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Industry

March 29, 2012

Direct Trade: Another Piece in the Puzzle – ONA Coffee

The Golden Bean is being recognised more and more as an excellent opportunity for roasters across Australia to meet, share ideas and learn from each other. An obvious trend at the 2011 event was apparent, with many of the medal winning roasters using coffee beans sourced through direct trade with coffee farmers around the world.

With the advancements in technology making communications easier, this is now the way of the future in coffee roasting. Two well known award winning coffee roasters now provide us with their stories and experiences in direct trade.

When you look at the Australian specialty coffee industry, you cannot help but stare in awe. The industry is bubbling with vibrancy, creativity, dedication and most of all, collaboration. You would never see someone from Coca-cola so warmly welcomed at the Pepsi factory, as one of us are at other roasteries. There is a openness between people in this industry which I am sure you cannot find anywhere else. Everyone seems to realise that we are all working for the same goal: the development of the industry and ultimately, that perfect cup. You just have to go to a national competition to see this dynamic in action. It’s beautiful to watch – and even better to be a part of.

The specialty coffee industry has realised that we all rely on each other to develop and learn. It is this mutuality that is responsible for our prosperity and growth in the market. However, it was only a matter of time before we realised the disconnection between growers and roasters. How can we achieve the quality we desire, without any connection to the growth of the product?

You will find that most specialty roasters are now engaging in direct trade arrangements. However, we will take you though a couple of direct trade experiences at ONA Coffee to explain its importance to our industry and our business.

Firstly, I will describe exactly what direct trade is. Direct trading is a process whereby roasters buy green bean coffee directly from the growers. In doing this, roasters cut out all intermediaries, including third party organisations and large coffee co-operatives and internal country based commodity boards. Direct trade agreements are founded on a philosophy of respect and mutual benefit.

Roasters direct trade for a variety of reasons. Most commonly, roasters are dissatisfied with the philosophy of trade intermediaries, others are dissatisfied with the real effect of third party organisations, and others do it to gain control over their product. Most of us do it for all these reasons.

Our first direct trade relationship was in Honduras with the Barrios family from Don Adan Coffee. In a conversation with Jerrad Barrios and our single origin roaster (Angus Mackie), Jerrad perfectly described the disconnection. He said, “You think of coffee as a beverage, whereas we think of coffee as plant.” Although simple, it was at this point we realised that if we could think of coffee more as a plant and they could think of it more as a beverage, we can take our coffee to a new level.

Our relationship with Pathy Kasiviswanathan, from Thalanar Estate in India, is probably the best example of how well direct trade can work. For years, this family sold their coffee only to the I.B.C (Indian coffee board). Keen to start trading his family’s coffee directly, Pathy moved to Australia. Lost with where to start, he approached our company director, Sasa Sestic, with samples. Once cupped, 6 tonnes of this beautiful coffee was headed our way, being the first time the farm had sold to a buyer other than the IBC. Since this day, we have been working closely with Pathy and his family, featuring his coffee at our various events, as well as having him hold workshops with our roasters and baristas.

Our relationship with Thalanar estate has contributed to the development of our company. However, up until recently, we did not realise the benefit they were getting from us in return. Being able to work with the roasters and see where their product was going enabled them to get an insight into what happened to their coffee once it left the farm, helping them to realise the massive potential their product had – only making them more dedicated to improve. This won us a silver and two bronze medals as a component of our Italian Crema blend, as well as winning our friends at Peak Coffee silver for single origin espresso at the Golden Bean Roasting Competition.

We could not have estimated how proud Pathy and his family were to see their coffee win these awards. It was achieved through our sense of duty and respect towards each other. We have realised that the farmers care just as much as us. And given the time of day, they have just as much to offer the industry as our specialty roasters and expert baristas.

We now have direct trade in Guatemala, Honduras, Brazil and India. Through paying premium prices directly to the farmer, we contribute to their quality of life, their farms and their communities. On the other side, they provide us with consistency, quality and knowledge. It is these symbiotic relationships that are the future and sustainability of our industry.

They achieve far more, far quicker than any third party organisation and do it with personality that only enriches the coffee experience for all involved.

To find out more about our direct trade arrangements, go to www.onacoffee.com.au.





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