Coffee is grown on trees, by people, utilising the limited resources of the planet. A simple but beautiful interaction that enables us to come together over a cup of coffee. An interaction that now needs an immediate response from ourselves. A response that provides assurances that the quality we experience in the cup is wedded not only to taste but environmental responsibility and fair prices paid to farmers.
Our response to the challenges faced by the environment and small-lot farmers is to source only organic and fair trade coffee through long-term cooperative partnerships.
Organic
Organic coffee is a choice for the environment more than it is a health choice for drinkers. Small lot farmers who utilise organic farming techniques ensure the sustainability of their environment for generations to come. But these techniques come at a cost and are very labor intensive which is why an Organic Premium is built into the prices we pay.
Fair Trade
Farmer cooperatives are the heart and soul of the Fair Trade system as they provide the small lot farmer with access to the coffee market. Long-term partnerships coupled with social premiums built into the price we pay for coffee is the only lasting way to make a difference at origin, providing opportunities for farmer initiated community development projects.
Small Lot Farmers
Coffee producers working with 1-2 hectares of land produce 80% of the world's coffee.
Chemical Fertilisers
Much of the chemical fertilisers used in the world today are a product of fossil fuels (natural gas). Not only does this negatively impact the ecosystem and contribute to topsoil degradation, but it keeps us dependent on using non-renewable resources in the production of coffee.
Organic Farming Techniques
Organics in coffee farming removes the need for chemical inputs - herbicides, pesticides, fungicides, and fertilisers - all of which damage the environment - and replacing them with natural minerals and inputs created by responsible farming principles. Supporting conscious farmers who are using progressive organic practices which include permaculture principles. Organic farming is about taking advantage of the natural processes already at play, like growing canopy trees and other mid-sized trees that will provide much-needed shade and shelter for the relatively fragile coffee trees. These canopy trees drop their leaves and provide much needed natural compost for the forest floor, which in turn offers an excellent foundation for healthy growth. Small lot farmers producing organic coffee can be sure they are not responsible for causing harm to their surroundings by contaminating with chemical fertilisers the environment in which they grow coffee, their primary food source and draw water.
Organic Premium
Organic is costly and far more labor-intensive than non-organic. FTO contracts[1] ensure farmers are paid a 30c premium per pound for the organic coffee they produce.
[1] Coffee contracts regarding the sale of green coffee between an exporter and importer, including details such as payment of premiums and differentials, costs and ownership of expenses and the date of fixing currency exchange payment.
Farmer Cooperatives
Farmer-run cooperatives are the enabler and conduit that allows producers with small lots of land (and limited resources) to come together and access shared infrastructure, processing equipment, and training to then be able to present their coffee to the market.
For any coffee to get to New Zealand, a farmer must sell, and a broker must buy, a whole container of coffee. So small lot farmers, who might only produce 50 sacks a year (less than a ¼ of a container), are unable to access the international export market without a middleman directly. However, this issue is resolved when producers of similar region and affiliation join together to form a co-op. By pooling their resources, they can access the market with an export license, and through mutual profits, can buy and collectively own coffee infrastructure.
Working within the cooperative structure also helps us be sure of the traceability of our beans and the price paid to farmers.
Social Premiums
A ‘Social Premium’ of 30c per pound (on top of the minimum price) is built into the price we pay for coffee and is then used by the cooperative for farmer initiated community development projects.
Community Development Projects
Social Premium in Action at Oromia Coffee Farmers Cooperative Union Limited (OCFCU) in Ethiopia, including the construction and installation of:
- 26 new primary schools (+ additional classrooms at another 35 schools)
- Six high schools
- 10 medical clinics in rural areas (+ assistance with provision of medical equipment to a further three clinics)
- 89 wells to supply clean water to communities
- Bridge and electricity supply to benefit farmer communities
- Five flour mills at primary cooperatives
- 48 coffee processing mills
- 46 warehouses at primary cooperatives
Origin
A name often given to the countries where coffee is produced.
Related: Multi-origin blends allow us to craft a balanced palate by bringing together distinct coffee flavours from different regions. It also allows us to support smaller co-ops and a range of co-ops - distributing our own economic resources more strategically.
Long-term Trade Partnerships
The only real and lasting way to make a difference at Origin and in a community's life is through long-term trade partnerships. For this reason, we've continued to support cooperatives that champion the cause of the small-lot farmer by upholding the values of fair trade year after year.
- OCFCU (Ethiopia)
- 12 years
- GUAYA'B (Guatemala)
- 8+ years
- CENCOIC (Colombia)
- 11 Years
- CENFROCAFE (Peru)
- 10+ Years
Minimum Price Guarantee
A minimum price is guaranteed, ensuring farmer viability in times of low prices on the commodity market, However, the prices we pay to farmers are set through discussions with the cooperative to find a price that is reflective of the year they have had, the quality, and where the current NZ pricing market is at. These prices are set to be favourable to producers, but still competitive with other coffee in New Zealand.
On top of this, a payment of up to 60% of the contract price is advanced to the cooperative before the coffee is shipped to help producers to continue to operate.
Travel
With our partners Trade-Aid Imports, we have been traveling to meet with cooperatives every year since 2004. Though no system of trade is perfect, we have seen first-hand how fair trade can benefit farmers and their communities.
Related: [1] Community Development Projects