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Is Coffee Good For The World?

Is Coffee Good For The World?

That’s a great question. We’re so glad you asked. While there is not a really clear, straightforward answer, we’ll give you some nuggets here to chew on. 

Coffee, in totality, is an almost 500 billion-dollar industry, and it keeps growing each year. There’s a lot of money changing hands around this crop/beverage. However, we are also hearing about how climate change is affecting coffee production and how coffee farms are being developed into residential and commercial spaces due to the lack of economic impact being driven by coffee production in many countries. In spite of its industrial growth, coffee has a sustainability problem.

Coffee as a plant spread across the world as the result of colonial expansion and cultivation utilizing forced labor. Through these types of practices, the beverage achieved ubiquity across the Western world. The final consumers of the product never had to think too much about how they got it. They were too far removed from coffee production to care too much about the socio-economic factors that brought it to them so cheaply. In reality, the coffee industry largely benefited only those who traded it multi-nationally. It didn’t really serve the indigenous farming community who often had no other choice than to produce what they could and sell at the “market rate.”

With the advent of Starbucks, a subsection of Western culture began to care more about coffee as a craft product. Those folks also took a keen interest in the socio-economic implications of their consumption. General awareness around the plight of coffee farmers has grown over the last 4 decades.

The hope of the “Specialty Coffee” industry (which really got rolling in the early 2000s) was to accelerate the appreciation for coffee as a craft product and ultimately drive positive economic impact for the coffee-producing communities in origin countries. This desire has been at the heart of Stone Creek Coffee since our founding in 1993. However, up until very recently, quantifying the actual impact of our coffee buying has been difficult for several reasons.

1) Getting coffee from farms around the world usually requires roasters to utilize exporters AND importers (two middling entities) which has made financial traceability really hard to attain.

2) Very few people have been able to track and understand the farmers’ production costs.

3) In the event production costs are understood, the concept of a “Living Wage” has only recently entered the conversation.

The vast majority of coffee bought and traded around the world is done so in reference to the global commodity price of coffee. This price, often referred to as the “C-Market Price,” in no way factors in the farmer’s economic conditions and gives no weight to the true sustainability of those buying and trading price levels. It is, unfortunately, not very far removed from the oppressive colonial conditions that drove coffee’s ubiquity.
We’re now at a point where we can make some fairly solid conclusions that the #FarmToCup business model is extremely impactful. We owe a great deal to our sourcing partner and fellow B Corporation, Caravela Coffee, for their work to bring clarity to this world. Here’s how we’ve been able to gain more information:

1) Stone Creek Coffee does 80% of its own importation. While many roasters utilize importers, we’ve chosen to import and warehouse coffee ourselves whenever possible. This allows us to both eliminate an intermediary and work directly with farmers and exporters to achieve greater clarity about how the dollars are flowing.

2) Caravela Coffee works as a coffee exporter in many producing countries where they’re tracking the cost of production (COP) for the farmers, communities, and countries they work in. 

3) In addition to understanding the COP, Caravela has established a benchmark they’re calling “Minimum Prosperity Price” (MPP) which factors in the necessary sale price to foster farm upkeep, employee benefits, and reinvestments. This MPP serves as a realistic benchmark for sustainable coffee pricing.

Starting with our 2023 coffee buying, we are now trying to track COP & MPP for every lot of coffee that we buy. While the data can remain elusive at times as Caravela doesn’t work in all of the countries that we buy, and we do still purchase some lots through importers (which certainly isn’t a bad thing), we are able to gain actual economic data for roughly 90% of the coffee that we buy. 
In 2023, Stone Creek Coffee spent just over $1.6 million on green (raw) coffee. With those purchases in aggregate, we exceeded the Cost of Production by roughly $550,000. We exceeded the Minimum Prosperity Price by roughly $100,000. 
While we are excited by this impact, we also know that we are a very tiny drop in the massive coffee bucket. We are hopeful that over the years, more and more consumers will broaden their knowledge base regarding the origin of their products and the implications of their purchases. When you buy Stone Creek Coffee, not only are you supporting the work we do as a Milwaukee community member, you are also supporting work to make the coffee industry sustainable for all parties in the Farm to Cup supply chain. It might feel small, but you really can make a difference with your morning cup of coffee.
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