Meet your Farmers

This past week, Growers First Coffee presented at the Vator Splash event in San Francisco. Out of a pool of almost 100 companies, we were selected, along with 9 others, to present our model of transparency and transformation in front of a crowd of business leaders, entrepreneurs, and investors. We received an overwhelming amount of positive feedback from judges and attendees who were excited by the Growers First story and our vision for empowering remote, small-plot coffee farmers. This event was an important step in our mission to expand the work of Growers First.

We couldn't have made it to the Vator Splash event without the help of you, our Growers First supporters. Presenters were selected by a round of voting by peers and supporters, followed by a round of ranking by a panel of judges. In the voting round, we surged from the middle of the pack to the top five in a matter of hours. Our sincere thanks go out to all of you who voted online and spread the word by mouth and through email, Facebook and Twitter.

Christmas shopping? Check.

Here at Growers First, we're excited about the holidays, and even more excited that we don't have to search far and wide for the perfect holiday gift. The answer is obviously Growers First coffee.

We just sent out our holiday email promoting this gift, as well as announcing the chance to get free Growers First swag and sharing a pretty cool story about Rito. If you didn't get the email, you can check it out below.

This holiday season you can help the Growers First Foundation by giving the gift of coffee! Stuff stockings or tie bows 'round bags of Growers First as you treat friends, family, customers and employees to a coffee that empowers the farmers who grew it. Giving coffee is easy - we'll deliver it with a personalized message from you right to the doors of the people you care about most. Visit our store, add coffee or a coffee club subscription to your cart, and at the checkout, put in the address of the friend, loved one, or colleague that deserves being treated to a warm gift. Add a personalized note in the comment field, and it will be delivered along with their coffee.       With every 6 month or greater subscription to the coffee club, we'll add a free Growers First Coffee mug! Let the world know the empowerment you support with every cup you drink.     If you've seen the Growers First video about Rito, you'll be happy to know that the impact you've made on his life is getting paid forward. Several board members and their families worked alongside Rito to put in another cement floor over Thanksgiving. Chavalito is pictured here with his wife and youngest daughter. Rito used to make $97/year when he started with Growers First, now he makes $1500/year and has the nicest home in the village. Chavalito has 11 kids and had a dirt floor...until today.

Controversy within the Fair Trade organization may make Direct Trade the more obvious choice for socially conscious coffee drinkers in America. 

An internal argument between Fair Trade International and Fair Trade USA ended last week with an official split between the organizations. 

The primary motives for this division are as follows:

1) Which farmers can get Fair Trade certified? 

A. Fair Trade USA will now allow large plantations to receive certification. The group claims this decision is intended to improve the lives of plantation workers, who without land or autonomy, are generally the poorest group in a coffee community.

B. Fair Trade International is committed to keeping the FT certification for small farms and farmers. This group feels that allowing plantations to acquire certification will increase their power and profit to the detriment of small farms, who will have a harder time competing in the global market, while hardly helping the plantation worker. 

2) What constitutes Fair Trade?

A. Fair Trade USA has decided to grant certification when 10% of the beans are fair trade. They hope this decision will double sales in the US (by 2015), and that by increasing the volume of sales, they will be able to increase the impact of Fair Trade. They will also no longer be required to pay fees to the International umbrella group, an amount that topped $1.5 million last year alone. 

B. Fair Trade International will keep the standard certification requirement of 20%, and feels that the US groups' decision to dilute the standards is motivated by earning more fees (every certification is accompanied by fees that cover the necessary audits, one of the arguments against Fair Trade in general). This group is concerned that this will encourage companies to include only the minimal amount necessary for certification. 

This split has forced many companies to re-evaluate where they stand on the Fair Trade issue, including industry giants like Starbucks, Wal-Mart, Whole Foods and Green Mountain. 

Certification logos are about to change to delineate the two groups, making things more confusing for consumers, who may not be aware of how the certifications differ. The controversy may make Direct Trade models more popular, as people come to realize how much of the premium they pay for Fair Trade certification is channeled towards administrative and auditing costs, and how much of the product is actually Fair Trade.

