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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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