When Dutch traders introduced the Typica cultivar to Indonesia in the 17th century, coffee production underwent a rapid expansion. This was aided by a particularly favourable microclimate near the equator and mountainous regions across its many islands. But in the late 1880s, disaster struck when coffee leaf rust swept through large swathes of the country; virtually wiping out the varietal with the exception of the higher slopes of Sumatra. In response, the hardier Robusta coffee plant species was cultivated in much of the low-lying regions and the species flourished to account for nearly three-quarters of the Indonesia’s total coffee total coffee production today.
To catch a glimpse into the coffee value chain of the future, let’s take a quick look at some of the pioneering developments that are dramatically reshaping the landscape today. In a digital age of big data, powerful algorithms, just-in-time logistics and more interconnected communities globally than ever before, a revolution in coffee is taking place – and it is gathering a powerful head of steam.
In a climate of consolidation where eight major trading houses now control more than half (60%) of the world’s coffee bought and sold on the global market, there has been a tectonic shift in the supply chain that now seems unstoppable. Driven by the power of digital technologies fuelled by increased consumer demand, a new era of transparency and traceability is changing the conversation about coffee.
In the eighties, there were lots of agencies in the supply chain so roasters had very little idea of coffee production at origin. The traders offered coffee on a delivery basis to the factories from the warehouse, not necessarily from the farm gate. The internet changed all that and opened the door to establish direct contacts at origin built on trust; and above all, coffee is about trust.
Behind the macro-trend of consolidation in bulk markets, specialty coffee has been confidently moving in the direction of craft beer. A new generation of customers want to know the story behind the single origins and they demand greater sustainability which means fair prices at the farmer level. They want to participate at a deeper level and have confidence that their coffee is traceable and traded transparently.
No one can dispute that digitization is laying new tracks in the way physical coffee is being traded; particularly in specialty markets where price is largely disconnected from the world market and provenance is highly prized.
This shift that we are seeing in the supply chain will change the role of traders. As growing transparency in price and pressure on margins increases, traders will become more like data analysts as roaster’s search for the most cost efficient and transparent system to buy and market their product. Service providers such as algrano with digital platforms that connect the buyer and seller directly are challenging the way coffee has been traditionally traded.
And as the third wave in speciality coffee roasteries and independent coffee shops continues to gather pace, the mainstream market is now paying more attention to the journey from the crop to cup. Through its award-winning platform, algrano is responding to this need by helping to bridge the gap between growers and roasters. The platform also helps to overcome the enormous logistical challenges and risks of moving large volumes from one continent to another.
Whether it is a micro-lot or a full container’s worth of green coffee, growers want access to an open digital market space where they can sell their coffee online to the world. They want to tell their story and show their varieties or processing methods to potential buyers. This awareness is empowering greater knowledge sharing as producers can now compare directly with their neighbours – or even other countries. Technology is underpinning these new capabilities as people at both ends of the value chain have the tools to access more information and become more informed.
The head of steam in the engine room of the coffee trade is building, and story is moving. It’s about access to quality, transparency and traceability for roasters and new markets for producers. For a fairer and more sustainable value chain, this is definitely the direction that coffee needs to go. Since algrano was launched at World of Coffee in Gothenburg in 2015 – when we scooped an award for tech innovation – the online community has now grown to represent more than 400 growers and cooperatives from across ten coffee producing countries in central, south America. Over 500 roasters have joined to source coffee that is directly delivered to their door.
Next stop is East Africa and Asia as producers from Ethiopia and Indonesia plan to get on board later this year.
As demand for transparently traded green coffee increases, algrano have developed a producer-led initiative that empowers growers to reach specialty coffee roasters more effectively through its award-winning platform.
The new ‘Spot Europe’ feature means that producers can now ship their coffee to Bremen before selling to specialty coffee markets. It guarantees significantly lower waiting times for coffee samples, nano lots, micro lots and larger orders to be delivered directly to the roastery door.