For the caring consumer, small companies with direct and transparent relationships with growers are a good choice…..less is lost in the shuffle and more time and money are concentrated on those who really need it. You can forget about percents and buy Grower's First coffee----all the information you need about where your money is going and how your coffee was grown is right on our website!!

I hope everyone had a happy holiday weekend and gave thanks for the coffee farmers that made that post-lunch espresso possible!

This Christmas, consider a Grower's First coffee subscription for your family and friends….or even for the office…..you will be giving not just a necessary luxury of the highest quality, but the gift of hope to farmers who work hard to sell enough coffee to provide for their families and communities. 

(not coffee, but close enough!)

Growers First uses a distinctive trading model that, while sharing some of the values and methods of the Direct Trade and Fair Trade models, aims to keep the farmer at the center of the supply chain and ensure that coffee communities earn maximal economic returns for their hard work.

We call our methodology "Traceable Transformation" and it has proven to be an effective means of providing quality coffee while kick-starting agricultural and community development….all through a 3 phase process that is transparent for all parties. 

The GF organization encompasses a non-profit and a for-profit arm, and so is able to engage with coffee communities on a variety of issues, such as economic, agricultural, and community development. We may have some of the necessary tools, but the communities with which we work are in the driver seat and use democratic methods to determine their priorities and the direction of development. 

The Supply Chain:

Farmer --> Cooperative --> Importer/Roaster/Retailer --> You! 

The General Growers First Trajectory:

PHASE ONE

1) Cooperatives: Coffee communities form collectives (like in the Fair Trade model) to diffuse costs and increase selling power. A percentage of coffee revenues are also shared within the collective and directed towards agronomic or community efforts agreed upon by the group. 

2) Agronomic Development: Farmers work with GF-funded agronomists to adjust growing methods, with the goal of increasing quality, yield, and marketability. Many coffee growers are unaware of the demands and desires of the Western market, so GF has proven to be a valuable source of information and training that allows farmers to ultimately receive maximum returns from market participation. 

3) Organic: Growers team up with organic specialists to discuss how to achieve organic certification. Methods for minimizing environmental impact and maximizing soil longevity and other natural resources are discussed. 

4) Commodities Training: Growers learn about how the international coffee trade works, the market they produce for, and how to capture the highest premium for their goods.

5) Connections: GF links cooperatives to potential buyers, and this direct relationship increases farmer profits.

This list does not discuss GF's more socially-oriented programs (that post will come later), but the measures above alone have shown to increase the value of existing coffee crops by 120%, which translates to an 135% increase in grower returns. Synergy and a striving for best-practices make this remarkable increase possible. 

PHASE TWO 

Phase Two is like a reinforcement of the process developed in Phase I and gives the growers and their families the tools to grow self-sufficient, valuable businesses. 

--Expanding cooperative activities with processing facilities, nurseries, and even a roaster, which allows villagers to sell packaged coffee directly to local and regional markets

--Crop diversification (raising livestock or planting trees in addition to growing coffee, for example)

--Facilitation of micro-loans for farmers and cooperatives to pursue value-added or social projects

--Leadership and governance training to improve the cooperatives as well as business and agricultural practices

Phase Two has shown to result in an additional 300% improvement in profits, but is beneficial in countless other, less quantifiable ways for the farmer, the family, the community, the land, and the entire system involved in coffee production.

PHASE THREE

By Phase Three, things have stabilized and improvements can be implemented at the discretion of the community. Seller-Buyer relationships have been cemented, income has become dependable, and communities are more aware of the opportunities and tools available for development in all aspects of life. 

Most importantly, these communities have found their voice and with it, the ability to demand fairness in the marketplace. Empowerment and hope are the real goals of what we do, because with them, the coffee communities themselves can take over their own transformation. 

So, while the Grower's First Model is much more than simply a trade relationship, we think it's a pretty good--and effective-- prototype for improving the lives of coffee farmers and communities and, as a result, the coffee in your cup!