How to sustainably source coffee: a Q&A with Metric and Equator

When we disclose the amount we paid for a particular coffee, it assures consumers that the higher price they pay is directly linked to the cost of the green coffee. For producers, seeing how much we paid provides additional context around their compensation and improves their ability to negotiate.

As a company dedicated to sourcing coffee sustainably and creating a positive impact on the world, we view transparency as an essential tool and a driver for our objectives.

Q: What is ethical sourcing in the coffee supply chain?

Ethical sourcing in the coffee supply chain involves ensuring that coffee is produced and traded in a way that is socially responsible and environmentally sustainable. This includes fair and transparent pricing that provides a living wage for coffee farmers and workers, as well as safe and healthy working conditions. Ethical sourcing also involves promoting environmental sustainability by minimizing the use of pesticides and fertilizers, reducing waste, and supporting initiatives such as shade-grown and organic coffee production.

Additionally, ethical sourcing includes building long-term relationships with coffee producers, providing technical assistance and training, and promoting social and economic development in coffee-producing communities. Overall, ethical sourcing aims to create a more equitable and sustainable coffee supply chain for all stakeholders involved, from farmers and workers to roasters and consumers.

Q: What impact does the farmer’s wages have on coffee sustainability and the health of the land?

One of the most exemplary instances of addressing farmer wages is demonstrated by our friends at Azahar Coffee in Colombia. They have created a guide called "The Sustainable Coffee Buyer's Guide", which explores the cost of production across various coffee-growing departments in Colombia. Azahar's research reveals that the average cost of production differs significantly based on factors such as average farm size, yield, and necessary inputs.

Azahar identifies the prices required to a) surpass the poverty line, b) meet the minimum wage, and c) meet the minimum wage and have additional funds to reinvest in developing the farm. This information serves as a practical and accessible benchmark for coffee buyers to determine the farm gate price, and from there, the FOB price, which includes Azahar's margin and processing costs.

Along with a better income, producers can invest a portion of their profits back into pruning, fertilization, weeding, crop protection, irrigation and efficiently replacing nutrients back into the soil for a better yield.

Left: Xavier with producer Evin Moreno in El Cedral, Santa Barbara, Honduras. Right: Cupping at Azahar Coffee's Lab in Armenia, Quindio, Colombia.

Q: How do equity and sustainability intertwine in the coffee industry?

The coffee industry is a significant player in the global economy, and it is also a sector that faces numerous sustainability challenges. These challenges include environmental concerns, such as soil erosion, deforestation, and water depletion, as well as social issues such as poverty, child labor, and lack of access to education and healthcare.

Equity and sustainability are closely intertwined in the coffee industry because sustainable coffee production requires a balance between economic, social, and environmental considerations. Sustainable coffee production means ensuring that farmers and workers receive fair prices for their products, promoting environmentally friendly farming practices, and protecting natural resources.

Sustainable coffee production also involves environmental stewardship, such as protecting biodiversity and reducing greenhouse gas emissions. This can be achieved through practices such as agroforestry, which involves planting trees alongside coffee plants, and reducing the use of pesticides and fertilizers.
Overall, we believe that equity and sustainability are essential to the long-term viability of the coffee industry. By promoting trade fairness, protecting natural resources, and reducing negative environmental impacts, we can ensure that coffee production remains a sustainable and profitable industry for generations to come.

Q: How can sourcing practices become more equitable and provide transparency?

Specialty coffee roasters often use images to highlight their conscientious sourcing process and direct-to-farmer connection. They market transparency as an essential aspect of the coffee's value. However, some critics argue that this approach, similar to commodity fetishism, hides the humans behind the chain and creates division between consumers and producers. In a market that is inundated with information and variations of sustainability and certifications akin to Fairtrade, the gap between consumers and coffee farmers is difficult to close. Finally, transparency around pricing, including providing context for prices paid to farmers and ensuring that they receive a fair share of the final sale price, can help consumers understand the value of specialty coffee and the effort that goes into producing it.

Q: What is the C Market and how does it affect the sustainability of coffee?

The C Market is the trading price of Arabica coffee on the Intercontinental Exchange (ICE), which affects the price of all coffee regardless of origin or quality. It is not solely determined by supply and demand, which can result in hardship for small coffee farmers when prices drop.