Co-founder of algrano, Gilles Brunner, explains that the new initiative was developed in response to producer-need: “Growers told us that they want to be closer to the roaster by having their coffee warehoused in Europe”, he comments. “Our mission is always to bridge the gap between growers and roasters so the ‘Spot Europe’ tool is another step towards fulfilling our goal. It is a great opportunity for growers to take control of developing their own brand, while having much greater visibility in specialty coffee markets”.
Markus Fischer of Finca La Bastilla is a single estate coffee grower based in Nicaragua who is one of the first producers to take advantage of the ‘Spot Europe’ mechanism: “There are several advantages for us as growers. Not only do we have direct contact with the final buyer or roaster but it gives us the opportunity to offer specific qualities in small lots, allowing for total transparency in the supply chain,” he says.
Currently, Finca Las Bastilla produces around 250 specialty micro-lots in parchment or green bean each year. Situated between 1100 – 1450m in Jinotega, the 165-hectare coffee estate benefits from microclimates that contribute to the diversity in cup profile of the coffees grown across the region. Varietals such as Red and Yellow Catuai, Caturra, Catimor, Geisha are all cultivated alongside other hybrids as part of a recent varietal trial programme.
He adds that they have the facility to fully wash, honey process or naturally sun-dry their coffee. A dry mill on the farm also gives them full control in preparing the coffee for specialty markets before it leaves the farm gate for the port, and finally shipped to the warehouse in Bremen.
Markus highlights why having his coffee physically based closer to his customers will help him to realize to his aspirations as a producer: “Roasters will benefit due to the immediate availability of our coffee. This will allow for an intense exchange of information and opinion on quality, production, and other feedback from buyers – which is crucial to us. We are aware of the risks of having coffee consigned to a single destination port but this is important for the expansion of our customer base. For roasters interested in a continuous and dependable supply of a coffee they like, even in small deliveries, this new way of doing business should be interesting. We hope that the algrano platform will change our business from a simple commodity to a branded product for La Bastilla”.
Once the container of microlots from Nicaragua arrives in Bremen this September, algrano plan to roll out the ‘Spot Europe’ feature to other coffee producing countries so that fresh crop from Honduras and Peru will soon be available for roasters to request samples later this year.
The story of Costa Rica’s grano de oro – or golden bean – began in the late 18th century when arabica was first introduced to its rich volcanic soils and favourable climatic conditions in the central Meseta region. Coffee production has since flourished and is now a vitally important cash crop for the national economy. Although the country produces a small percentage of the world’s overall coffee production, it is highly regarded for the diversity of its varietals and award-winning cup profiles which has led some Costa Rican producers to enjoy their fair share of Cup of Excellence accolades in recent years.
While other Central American coffee producing countries opted for a more centralized coffee-plantation owner model, Costa Rica took a different path. Today, it still represents one of the most democratic models of coffee production in the world. This has been characterized by the ‘micro-mill revolution’ that has taken the country by storm in the past decade. In a country where 90 percent of all coffee producers cultivate less than 12 acres (five hectares) of land, the number of micro-mill facilities where producers grow, harvest, depulp and process their coffees on the farm has grown dramatically. Without this reliance on third-party millers, producers have been able to retain more of the the value of their coffee by cutting down on production costs. They also benefit from more freedom to experiment with innovative new processing methods before the coffee leaves the farm gate.
Representing the fifth generation of producers at Chumeca, based in the renowned Tarrazu region, Emilio José Urena Jimenez, talks about his shared sense of pride on the family-run farm: “Generations have passed but the good habits stay. My great grandfather’s sowed large quantities of coffee in this region. Then my grandparents took over and now my parents and brother are adopting the same love and care”. On the 8.4 hectare farm, a wide range of varietals are being cultivated for production including Red and Yellow Catuai, Caturra, Villa Sarchi, while other varietals such as Geisha, Pacamara, Sarchimor and Kenya are being experimented. The coffee is 100% sun-dried and Emilio says they have been introducing natural anaerobic process into the drying phase.
