mycuppa May 2013 Newsletter
Direct Trade Explained
The key drivers to what is rapidly becoming a "mad rush" to source Direct Trade products have been partly due to price volatility harming farmers.
It creates consequences at coffee growing origins where entire communities are adversely affected when farmers cannot receive a fair and reasonable price for their crops.
The situation has escalated where some regions have effectively withdrawn coffee from sale due to supply and demand factors.
Recently, Colombian coffee farmers went on strike to protest the government and local country Coffee Boards not doing enough to protect their livelihood.
In theory, this sounds fine; however, all is different from what it seems, and the stated benefits of Direct Trade are only sometimes available.
Our previous articles published in 2012, we explained the Direct Trade practice by outlining our objectives associated with Direct Trade sourcing.
During late 2011 and part of 2012, we experienced a haphazard supply of coffees from PNG.
Issues with a primary processor (and a major export group) at origin forced us to rethink our options for purchasing Papua New Guinea coffees.
Long time readers of our Newsletters will be acutely aware of our special affinity with Papua New Guinea coffees.
For us, engaging in a Direct Trade arrangement was seen as one strategy to resolve supply fluctuations and, at the same time, ensure that quality and consistency were maintained.
Well, at least it is our intended goal.
Direct Trade has nothing to do with cost or consciousness - only ever an attempt to ensure consistent supply.
Initially, the Direct Trade program operated successfully; however, after a few months, we once again experienced sourcing and quality issues.
In reviewing the situation, we concluded that our arrangement with that Direct Trade supplier needed to meet our objectives, and we faced additional risks and issues that a local Australian broker would normally manage.
There has been an increase in the number of Origin brokers attempting to establish direct contact with Australian roasters, but the perceived benefits have yet to be realized.
We see these origin brokers falling into two separate categories:-
- Opportunistic - suppliers at origin were attempting to secure higher pricing for their product or offloading excess inventories by effectively bypassing one or two sets of brokers (export and import).
- Quality-focused - origin partners with considerable pride in the quality of their products and seeking to avoid their high-grade crops from being soaked up by local co-ops only to be blended and diluted with other lower-grade coffees to make up a standard.
It is only the Quality-Focused origin partners that deserve our interest.
We require access to the origin's finest qualities ahead of the large brokers and coffee traders diverting many of these prime coffees off to other destinations such as USA, Europe, etc.
Recently, we commenced a trading arrangement with Minas Hill Coffees of Melbourne to access high-quality Brazil lots.
Marcelo, the third generation of a Brazilian coffee family, runs Minas Hill.
Through his family connections, he can provide high-quality coffee from award-winning farms in Brazil.
During March, April and May 2013, we purchased some exceptional specialty coffees from Marcelo.
All of the coffees supplied by Minash Hill have met and exceeded our expectations.
From May 2013, we will be featuring more of the Minas Hill Brazil specialty coffees for our mycuppa customers to enjoy.
Roaster's Notes
I have to be brutally honest and state upfront that over the last few years, our affection for the coffees of Brazil had waned - for no real reason.
Yes, it's true that with such a vast array of coffees to sample from more than 20 origins, we were being distracted by Ethiopia, Tanzania, PNG, Colombia, and Guatemala and seduced by the many quality Central American micro-lots from Costa Rica, El Salvador, etc.
Whilst Brazil has always remained our #1 in terms of volume, we found that the emerging trends in specialty coffee were pulling us towards acidic, fruity coffees and hijacking the majority of our mindshare.
I've had a "born-again" experience with Brazilian coffees recently.
This was sparked by the high-grade micro-lots now being made available within Australia by brokers.
Recently, we have roasted Cambara and Cerrado naturals, which were amazing. Minas Hill sold us one of their top-shelf coffees - Specialty Matas de Minas "Cachoeira Alta Farm" Lot# 02 Pulped Natural, which has been the most amazing coffee we have cupped in more than 12 months.
The Matas is a rock-star coffee with a price tag to match, but it underlines a crucial point - Brazil can match it with the best!
This week, Marcelo from Minas Hill dropped in a new arrival - Espresso De Minas Volcanic Blend.
The Volcanic blend is from a single farm in Cerrado growing the coffee inside a large volcanic crater; the rich soil provides a unique flavour.
The beans are processed using two methods, which combine to make the blend, offering complementary characteristics that enhance the finish.
This coffee further extends our firm belief that high-quality Brazilian coffees provide exceptional flavour and a beautifully balanced cup profile.
After drinking these high-quality Brazils over the last month, I find it difficult to enjoy other origins - such as the powerful and memorable cup character.