Specialty coffee, which is typically produced by small-scale farmers, is often sold at a premium above the C price. However, even specialty coffee prices are often linked to the C price, which can limit the amount of revenue that farmers receive for their high-quality crops. As a result, many specialty coffee roasters have implemented a quality based and/or Cost-Plus pricing model which involves paying the producer prices based on two factors: quality and a price that covers their production costs, plus a profit margin.

Ultimately, the C Market can have an impact on the sustainability of coffee if prices do not reflect the true cost of production and do not provide sufficient income for farmers to invest in sustainable practices.

Xavier with producer Ovideo Gomez in Santa Barbara, Honduras.

Q: What impact has climate change had on coffee farming?

The shifting weather patterns, including prolonged dry spells, water shortages, storms, and irregular seasons, pose significant challenges not only to coffee production but also to the livelihoods of smallholder coffee farming families. The impact of these changing weather patterns is exemplified by my experience observing the aftermath of Hurricane Eta in Honduras, which affected not only rural communities but also urban poor who were already facing the economic consequences of the COVID-19 pandemic. The hurricane exacerbated the difficulties faced by these vulnerable populations, making it even more difficult for them to recover.

Q: What can happen if sustainability is not achieved in coffee?

For producers, if sustainability is not achieved, it means not earning a living income to support a decent standard of living, covering basic housing, food, healthcare, education, transportation and a bit extra for unexpected expenses.

The coffee market has historically been trading under a dollar per pound, far below the cost of production. To many, the market price seems irrational as it does not reflect the economic reality that coffee farmers face, nor does it take into account the investment required to produce high-quality, sustainably grown coffee.

Q: How can coffee drinkers do their part?

Consumers can make a significant impact on supporting sustainable coffee by learning about the coffee supply chain and the steps involved in getting coffee from the farm to your cup. One way to do this is by researching brands to determine their sustainability practices, including their sourcing methods, packaging materials, and waste reduction efforts. Another great way is to look out for any cuppings here you can learn about their offerings and ask the roasters for more information.

Q: What should coffee drinkers look for on the bag of coffee? What certifications are most impactful?

The truth about coffee certifications is that while retail premiums may exist for certified products, most of the major certifications are designed to encourage participants to continually improve and strive towards meeting more of the standards. For producers, there may be a perception of higher prices per pound, but this is not always the case.

While it is understandable that consumers who purchase certified coffee are sending a message to the industry that they value sustainable coffee, there is often little to no monitoring of these programs in practice. In reality, many of the sustainability certifications may have a modest positive effect, but only for those who can afford them.

Because of this, we opted to pursue our B Corp Certifications for Metric which had us go through a rigorous assessment process that evaluates our social and environmental performance across several categories, including governance, workers, community, environment, and customers.

Q: How do purchasing habits and trends impact the livelihoods of coffee farmers and farm workers? 

By choosing to purchase sustainable and ethically produced coffee, consumers can help to create demand for these products, which can, in turn, benefit small-scale coffee farmers by providing them with enough income to improve their farming practices which can look like: training and resources to help them improve their farming practices, increase productivity, and better management of their resources.

Overall, a better income for coffee farmers can have a positive impact on their lives and the lives of their communities. By supporting fair and sustainable coffee practices, together coffee roasters and consumers can help to ensure that coffee farmers are afforded access to basic needs such as food, healthcare, education, and housing. This can lead to improved health outcomes, increased educational opportunities, and a better quality of life.

Q&A with Ted Stachura from Equator Coffees

Ted Stachura has worked in the coffee industry since the mid 1990s and has been Director of Coffee at Equator Coffees in San Francisco for 12 years, overseeing sourcing, roasting, and quality assurance. He recently visited Cooperativa Sacaclí in Nicaragua, the first group of producers to export Regenerative Organic Certified coffee: a new and robust form of certification.

Q: What does sustainability in coffee mean?

Sustainability can mean a lot of different things. From farming practices, to business relationships, to packaging requirements, sustainability can have a broad range of applications. I see sustainability in coffee intrinsically interwoven with quality. A coffee producer that is focused on improving quality will inherently develop a sustainable business. Great tasting coffee demands higher prices, which in turn allows producers to invest in their farms and their families. Many of the coffee farms we buy from have been in the same family for one or more generations, and farm owners universally care about the health of their trees, the soil, wildlife, and the people who work the land. Farmers know that sustainable stewardship of the farm ecosystem is required if they are to hand down their farms to their own children.

