Import, Export, Coffee Galore!

The journey of coffee begins at the farm, often located in countries with rich coffee-growing traditions. Farmers either working independently or as part of cooperatives, grow, harvest, and process the coffee beans. From here, Covoya navigates the intricate path to your cup. There are three main “trails” that a green trader follows to procure coffee: the philosophical trail, the paper trail, and the physical trail.

Step One: The Philosophical Trail

The philosophical trail revolves around the motivation behind purchasing specific coffees. Barwick explains that they buy coffee for different reasons depending on the origin. It could be because the coffee is exceptional, there’s customer demand, or they want to expand the stock from a particular region.

Step Two: The Paper Trail

Once the need for a particular coffee is identified, the green trader directly communicates with farmers, especially if they handle their exports. Often, Covoya collaborates with its local teams, part of its parent group, OFI, which has a presence in most coffee-producing countries. These teams, consisting of agronomists and professionals, provide on-the-ground support, ensuring a seamless procurement process.

Step Three: The Physical Trail

The physical trail encompasses the logistics of transporting coffee from the origin to its final destination. Traders often take care of all import documentation, fees, and logistics to ensure the coffee reaches its warehouse in prime condition. Contracts with final roasters are established, whether the coffee is pre-sold or not. Covoya also mitigates market risks and currency fluctuations by fixing consumer prices, thus shielding them from price volatility.

Specialty vs. Commercial Coffee

Howard Barwick highlights the distinctive nature of the specialty coffee sector compared to commercial coffee. Specialty coffee is defined by its traceability, honesty in marketing, and focus on quality. “Specialty coffee has more than one definition, action, or circumstance. It’s the summation of many discrete occurrences, some planned and some circumstantial,” says Barwick.

In the specialty sector, marketing at origin involves telling the unique story of the coffee’s origin, emphasizing its traceability and the integrity of its production. This is particularly challenging when dealing with centralized national coffee boards. Transparency and honesty are key in marketing to consumers, ensuring that the story of the coffee’s journey is told without embellishment.

The Role of Traders

Henry Clifford, a senior coffee trader at DRWakefield, another prominent coffee trading company, emphasizes building long-term relationships with producers. “Our goal is to maximize value at origin and find roasting companies that share our values,” Clifford notes. This often involves working closely with producers to purchase their entire output, not just the premium micro lots, to ensure sustainability and resilience for the farmers.

DRWakefield imports coffee from 25 different countries, tailoring their supply to match the diverse needs of their customers, from large companies buying containers to small roasteries purchasing single bags. The company’s strategy focuses on importing rather than exporting, leaving more value in producing countries.

Challenges in Coffee Trading

Both Barwick and Clifford acknowledge the numerous challenges in the coffee trading business. Issues like high humidity in containers, shipping delays, and strikes can disrupt the supply chain. “Problem-solving is a significant part of our job,” says Clifford, illustrating the coffee trade’s dynamic and often unpredictable nature.

The journey of coffee from farm to cup is a complex and collaborative effort involving farmers, traders, brokers, and roasters. Companies like Covoya and DRWakefield play a crucial role in ensuring that consumers receive high-quality coffee while supporting sustainable practices at the origin. Understanding this journey enhances appreciation for each cup of coffee.

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