But producing specialty-grade coffee for export is not without its challenges, adds Emilio: “Maintaining quality is the hardest thing. It is very important that we focus on quality and not on quantity. We want people to know that in Chumeca, and Costa Rica, there is great coffee, and we work with dedication to produce a cup that will be enjoyed by people who admire our product”.
However, the 22 year-old who is studying to be a mathematics teacher highlights a trend that he seeing amongst his own generation: “A large number of our generation are identifying themselves more with what happens after the harvest such as being a barista, roaster, or cupper. They are also interested in the mill or the drying process. But what worries me is that fewer people are interested in the work at the farm. This includes maintaining the plantation, experimenting with different varieties, altitudes and everything that our fathers are doing with a lot of knowledge – and that is all part of the work to create the best cup of coffee”.
In a bid to incentivise the next generation of producers by sharing knowledge at the farm level, Rebeca Moya of 100 Libras has been supporting producers to increase their yields without sacrificing quality. “We collaborate with smallholder producers to add value and increase the quality of production”, she says. “At first, we wanted to export specialty coffee which is not without its risks. Two years ago, we started an alliance with Coop-Agri to help producers provide the correct documentation. We gather all the information so it is presented in the right way before consolidating the coffee ready for embarkation on the ship”.
Rebecca explains how the jute bag is a form of documentation in its own right and great care is taken to ensure that it meets the high standards set by Costa Rica’s coffee institute, eCafe. Even the bag print designs, which are a source of great pride for Costa Rican producers, help to differentiate from others and ensure a marketable visual identity that adds value whilst reinforcing traceability back to the farm. Since a great deal of regulatory procedures are involved in order to ready the coffee for shipping, 100 Libras is working with farms like Emilio to build-in efficiencies that help to improve the sustainability of the coffee sector in Costa Rica for future generations.
“This is important because it gives small producers an incentive to stay in coffee production. Many young people will go away to study but we want to see them return back to their family-owned farms. It gives a boost because they bring back new ideas about business and agronomy”, she adds. 100 Libras has now established its own laboratory farm to experiment with cultivating different varieties that are high yielding, disease resistant and offer good quality in the cup. It is this entrepreneurial spirit that has come to define Costa Rican coffee as producers develop new ways and approaches to adapt to the impacts of climate change.
Yet in spite of the many challenges, Emilio and his family at Chumeca are optimistic when finding new buyers through transparent trading platforms such as algrano. Their first ever printed bag design this year is a clear indication that high quality Costa Rican coffee continues to be in high demand internationally. He concludes: “It is touching to remember that they visited us one day and called the next day to buy our coffee. Above all, to know that the fruits of our labour is being enjoyed on the other side of the world. This is important for us and makes us feel proud about our work which motivates us to get better”.
When it comes to serving specialty, compromise is strictly off the menu for the caffeine heads at Coffee Proficiency. It is this motto that sets the scene for the collective vision at the roastery and coffee bar based in Kraków, Poland. Above all, their desire to compete at a national and international level has helped to consistently offer a high quality product for their customers.
Head of Quality at Coffee Proficiency, Lukasz Jura, explains how his first steps towards competing at the highest level took him on a path that led him quit his international studies and pursue a full time career in coffee: “During my studies, I was looking for a job and got hired as a barista at Coffee Heaven. I learned how to work efficiently, follow hygienic procedures and after eight months I managed to pour my first rosetta. Luckily for me, my manager was the first Polish Barista Champion. He asked if I wanted to compete for the national Barista Championship in 2006,” before recalling: “My first presentation was a total disaster, but the important thing was that I met many different people”.
“Back then, only a few people knew about specialty coffee and they started to invite me to trainings and lectures. It gave me the extra boost that I needed the following year and I went on to become the Polish Barista Champion. Then I competed in Tokyo for the World Championships and finished in tenth place,” he adds.