 

Left: Ted visiting Cooperativa Sacaclí in Nicaragua. Right: Sunset in Nicaragua.

 

Q: How does Equator take part in supporting sustainable coffee?

We support coffee producers that farm in a sustainable way. Once we identify a high quality coffee we like and are interested in purchasing, we learn what we can about the farming practices behind the coffee. When an initial purchase leads to more, we schedule time to visit the farms we buy from to meet the producers. Not only do these in-person meetings allow us to see the farms and mills where the coffees are produced, it is often the beginnings of our desired goal of establishing long term, sustainable business relationships with the people who grow our coffee.

Many of the farms we purchase coffee from go beyond basic sustainable farming practices and decide to stop using any kind of chemical pesticides, hebacies, fungicides, and fertilizers. By going completely organic, these farmers are taking a step further down the path towards sustainable coffee. Equator has a long-term commitment to directly sourced, organic, and fair-trade coffees; Regenerative Organic Certified is the logical next step. As a coffee roaster, we are responsible to every stakeholder in the value chain to ensure that our business has a positive impact on the world. Holistic solutions like ROC practices are vital to preserving our planet and the farms of our coffee growing partners.

Q: What is Regenerative Organic Certified?

Regenerative agriculture is a practice of holistic farming where everything is seen as interconnected and vital. It is broadly defined as practices that support sustainable environmental outcomes that promote climate resilience, which mitigates the effects of climate change and protects the future of our planet. Regenerative farming practices support the entire ecosystem rather than focusing solely on high crop yields.

Regenerative Organic Certified expands on existing organic certifications, while championing three pillars: Soil Health & Land Management, Animal Welfare, Farmer & Worker Fairness. Although the roots of the certification go back several decades, it was just introduced to coffee. In April of 2022, Equator became licensed to offer Regenerative Organic Certified coffee. We established a partnership with Cooperativa Sacaclí in Nicaragua, the first group to export Regenerative Organic Certified coffee to the United States. Expect to see more and more Regenerative Organic Certified coffee in the coming years.

Q: What can happen if sustainability is not achieved in coffee?

Simply put, if sustainability is not achieved in coffee production, we are at risk of losing the crop that all coffee drinkers depend on as a daily pleasure. Up to 50% of global land area suitable for coffee production may be lost by 2050 due to climate change. Not only will this drive up the cost of coffee, it will simultaneously drive down quality. Not to mention the incalculable social and economic cost of over 12 million smallholder coffee farmers being displaced from their land. We are already seeing waves of migration away from coffee growing communities and toward hopeful opportunities elsewhere.

Cooperativa Sacaclí in Nicaragua.

Q: How have you seen climate change impact coffee growing?

There has never been any doubt in farmers’ minds that the climate is changing. They have been seeing very real impacts of climate destabilization in recent years, and its equally real impacts on the crop they depend on for their livelihood. In a given year, farmers are seeing longer periods without rain, sometimes followed by violent storms that may include hail. When temperatures drop below freezing, coffee trees suffer and may even die, setting the farm back a few seasons as the trees need to be pruned or replanted. Healthy soil and crop diversity is one way to mitigate the impacts of climate change.

Ted standing next to co-op member Jaime Antonio Dormuz, with David Palazuelos and Gema Lopez from Sustainable Harvest Coffee Importers on either side.

Q: How can sourcing practices become more equitable?

By paying more for coffee we can provide an equitable share of the price of coffee with producers. When we see very cheap coffee on grocery shelves, we know someone is covering the cost of that savings, and you can be sure it is the people who grow the coffee. That’s why we work to develop long-term business relationships with coffee producers who care for their farms, and the environment, while aggressively pursuing the production of high quality, sustainable coffee. When we return to visit farmers that we have been working with for many years, we see firsthand the investments they are able to make in their farms, mills and within the communities where they grow coffee.

Visit Metric Coffee and Equator Coffees to learn more about their coffees and sourcing practices. We also have several of their coffees featured in our Coffee Collection!

Photography courtesy of Metric Coffee and Equator Coffees.