Transparency and "The Pledge"
As Kaffeemacher, we communicate openly about what we do. We share knowledge in our courses and advise along the coffee chain. As coffee roasters, we also talk about the purchase prices of our coffees and thus challenge the status quo of coffee trading.Green coffee is too cheap. Very few small producers can make a living if they sell their coffee through established channels and achieve the exchange-traded price. We have reported on this in several podcasts:
https://open.spotify.com/show/090WkPqHLfVjBPwZPrbrfn
As coffee roasters, we see it as our responsibility to pay coffee producers prices that make long-term sense for both sides. We therefore do not base our prices on the exchange rate, but seek direct contact with the producers themselves to negotiate a fair price. If this is not (yet) possible, we work with trusted traders. We also demand transparency from them, as close to the producer as possible.
This is – even though we live in the age of information – rarely easily possible. For too long, coffee trading was a well-covered, intimate business where no one had to show their cards.
The Pledge – The Commitment for Coffee Roasters and Importers
However, those days are over – since 2018, an international group of coffee roasters (e.g. Tim Wendelboe, The Coffee Collective, Counter Culture Coffee, Quijote Kaffee, Flying Roasters, among others) has been working on a standard for transparency in the coffee chain. The result is "The Pledge" – a commitment for roasters and importers. Those who participate in "The Pledge" commit to making detailed information about the coffees purchased publicly available. This includes, for example:
- Who are the trading partners?
- How long have they been working together?
- How much coffee do we buy from them?
- What is the quality?
- What prices have we paid? (e.g. FOB)
We are happy to quote the Flying Roasters from Berlin, who say about The Pledge:
Together, we set standards, define what true transparency means, and differentiate ourselves from mere marketing initiatives.
Transparency as an Attitude
By disclosing our prices, we clearly position ourselves in the roasting world. We hope that many more roasteries will join this initiative. As Roger Wittwer from Kafischmitte said in our podcast about the low coffee prices in autumn 2018:
The more transparent we are, the more this will hopefully become the standard. Customers see this, and perhaps increasingly ask about the conditions under which this coffee was grown and purchased.
Roger Wittwer, Kafischmitte
Making what we do transparent is important to us. With our coffee farm in Nicaragua, Finca Santa Rita, we are in the middle of coffee production and see, feel, and experience anew every day what it can mean to be a coffee producer.
With this background knowledge, we can and will no longer buy coffees if we don't know exactly what goes back to the farm.
It is obvious that this means additional effort for the trader. Pascal Herzog emphasized this several times in conversation with Philipp Schallberger. This additional effort must be worthwhile for everyone – and that is why we are also willing to pay more to get the information that satisfies us.
Transparency and open communication have always been a fundamental attitude of Kaffeemacher. In our courses, for example, we disclose the operating figures of our café so that course participants can learn about the calculation of merchandise costs and personnel costs.
By participating in "The Pledge," we are consciously advocating for even more offensive communication that is not content with certificates.
As roasters, we commit to showing the proportion of our transparently traded coffees in our total assortment.
Our Green Coffee List:
Further links on the topic:
What does FOB mean?
A text by Pascal Herzog. https://kaffeemacher.de/blogs/kaffeewissen/preistransparenz-kaffee
How is the coffee price collapse explained?
Podcast https://podcast.kaffeemacher.ch/2018/12/29/kaffeehandel-und-preisfall/
What do FOB, Direct Trade, Farm Gate, Production Costs mean?
Podcast https://podcast.kaffeemacher.ch/2019/06/19/kaffeepreis-transparenz-podcast/
Notes on Finca Santa Rita:
* Santa Rita, Nicaragua: Finca Santa Rita is a farm jointly owned by Roberto Castellano and Kaffeemacher (50% owners each). Kaffeemacher GmbH purchases coffee from Finca Santa Rita at the listed FOB price. In addition, we finance all ongoing costs on the farm.