The experience brought Lukasz into contact with the wider specialty coffee community, particularly in Scandinavia. He began to spend more time with leading coffee professionals such as Einar K. Holthe of Stockfleths – partly owned by Solberg & Hansen, Norway’s largest specialty coffee roaster – and was invited to work at their internationally renowned coffee house in Oslo. Spurred on by the enriching experience and exposure to new ideas, Lukasz went on to compete in 2009 where he was crowned World Aeropress Champion. His three-year stay in Oslo also saw him working with the Norwegian barista team for the Nordic Barista Cup.
But the call to return to Poland was too strong and the 33 year-old decided to move back where he devoted himself to barista training at the Warsaw School of Coffee. Although he still continues to train and run workshops, Lukasz has been working full time on all aspects of quality at Coffee Proficiency for four years now. He highlights how transparency guides the green bean sourcing in the roastery: “It’s not only about the business, but also about the taste. We try to pick unique coffees every time – especially if it has something rare and unusual that highlights the terroir,” before adding, “we are looking for the ‘wow’ effect”.
Roasting on a 30kg Coffee Tool made in Greece, the nine-strong team supply their own coffee bar as well as independent coffee shops, high-end hotels and for retail. They try to rotate their coffees frequently to ensure their green beans are as fresh as possible.
Lukasz does look back at his early days with fondness, adding that although he is now much more discerning, specialty coffee never fails to surprise him: “I’m much harder to impress now. I remember my first experience with naturals and it was the first time I tasted strawberries in coffee. But when I’m judging in championships, I still sometimes have this feeling of surprise again”.
For more than a decade, Ancis Romanovskis was a successful entrepreneur before he turned his hand to roasting. The 38 year-old had sharpened his business acumen in the cosmetics, pharmacy, and beer industries before he went on to build one of Latvia’s leading coffee equipment with his partners, service and supply companies from the ground up.
The switch from commodity coffee to specialty began when King Coffee became the official distributor for La Marzocco across the Baltics. While the partnership helped to fuel the company’s growth, the route into specialty coffee roasting still seemed an arm’s length away from supplying and maintaining coffee equipment.
Although business was quickly expanding, Ancis took a break away from the company to gain more experience in running the roastery at Coffee Planet – a decision that paved his way towards Dubai. It was a time when interest in specialty coffee in the Middle East was emerging and and his role evolved from international sales to managing the roasting operation. After four years, he returned back to Latvia. With his partners, they kick started Rocket Bean with the deployment of a 35kg Loring Smart Roast Kestrel in 2015.
Working as a white label supplier to King Coffee, Rocket Bean has a network of clients and customers that many start-up roasteries would dream for. Yet Ancis soon realized that that he needed to understand the complexity of his roasted product better: “While traveling abroad, I saw that coffee was something big. I understood the business side but needed to understand the product more,” he says. “Coffee is very exciting, you keep learning and it is always evolving. In specialty we have this aim to bring perfection, something that is unique”.
As well as supplying roasted coffee to countries as far as Saudi Arabia, Rocket Bean has found its home in an old sock factory in Riga which dates back to the time of Latvian independence. Following a period of renovation, the space now serves as a coffee house, roastery and purveyor of healthy and quality food for its caffeinated customers under the culinary stewardship of chef, Artūrs Taškāns, who gained experience in a Michelin-star restaurant in London.
The latest algrano coffee sourced by Rocket Bean is produced by Augusto Borges Ferreira, a representative of the fourth generation of his coffee growing the family. The grower was among the finalists in the Cup of Excellence category for naturals in 2014 and 2015. Grown between 1000-1300m, the red catuai has notes of toffee, brazil nuts, peach marmalade, and pears. “It’s Brazilian coffee but doesn’t taste like a Brazilian, it’s really interesting,” adds Ancis.
