Our first coffee under the Transparency Project is the Victor Herrera. Most smallholder farms in Colombia produce parchment coffee (parchment coffee results from fresh picked cherries that have undergone a fermentation process and dried to 12% moisture). In Colombia the daily price is set against the market price. Most smallholder farmers take their coffee to a collection station to sell at this rate. In Victor’s case the daily rate was 800,000 pesos per carga (125kg). The price Victor received was double this at 1.6 million pesos per carga.
Victor received the full amount for his coffee the day after delivery to the dry mill. Some exporters delay payments for a period or part pay farmers under a plan where they receive more after their coffee is sold. This can be hard for farmers to organise their finances.
Once at the dry mill the coffee rests for up to 3 months. Next they remove the parchment layer from the coffee and screen it remove any stones before bagging. Finally the bags then go into a container ready for shipment. This coffee is now FOB.
Coffee trades on the ICE futures market, known as the C market. Speculators and investment funds are the biggest players. Farmers have no input and can be at the mercy of the market. We are trying to get away from the C market and give stability to all the farmers who grow our coffee.
We bought coffee from Victor last year and hope to buy much more in the future. He receives a higher price due to the quality and deliciousness of his coffee. At the time of purchase the C’market was approx. USD $1.24, and the average FOB price was approx. USD $4.15 per pound.
The Victor Herrera is only the first coffee under the Transparency Project. All our future coffees will be purchased according to the protocols in our buying guide. Each year we will also release a Transparency report summarising what we paid for every coffee that year.
Where to buy
To learn more about wholesale coffee supply to your cafe/espresso bar/food truck please hit us up.