As coffee farmers, exporters, and importers, we want to start by expressing our heartfelt appreciation for your role in supporting our mission to improve lives, promote sustainability, and produce extraordinary coffee in our coffee-growing communities.
This month's blog will first address the elephant in the coffee industry – the rapid increase in the futures market, but also touch on what has been going on at the farm the last few weeks.
The State of the Green Bean Coffee Market
The futures coffee market prices have increased significantly, with the average coffee price in 2023 being $1.6453 per pound, while the 11/29/24 closing spot price was $3.4768 per pound. This represents a 111.32% increase year-over-year!
We're facing a shortage of high-quality coffee beans, and our production costs have skyrocketed, including labor, fertilizers, electricity, fuel, and more.
What does this mean for coffee roasters?
Unfortunately, this will mean higher prices for all green purchases no matter the origin. The silver lining is by embracing higher green bean costs, you can ensure that farmers receive equitable compensation. This fosters a sustainable supply chain that will ensure roasters have quality beans for years to come.
Partnering directly with farmers like us through our Farm Direct/Direct Trade model can help build resilient relationships. Down and up years will come, it is inevitable. Today the market seems high, but four years, coffee was going for a third of what it is today. By working through the conventional sourcing methodology of making contracts or buying spot through exporters, a roastery is susceptible to be affected by massive price swings. When the market is up 100%, so are the spot prices. On the other hand, through our experience working direct and on relationships, those price fluctuations are tempered. For example, at Finca T, we anticipate a modest price adjustment, carefully balanced to reflect our commitment to quality and sustainability, even as the market faces significant increases of 111.32%.
Now, there will be years that are down, and the tradeoff by working direct is that the roaster will be there for the farmer in those down years. This relationship that works both in up and down years is essential to addressing the systemic challenges farmers face. Supporting fair compensation and sustainable farming practices is not only an ethical choice but a necessary one for the industry's future stability. A direct trade relationship where the costs and benefits are shared equitably can lead to transparent communication with consumers to justify price increases in support of ethical practices.
Let's work together to create a more equitable and sustainable coffee industry. We're committed to delivering high-quality coffee beans while promoting positive change in our coffee-growing communities
A lot... grab a cup of coffee and look at the photos and their brief descriptions! Yes, thanks to your feedback, we've changed the format of our blog. From now on, it will feature more photography, and fewer words. As the saying goes, "a picture is worth a thousand words."
Our School's Update -- First Graduation, a Truly Special Event
We celebrated our first graduation and the closing of our first academic year for our students. It was a moment filled with joy and pride for everyone involved. The photos capture the emotion of a shared achievement.
We're thrilled that this year we had the opportunity to have 22 students. We're also excited to start the upcoming 2025 academic year, with 32 students enrolled, representing a 45% increase. Each of these children is a promise of a better future, and it fills us with happiness to know that we're contributing to improving their lives through education.
If you haven't already, please join us on social media to stay updated on our progress. You can find us on Facebook as (https://www.facebook.com/share/19kr9jhu8d/?mibextid=LQQJ4d) and on Instagram as (https://www.instagram.com/esc_tmf_?igsh=c3ViYWp0MmhoMWRr)
This month, we welcomed an adorable little calf, whom we've named 'Baby H'. Every birth is a true celebration, and it's impossible not to fall in love with these little ones! We also had the birth of some adorable kittens who now inhabit the house. It’s a joy to watch them grow and explore their new home!
Overview
Every carefully selected and hand-picked coffee bean holds a promise of flavor, history, and tradition that slowly unfolds with each step of the process.
Our cooks prepare meals that keep everyone energized and smiling. Their dedication makes every day special!
After a long day, adults gather with their children to play soccer, enjoying a well-deserved break. These moments of play, laughter, and camaraderie are the heart of the season. They remind us that, although the work is hard, there's always room to enjoy and share.
We're amid our first harvest round, which will conclude mid-December. Normally, we have three rounds, but this year's climate has put us to the test. Coffee maturation has been delayed by a month and is now accelerating rapidly. This poses a significant challenge: with Christmas festivities approaching, our coffee pickers will be heading home, putting the harvest at risk.
This year is much more challenging! As you can see in the photo below, a tree that usually yields a lot of fruit has barely any beans this year—tree looks healthy but no beans. Climate change is becoming increasingly evident, affecting not only quantity but also quality.
It's a reminder of how tough our work is, often unseen but always felt. Despite harsh weather conditions, our coffee pickers always strive to give their best. As a small token of appreciation, our office team brought them coffee while they weighed their freshly picked beans. They were grateful and happy, knowing that good coffee is perfect at any time of day.
Progress never stops. Our new, insulated warehouse “C” is a crucial addition with capacity to store 15k sacks of parchment beans in optimal conditions (approximately 1.5 million Lbs.). Additionally, our new concrete patio (660 sq meters) increases our patio drying capacity by 100%.
This year, we've incorporated a new hopper in our export area, which will improve the flow and efficiency of our process. This new hopper, like most of our equipment, was hand made by local artists! Our quality laboratory has also received the installation of a hot water chimney, optimizing our work in coffee quality analysis.
Your coffee is here, in our patios and processing center, being transformed with the utmost care to ensure that only the best reaches your roastery.
Every Thursday, our team gathers for a unique initiative that sparks growth, learning, and camaraderie. One team member takes the stage to share a topic that inspires them, whether it's a personal story, a professional insight, or a team-building exercise.
Through lively discussions and reflections, we delve deeper into the topic, exploring ways to apply its lessons to our daily work. These meetings are a catalyst for continuous improvement, strengthening our bond as a team and fostering a culture of collaboration and innovation.
As we look around our farm, we're reminded that every photo, every moment, and every achievement is a testament to the collective effort of our community. From the student interns and animals to the harvests and improvements, every aspect of our project reflects our shared commitment to hard work, dedication, and passion.
Rooted in our core values of Improving Lives, Sustainability, and Extraordinary Coffee, we push forward with purpose and passion through the ups and downs of our industry. Grateful for your support, we look forward to sharing more stories from our farm. Until next time!