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                                                                                                                      Simplifying the Supply Chain

                                                                                                                          Most coffee consumers see coffee as a ge-
                                                                                                                      neric commodity, but it is essential to our morn-
                                                                                                                      ing mood. This year coffee, which comes from
                                                                                                                      some of the most economically challenged coun-
                                                                                                                      tries in Latin America, Africa and Asia, is being
                                                                                                                      hit on all fronts, and hard. According to the In-
                                                                                                                      ternational Coffee Organization (ICO), the coffee
                                                                                                                      market remained relatively steady during the 2008
                                                                                                                      financial crisis, although consumers shifted to
                                                                                                                      in-home consumption and purchased more af-
                                                                                                                      fordable coffee. In a recent report, the ICO warns
                                                                                                                      that none of the previous financial crises compare
                                                                                                                      in terms of depth and breadth of COVID19, and
                                                                                                                      their analysis warns of an almost 1:1 relationship
                                                                                                                      between global GDP and coffee consumption.
                                                                                                                          Here as what could help, direct trade comes
                                                                                                                      to mind. Direct trade, albeit a fuzzy concept, is
                                                                                                                      generally regarded as a positive and socially re-
                                                                                                                      sponsible practice in today’s coffee industry.
                                                                                                                      Buying directly cuts out the middleman—coyotes
                                                                                                                      and cooperatives alike—so more money stays with
                                                                                                                      the farmers. But what about another trend: Large
                                                                                                                      transnational roasters that set up branch offices



                                                                                                                                                                           to buy directly from smallholders, eliminating
                                                                                                                                                                           the middleman buyer yet paying the same low
                                                                                                                                                                           price. This is as direct as trade gets, yet it brings
                                                                                                                                                                           up some serious concerns surrounding justice
                                                                                                                                                                           and sustainability.
                                                                                                                                                                               Being a coffee nerd, Lewis decided to quit
                                                                                                                                                                           his job in finance and start a business, It had to
                                                                                                                                                                           be in coffee this time. “I originally wanted to
                                                                                                                                                                           operate with roasted coffee and to be more unique,
                                                                                                                      Over 70% of Coffee                                   I wanted to source my own coffee from around
                                                                                                                                                                           the world. I spent several years travelling in
                                                                                                                      Exchange's registers                                 Rwanda, Ecuador, Peru and several other coun-
                                                                                                                                                                           tries developing relationships to be able to import
                                                                                                                      buyers repurchase                                    their coffees into China. I also built relationships
                                                                                                                                                                           with a lot of Chinese roasters who were all inter-
                                                                                                                      from existing                                        ested  in getting  unique  coffees  direct  from
                                                                                                                                                                           source.” It was at this time that he realised it was
                                                                                                                      producers.                                           time someone built a B2B marketplace for the
                                                                                                                                                                           green coffee trade.


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