable industry is indeed possible when buyers and sellers have more equal footing, when they know each other and can look each other in the eye. The problem you describe starts with the 270-360 day payment terms imposed by the big brands, which forces everyone in the supply chain to get credit to keep paying for the coffee long after it has been delivered and probably consumed. When interest rates change, everyone in the supply chain suffers--except those big brands.