What does direct trade means to us?
That being said, high risk means high reward. So, what are the rewards? A fair, transparent, mutually beneficial relationship with coffee producers. Operating a direct purchasing model has enabled us to focus on price, traceability, contracts and fundamentally – deeper relationships. I wonder how many of you take a sip of your coffee in the morning knowing the coffee producer by first name basis, the country of origin and the team responsible for roasting to a palatable degree.
Paying for quality
The coffee ‘C’ market sets the benchmark for coffee producing nations but provides zero guarantee that producers receive an income. Producers are at the mercy of market volatility and price fluctuations. Fairtrade provides producers with a ‘safety net’, paying a minimum of $1.80/lb for coffee.
Our system aims move beyond the volatility of the C market and into a direct trade approach for purchasing green coffee. A price is agreed directly with the producer whilst considering the ongoing requirements of the operation and supporting future investment plans. If we break down the financials, the C market currently sits at 2.43/lb, Big Dog procures Sao Lucas at 137% higher than current C market value.
Valuing relationships
A picture doesn’t always need to paint a thousand words if it’s showcasing a level of authenticity our current and future customers understand.
Direct trade relationships thrive on communication, empathy and a deeper understanding of the challenges faced by respective stakeholders within the supply chain. On latest trip to Brazil, we set out with one overriding goal; strengthen the authenticity of relationships with the aim of securing coffee supply for many future years.
