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Who sources the beans for roasters?

Postby noah on Thu Sep 24, 2009 4:37 pm

Could someone please give me an overview of what the general process is that connects the farmer to the roaster? Are there middle men whose sole business it is to go around the world sampling and collecting samples of coffees to send out to roasters, or do the big roasters send out there own guys?

I have always been curious just how it is that the good roasters manage to find the excellent beans that they do. And how does the process differ for the bigger premium roasters like Intelly, versus tiny local roasters?
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Postby pdx on Thu Sep 24, 2009 5:21 pm

For a quick overview read "God in a Cup" by Michaele Weissman. Its definitely not a perfect view, but this is basically what its about.
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Postby Ken Fox on Thu Sep 24, 2009 5:48 pm

There are middlemen who make a market in coffee, and the better ones try to get good ones and as a result have pretty good reputations. Royal would be a North American example.

The upper end of roasters, in addition to buying some coffees from brokers, source their own coffees directly from the coffee farms, and play a role in how it is produced, setting benchmarks for the farmers to reach and rewarding them financially when they reach them. Often, the better roasters get together in a group and make what amounts to a "group buy," which results in a number of roasters and cafes offering the same great varietals. The general term for this sort of thing is "relationship coffee." Roasters such as Intelly, Klatch, and presumably also 49th Parallel and Counter Culture and Stumptown do this sort of thing. The aforementioned 5 roasters was not meant to be an exhaustive list, rather just a list of some of the household names that operate in this relationship coffee sphere.

At least some of these folks, notably Klatch from this list, will sell at least some of these coffees green, and sometimes these green coffees also end up with Sweet Marias and the Green Bean Coop. I don't know exactly how the beans make it to the last two listed, but sometimes they do.

There is a good argument for supporting sellers of these better coffees, which are most often not "Fair Trade Certified" even though the result is that the better farmers are rewarded with better remuneration which filters on down to the worker level. As opposed to Fair Trade, which rewards certain remuneration practices but divorced from coffee quality, relationship coffee accomplishes both objectives, e.g. to reward growers for producing a good crop while ensuring better remuneration for those who work in these 3rd world countries to produce these coffees.

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Postby another_jim on Thu Sep 24, 2009 9:04 pm

Hi Noah,

You're looking for a group collectively called "Greenies," the people who trade in green beans.

The first link in the chain after the farmer is the mill or exporter. Mills buy the coffee cherries and wet process them into green beans. Large plantatioons have their own mills. Fair trade outfits have a coop mill following fair trade rules. Coop and semi-public mills with a variety of arrangements with farmers are also the rule in East African countries. In dry process areas, the role of the mill is taken by an agent who buys the farmers' dry processed cherries. This group has players who are predatory quasi-loan sharks. But in most cases, the private exporters and mill owners have a sterling reputation, like Bagersh and Ogsadey families in Ethiopia.

The make or break job of this link on the chain is to be extremely picky when sorting beans, and never to mix crap with gold. Best practice is to prepare perfectly prepped lots from the smallest, most uniform tasting area possible, and then create larger, cheaper lots form the cherries that don't make the cut. Depending on crop size and picking practice, there may be several price/quality tiers. Areas where only poor coffee is produced, e.g. Vietnam, there is no meticulous sorting, since even the best sorted product isn't particularly good.

The next link are the importers, who bring the coffees into the consuming countries and sell them to roasters. In some cases, importers are bypassed, and larger roasters buy directly form mills or at auctions. Mass coffee producers, and even medium large roasters like Illy, always buy direct. The big players in the specialty market are Volcafe, Maruyama and Royal. Cafe Imports, Castle Imports, and Ninety-Plus specialize in super premium coffees.

The two jobs of importers is to get the best coffees and to get it to the roasters fast enough that it's still fresh. The better they do this, the more money they can get.

This is roughly accurate, but I'm not an expert; so there are probably holes.
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Postby noah on Thu Sep 24, 2009 9:54 pm

Thanks guys. A rough idea is all I was looking for to satisfy my curiosity.

It is an interesting subject to me, and I would suspect that the various political, social, economic, and environmental factors involved would make dealing in the actual coffee trade a very fascinating line of work.
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Postby dialydose on Sun Oct 11, 2009 11:52 pm

Noah -

Another nice source of information (with lots of pictures too) is Sweet Maria's website. He (Tom) has expansive notes and pictures from his travels around the world buying coffee. He might buy some greens from others as Jim suggests, but he also goes to the source and cups coffees from all over the world. In this way he has built relationships with numerous farmers to source beans. I think they also group-buy and there is even information related to their Farm Gate program which rewards the better farmers with increased pricing. Even if it doesn't provide a soup to nuts detail of the coffee buying process, it is great to see all the great information about the areas/farms/mills etc.
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Postby malachi on Mon Oct 12, 2009 12:29 am

It's important to differentiate the three primary different "kinds" of coffee sourcing.

1 - Commodity Market
2 - Speciality Market
3 - Direct-Trade

The first is irrelevant to this discussion (although it represents @98% of coffee production).

The second is what Jim describes (coffee handled through an importer/broker like Royal, Volcafe, etc). In these cases, the importer will have an agent at origin who will work to source coffee samples, and green bean buyers who will cup samples, travel to origin, negotiate contracts, and make buying decisions). A roaster will buy from the "list" that these importers offer to them. Some roasters will get samples of many of the coffees these importers carry, roast and cup these and make buying decisions - others will simply buy what the importers suggest.

The third is the least common - where a roaster buys directly from a producer or co-op. This can be so-called "relationship" coffee or can be through auctions like what we see with CoE. In this case, the roaster has a green bean buyer, who will travel to origin, source, negotiate, etc.
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