Since Latvian-born Martinš Drungils recently joined the team to help progress their roasting style further, Ancis says that Rocket Bean’s quest for quality is more cup profile orientated. And his relentless search for new fields has brought him to a more direct trade approach though algrano: “I can see my previous trades through on the platform, I like that”, before adding that in-depth information provided about the coffee is crucially important for him and his clients. He says this is especially crucial for his team as they reach out to restaurateurs who demand more of a story behind the coffee as they brew in front of their dining guests. “They brew chemex in front of the client and we want to give them a guide, like a wine description, in order to give a good feeling to the end customer”, he comments as he eyes up the next business opportunity.
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While studying for a masters degree in business down under, Daniel Sanchez got a taste for antipodean coffee culture. And when a local coffee shop opened in his Melbourne neighborhood, his enjoyment of specialty coffee soon developed from a daily ritual into a career.
“The Monday after the opening, I picked up a cappuccino on the way to collect my laundry. Later that day I went back and talked to Ben, the owner of the café The Final Step. I started to hang out in this coffee shop so much that he told me I could be useful and clean the dishes,” says Daniel before adding that he went on to hone his craft working with espresso behind the bar.
It was only when Daniel moved back to Switzerland with his partner three years later that he realized that a promising career in corporate branding and marketing was not for him. A spell of working in a coffee shop was enough to convince the 36 year-old that there was a future in specialty coffee. And with the purchase of a 5kg Probat and some bags of green coffee, Miró was born in partnership with his brother David in 2014. Daniel says that his formula is to search for, and roast, the best green coffee available with an ambition to present the sweetest coffee they possibly can to their customers and guests: “Passion and attention to detail are central to us,” he says.
A thoughtful approach to being engaged in the supply chain as much as possible is also an important consideration at Miró. This includes placing importance on establishing a ‘direct trade’ relationship with their customers: “We carefully examine the process and communicate with our partners or suppliers as well as our private customers and guests. This means we are constantly exchanging with people so that we can collect the relevant information and pass on our know-how with pleasure”.
One example of Miró’s efforts to share their knowledge with the wider coffee community is the range of espresso, brewing and roasting masterclass’ on offer to those who want to learn more. Daniel’s team of five are also dedicated to sharing their skills and knowledge with their customers on the road around Zurich through their bespoke converted coffee truck complete with a two group La Marzocco Linea PB and Mahlkönig set up.
Miró’s philosophy is to change their portfolio of coffees at a fast pace which means that they are constantly on the lookout for fresh new arrivals. He says that the challenge of establishing a direct trade relationship with a producer can be a lot of effort when they are sourcing just three to four bags at a time.
“It depends on what point you are buying the coffee. Do you buy from directly from the farmer? Does he have the ability to mill and ship it to port or you have to organise the milling, transport to the port?” asks Daniel. “This is why I really like the concept behind algrano because the one thing that I find most important is its simplicity. We bought a Costa Rican coffee, La Bella, and the head barista at one of customer’s, Auer Co, cupped the coffee and took the whole lot – it was very cool.”
As Daniel and his team look to the future, it is clear that they are focused on growing the roasting business alongside their mission to help drive the education of their customers one espresso shot, one brew, and one small batch of freshly roasted coffee – each step at a time.
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Nicaragua is a highly-regarded coffee producing country that enjoys huge farming potential and has recently undergone a step change in the mechanization of its agricultural sector. Already, the results of this public and private investment has helped to increase quality, while at the same time reducing the cost of production of its highly sought-after specialty coffee.
Standing between the producer and the consumer in a complex supply chain can be a fine balancing act for any roaster. Quality, price and availability consistently come top as major factors when it comes to making a buying decision. But the underlying motivations that underpin these decisions can vary widely depending on a coffee roastery’s ethical or sourcing policy and needs of their end-customers.
And as the landscape of specialty roasteries continues to develop at a pace across Europe and further afield, the opportunities for sourcing high-end traceable and transparently-traded coffee has never been so great. From green bean importers to innovative tech platforms aimed at empowering producers to find buyers directly, roasteries are faced with a growing range of options for sourcing green beans as ever before.
In a bid to gain a deeper understanding of the broad spectrum of routes that coffee roasters take to inform their buying decisions, algrano has commissioned a Barcelona-based design collective to gain insights into what drives a roasters’ motivation behind the decision on their next coffee contract. “We see a world in transition towards an emerging new social, economic and environmental paradigm,” says Adrià Garcia of Holon. “For us, algrano has a clear mission to empower coffee growers so it was easy for us to collaborate with a company with a shared purpose – to open up a new window into El Salvador, or say, a door into Kenya”.
The Holon team spent time with six coffee roasteries – Nømad, El Magnifico, Dos Mundos, Schneid-Kaffee, and UCC Coffee – to map out the steps that roasters take when choosing their coffee. The first ‘discovery’ phase involves a process of requesting samples from different sources and origins to find the freshest coffee available. Fran Gonzalez of Nømad explains how he takes an experimental approach to sourcing new coffees: “I spend three to four hours every week looking for new coffees – I look at offer lists from new importers and the ones that I know,” he says. For Fran and others, it is the search for uniqueness in flavour and taste profile that guides their quest for a standout coffee.
Other roasters are more cautious in their approach and try to keep more of a sense of continuity to their stock management: “I don’t want to change coffees too much as the price fluctuates, customers don’t always understand it”, adds Sebastian Schneider of Schneid-Kaffee. Yet despite the different approaches that roasters take, the year-round effort to discover new origins, request samples, taste and choose a particular coffee is an organic and fluid process that requires a good understanding of the harvests and seasons.
Roasters explain that the next crucial phase of cupping samples involves a balancing act between what is offered or trending in the market at a specific time, and what meets their business need. At Dos Mundos, this is usually done with a number of cuppers to contrast opinions and and share views on cup quality and profile: “The three of us cup and in the morning the following day, we make a decision to buy,” says Lukáš Zugar before adding that although quality in relation to price is a principle factor, they are looking for transparency and traceability that offers a window into the story behind each coffee.
This is the moment that roasters will more-than-often seek to find out further information about the coffee’s provenance, its availability and even establish a dialogue with the producer: “Out of the most extraordinary coffees taste-wise I choose the one with the more interesting story because this helps to sell the coffee to my customers. I want to know what the farmer did with the coffee, what role the farm plays in the community and how they treat their workers,” adds Cássia Martinez of El Magnifico.
Harnessing new technologies designed to help facilitate more dialogue, exchange of ideas and direct peer-to-peer trade between both sides of the value chain is helping to bridge this gap. The results of these interactions are the seeds of a paradigm-shift in the way that specialty coffee is being discovered, sourced and finally presented to the marketplace. Since 2013, algrano has been pioneering a millennial approach that empowers growers to access specialty coffee markets through a platform that connects them directly with roasters globally.
Johannes Just of Geyst, a Swiss-based branding company who is working with algrano to help evolve the trading relationship with roasters and growers in the digital space, comments: “It wasn’t just about the business idea for us, algrano has the disruptive potential to change the way specialty coffee is traded, and we found this value proposition very interesting. The relationship between transparency and specialty is something that is really growing at the moment – it is a trend in the market that puts more power into the hands of producers while strengthening the link with roasters.”
Christian Burri of algrano, says: “We are continuously looking at ways to improving the experience, offline and online, based on the feedback we receive. This includes a more streamlined website platform that shows the right information at the right time for roasters and growers. Our logo also gets a fresher look with a new color palette as we strive to make sourcing coffee from origin more simple”.
Daniela Capuano’s coffee story began as early as she can remember growing up on the family-owned coffee farm in Tres Pontas, the Minas Gerais region of Brazil. “It is a reality that I am used to,” she reminisces. “It’s very holistic, I have more idea about what happens to the beans before they get here – and I know Brazilian coffees very well.”